Home-owners who install solar power systems could be eligible to have a one-off rebate of up to £500 on their council tax bill.
Those who install solar hot water systems receive a rebate of £300 and for solar photovoltaic (electricity) the grant is up to £500.
The non means-tested cash is part of Taunton Deane council's commitment to improve energy efficiency.
The solar panel scheme is run in partnership with British Gas.
The council said those interested in taking up the rebates should have ideally already insulated their lofts and cavity walls first.
It also offers a council tax reduction of up to £100 for having this work completed.
Council figures show the average installation cost of solar thermal is around £4,300 of which another £400 can be claimed back through a government grant.
For solar photovoltaic the average cost of installation for a 2kWpk installation is £11,000 of which up to £4,000 can be claimed back through a government grant.