Like feed-in tariffs, Solar Renewable Energy Certificates (SRECs) are another type of performance-based incentive (PBI) that reward people with solar panels. Tax credits: These are dollar-for , New York State is making solar energy more accessible to homes, businesses, and communities through NY-Sun incentives and a network of qualified installers. Combined with declining equipment costs, New York State tax credits, and Inflation Reduction Act tax credits, there’s never been a better time to go solar. Types of Solar Energy, The most important solar incentive is the federal clean energy tax credit, which provides up to 30% of the cost to install solar panels back to the taxpayer in the year after installation. State and local governments also offer tax credits and exemptions to complement the federal credit., , , .