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.
Key Factors That Determine Your Solar ROI
Peak Sun Hours
The number of hours per day when solar irradiance averages 1,000 watts per square meter. Arizona averages 6.5 peak sun hours while Alaska gets only 3.0. More sun hours means more energy production and faster payback.
Electricity Rates
Higher utility rates mean greater savings from solar. Hawaii pays 45¢/kWh while Louisiana pays just 10¢/kWh. States with high rates often have the best solar economics even with moderate sun exposure.
Net Metering Policies
Full retail net metering credits exported solar energy at your full electricity rate. Some states like California have moved to net billing (NEM 3.0) with lower export rates, reducing savings by 20-40% compared to full net metering.
State Incentives
Beyond the 30% federal ITC, states offer SRECs (worth $20-$400/MWh), state tax credits (10-35%), property tax exemptions, and performance-based incentives. These can reduce effective system cost by an additional 10-50%.
Use our solar panel calculator to estimate your system size, or the solar payback calculator to see how quickly your investment pays for itself. For battery storage economics, try the solar battery calculator.
Solar Energy Trends in 2026
The solar industry continues to evolve rapidly. In 2026, the average residential solar installation costs $2.75-$3.25 per watt before incentives — down from $3.50/watt in 2022. For a typical 8 kW system, that means a pre-incentive cost of $22,000-$26,000, reduced to $15,400-$18,200 after the 30% federal ITC.
Battery storage adoption has accelerated, with 35% of new solar installations now including batteries — up from 10% in 2022. Battery costs have dropped to $800-$1,200/kWh installed, making whole-home backup systems economically viable. States transitioning away from full net metering (like California's NEM 3.0) are driving even faster battery adoption.
The Inflation Reduction Act (IRA) guarantees the 30% federal solar tax credit through 2032, stepping down to 26% in 2033 and 22% in 2034. This provides long-term certainty for homeowners planning solar installations. Additional IRA bonuses of 10-20% are available for low-income communities and domestic content requirements.
Interested in electrifying your entire home? Check our home electrification planner to see the full cost and savings of switching to electric appliances, heat pumps, and EV charging alongside solar. You can also estimate your EV range and EV fuel savings when powered by your own solar panels. For mortgage-related decisions, Amortio's affordability calculator can help factor solar savings into your home budget.
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.
Is solar worth it in cloudy states?
Yes. States like Massachusetts and New York have excellent solar economics despite cloudy weather, because their high electricity rates (24-30¢/kWh) and strong incentive programs more than compensate for lower sun hours. Germany, cloudier than most US states, is a global solar leader.
How does the federal solar tax credit work?
The federal Investment Tax Credit (ITC) allows you to deduct 30% of your total solar system cost from your federal income taxes. The 30% rate is guaranteed through 2032 under the Inflation Reduction Act, stepping down to 26% in 2033 and 22% in 2034. The credit applies to equipment, labor, permitting, and battery storage.