Solar sales tax exemptions reduce the upfront cost of going solar. 17 states exempt that purchase from sales tax, and five other states don't have sales tax at. . As a consumer, you owe tax on the cost to you of materials you provide and install in the performance of a construction contract. If the solar components you provide and install are considered fixtures, generally you are the retailer of those fixtures. 31, 2025, to install a system and get the 30% solar tax credit — it's definitely in your best interest to take advantage of all the solar incentives available to you. Sales tax exemptions vary by state, with some covering both solar panels and. . Many state governments encourage solar panels by exempting solar installations from property taxes, which lets you boost the value of your home with solar while keeping the same tax base, or limiting its increase.