Incentives reduce the net cost of a solar system for your customer and are a key part of every proposal. Aurora calculates incentive values automatically based on your system design and displays them in Sales Mode. Admins can also configure custom incentives in the Database to reflect state, local, or utility programs specific to your market.
In this article:
- Before you begin
- How incentives appear in Sales Mode
- Adding incentives in Sales Mode
- Configuring custom incentives (admins)
- Incentive types reference
- How incentive values are calculated and displayed (itemized incentives)
- Managing the incentives database
Before you begin
For Aurora to calculate incentives accurately, complete the following before reviewing or applying incentives on a project:
- Energy consumption modeling
- Site and system design
- Pricing configuration
How incentives appear in Sales Mode
To view and apply incentives on a project, navigate to Sales Mode > the $ (Pricing) icon > Incentives.
Aurora displays the total value of each applied incentive in today's dollars over the life of the project. Values update automatically when the financing product changes.
Note: Admins can configure incentives to be editable by sales reps directly from the Pricing page in Sales Mode. See Configuring custom incentives below.
Adding incentives in Sales Mode
All incentives are applied manually. To add an incentive to a project, click Add Incentive. A dropdown appears listing all incentives currently enabled in your account — both pre-configured programs from Aurora’s database and any custom incentives your admin has created. Scroll to find the right program, or use the search box to filter by name. Click an incentive to apply it.
Configuring custom incentives (admins)
Admins can create custom incentives to model state, local, or utility programs not already in Aurora's database. To create a custom incentive, navigate to Database > Incentives > + New.
Give the incentive a name and configure the following fields:
- Name: A descriptive label that will appear in Sales Mode and proposals.
- Type: Determines how the incentive is calculated. See Incentive types reference below.
- Scope: Select National if the incentive applies everywhere, or Local if it's region-specific.
- Tax rates applied: Check National or Local (or both) if the incentive is subject to income taxes. Leave unchecked if the revenue is not taxed.
- Disbursement: Varies by incentive type. See reference below.
- Allow amount to be editable?: Toggle on to let sales reps adjust the incentive amount from within Sales Mode.
A plain-language summary of the incentive calculation appears at the bottom of the form as you fill it in — use it to verify your configuration before saving.
Incentive types reference
The Type field determines how Aurora calculates the incentive value. Select the type that matches the program you're modeling.
Cost
Calculated as a percentage of the total system cost. Commonly used for state and utility cost-based tax credits. The federal residential ITC (30%) was a primary example of this type, but expired for new residential systems after December 31, 2025.
- Amount: Enter the percentage of system cost (e.g., 30 for 30%).
- Disbursement: Tax credit/rebate (fixed — not changeable for this type).
- Applied: Year 1.
- Is this amount capped?: Toggle on to set a maximum dollar amount the incentive can pay out.
- Allow amount to be editable?: Toggle on to let sales reps adjust the percentage from within Sales Mode.
Example: A 30% cost-based credit on a $40,000 system = $12,000 tax credit in Year 1.
Performance
Calculated based on system energy production ($/kWh). Used for programs like SRECs and utility production incentives.
- Amount: Rate in dollars per kWh produced.
- Escalation per year: Optional annual percentage increase to the rate.
- Duration: Number of years the incentive pays out.
- Disbursement type:
- Incremental: Payments are distributed annually over the duration.
- Lump sum: Full projected value paid upfront. Set the Amount paid to homeowners % to define what portion of the lump sum goes to the homeowner (vs. the installer).
System size
A flat payment per watt of installed solar capacity. Common for utility rebates and state grants.
- Amount: Dollars per watt.
- System size based on: Choose DC, STC, DC, PTC, or AC depending on how the program defines system size.
- Disbursement: Cash grant.
- Year applied: Enter the year the grant is paid (e.g., 1 for Year 1).
- Is this amount capped?: Toggle on to set a maximum dollar payout.
Fixed amount
A flat dollar amount regardless of system size or production. Used for fixed state or utility rebates.
- Amount: Dollar value of the grant.
- Disbursement: Cash grant.
- Year applied: Enter the year the grant is paid.
Hawaii RETITC
Hawaii’s Renewable Energy Technologies Income Tax Credit (RETITC) is a state income tax credit worth up to 35% of the total solar PV system cost, capped at $5,000 for single-family residential properties. It is configured the same way as the Cost type in Aurora, with the addition of an optional cap amount field.
- Amount: Percentage of system cost.
- Disbursement: Tax credit/rebate.
- Is this amount capped?: Toggle on to set a Cap amount in dollars.
Storage demand response
For utility “bring your own battery” (BYOB) programs where customers receive payments in exchange for grid access to their battery. Payments are based on battery output power. Payment timing (upfront vs. recurring) varies by utility program.
- Amount: Dollars per watt of Storage kW (AC).
- Duration: Number of years the program pays out.
- Disbursement: Cash grant.
Storage fixed amount
A flat dollar amount for storage systems, regardless of capacity.
- Amount: Dollar value of the grant.
- Disbursement: Cash grant.
- Year applied: Enter the year the grant is paid.
Storage SGIP
California's Self-Generation Incentive Program (SGIP). Paid per Wh of battery capacity with separate rates for different market segments.
- Amount: Dollars per Wh.
- System size based on: Choose General market or Equity / Equity and resiliency depending on whether the project qualifies for low-income or resiliency bonus rates.
- Disbursement: Cash grant.
Current SGIP rates are published at https://www.selfgenca.com.
Storage system size
A $/watt grant based on nominal kWh battery capacity. Used for utility and government storage rebate programs not covered by SGIP.
- Amount: $/watt, measured against Storage kWh (nominal) capacity.
- Disbursement: Cash grant.
- Year applied: Enter the year the grant is paid.
- Is this amount capped?: Toggle on to set a maximum dollar payout.
How incentive values are calculated and displayed
Aurora calculates the total lifetime value of each incentive and displays it in today's dollars. This applies wherever incentives appear: the Financing page, System Summary page, and web proposal.
Each incentive value is the sum of all projected annual disbursements over the configured project life. Here's how each type is calculated:
- Cost (CBI): Calculated as a percentage of total system cost (solar + storage, including dealer fees, minus non-taxable Year 0 grants). Applied as a Year 1 tax credit. If a cap is set and the calculated value exceeds it, the cap amount is used.
- Performance (PBI): Annual production from the performance simulation is multiplied by the $/kWh rate, with panel degradation and escalation applied each year.
- System size: Flat $/watt amount multiplied by installed wattage based on the selected measurement (DC STC, DC PTC, or AC).
- Fixed amount: The configured dollar amount, applied in the specified year.
- Storage types: Storage demand response and Storage system size are calculated based on wattage (kW AC or kWh nominal respectively). Storage SGIP and Storage fixed amount are calculated based on Wh capacity or flat amount.
Note: Changes to panel degradation settings affect PBI calculations across all projects in your account. Edit degradation in Design Mode or Sales Mode settings.
Managing the incentives database
Aurora's incentives database includes over 300 pre-configured national and local incentive programs.
- To enable or disable an incentive for your account, use the toggle next to each incentive in Database > Incentives.
- Enabled incentives are available for reps to apply in Sales Mode. The Enabled incentives tab shows only those currently toggled on.
- Pre-configured incentives cannot be edited directly. To customize a pre-configured incentive, open it and select Duplicate, then edit the copy.
Incentive settings
Click the gear icon on the Incentives page to access Incentive settings. Currently, the only setting is:
- Residential Clean Energy Credit (federal ITC): Choose On by default or Off by default. This controls whether the Residential Clean Energy Credit (Section 25D federal ITC) is pre-applied to new projects or left off. Note: the residential 25D credit expired for systems installed after December 31, 2025. This setting is most relevant for projects completed before that date.