These will vary depending on the state and where you live. However, the most important one is the federal tax credit. As of 2021, the federal tax credit allows solar system owners to deduct 26% of their system’s cost from their taxes.
Some states offer a market-based incentive known as Solar Renewable Energy Credits (SRECs), which earns you one credit every time you generate 1000 kWh.
Some states like New Jersey provide performance-based incentives that earn solar system owners some extra cash for their systems’ energy.
There are many other additional incentives provided by various states and municipalities, including property tax credits, additional state tax credits, rebates, grants, and financing programs.