Performance-based incentivesThe final way states and utilities have chosen to incentivize solar adoption is performance-based incentives, also known as “performance payments.” As the name suggests, these incentives are paid to solar system owners based on how much energy their systems generate.Some performance-based incentives are paid directly to system owners as a separate line item on their monthly bills. Others rely on a concept called , which represent 1,000 kilowatt-hours of electric generation, and are awarded to solar system owners at specific intervals (usually quarterly or annually).SRECsSRECs have value because they are proof that energy was generated from renewable sources. Utility companies can buy SRECs to comply with state RPS laws. If the utility fails to show compliance, they must pay a fine, so SRECs generally have a value that is less than what the non-compliance fine would be.In most states with SRECs, individual customers first sell their SRECs for a market price to an aggregator, which then bundles them and sells them to utilities. In other places, the customer’s state or utility company pays them directly.In the , the payment for SRECs is made ahead of time based on the expected performance of the system over 10 years. It’s more like a rebate, which is why we listed Illinois in the rebates section above.States with performance-based incentivesStates with current SREC or performance-payment programs include , , , , , , , , , and .Solar battery incentivesIn the past five years, have become much more affordable, and homeowners are taking notice. On top of that, batteries now qualify for the federal clean energy tax credit, even when they’re not installed with solar panels.Utilities are taking notice, too, because modern batteries come with enough internet-connected smarts that they can be remotely activated to provide power to the grid, meaning the energy they store can be quite valuable when electricity demand is high.That value has led to more and more utilities offering battery storage incentives. Most battery incentive programs require home battery owners to allow the utility to activate their battery during specific peak grid usage periods during the year. In exchange for this access, the utility pays up-front or ongoing monetary credits on the customer’s bill.Honestly, we could write a blog entirely about solar battery incentives. Oh wait, we did. Here is a whole article about .Final word on solar incentivesMore than ever before, the U.S. is doing its part to fight climate change. A lot of that work is being done by offering solar incentives to individuals and businesses to help them adopt carbon-free sources of energy generation.If you are one of those individuals or business owners, you owe it to yourself to use the information we’ve presented here and take advantage of the solar incentives available to you. But don't be fooled by advertisements for ! These are often sneaky marketing tactics, very few people qualify for free solar installations.Other steps in the process of going solar include figuring out and getting quotes from . Have a good solar journey!How much money can solar incentives save near you?, In every state in the USA, there are specific government solar programs designed to help you save money on solar panels. The most important solar incentive is the 30% federal solar tax credit, which is available to taxpayers across the country.There are also other solar incentives, rebates, and tax breaks available from utility companies or state and local governments., How much is the federal solar tax credit worth in 2025? Our calculations for the average cost of solar panels show you should expect to pay $21,816 for a typical 7.2-kilowatt system. That means the average solar tax credit is $6,544 (30% of $21,816).. However, your solar tax credit will vary based on how much you spend on solar and your tax liability. . Liability simply means how much you owe .