Solar Savings by State
Compare solar panel savings across all 50 US states and Washington DC. Ranked by payback period and annual savings potential.
Top States for Solar
States with the best combination of sun exposure, electricity rates, and incentive programs.
Hawaii
District of Columbia
Massachusetts
California
New Jersey
Connecticut
New York
Maryland
Arizona
New Mexico
Nevada
Florida
Texas
Colorado
All Other States
Solar is viable in every US state. Click any state to calculate your personalized savings.
| State | Sun Hours | Rate (¢/kWh) | Payback | Annual Savings | Net Metering |
|---|---|---|---|---|---|
| Rhode Island | 4 | 27.3¢ | 7 yr | $2,350 | Yes |
| New Hampshire | 4 | 24.6¢ | 9 yr | $1,850 | Yes |
| Maine | 4 | 22.7¢ | 9 yr | $1,720 | Yes |
| Vermont | 3.8 | 21.4¢ | 9 yr | $1,680 | Yes |
| Illinois | 4.2 | 15.7¢ | 9 yr | $1,650 | Yes |
| South Carolina | 5 | 13.8¢ | 9 yr | $1,420 | Yes |
| North Carolina | 5 | 12.6¢ | 10 yr | $1,320 | Yes |
| Delaware | 4.2 | 14.9¢ | 10 yr | $1,280 | Yes |
| Pennsylvania | 3.9 | 16.9¢ | 11 yr | $1,380 | Yes |
| Iowa | 4.3 | 14.0¢ | 11 yr | $1,280 | Yes |
| Virginia | 4.5 | 13.8¢ | 11 yr | $1,280 | Yes |
| Oregon | 3.8 | 12.7¢ | 11 yr | $1,240 | Yes |
| Michigan | 3.8 | 18.4¢ | 12 yr | $1,280 | Yes |
| Georgia | 5 | 13.7¢ | 12 yr | $1,260 | No |
| Minnesota | 4.1 | 14.5¢ | 12 yr | $1,240 | Yes |
| Wisconsin | 4 | 16.2¢ | 12 yr | $1,220 | Yes |
| Kansas | 5 | 13.7¢ | 12 yr | $1,180 | Yes |
| Utah | 5.5 | 11.9¢ | 12 yr | $1,180 | Yes |
| Indiana | 4.2 | 14.4¢ | 13 yr | $1,120 | Yes |
| Missouri | 4.5 | 13.1¢ | 13 yr | $1,100 | Yes |
| Ohio | 3.9 | 14.3¢ | 13 yr | $1,100 | Yes |
| Oklahoma | 5.2 | 11.7¢ | 13 yr | $1,080 | Yes |
| Montana | 4.5 | 12.6¢ | 13 yr | $1,060 | Yes |
| Alabama | 4.7 | 13.9¢ | 14 yr | $1,180 | No |
| Louisiana | 4.9 | 12.1¢ | 14 yr | $1,080 | Yes |
| Nebraska | 4.8 | 12.2¢ | 14 yr | $1,060 | Yes |
| Arkansas | 4.7 | 11.7¢ | 14 yr | $1,020 | Yes |
| South Dakota | 4.7 | 12.8¢ | 14 yr | $1,020 | Yes |
| Tennessee | 4.5 | 12.1¢ | 14 yr | $1,020 | No |
| Wyoming | 5.2 | 11.6¢ | 14 yr | $1,020 | Yes |
| Idaho | 4.7 | 10.9¢ | 14 yr | $980 | Yes |
| West Virginia | 4 | 12.8¢ | 14 yr | $980 | Yes |
| Mississippi | 4.8 | 12.5¢ | 15 yr | $980 | No |
| Kentucky | 4.2 | 12.4¢ | 15 yr | $960 | Yes |
| North Dakota | 4.5 | 11.7¢ | 15 yr | $960 | Yes |
| Washington | 3.5 | 11.3¢ | 15 yr | $920 | Yes |
| Alaska | 3 | 23.6¢ | 16 yr | $1,040 | Yes |
Understanding Solar Savings by State
Solar panel savings vary significantly across the United States. Three key factors determine how much you can save: peak sun hours (solar irradiance), local electricity rates, and available state incentive programs. States like Hawaii, California, and Massachusetts consistently rank at the top due to their combination of high electricity rates and strong solar policies.
Every state in the US qualifies for the federal 30% Investment Tax Credit (ITC), which reduces the upfront cost of a solar system by 30%. Beyond the federal credit, many states offer additional incentives such as Solar Renewable Energy Credits (SRECs), state tax credits, property tax exemptions, and sales tax exemptions that can further reduce costs and improve payback periods.
Net metering policy is another critical factor. States with full retail net metering allow homeowners to receive credit at the full electricity rate for excess energy exported to the grid, while some states use lower avoided cost rates or lack net metering entirely. Use the state-specific calculators above to see personalized savings estimates based on your location, system size, and electricity bill.
Frequently Asked Questions
Which state has the best solar savings?
Hawaii, California, and Massachusetts consistently rank as the best states for solar savings due to their high electricity rates and strong incentive programs. Hawaii homeowners save an average of $3,800 per year, while California homeowners save around $2,650 per year.
How do solar savings vary by state?
Solar savings vary based on peak sun hours (3.0-6.5 hours/day), electricity rates (10-45¢/kWh), state incentives, and net metering policies. Annual savings range from about $920 (Washington) to $3,800 (Hawaii).
What is the average solar payback period?
The average solar payback period ranges from 4 years (Hawaii) to 16 years (Alaska). Most states fall in the 8-13 year range. After payback, panels generate free electricity for 12-21 more years of their 25-year warranty life.