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Best States for Solar Contractors to Start a Business
By Dani Nicole

Solar contractors are in high demand all over the country. But at Home Improvement Leads, we know certain states have a better solar market than others. Based on state regulations, tax credits and exemptions, and return on investment, you can strategically choose where to launch your solar contractor business to reap the best rewards. Here are a few states that top the list.


This state probably already crossed your mind at the mention of solar, since it sees so many sunny days. Contractors can greatly profit in California’s residential solar energy market, due to the high electricity costs homeowners have to pay. Due to this cost and efforts to protect the environment, California’s state goal is to get 33% of all electricity from renewable sources by 2020, according to NerdWallet.

That translates to a large client list for contractors, since state incentives motivate homeowners to make the switch to solar. The guarantee of getting money back offers them peace of mind. As a contractor, you can set yourself apart in California by studying up on all kinds of systems and optimizing every home—because clients always love an individualized experience.


New York
This state may surprise you a bit, but solar regulations and incentive programs are surging, which makes New York an up-and-coming state for contracting business. Governor Cuomo committed to expanding solar energy in 2014, which resulted in large solar projects that boosted the state’s capacity by 68%. With plans to make long-term investments and overhaul the state’s way of life, New York will be a great solar client base for a long time to come.


Another state with enticing incentive programs tops the charts for the best place to launch a solar business. Solar Power Rocks gives Massachusetts and overall grade of A+, due to RPS laws, electricity cost, net metering, and tax exemptions. In 2015, Massachusetts met a solar capacity of 340 MW, which ranked it fourth in the nation, according to SEIA.

Ensuring homeowners meet requirements to earn tax credits, exemptions, and rebates is a great way to set your business apart. Understanding that clients want the most for their money is a great way to stay transparent and attract business. The
DSIRE incentives database explains all solar rebate and exemption programs available to homeowners in this state and across the nation.


Another sunny state tops the list of places to start a solar business. Arizona has installed 2,303 MW of solar capacity already, according to SEIA. Net metering allows clients to earn money back by selling energy credits to utility companies for any extra electricity their panels produce.

Property and sales tax exemptions also sway Arizona’s homeowners to go for the greener alternatives. And for those who aren’t quite ready to make the leap, Arizona allows its residents to lease solar panels.

The good news? The benefits of solar energy are spreading across the country at rapid speed. More and more homeowners see the light and wisdom of protecting the environment and reaping financial rewards. Launch your business wherever solar energy surges, and enjoy your influx of clients!