PV system prices (2022) Incentives United States Solar incentives by state in the USA can help offset the initial cost of installation and make solar power more affordable. In the United States, each state has its own set of incentives and rebates for solar energy, including tax returns, tax credits and
net metering for
grid connected solar power systems. Cost trends . As of 2026, Australia has the highest penetration of residential solar power generation per capita, partially owing to government subsidies. In the mid-2000s, solar companies used various financing plans for customers such as leases and power purchase agreements. Customers could pay for their solar panels over a span of years, and get help with payments from credits from net metering programs. As of May 2017, installation of a rooftop solar system costs an average of $20,000. In the past, it had been more expensive. Utility Dive wrote, "For most people, adding a solar system on top of other bills and priorities is a luxury" and "rooftop solar companies by and large cater to the wealthier portions of the American population." In fact, in eight states the group studied, the total government incentives for installing a rooftop solar PV system actually exceeded the cost of doing so. Due to
economies of scale, industrial-sized ground-mounted solar systems produce power at half the cost (2 c/kWh) of small roof-mounted systems (4 c/kWh).
Feed-in tariff mechanism In a
grid connected rooftop photovoltaic power station, the generated electricity can sometimes be sold to the servicing electric utility for use elsewhere in the grid. This arrangement provides payback for the investment of the installer. Many consumers from across the world are switching to this mechanism owing to the revenue yielded. A
public utility commission usually sets the rate that the utility pays for this electricity, which could be at the retail rate or the lower wholesale rate, greatly affecting solar power payback and installation demand. The FIT as it is commonly known has led to an expansion in the solar PV industry worldwide. Thousands of jobs have been created through this form of subsidy. However, it can produce a bubble effect which can burst when the FIT is removed. It has also increased the ability for localized production and embedded generation reducing transmission losses through power lines. == Solar shingles ==