Solar Rebates, Tax Credits & Incentives

Solar incentives depend on who owns the equipment, where it is installed, and when the project is completed. Start with the option that fits your plans.

Compare a system purchase with third-party ownership, including prepaid power purchase agreement options.

Review federal investment credits and depreciation for qualifying commercial projects.

Check solar and battery program eligibility and current funding before counting a rebate in your budget.

Residential solar

A prepaid power purchase agreement, or prepaid PPA, is a third-party ownership option. You make an upfront payment under the agreement while the provider owns the solar system.

The provider may qualify for federal business incentives under Section 48E. Any incentive value reflected in your price depends on the offer and contract. You do not claim the provider’s credit on your personal tax return.

Ask Synergy Power to explain the options available for your property. Compare the total price, ownership terms, maintenance responsibilities, and what happens if you sell your home.

Federal tax credit update

The federal Residential Clean Energy Credit under Section 25D is no longer available for systems placed in service after December 31, 2025.

Do not include a new 30% homeowner credit when budgeting for a 2026 installation. A qualifying earlier installation may have different filing or carryforward considerations.

Read the IRS residential credit guidance.

Commercial solar

Qualifying commercial solar projects may be eligible for the Clean Electricity Investment Credit under Section 48E. Confirm the credit with your tax adviser before using it in a financial forecast.

The base credit is 6% of qualified investment. The rate can increase to 30% when wage and apprenticeship requirements are met or an exception applies, such as a qualifying facility with output below 1 megawatt.

At the increased rate, qualifying domestic content and energy community bonuses can each add 10 percentage points. A project meeting both sets of requirements could reach 50%. These bonuses are not automatic.

Review the federal investment credit.

Eligible business equipment may also qualify for depreciation deductions. Federal rules allow 100% bonus depreciation for qualifying property acquired after January 19, 2025, subject to applicable requirements.

A deduction reduces taxable income. It does not reimburse the full installation price. Your tax adviser should calculate the eligible basis, credit-related adjustments, and federal and state treatment.

Read the IRS depreciation update.

For applicable solar facilities that begin construction after July 4, 2026, Section 48E generally requires the project to be placed in service by December 31, 2027. Earlier construction starts have separate requirements. Energy storage has different termination rules.

Eligibility also depends on ownership, equipment sourcing, and other federal restrictions. Review your project schedule and documentation with a qualified tax adviser. See IRS Notice 2025-42 for construction guidance.

California incentives

California’s Self-Generation Incentive Program (SGIP) includes solar and storage incentives for qualifying low-income households. Eligibility, application requirements, and available funding depend on the program and administrator.

Check current budget availability before assuming a rebate will apply. Some budgets may be closed or waitlisted. Explore battery storage options and the official SGIP program information.

California provides a new construction exclusion for qualifying active solar energy systems. When it applies, installing the system does not increase the assessment of the existing property.

This is not a cash rebate or a general property tax exemption. Confirm the current deadlines and requirements with your county assessor. Review the California Board of Equalization guidance.

Share your property address, a recent electric bill, and whether you are considering solar, battery storage, or both. We can discuss system options and explain the assumptions in your proposal.

Before committing, confirm who receives each incentive, whether funding is reserved, and which benefits require a tax filing.

Information reviewed October 14, 2026. Programs and tax rules can change. This overview is general information; a qualified tax adviser can confirm how the rules apply to you.