Q&A · Off-Grid
Utility Incentives: What Incentives Are Available In States With High Sun?
April 5, 2026
Quick Answer
Utility Incentives: States with high sun hours offer various incentives to encourage solar adoption, including tax credits, rebates, and net metering policies that allow homeowners to sell excess energy back to the grid.
High Sun Hours States Incentives
States with high sun hours like Arizona, California, and Nevada offer attractive incentives for solar adoption. For example, the California Solar Initiative (CSI) offers a rebate of up to $2.50 per watt for residential solar installations, with a maximum incentive of $13,000 for a 5.2 kW system.
Utility Company Incentives in High Sun Hours States
Utility companies in high sun hours states also offer incentives, such as Pacific Gas and Electric’s (PG&E) solar rebate program, which offers a rebate of up to $1,000 for solar water heaters and $2,000 for solar space heaters. Additionally, the Arizona Public Service Company (APS) offers a rebate of up to $1,000 for residential solar installations.
State and Local Incentives
Some states with high sun hours offer additional incentives, such as property tax exemptions and sales tax exemptions. For example, Arizona’s Proposition 202 exempts solar systems from property taxes, and Nevada’s Assembly Bill 405 exempts solar systems from sales taxes. Homeowners should research and review local and state incentives to maximize their solar savings.
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