Solar incentives are government programs that give money to consumers to persuade them to invest in solar energy. There are many different solar incentives available to homeowners and businesses, such as the Solar Investment Tax Credits (ITC). It’s one of the most important solar incentives and has significantly contributed to the growth of the solar industry within the US. The ITC is a federal program that provides tax credits to consumers who invest in solar energy and projects. Below is an example of how they work. Tax liability is the amount of tax owed to the government. The tax credit is the amount of money you save from not having to pay the tax.