Wholesale Solar Logo
1-800-472-1142
You're logged in as a dealer. Where applicable, special dealer pricing is shown with a purple "Add to Quote" button instead of the blue "Add to Cart" button.

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: 12/03/2016
Close X
Alaska solar rebates and solar tax credits California solar rebates and solar tax credits Oregon solar rebates and solar tax credits Nevada solar rebates and solar tax credits Arizona solar rebates and solar tax credits New mexico solar rebates and solar tax credits Utah Solar solar rebates and solar tax credits Idaho solar rebates and solar tax credits Washington solar rebates and solar tax credits Montana solar rebates and solar tax credits Wyoming solar rebates and solar tax credits South Dakota solar rebates and solar tax credits North Dakota solar rebates and solar tax credits Minnesota solar rebates and solar tax credits Wisconsin solar rebates and solar tax credits Colorado solar rebates and solar tax credits Nebraska solar rebates and solar tax credits Kansas solar rebates and solar tax credits Iowa solar rebates and solar tax credits Missouri solar rebates and solar tax credits Oklahoma solar rebates and solar tax credits Texas solar rebates and solar tax credits Louisiana solar rebates and solar tax credits Arkansas solar rebates and solar tax credits Mississippi solar rebates and solar tax credits Tennessee solar rebates and solar tax credits Alabama solar rebates and solar tax credits Florida solar rebates and solar tax credits Georgia solar rebates and solar tax credits South Carolina solar rebates and solar tax credits North Carolina solar rebates and solar tax credits Illinois solar rebates and solar tax credits Michigan solar rebates and solar tax credits Indiana solar rebates and solar tax credits Kentucky solar rebates and solar tax credits Ohio solar rebates and solar tax credits West Virginia solar rebates and solar tax credits Virgina solar rebates and solar tax credits Pennsylvania solar rebates and solar tax credits New York solar rebates and solar tax credits Maine solar rebates and solar tax credits District of Columbia solar rebates and solar tax credits Maryland solar rebates and solar tax credits Delaware solar rebates and solar tax credits New Jersey solar rebates and solar tax credits Connecticut solar rebates and solar tax credits Rhode Island solar rebates and solar tax credits Massachusetts solar rebates and solar tax credits New Hampshire solar rebates and solar tax credits Vermont solar rebates and solar tax credits Hawaii solar rebates and solar tax credits
Michigan Solar Incentives
Updated: 12/03/2016
Close X
INCENTIVE NAME: Nonrefundable Business Activity Tax Credit
CATEGORY: Financial Incentive
TYPE: Industry Recruitment/Support
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: MI15F
DETAILS:
Incentive Amount - Varies
Maximum Incentive - None
LAST UPDATE: 07/09/2015

INCENTIVE NAME: Refundable Payroll Tax Credit
CATEGORY: Financial Incentive
TYPE: Industry Recruitment/Support
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: MI07F
DETAILS:
Incentive Amount - Varies, credit is calculated by multiplying the payroll amount attributable to qualified employees by the income tax rate for that year
Maximum Incentive - None
WEBSITE: http://www.michigan.gov/taxes/0,4676,7-238-59553-265031--,00.html
LAST UPDATE: 05/18/2015

INCENTIVE NAME: Interconnection Standards
CATEGORY: Regulatory Policy
TYPE: Interconnection
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: MI02R
DETAILS:
Applicable Utilities - Investor-owned utilities, electric cooperatives
System Capacity Limit - No limit specified
Standard Agreement - Yes
Insurance Requirements - Vary by system size and/or type; levels established by PSC
External Disconnect Switch - Not addressed
Net Metering Required - No
WEBSITE: http://www.michigan.gov/mpsc/0,4639,7-159-16393_48212_58223---,00.html
LAST UPDATE: 07/20/2015

INCENTIVE NAME: Energy Efficiency in State Buildings
CATEGORY: Regulatory Policy
TYPE: Energy Standards for Public Buildings
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: MI05R
WEBSITE: https://www.energycodes.gov/adoption/states/michigan
LAST UPDATE: 05/19/2015

INCENTIVE NAME: City of Ann Arbor - Green Power Purchasing
CATEGORY: Regulatory Policy
TYPE: Green Power Purchasing
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: MI08R
DETAILS:
Renewables % or Amount - 30% by 2015 in municipal operations
5% by 2015 in community-wide operations
WEBSITE: http://www.a2gov.org/departments/finance-admin-services/purchasing/Pages/Home.aspx
LAST UPDATE: 07/20/2015

INCENTIVE NAME: City of Lansing - Green Power Purchasing Policy
CATEGORY: Regulatory Policy
TYPE: Green Power Purchasing
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: MI11R
DETAILS:
Renewables % or Amount - 20% by 2020
WEBSITE: http://www.lansingmi.gov/cityoflansing_page
LAST UPDATE: 06/25/2015

INCENTIVE NAME: City of Grand Rapids - Green Building Requirements for Municipal Buildings
CATEGORY: Regulatory Policy
TYPE: Energy Standards for Public Buildings
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: MI12R
WEBSITE: http://www.experiencegr.com/about-grand-rapids/green-grand-rapids/
LAST UPDATE: 07/09/2015

INCENTIVE NAME: City of Grand Rapids - Green Power Purchasing Policy
CATEGORY: Regulatory Policy
TYPE: Green Power Purchasing
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: MI13R
DETAILS:
Renewables % or Amount - 22% under current purchase; goal of 100% by 2020
Source - Landfill Gas, Wind, Solar, Hydroelectric
Energy is from Michigan-based resources
LAST UPDATE: 07/09/2015

INCENTIVE NAME: Renewable Energy Standard
CATEGORY: Regulatory Policy
TYPE: Renewables Portfolio Standard
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: MI16R
DETAILS:
Standard - All utilities: 10% by 2015
DTE Electric: 300 MW of new renewables by 2013 and 600 MW by 2015
Consumers Energy: 200 MW of new renewables by 2013 and 500 MW by 2015
Technology Minimum - No
Compliance Multipliers - Yes, see summary for more information
REC Lifetime - 3 years
Credit Trading/Tracking System - Yes (MIRECS)
Alternative Compliance Payment - N/A
WEBSITE: http://www.michigan.gov/mpsc/0,1607,7-159-16393_53570---,00.html
LAST UPDATE: 11/19/2015

INCENTIVE NAME: Renewable Energy Renaissance Zones
CATEGORY: Financial Incentive
TYPE: Industry Recruitment/Support
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: MI21F
DETAILS:
Incentive Amount - 100% abatement of Michigan Business Tax*, state education tax, personal and real property taxes, and local income taxes
Maximum Incentive - None
Terms - Tax abatements last up to 15 years, phased out in 25% increments over last 3 years
WEBSITE: http://ref.michigan.org/medc/services/sitedevelopment/renzone/index.asp
LAST UPDATE: 07/16/2015

INCENTIVE NAME: DTE Energy - Solar Currents Program
CATEGORY: Financial Incentive
TYPE: Rebate Program
SECTOR: Utility
TECHNOLOGY: Solar Photovoltaics,
CODE: MI30F
DETAILS:
Incentive Amount - Residential Rebate: $0.20/W
Residential Production Incentive: $0.03/kWh
Non-Residential Rebate: $0.13/W
Non-Residential Production Incentive: $0.02/kWh
Eligible System Size - 1 kW - 20 kW DC per site; systems must generally be sized not to exceed on-site energy needs
Equipment Requirements - PV modules must be CEC listed; inverters must be approved by DTE (UL 1741 and IEEE 1547.1 approved inverters may also qualify upon review by DTE engineers); all installations require a generation meter
Installation Requirements - Systems must be grid-tied and net metered; installations must meet all applicable federal, state, local, and manufacturer's codes and standards and be installed in accordance with DTE Interconnection Guidelines.
Ownership of Renewable Energy Credits - DTE Energy
BUDGET: 2009-2011: $25 million
WEBSITE: https://www2.dteenergy.com/wps/portal/dte/residential/productsPrograms/details/SolarCurrents/
UTILITIES: Detroit Edison Co,
LAST UPDATE: 11/30/2015

INCENTIVE NAME: Local Option - Property Assessed Clean Energy
CATEGORY: Financial Incentive
TYPE: PACE Financing
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: MI91F
DETAILS:
Terms - Lender consent is required. Minimum project size is $10,000.
LAST UPDATE: 05/19/2015

INCENTIVE NAME: Michigan Saves - Home Energy Loan Program
CATEGORY: Financial Incentive
TYPE: Loan Program
SECTOR: Non-Profit
TECHNOLOGY: Solar Photovoltaics,
CODE: MI98F
DETAILS:
Maximum Loan - $30,000
Loan Term - 12-120 monthsMaximum APR: 6.99% (statewide coverage available at 4.99% APR)
No prepayment penalty

WEBSITE: http://michigansaves.org/
LAST UPDATE: 03/24/2016

INCENTIVE NAME: City of Ann Arbor - PACE Financing
CATEGORY: Financial Incentive
TYPE: PACE Financing
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: MI112F
DETAILS:
Terms - Project costs: $10,000-$350,000, not to exceed 20% of the property's State Equalized Value
Lien to value of the property cannot exceed 99% of twice the State Equalized Value
WEBSITE: http://a2energy.org/commercial-savings
LAST UPDATE: 06/24/2015

INCENTIVE NAME: City of Detroit - SmartBuildings Detroit Green Fund Loan
CATEGORY: Financial Incentive
TYPE: Loan Program
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
SOURCE: The American Reinvestment and Recovery Act (ARRA) of 2009; State Energy Program
CODE: MI114F
DETAILS:
Maximum Loan - $100,000
Loan Term - 7 years.
Interest Rate - An initial interest rate of 2.99% which can increase to 5.99 % per annum over time.
WEBSITE: http://www.degc.org/businesses/smartbuildings-detroit
LAST UPDATE: 05/19/2015

INCENTIVE NAME: Lean and Green Michigan PACE
CATEGORY: Financial Incentive
TYPE: PACE Financing
SECTOR: Local
TECHNOLOGY: Solar Photovoltaics,
CODE: MI117F
WEBSITE: http://www.leanandgreenmi.com/
LAST UPDATE: 03/07/2016

INCENTIVE NAME: Michigan Accelerating Technologies (MATch) Energy Grant
CATEGORY: Financial Incentive
TYPE: Grant Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
SOURCE: Michigan Economic Development Corporation
CODE: MI118F
DETAILS:
Incentive Amount - Universities: base of $25,000 for commercialization training program and plan, and up to 5% of total grant award in incentives for achieving key commercialization milestones
Companies: Cost-share starting at 20% of total cost-share requirement (subject to negotiation) and $30,000-$50,000 in funding for commercialization projects (as applicable)
Maximum Incentive - Varies
Equipment Requirements - Not specified
Installation Requirements - Not specified
WEBSITE: http://www.nextenergy.org/match/
LAST UPDATE: 11/30/2015

INCENTIVE NAME: Consumers Energy - Experimental Advanced Renewable Program
CATEGORY: Financial Incentive
TYPE: Feed-in Tariff
SECTOR: Utility
TECHNOLOGY: Solar Photovoltaics,
CODE: MI100F
DETAILS:
Incentive Amount - Residential: $0.240/kWh
Non-Residential: $0.199/kWh
Anaerobic Digestion: $86.00/MWh or $76.39/MWh - $106.39/MWh (2015 - 2038)
Eligible System Size - Residential: 275 kW/monthly
Developer: 75 kW/Semi-annually; developers must apply to reserve residential capacity,with a minimum fee of $350 per kW.
Non-Residential: 750/kW/Bi-monthly
Duration - 15 years
All EARP contracts expire no later than August 31, 2029
Equipment Requirements - To participate in the program, an individual or entity must own or lease an anaerobic digestion systemcapable of generating electricity through methane produced from waste that will qualify as a renewableenergy resource as defined in 2008 PA 295. Landfill gas or other methane based units do not qualify forthis program.
Installation Requirements - Must sign Generator Interconnection and Operating Agreement
Ownership of Renewable Energy Credits - Utility owns RECs
WEBSITE: http://www.consumersenergy.com/content.aspx?id=4844
UTILITIES: Consumers Energy Co,
LAST UPDATE: 11/30/2015

INCENTIVE NAME: Net Metering
CATEGORY: Regulatory Policy
TYPE: Net Metering
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
CODE: MI18R
DETAILS:
Applicable Utilities - Investor-owned utilities, MPSC rate-regulated electric cooperatives, all alternative electric suppliers
System Capacity Limit - 150 kW
Aggregate Capacity Limit - 0.75% of utility's peak load during previous year
Net Excess Generation - Credited to customer's next bill at retail rate for systems 20 kW or less; credited to customer's next bill at power supply component of retail rate for larger systems. Carries over indefinitely.
Ownership of Renewable Energy Credits - Customer owns RECs
Meter Aggregation - Not addressed
WEBSITE: http://www.michigan.gov/netmetering
LAST UPDATE: 11/24/2015

INCENTIVE NAME: Renewable Energy Program Grants
CATEGORY: Financial Incentive
TYPE: Grant Program
SECTOR: State
TECHNOLOGY: Solar Photovoltaics,
SOURCE: U.S. Department of Energy's State Energy Program (SEP)
CODE: MI100F
DETAILS:
Incentive Amount - Varies by solicitation; check website for each solicitations details
Maximum Incentive - Varies
WEBSITE: http://www.michiganbusiness.org/public-notices-rfps/
LAST UPDATE: 09/29/2015