Solar rebates and incentives vary based on where you live. The most significant incentive is the 26% Federal Investment Tax Credit (ITC), which allows you to deduct 26% of the cost of your solar energy system from your taxes. In previous years the ITC was at 30%, but as of 2020 the percentage will continue to decrease, so it is important to go solar sooner rather than later. Some states offer additional tax credits, and certain municipalities and utilities also offer cash rebates or other incentives.