To do this, we created a methodology with set grading criteria.

States with better solar policy earn higher marks.

Here’s the process we used to score each state or territory.

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Our methodology

We score each state based on eight categories, each with a weight.

States that make solar incentives accessible to all earn higher marks.

We focused on categories that have statewide impacts.

We’ll break down what each category means, why it was selected and how we scored it.

State solar tax credits can be stacked with thefederal solar tax credit.

As of August 12th, 2024, only eight states offer statewide solar tax credits.

We also took stateSREC programsinto consideration.

We found this to be an incentive on par with state solar tax credits.

You’ll typically be compensated in the form of bill credits.

The amount you’ll be compensated depends on your utility and your state’s net metering law.

States that offer full retail rate compensation earn higher marks in this category.

Most states have a statewide net metering policy in place.

However, some don’t.

And unfortunately, this could mean you’ll pay more in property taxes.

States that offer a full exemption earn higher marks.

But if your state doesn’t offer a full ride, it can get a little tricky.

However, some are local exemptions only.

Some states will offer a sales tax exemption on the cost of your solar panel system.

This could potentially save you hundreds.

If your state doesn’t charge sales tax, then your system is already exempt.

Instead of buying electricity from your utility, you’ll buy your electricity from a local solar farm.

The rate you’ll pay is typically cheaper than the local retail electricity rate.

But not all states have community solar available, or even allow it.

However, we also award points to states that have community solar enabled.

This means that community solar is allowed in the state, but there’s no requirement on installation capacity.

This puts low-income households that could really benefit from solar panels at a disadvantage.

Our methodology rewards states that fund or administer solar programs specifically for those in lower income brackets.

States earn higher marks in this category if they offer state-administered or directed solar programs for low-income households.

Some states have low-income solar programs, but they aren’t statewide.

Instead, they might be offered by local nonprofits or utilities.

We want to award a few points to those situations as well.

This is called a renewable portfolio standard (RPS).

States with higher RPS goals are more committed to furthering their renewable industries.

But that doesn’t necessarily mean a state is going to be adding a bunch of solar capacity.

We want to reward states on how solar-friendly they are, not just how big their renewable goals are.

This is where solar carve-outs come in.

Currently, only eight states in the US have a solar carve-out within their RPS.

States with higher solar carve-out percentages earn higher marks in this category.

But we also want to give a few points to states with substantial renewable energy goals.

This gives a hypothetical view of how much of each state’s investment could go to each individual resident.

Many utilities offer energy efficiency rebates to customers within their service area.

And it would be extremely difficult to account for every utility rebate offered for solar across the entire country.

Areputable installershould be familiar with any incentives you may qualify for.

These incentives are available to everyone in the country, regardless of what state you live in.