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The Best States for Solar, EV Charging, and Battery Storage Installations for Businesses in 2024

12/23/2024 | Renewable Energy Consultant Group |

Renewable energy investments—such as solar installations, EV charging stations, and energy storage systems—are more affordable than ever, thanks to a growing number of state-specific incentive programs. These incentives significantly reduce upfront costs, improve ROI, and help businesses achieve their sustainability goals.

Here’s a detailed guide to the best states for renewable energy projects, the specific incentive programs they offer, and how these programs impact costs and customer suitability:

1. California: The Solar and EV Leader

Key Programs:

  • Self-Generation Incentive Program (SGIP): Rebates for battery storage systems, offering up to $350/kWh. Critical resilience projects (e.g., hospitals) receive even higher incentives.
  • CALeVIP (California Electric Vehicle Infrastructure Project): Provides up to 75% funding for Level 2 and DC fast chargers, ideal for workplaces, retail centers, and public charging.
  • Net Energy Metering (NEM 3.0): Allows businesses to sell excess solar energy back to the grid at rates slightly reduced from retail.
  • Property Tax Exclusion for Solar Energy Systems: Excludes solar systems from property tax assessments, keeping operating costs low.

Impact:

  • SGIP reduces battery storage costs by up to 40%.
  • CALeVIP funding accelerates ROI on EV chargers, especially for businesses with high customer or employee foot traffic.
  • NEM offsets energy bills, particularly for daytime energy users like offices and warehouses.

Best Customers:

  • Retail centers and hotels looking to attract EV drivers.
  • Industrial facilities and agricultural businesses that benefit from solar-plus-storage setups.

2. Texas: Rising Solar and Storage Hub

Key Programs:

  • Austin Energy Commercial Solar Incentive Program: Offers $2,500 per kW of installed solar capacity for commercial systems.
  • CPS Energy Solar Rebates: San Antonio-area businesses can receive up to $50,000 for solar installations.
  • Texas Volkswagen Environmental Mitigation Program: Provides grants of up to $600,000 for DC fast charging stations.
  • Oncor Energy Efficiency Program: Rebates for installing energy-efficient equipment, including solar and storage solutions.

Impact:

  • Solar rebates reduce upfront costs significantly, while EV charging grants cover a substantial portion of infrastructure costs.
  • Demand response programs offer ongoing income by reducing peak energy consumption.

Best Customers:

  • Retail locations and truck stops investing in EV chargers.
  • Industrial businesses with large rooftops suitable for solar panels.

3. Florida: The Sunshine State’s Advantage

Key Programs:

  • Florida Power & Light (FPL) SolarNow Program: Provides incentives for solar installations on commercial properties.
  • Sales Tax Exemption for Solar Equipment: Eliminates the 6% sales tax on solar system purchases.
  • Property Tax Exemption: Solar installations are excluded from property tax assessments.
  • EV Infrastructure Grants: Florida Department of Environmental Protection provides funding for public EV charging stations.

Impact:

  • Exemptions and rebates significantly reduce upfront and ongoing costs.
  • Businesses with large energy footprints, like hotels, can offset significant costs through FPL’s SolarNow program.

Best Customers:

  • Hospitality businesses seeking to reduce operating costs.
  • Corporate campuses investing in solar carports and EV charging stations.

4. North Carolina: A Renewable Energy Powerhouse

Key Programs:

  • Duke Energy Solar Rebate Program: Offers rebates of up to $50,000 for businesses installing solar systems.
  • North Carolina Renewable Energy Tax Credit: Covers 35% of project costs, in addition to the federal ITC.
  • ElectriCities EV Grant Program: Provides funding for EV chargers for public and private use.

Impact:

  • Solar rebates and tax credits drastically reduce project costs.
  • EV grant programs help businesses increase customer and employee satisfaction while driving sustainability efforts.

Best Customers:

  • Universities and research facilities.
  • Urban businesses targeting EV-driving employees and customers.

5. Arizona: Solar and Storage for Maximum ROI

Key Programs:

  • Arizona Commercial Solar Tax Credit: Provides a 10% tax credit for solar installations, with no cap on project size.
  • APS Battery Incentive Program: Offers $500 per kW for battery storage systems paired with solar installations.
  • Arizona Solar Equipment Sales Tax Exemption: Eliminates sales tax on renewable energy equipment.

Impact:

  • Battery storage rebates improve ROI for businesses managing peak energy usage.
  • Tax credits and exemptions lower upfront costs for solar installations.

Best Customers:

  • Logistics centers and warehouses adopting solar and storage systems.
  • Small to mid-sized businesses needing energy resilience.

6. Nevada: A Renewable Energy Leader

Key Programs:

  • NV Energy Solar Incentives: Offers rebates for solar installations, with higher payouts for systems paired with battery storage.
  • Energy Storage Program: Rebates for battery installations, with incentives of up to $3,000 per system.
  • Tax Abatements for Renewable Energy: Reduces sales and use taxes by up to 55%.

Impact:

  • Rebates and tax abatements lower initial investments, making renewable energy projects more feasible.
  • Net metering policies further improve long-term ROI.

Best Customers:

  • Large-scale casinos and entertainment venues.
  • Businesses with high daytime energy consumption.

How Incentives Lower Costs and Maximize ROI

1. Federal Investment Tax Credit (ITC):

  • Covers 30% of installation costs for solar, energy storage, and EV charging systems. Available in all states, it’s a game-changer when paired with state incentives.

2. State-Level Rebates:

  • Programs like Duke Energy’s solar rebates in North Carolina and NV Energy’s incentives in Nevada can reduce project costs by 25–40%, making renewable energy more accessible.

3. EV Charger Incentives:

  • Grants from programs like Texas’s Volkswagen Environmental Mitigation Program and CALeVIP in California offset the high costs of EV infrastructure.

4. Battery Storage Rebates:

  • With incentives like SGIP in California and APS in Arizona, businesses can reduce energy costs, participate in demand response programs, and gain resilience against outages.

Final Thoughts: Choosing the Right State for Your Project

The best states for renewable energy—California, Texas, Florida, North Carolina, Arizona, and Nevada—offer powerful incentives that make solar, energy storage, and EV charging projects highly profitable. By leveraging these programs, businesses can save up to 40% on project costs while achieving sustainability goals.

Ready to maximize your savings?
Our team specializes in navigating state and federal incentives to ensure you get the best value from your renewable energy project. Contact us today to find out how we can help you achieve your energy goals.