Find tax credits, rebates, and grant programs for your commercial energy projects. Covering solar, HVAC, EV charging, battery storage, and building efficiency.
Filter or select to navigate directly to state program details.
Most Active Commercial Incentive Programs
Top 10 States for Commercial Energy Incentives
These states offer the broadest mix of tax credits, rebates, and financing programs for commercial energy projects in 2026.
California
CA
CPUC SGIP: Battery storage rebates up to $1,000/kWh for commercial installations
CSI-Thermal: Solar water heating rebates for commercial and industrial buildings
CA Competes Tax Credit: Workforce development and energy efficiency grants
Property Tax Exemption: Active solar energy systems fully exempt from property tax assessment
Sales Tax Exemption: Qualifying solar energy equipment exempt from state sales tax
IOU Rebates: PG&E, SCE, and SDG&E demand response and efficiency programs
Texas
TX
Texas LoanSTAR Program: Low-interest loans for energy efficiency in state-owned facilities
Local Utility Rebates: Oncor, AEP, and CenterPoint demand response programs
Property Tax Exemption: Solar and wind systems exempt from property appraisal
No State Income Tax: Affects federal ITC monetization strategy for commercial projects
PACE Financing: Available in many Texas counties for commercial projects
New York
NY
NY-Sun Megawatt Block: Commercial solar incentives per kWh based on capacity block auctions
ConEdison C&I Program: Demand response and energy efficiency rebates
NY Green Bank: Low-cost financing for clean energy commercial projects
NYSERDA FlexTech: Shared-cost engineering and design assistance
Commercial Solar Tax Credit: 25% state tax credit up to $62,500 per installation
C-PACE: Available statewide via NYCEEC and other program administrators
Illinois
IL
IL Shines (Adjustable Block): Solar Renewable Energy Credits (SRECs) for commercial installations
ComEd/Ameren Rebates: LED lighting, HVAC, and motor efficiency rebates for commercial accounts
Property Tax Exemption: Active solar installations exempt from property assessment increase
Illinois Clean Jobs: Workforce and project development incentives for clean energy
PACE Financing: Available statewide for qualifying commercial projects
Florida
FL
No State Income Tax: Enhances ITC and depreciation monetization strategy for commercial projects
Property Tax Exemption: Renewable energy source devices exempt from property tax
Sales Tax Exemption: Solar energy equipment exempt from state sales tax
FPL / Duke Energy Programs: Commercial demand response and energy efficiency rebates
PACE Financing: Available in many Florida counties for commercial projects
Pennsylvania
PA
PECO/PPL/Duquesne Rebates: Commercial rebates for LED lighting, HVAC, and variable frequency drives
PA AEDA Loan Program: Low-interest energy efficiency loans through the Alternative Energy Development Authority
Property Tax Exemption: Commercial solar installations exempt from property tax increase
SREC Market: Active Solar Renewable Energy Credit trading program
PACE Financing: Available through select municipalities
North Carolina
NC
NC Renewable Energy Tax Credit: Expired 2016 — monitor for potential legislative reinstatement in 2026
Duke Energy / Duke Progress: Commercial demand response rebate programs
REPS: Renewable Energy Portfolio Standard creates active SREC market for commercial generators
PACE Financing: Available in select counties via local program administrators
Colorado
CO
Colorado RENU: Revolving loan fund for renewable energy and efficiency projects
Xcel Energy Rebates: Commercial rebates for solar, HVAC, and LED lighting installations
CO Renewable Energy Tax Credit: Available for commercial solar installations
PACE Financing: Available statewide via Pikes Peak Regional PACE and local authorities
Property Tax Exemption: Qualifying commercial solar installations exempt from property assessment
Massachusetts
MA
SMART Program: Solar incentives via capacity block auctions — highly competitive commercial tier
MassCEC Renewable Energy: Project development support and technical assistance for commercial installs
Mass Save: Commercial energy efficiency rebates — up to $1M+ for large commercial projects
GreenWorks Loan Fund: Low-interest revolving loans for energy efficiency improvements
C-PACE: Available statewide via PACE Massachusetts and participating municipalities
Washington
WA
WA Renewable Energy Incentive: Solar production incentives through the state's renewable energy program
Bonneville Power Administration: Demand response, energy efficiency, and industrial incentives
Puget Sound Energy: Commercial HVAC and LED lighting rebate programs
Property Tax Exemption: Active solar energy systems exempt from property tax valuation
Sales Tax Exemption: Solar energy equipment exempt from state sales tax
How Incentives Work
Commercial Incentive Program Types
Understanding the different incentive structures helps you stack programs for maximum project savings.
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Investment Tax Credit (ITC)
Federal — 30% Base
A direct dollar-for-dollar reduction in federal tax liability. Commercial solar, battery storage, and geothermal qualify. Stackable with state programs and bonus adders (domestic content, energy communities).
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State Tax Credits
Varies by State
State-level credits that reduce your state income tax liability. NY offers 25% up to $62,500. CO offers percentage-based credits. Often stackable with the federal ITC, though some states require netting.
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Utility Rebates
Per kWh or Equipment
Direct cash payments from your utility for installing qualifying equipment (LED, HVAC, motors, solar). Paid upfront or after inspection. Available from most investor-owned and cooperative utilities.
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C-PACE Financing
Off-Balance Sheet, 25-yr
Commercial Property Assessed Clean Energy financing repaid via a property tax assessment. 100% financing, no upfront cost, transfers with property sale. Available in 40+ states. Ideal for large capital projects.
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Property Tax Exemptions
Ongoing Annual Savings
Prevents the assessed value of your property from increasing due to a clean energy installation. Most common for solar. Available in 35+ states. Savings compound annually over the life of the system.
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Sales Tax Exemptions
One-Time Savings at Purchase
Eliminates state sales tax on qualifying equipment purchases. Typical equipment costs of 6-8% in sales tax savings. Available in ~25 states for solar and renewable energy equipment. Apply at point of purchase.
Side-by-Side Comparison
Top 10 States: Program Availability Matrix
Overview of key incentive program availability across the most active commercial incentive states.
State
State Tax Credit
Property Tax Exempt
Sales Tax Exempt
C-PACE
SREC Market
Utility Rebates
California (CA)
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✓
✓
✓
—
✓
Texas (TX)
—
✓
—
✓
—
✓
New York (NY)
✓
✓
—
✓
✓
✓
Illinois (IL)
—
✓
—
✓
✓
✓
Florida (FL)
—
✓
✓
✓
—
✓
Pennsylvania (PA)
—
✓
—
Partial
✓
✓
North Carolina (NC)
—
—
—
Partial
✓
✓
Colorado (CO)
✓
✓
—
✓
—
✓
Massachusetts (MA)
—
✓
✓
✓
✓
✓
Washington (WA)
—
✓
✓
—
—
✓
✓ = Generally available — = Not currently available Partial = Available in select jurisdictions. Verify with program administrators.
All 50 States + DC
Additional State Programs
Click any state to expand program details. States with notable commercial programs are highlighted.
Arizona (AZ)4 programs
Top: Solar tax credit + sales tax exemption
APS and SRP offer commercial demand response and efficiency rebates. Arizona has a renewable energy tax credit (10% up to $25,000) for commercial solar. Sales tax exemption on solar equipment. Property tax exemption for commercial solar through 2025 sunset provisions.
Nevada (NV)4 programs
Top: Property tax abatement + sales tax abatement
Nevada offers property tax abatement (55% reduction) and sales/use tax abatement for qualifying renewable energy projects. NV Energy commercial demand response. PACE financing available. No state income tax enhances ITC monetization.
Ohio (OH)3 programs
Top: AEP/FirstEnergy commercial rebates
AEP Ohio and FirstEnergy commercial efficiency rebates for LED, HVAC, and VFDs. Ohio SREC market (Class I RECs). Property tax exemption for renewable energy systems under certain thresholds. C-PACE available in select jurisdictions.
Michigan (MI)3 programs
Top: Consumers/DTE commercial efficiency rebates
Consumers Energy and DTE Energy offer robust commercial rebate programs for LED, HVAC, VFDs, and compressed air systems. Michigan saves energy program for commercial. Property tax exemption for commercial solar. PACE financing available in participating counties.
Virginia (VA)4 programs
Top: VCEA incentives + Dominion rebates
Virginia Clean Economy Act (VCEA) creates demand for solar and RECs. Dominion Energy commercial demand response and efficiency rebates. Property tax exemption for solar — available via local ordinance. C-PACE available statewide. Sales tax exemption on qualifying solar equipment.
Georgia (GA)3 programs
Top: GA Power commercial rebates
Georgia Power Commercial and Industrial efficiency program with rebates for LED, HVAC, and controls. 35% state income tax credit for solar equipment installation. Property tax exemption for solar through qualifying assessments. No C-PACE statewide yet.
New Jersey (NJ)5 programs
Top: NJ SREC-II + solar incentives
NJ SREC-II (now Transition RECs/TRECs) for commercial solar. Successor Solar Incentive (SuSI) program. PSE&G and JCP&L commercial efficiency rebates. Property tax exemption for solar. Sales tax exemption for solar equipment. C-PACE available.
Connecticut (CT)4 programs
Top: Eversource/UI commercial rebates
PURA-regulated Eversource and UI Commercial and Industrial programs with comprehensive efficiency rebates. CT Green Bank C-PACE — one of the country's strongest PACE programs. RSIP solar program. Property tax exemption for renewable installations.
Oregon (OR)4 programs
Top: Oregon Incentive Fund + PGE rebates
Oregon Department of Energy Business Energy Tax Credit (BETC) — successor programs available. Portland General Electric and Pacific Power commercial demand response. Solar project rebates through Energy Trust of Oregon. Property tax exemption for commercial solar.
Maryland (MD)4 programs
Top: MD SREC market + Clean Energy Grant
Maryland SREC market for commercial solar generators. BGE and Pepco commercial energy efficiency rebates. Maryland Clean Energy Grant Program for commercial projects. Property tax credit for renewable energy systems. PACE financing available in certain jurisdictions.
Minnesota (MN)4 programs
Top: Xcel Solar*Rewards + C&I rebates
Xcel Energy Solar*Rewards for commercial solar. CenterPoint and Minnesota Power commercial efficiency rebates. MN Property Tax Exemption for solar. C-PACE available through PACE MN and local authorities. Minnesota Department of Commerce energy efficiency grants for small businesses.
Alabama (AL)2 programs
Top: Alabama Power commercial rebates
Property tax exemptions and Alabama Power commercial demand response programs available. Limited state-specific incentives — federal programs are primary driver. Check with local utilities for rebate availability.
Alaska (AK)2 programs
Top: AIDEA Renewable Energy Fund
Alaska Industrial Development and Export Authority (AIDEA) Renewable Energy Fund for commercial projects. APA Bulk Fuel Revolving Loan Fund. Property tax exemption for qualifying renewable systems. Limited utility rebate availability due to regional utility structure.
Arkansas (AR)2 programs
Top: Entergy Arkansas demand response
Entergy Arkansas commercial demand response and efficiency rebate programs. Arkansas Net Metering rules for commercial solar. Limited state-specific incentives — primarily rely on federal ITC. Check with local utilities for current offerings.
Washington DC (DC)4 programs
Top: DC SREC market + DC Green Bank
DC SREC market with among the highest SREC prices in the country. DC Green Bank C-PACE financing. Pepco commercial efficiency rebates. Property tax exemption for solar. DC Sustainable Energy Utility (DCSEU) commercial rebate program.
Delaware (DE)3 programs
Top: Green Energy Program grants
Delaware Green Energy Program commercial grants for solar installations. Delmarva Power commercial demand response. Property tax exemption for qualifying renewable energy systems. SREC market access through PJM. C-PACE available.
Hawaii (HI)4 programs
Top: 35% state tax credit for commercial solar
Hawaii offers a 35% state income tax credit for commercial renewable energy systems (cap varies by type). Hawaiian Electric commercial demand response programs. Property tax exemption for solar equipment. Strong net metering successor programs.
Iowa (IA)3 programs
Top: Iowa Solar Tax Credit (closed, monitor for reopening)
Iowa Solar Energy Tax Credit closed in 2021 — monitor for legislative reinstatement. MidAmerican and Alliant Energy commercial efficiency rebates. Property tax exemption for solar. Iowa's wind energy sector creates favorable renewable energy environment.
Idaho (ID)2 programs
Top: Idaho Power demand response
Idaho Power commercial demand response and efficiency rebates. Property tax exemption for qualifying renewable energy systems. Limited state-specific commercial programs — federal ITC is primary mechanism. PACE financing not widely available.
Indiana (IN)2 programs
Top: Duke/AEP commercial efficiency rebates
Duke Energy Indiana and AEP commercial efficiency rebate programs for LED, HVAC, and compressed air. Property tax exemption for solar in qualifying classifications. Indiana's low energy costs reduce ROI urgency but federal ITC still applies fully.
Kansas (KS)2 programs
Top: Evergy commercial rebates
Evergy commercial and industrial efficiency rebate programs. Property tax exemption for commercial solar and wind. Kansas has no specific solar tax credit but strong utility rebate programs in certain service territories. Net metering available for commercial accounts.
Kentucky (KY)2 programs
Top: LG&E/KU commercial efficiency rebates
LG&E and KU commercial demand-side management programs with efficiency rebates. Property tax exemption for renewable energy systems in qualifying categories. Limited state incentives — federal ITC primary driver. C-PACE enabling legislation passed but programs developing.
Louisiana (LA)2 programs
Top: Entergy Louisiana rebates
Entergy Louisiana and Cleco commercial demand response and efficiency programs. Property tax exemption for commercial solar qualifying under Industrial Tax Exemption Program (ITEP). Sales tax exemption for solar equipment. Limited state-specific solar incentives.
Maine (ME)3 programs
Top: Efficiency Maine commercial programs
Efficiency Maine Trust commercial efficiency rebates — comprehensive LED, HVAC, and refrigeration programs. Maine solar energy rebate program for commercial. Property tax exemption for qualifying renewable installations. Net energy billing for commercial solar.
Missouri (MO)2 programs
Top: Ameren/Evergy commercial rebates
Ameren Missouri and Evergy commercial efficiency incentive programs. Property tax exemption for commercial solar under qualifying conditions. Missouri has limited state-specific clean energy incentives — federal ITC is primary mechanism for commercial projects.
Mississippi (MS)2 programs
Top: Utility demand response programs
Entergy Mississippi and Mississippi Power commercial demand response programs. Property tax exemptions and utility rebates available. Check with your utility provider for current commercial program availability. Federal ITC applies as primary incentive.
Montana (MT)2 programs
Top: NorthWestern Energy rebates
NorthWestern Energy commercial energy efficiency programs. Montana tax deduction for installation of alternative energy systems. Property tax exemption for commercial solar installations. Limited PACE availability. Federal programs are primary driver.
North Dakota (ND)2 programs
Top: Xcel Energy commercial rebates
Xcel Energy commercial and industrial efficiency rebate programs available in eastern ND. Property tax exemption for commercial wind and solar. ND Income Tax Credit for renewable energy (3% of cost). Check with local utilities for program availability.
Nebraska (NE)2 programs
Top: Nebraska Public Power efficiency programs
Nebraska Public Power District commercial efficiency programs. Omaha Public Power District commercial rebates. Property tax exemption for renewable energy facilities. Nebraska's public power structure provides stable commercial rebate access. Federal ITC applies.
New Hampshire (NH)3 programs
Top: NH Electric Co-op + Eversource rebates
Eversource and Liberty Utilities commercial efficiency rebate programs. NH Electric Cooperative energy efficiency for commercial. NH SREC market access. Property tax exemption for commercial solar. Granite State Clean Energy Fund programs.
New Mexico (NM)3 programs
Top: NM Solar Market Development Tax Credit
New Mexico Solar Market Development Tax Credit (10% up to $9,000 — commercial). PNM and Xcel Energy commercial efficiency rebates. Property tax exemption for commercial solar. Sales tax deduction for solar energy systems. Strong solar resource accelerates project economics.
Oklahoma (OK)2 programs
Top: OGE commercial demand response
Oklahoma Gas and Electric commercial demand response and efficiency programs. Property tax exemption for commercial wind (existing, may not extend to new solar). Ad valorem exemption for manufacturers using qualifying energy equipment. Federal ITC primary driver for commercial solar.
Rhode Island (RI)3 programs
Top: RI Renewable Energy Fund grants
RI Commerce Renewable Energy Fund commercial grants. National Grid commercial efficiency rebates (RI Energize). RI SREC market through New England ISO. Property tax exemption for renewable energy systems. C-PACE available through RI Infrastructure Bank.
South Carolina (SC)3 programs
Top: SC 25% state tax credit
South Carolina 25% tax credit for commercial solar energy systems. Duke Energy and Dominion South Carolina commercial demand response rebates. Property tax exemption for solar energy property. C-PACE enabling legislation available. Strong federal ITC stacking potential.
South Dakota (SD)2 programs
Top: Black Hills Energy commercial rebates
Black Hills Energy and Xcel Energy commercial efficiency programs. No state income tax — affects ITC monetization strategy. Property tax exemptions for wind energy equipment. Limited state-specific solar incentives. Federal programs are primary driver for commercial projects.
Tennessee (TN)2 programs
Top: TVA commercial energy efficiency
Tennessee Valley Authority (TVA) commercial energy efficiency programs — EnergyRight Solutions for business. LG&E and KU programs in applicable service areas. Property tax exemptions and utility rebates available. Check with your utility provider for current commercial program details.
Utah (UT)3 programs
Top: Rocky Mountain Power commercial rebates
Rocky Mountain Power (PacifiCorp) commercial efficiency rebate programs — comprehensive LED, HVAC, and refrigeration. Utah Renewable Energy Systems Tax Credit (10% commercial). Property tax exemption for commercial solar systems. C-PACE enabling legislation exists.
Vermont (VT)3 programs
Top: Efficiency Vermont commercial programs
Efficiency Vermont — nation's first statewide efficiency utility — comprehensive commercial rebates. Green Mountain Power commercial solar and storage programs. Vermont Clean Energy Development Fund grants. Property tax exemption for commercial solar and net metering credit program.
Wisconsin (WI)3 programs
Top: Focus on Energy commercial programs
Focus on Energy commercial programs — comprehensive rebates for solar, HVAC, LED, and refrigeration. We Energies and Xcel Energy commercial demand response. Wisconsin property tax exemption for commercial solar. C-PACE available through participating municipalities.
West Virginia (WV)2 programs
Top: Appalachian Power commercial rebates
Appalachian Power commercial efficiency programs. Property tax exemptions available in qualifying energy development zones. Limited state-specific clean energy incentives. Federal ITC and bonus depreciation are primary mechanisms for commercial projects in WV.
Wyoming (WY)2 programs
Top: Black Hills/PacifiCorp demand response
No state income tax — affects federal ITC monetization. Black Hills Energy and Rocky Mountain Power commercial demand response programs. Property tax exemption for qualifying renewable energy equipment. Limited state-level commercial solar incentives. Federal programs are the primary incentive mechanism.
Common Questions
Frequently Asked Questions
Yes — in most cases, federal and state incentives can be stacked, and this is the standard strategy for maximizing commercial project returns. The federal Investment Tax Credit (ITC) can typically be combined with state tax credits, utility rebates, C-PACE financing, and property/sales tax exemptions. However, some state programs require you to reduce your project basis by the amount of federal incentives received, which can reduce the state credit. Always work with a tax advisor and energy professional to model the full incentive stack before committing to a project structure.
State incentive programs can change significantly from year to year — some are legislatively appropriated with annual caps, others are administrative programs that can be suspended or expanded quickly. The most reliable approach is to verify program availability directly with the administering agency (state energy office or public utility commission) before finalizing project financing. Signing up for alerts from your state's energy office and monitoring the DSIRE database (dsireusa.org) are good practices. Major changes typically occur in Q1 following state legislative sessions.
Commercial Property Assessed Clean Energy (C-PACE) is a financing mechanism that allows commercial property owners to finance energy improvements through a long-term assessment on their property tax bill — typically 20-25 year terms at fixed rates. The key advantages are: 100% financing with no money down, it does not appear as debt on your balance sheet, it can transfer to a new owner if you sell the property, and lenders often view it favorably. C-PACE works well for large capital improvements like solar, HVAC replacements, roof improvements, EV charging infrastructure, and lighting retrofits. It requires lender consent if you have an existing mortgage. Currently available in 40+ states. Contact a C-PACE program administrator in your state for a feasibility assessment.
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Data currency notice: Last updated March 2026. Program details, funding availability, and incentive amounts change frequently. Always verify current program availability and applicable amounts directly with the program administrator before making investment decisions. Found outdated information? Report it here.
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