Solar Power Systems are exepensive. Typically, they cost a few thousand dollars to tens of thousands of dollars. For larger commercial and municipal solar systems, they cost can be much higher. At these high prices, state sales taxes can add hundreds, or thousands, of dollars to the cost of a solar electric of solar thermal system.

Thankfully, in order to make solar systems more affordable, and promote their continued growth across the country, many states have eliminated their state sales tax on solar energy systems. This solar sales tax exemption is great for home and business owners who are looking to purchase a solar electric or solar heating system, but are wary of the additional cost due to their state sales tax rate.

Many states already have solar sales tax exemptions in place, while others are currently drafting and implementing solar sales tax exemptions.

Do all states have a state solar sales tax exemption? No, though many do, or will in the near future. For information on whether or not your state has a state solar sales tax rate exemption please visit your states' solar incentive listing by clicking the appropriate link in the menu above.

Does this mean I will not have to pay any sales tax on the solar system purhcase? Not necessarily. If you state has issued a state solar sales tax exemption, then you will not have to pay the state sales tax rate on your purchase. However, in most states, it is optional for individual counties to issue a county solar sales tax exemption, or not. Depending on where you live, you may be responsible for paying the appropriate county sales tax rate.

Do all solar purchases count towards the state solar sales tax exemptions? Typically, no. Most states have certain requirements on the types of systems and the application that the solar systems are used for. For detailed information on any solar system requirements for your state solar sales tax exemptions, please view your states' solar incentives page.

If your state does not currently offer state solar sales tax exemptions, we highly recommend that you join a petition to your states' government to do so. If such a petition exists in your state, you can likely find it, or begin your own, through your states Solar Energy Society.