Beyond the Tax Credit: Lesser-Known Solar Incentives and Rebates

Introduction

Most people in the solar space have heard of the Federal Investment Tax Credit (ITC), but that’s just the beginning. Across the U.S., a patchwork of state, local, and utility-based solar incentives can dramatically reduce the cost of a project—if you know where to look. At Surge, we help clients uncover and stack these incentives to get the best possible return.

The Federal Investment Tax Credit (ITC) — A Quick Refresher

The ITC currently provides a federal tax credit of 30% of total solar system costs for eligible residential and commercial systems. Adders can increase this to 40% or more for:

• Projects located in low-income communities

• Domestic content compliance (U.S.-made components)

• Energy communities (areas hit by fossil fuel job losses)

• Labor standards that meet prevailing wage and apprenticeship rules

But there’s more on the table beyond federal support.

State and Local Incentives You Might Be Missing

Each state offers its own mix of solar-friendly programs. Examples include:

• Net metering and virtual net metering

• Sales and property tax exemptions

• State-level solar tax credits (e.g., New York, South Carolina)

• Solar Renewable Energy Certificates (SRECs) in markets like New Jersey, Maryland, and D.C.

Cities and counties may offer grants or special financing mechanisms like PACE (Property Assessed Clean Energy), which ties payments to property taxes.

Utility-Specific Rebates and Performance-Based Incentives

Many utilities offer cash rebates or performance-based incentives (PBIs) for solar production. These may include:

• Upfront rebates based on system size

• Production incentives paid per kWh generated over 10–15 years

• Demand-response participation bonuses

• Energy efficiency bundling discounts

Programs vary widely by provider, and funding is often limited—timing is everything.

Incentives for Storage, EV Infrastructure, and More

Solar is just one piece of the clean energy puzzle. Many programs also support:

• Battery storage systems — rebates and grid services revenue

• EV chargers — especially in commercial and multifamily settings

• Electrification upgrades — like heat pumps, smart panels, and LED retrofits

• Agrivoltaics and dual-use solar incentives — available in some agricultural states

Bundling technologies often increases incentive eligibility.

How Surge Helps Clients Maximize Incentives

Incentive research can be time-consuming, complex, and ever-changing. Surge streamlines the process by:

• Conducting upfront incentive and grant research based on your project site

• Stacking applicable incentives to optimize payback

• Managing documentation and compliance for ITC adders and rebates

• Partnering with financing institutions who understand local program value

We ensure clients take advantage of every available dollar—because clean energy should be both sustainable and smart business.

TL;DR Summary

• The Federal ITC is only the beginning—there are dozens of local and utility incentives that can further reduce project costs.

• Incentives exist for solar, storage, EV chargers, energy efficiency, and more.

• Surge helps clients identify and qualify for all applicable programs to boost ROI and accelerate payback.