Switching to Solar:
How to Evaluate
Your Total Savings


by Caroline Nurse
5 min read - Published on 05/10/2022

There are so many benefits to switching to solar. You get to power your home with clean abundant energy from the sun. And you will experience the freedom of energy independence. Both of which are amazing, but our customers' favorite is saving money.

We are talking here about tax incentives. We get it—this topic can be boring and intimidating but don’t skip it! We can save you some serious cash.

Why do States Offer Tax Incentives

Tax incentives are an important part of many states' economic growth strategies. States use incentives to drive certain industries to reach renewable goals. For example, Washington state is committed to transition to 100% clean energy sources by 2045. By creating these tax incentives, they are getting more residents into solar solutions.

State By State

Each state has its own renewable energy and economic growth goals. Take a look below to get familiar with your state's tax incentives. We recommend speaking with a tax specialist as well as your Lumio Solar Consultant to learn how the tax incentives can affect your individual solar installation.


Florida

TYPE

DETAIL

Florida Solar System Property tax exclusion

 The added home value of the rooftop solar system is exempted from   property tax

Home Solar System State Sales Tax Exemption

 6% home solar system state sales tax exemption.


Texas

TYPE

DETAIL

TXU Energy Renewable Buyback Plan

For the excess solar power that a home-solar panel installation generates in Texas, Bill credits are available. (Must reside in a service zone)

Solar Energy System Property Tax Exemption

Texas solar panels installed in Texas qualify for property tax exemption.

Local Utility Company Solar Rebates

Rebate to lower the initial cost of solar energy or after installation in Texas. This will vary depending on the utility.


California

TYPE

DETAIL

Exclusion of Solar Energy System Property Tax

A California homeowner can add a solar panel system to their home and property taxes will not go up.

Self-Generation Incentive Program

Rebate for the installation a solar battery at home (Varies based on storage capacity).

Affordable Solar Housing Program for Single-Family (SASH).

For every kilowatt (kW), of solar power, eligible low-income homeowners could be eligible for up to $3,000

Rewards for Local Utility Companies (San Francisco, Sacramento only)

Installing a solar system at your home will get you cash incentives. (Varies depending on utility)


Washington

TYPE

DETAIL

Solar Energy System Sales Tax

Washington offers a sales tax exemption on solar energy systems such as rooftop solar panels. This exemption is available until 2029 and may exempt sales taxes on machinery, equipment and installations of solar energy systems.

Stay Up to Date

Solar State Tax Incentives can change quickly so make sure you confirm these are available when you are ready to purchase solar energy for your home. Now go save some money on solar!