Rebates and incentives

Rebate stacking tool

Enter every incentive you're eligible for. This tool applies them in the right order, since utility and state rebates reduce your basis before any tax credit gets calculated.

Your incentives

1 Project details Optional
2 System cost
3 Cash rebates (reduce your basis)
A flat dollar amount your utility pays at install, not a per-watt rate.
A direct rebate check or point-of-sale discount from a state program.
4 Tax credits (do not reduce your basis)
Applied to your full system cost, not the reduced basis.
Applied to your basis after rebates. Use the federal ITC calculator to find your correct percentage.
5 SREC income, optional
Not a one-time incentive, shown separately since it recurs annually.

How it works

Three steps to stack correctly

Step 1

List every rebate and credit separately

Keep cash rebates and tax credits in separate boxes. They're not interchangeable, and mixing them into one number is the most common stacking mistake. Your state's page on the rebates and incentives hub lists what's available where you live.

Step 2

Apply cash rebates before tax credits

Utility and state cash rebates typically reduce your system's basis before any percentage-based tax credit gets calculated. This tool applies that order automatically so you don't have to do it by hand.

Step 3

Check for a conflict flag

If your combined cash rebates exceed your system cost, the tool flags it, since that usually means one of your numbers is off or a program cap applies. Confirm final numbers with the rebate application cost benefit calculator before committing time to paperwork.

Getting the stacking order right

Why order matters

Solar incentives don't all work the same way, and stacking them out of order can overstate or understate your real savings. A rebate is money handed to you or credited at the point of sale. A tax credit is a percentage applied against what you actually paid. Applying a percentage credit to your full system cost when a rebate already lowered your basis inflates the credit beyond what the IRS allows.

Cash rebates come first

Utility rebates and state cash rebates are generally treated as reducing your system's cost basis. A $24,000 system with a $2,000 utility rebate has a $22,000 basis for any subsequent tax credit calculation. This matters most on years when a federal or state credit is available, since it's calculated against the smaller number. Before you count on any incentive, check the DSIRE database of state incentives for your state's current programs.

Tax credits come second, and often against different bases

Federal credits, when they apply, are calculated against the reduced basis after cash rebates. Use the federal ITC calculator to confirm your current federal rate before entering it here. Many state income tax credits, however, are calculated against the full original system cost rather than the reduced basis, since the state didn't hand you the rebate itself. Check your specific state's rule on its estimator page rather than assuming.

SREC income is separate and recurring

Solar renewable energy certificates aren't a one-time incentive at all. They're an ongoing income stream tied to your system's actual production, sold in a handful of state markets. This tool tracks SREC income separately from your one-time stack so the two numbers don't get blended together. Use the SREC value estimator for a deeper look at current pricing.

Watch for program caps and pre-approval rules

Individual programs often cap themselves well below your total system cost, which is why combined rebates rarely actually exceed it in practice. Some utility and state programs also require an application before you sign a contract or begin installation. Check the rebate deadline tracker to sequence your applications correctly.

Your rebate total changes what a loan costs each month, and the combined loan and rebate timing tool shows that payment once you enter both figures.

Questions

Frequently asked

Yes, usually. The IRS generally treats a utility rebate as a subsidy that reduces your system's cost basis before the federal credit is calculated, since the rebate isn't really money you spent. A $24,000 system with a $2,000 utility rebate has a $22,000 basis for federal credit purposes, not the full $24,000, though this only matters on years the federal credit is available.

No. A state income tax credit is generally not treated as reducing your basis for federal purposes, since it isn't a rebate you received at point of sale. A state cash rebate, on the other hand, usually does reduce your basis the same way a utility rebate does. The distinction between a rebate and a credit matters more than people expect.

It's rare but it can happen with a large utility rebate stacked on a large state rebate for a small system. Most programs cap themselves individually to prevent this, but it's worth checking the fine print on each program you're combining. This tool flags the situation if your numbers produce it.

Check program rules before signing. Many utility and state rebate programs require pre-approval before installation begins, and some deny applications submitted after the contract date. The rebate deadline tracker helps you sequence applications correctly.

Related tools

Keep checking your incentives

Federal ITC calculator Rebate plus ITC combined calculator Utility rebate vs state rebate SREC value estimator Rebate deadline tracker Rebate application cost benefit California incentive estimator All rebates and incentives tools