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Add State and Local Incentives to the 30% Federal Tax Credit
Learn about solar incentives and solar rebates. Find out what is available to you through federal, state and local programs, as well as local utilities.
State and Local Solar Panel Rebates
Combining the Federal tax credit with state incentives you qualify for may significantly reduce the cost of your solar PV system.

Read more good news about these programs and important tips on qualifying below.
Federal Solar Tax Credit
30% of the cost of your Solar Electric System and installation can be deducted from your federal tax bill.

Read more about this credit and what qualifies.





Solar Incentives by State… Click on your state to see what is available.    
Solar States


— You may be able to afford a larger solar PV system than you originally thought!
— You may be able to add the battery backup system you were planning to buy in a year or two



The Good News About Solar System Incentives, Qualifications and Tips
Some solar incentive programs pay you back over time, based on the energy you generate. Other solar incentives are one-time payments of rebates or credits. Incentive requirements and definitions may vary between states.

Incentive types can be specifically for residential, schools, business, or industrial; or inclusive of all of them. Solar incentives are mainly for grid tied systems and are sometimes available for off grid systems.

The incentives may be only for solar photovoltaic (electric), for electricity generated by wind, or for solar thermal (hot water generation). Other types of incentives may incorporate multiple solar technologies.

Programs with yearly or periodic application dates have credits or rebate rates that may be stepped down over time.

To qualify for incentives, your solar system may have to be installed by a licensed Photovoltaic System Installer, and/or connected to the grid by a licensed Electrician. This may be particularly true for Grid-Tie (Grid-Intertied) systems.
Plan ahead and act quickly. Many incentive programs are time sensitive. First-come-first-served programs, such as lotteries, can be spoken for in minutes after the opening of their application date.

Be careful including incentives in your PV system's budget due to requirements and possible deadlines to meet before qualifying.

Always consult a tax professional in regards to your eligibility for tax incentives.





Solar Incentive Glossary
Battery Backup Systems
Battery backup systems can store electricity from the grid or a fuel-powered generator to provide emergency power when the grid goes down. It can also store energy created PV system to power appliances and lights at night after the sun goes down.

Feed in Tariffs,
a Performance Based Incentive, or PBI

(Available for Grid Tied Systems.)
Feed-in Tariffs are typically long term contracts with your local utility for performance-based compensation.

The contracts are typically a 15-25 year purchase agreement at a guaranteed rate. The rate may decrease over time as specified in the agreement. Feed-in Tariffs may ultimately pay for your PV system or even exceed your initial investment depending on the specifics in the contract.

Originally started in Germany in 1990 and restructured in 2000 to include the right to interconnect to the utility grid. It was designed as an incentive to promote cost-effective renewable energy use and advancements in technologies. Due to its success, the current German policy is the cornerstone for the creation of many feed-in tariff programs around the globe.

Green Building Programs
(May be available for Off-grid and/or Grid-tied Systems.)
Green Building Programs are generally for new construction and remodeling, or just adding a solar electric system. The most common incentives are reductions or waivers of building permit fees. Some state or local organizations offer coupons that reduce construction and/or installation costs to homeowners. The home or business owner usually gives the coupon to their program-authorized installer/contractor. Once the system is installed the installer/contractor can be reimbursed for the amount of the coupon by the program's organization.

Grid-Tied PV Systems
Grid tied systems are inter-connected to send energy back to the grid when your solar electric system creates more than you're using; and you can receive energy from the grid when you're using more electricity than your system is generating at the moment. Learn more about grid-tied solar systems.

Loans
(May be available for Off-grid and/or Grid-tied Systems.)
State or local governments may offer low or zero interest loans for renewable energy projects. Terms are typically 10 years or less. If you are going to purchase or remodel a home that you are going to add a solar system to you may also want to see the Energy Star website for information on Energy Improvement Mortgages (EIMs).

Property-Assessed Clean Energy (PACE) financing may be offered by states that have been authorized to participate in this program. The amount of the loan is determined by a special assessment of your property and is typically repaid over a period of years.

Check with your local banks and credit unions as they may offer renewable energy loans for less than the prime rate. Also consider that mortgage loans and home equity loans can offer several advantages: longer terms, lower interest rates than conventional bank loans, and tax-deductible interest.
Net Metering
(Available for Grid Tied Systems.)
As of January 2012, only four states do not have net metering policies ‐ South Dakota, Mississippi, Alabama and Tennessee. These programs are for utility customers who generate their own electricity and feed excess energy back into the grid. Net-metered customers may use grid energy when their electrical demand exceeds their solar electric system's output. Solar electric credit rates are applied to the customer's total electric use and are shown on the utility bills.

The credit rates and rules vary from state to state. Unused solar electric system credits may expire in a specified time period or they may be carried over from year to year. The credits may only be applied to the utility bill or you may be allowed to get a refund check at the end of a designated period, usually the end of the year.

Off-Grid PV Systems
Off grid systems do not feed energy back to the grid. You may be completely independent from the grid or you may be receiving grid electricity to supplement your system (Grid-Assisted). Learn more about off-grid solar systems.

Solar PV System (Photovoltaics)
A solar PV system uses photovoltaic panels (or modules) to create electricity. This powers appliances, lights, and other electric equipment.

Solar Thermal System
A solar thermal system uses panels (or modules) to heat water. The hot water is typically used instead of a water heater for everyday water use, or in a radiant heating system to warm the air.

State and Local Tax Incentives
(May be available for Off-grid and/or Grid-tied Systems.)
  • Personal tax incentives include income tax credits (dollar-for-dollar reduction on what you owe) and income tax deductions (reduces your taxable income).
  • Property tax exemptions, exclusions and credit incentives generally exclude the added value of the system from your yearly property tax. Abatements may reduce a percentage of your yearly property tax over time.
  • State sales tax incentives can be an exemption from or a credit towards the applicable sales tax.
Utility Rate Discounts & Rebates
(Available for Grid Tied Systems.)
Some utilities and state or local programs may offer temporarily reduced rates on utility bills, or one time rebates on the installation of solar systems and purchases of energy efficient appliances and/or HVAC systems.


Updated: 09/17/2016
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Iowa Solar Incentives
Updated: 09/17/2016
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INCENTIVE NAME: Solar Easements
CATEGORY: Regulatory Policy
TYPE: Solar/Wind Access Policy
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA04R
LAST UPDATE: 01/13/2016

INCENTIVE NAME: Renewable Energy Equipment Exemption
CATEGORY: Financial Incentive
TYPE: Sales Tax Incentive
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA01F
DETAILS:
Incentive Amount - 100% of sales tax
Maximum Incentive - None
WEBSITE: http://www.state.ia.us/tax/educate/salespubs.html
LAST UPDATE: 02/10/2016

INCENTIVE NAME: Property Tax Exemption for Renewable Energy Systems
CATEGORY: Financial Incentive
TYPE: Property Tax Incentive
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA08F
DETAILS:
Incentive Amount - Solar and wind: 100% exemption for 5 years
Geothermal: 100% exemption for 10 years
Maximum Incentive - Not specified
LAST UPDATE: 02/10/2016

INCENTIVE NAME: Alternate Energy Revolving Loan Program
CATEGORY: Financial Incentive
TYPE: Loan Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA06F
DETAILS:
Maximum Loan - $1,000,000 for most applicants; $500,000 for rural electric cooperatives and municipal utilities
Loan Term - 0% interest
Maximum term of 20 years
Non-regulated utilities limited to 1 loan every 2 years
BUDGET: Revolving Fund
WEBSITE: http://iowaenergycenter.org/aerlp
LAST UPDATE: 02/05/2016

INCENTIVE NAME: Mandatory Utility Green Power Option
CATEGORY: Regulatory Policy
TYPE: Mandatory Utility Green Power Option
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA03R
WEBSITE: https://iub.iowa.gov/
LAST UPDATE: 01/29/2016

INCENTIVE NAME: Alternative Energy Law (AEL)
CATEGORY: Regulatory Policy
TYPE: Renewables Portfolio Standard
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA01R
DETAILS:
Standard - 105 MW of renewable generating capacity
Technology Minimum - N/A
Credit Trading/Tracking System - No (utilities may only participate in REC credit trading programs for renewable energy production unrelated to fulfilling their AEL requirements)
LAST UPDATE: 03/15/2016

INCENTIVE NAME: Net Metering
CATEGORY: Regulatory Policy
TYPE: Net Metering
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA02R
DETAILS:
Applicable Utilities - Investor-owned utilities
System Capacity Limit - 500 kW
Aggregate Capacity Limit - No limit specified
Net Excess Generation - Credited to customer's next bill at retail rate; carries over indefinitely; excess credits cannot be cashed out
Ownership of Renewable Energy Credits - Not addressed
Meter Aggregation - Not addressed; meter aggregation and virtual net metering are not generally available to customers
UTILITIES: Interstate Power and Light Co, MidAmerican Energy Co,
LAST UPDATE: 06/18/2015

INCENTIVE NAME: Interconnection Standards
CATEGORY: Regulatory Policy
TYPE: Interconnection
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA05R
DETAILS:
Applicable Utilities - Investor-owned utilities and Linn County Renewable Electricity Cooperative
System Capacity Limit - 10 MW*
Standard Agreement - Yes
Insurance Requirements - Vary by system size and type; levels established by IUB
External Disconnect Switch - Utility's discretion
Net Metering Required - Yes, but only for customers of investor-owned utilities with renewable energy facilities up to 500 kW
LAST UPDATE: 09/30/2015

INCENTIVE NAME: Renewable Energy Production Tax Credits (Corporate)
CATEGORY: Financial Incentive
TYPE: Corporate Tax Credit
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA13F
DETAILS:
Incentive Amount - $0.015/kWh (IA Code § 476C) or $0.01/kWh (IA Code § 476B) for 10 years after facility begins producing energy
Eligible System Size - Iowa Code 476B: 2 MW - 30 MW generally for applications after March 1, 2008; Schools, Hospitals: Minimum 750 kW for applications after June 30, 2009
Iowa Code 476C: Non-wind facilities may be no more than 60 MW nameplate capacity. Facilities that consume energy on-site must be at least 750 kW nameplate capacity. For both wind and non-wind facilities, an individual facility's capacity eligibility is limited to 2.5 MW per qualifying owner.
Equipment Requirements - Facilities must be certified by the Iowa Utilities Board (IUB)
Carryover Provisions - Credits in excess of tax liability in a given year may be carried forward up to 7 years
WEBSITE: https://iub.iowa.gov/renewable-energy-tax-credits
LAST UPDATE: 07/02/2015

INCENTIVE NAME: Renewable Energy Production Tax Credit (Personal)
CATEGORY: Financial Incentive
TYPE: Personal Tax Credit
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA14F
DETAILS:
Incentive Amount - $0.015/kWh or $0.01/kWh for 10 years after facility begins producing energy
Eligible System Size - Iowa Code 476B: 2 MW - 30 MW generally for applications after March 1, 2008; Schools, Hospitals: Minimum 750 kW for applications after June 30, 2009
Iowa Code 476C: Non-wind facilities may be no more than 60 MW nameplate capacity. Facilities that consume energy on-site must be at least 750 kW nameplate capacity. For both wind and non-wind facilities, an individual facility's capacity eligibility is limited to 2.5 MW per qualifying owner.
Equipment Requirements - Facilities must be certified by the Iowa Utilities Board (IUB)
Carryover Provisions - Credits in excess of tax liability in a given year may be carried forward up to 7 years
WEBSITE: https://iub.iowa.gov/renewable-energy-tax-credits
LAST UPDATE: 07/02/2015

INCENTIVE NAME: Solar Energy Systems Tax Credit (Personal)
CATEGORY: Financial Incentive
TYPE: Personal Tax Credit
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA84F
DETAILS:
Incentive Amount - 18%
Maximum Incentive - $5,000
Carryover Provisions - Excess credit may be taken for up to 10 years
BUDGET: $5,000,000 cumulative limit per year (personal and corporate)
WEBSITE: https://tax.iowa.gov/solar-energy-system-tax-credits
LAST UPDATE: 07/02/2015

INCENTIVE NAME: Solar Energy Systems Tax Credit (Corporate)
CATEGORY: Financial Incentive
TYPE: Corporate Tax Credit
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: IA85F
DETAILS:
Incentive Amount - 18%
Maximum Incentive - $20,000
Carryover Provisions - Excess credit may be taken for up to 10 years
BUDGET: $5,000,000 cumulative limit per year (corporate and personal)
WEBSITE: http://www.iowa.gov/tax/business/solarcredits.html
LAST UPDATE: 07/02/2015

INCENTIVE NAME: IADG Energy Bank Revolving Loan Program
CATEGORY: Financial Incentive
TYPE: Loan Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
SOURCE: American Recovery and Reinvestment Act (ARRA)
CODE: IA87F
DETAILS:
Maximum Loan - $300,000
Loan Term - 1% or higher interest rate
Origination fee: 1% of loan amount which can be financed
Servicing Fee: No servicing fee, electronic payments required
Term: Up to 10 years

WEBSITE: http://www.iadg.com/services/financial-assistance/iadg-energy-bank.aspx
LAST UPDATE: 02/10/2016

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