Solar Savings by State

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.

For new 2026 homeowner-owned residential systems, do not assume the old federal 30% Investment Tax Credit. Current IRS guidance says the residential clean energy credit is not available for property placed in service after December 31, 2025. Many states still offer Solar Renewable Energy Credits (SRECs), state tax credits, property tax exemptions, sales tax exemptions, and utility programs that can 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

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 roughly $22,000-$26,000 before state rebates, utility programs, SRECs, financing costs, or any project-specific tax treatment.

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 federal incentive story changed after the original IRA schedule. Current IRS OBBB guidance says the residential clean energy credit is not available for property placed in service after December 31, 2025, so 2026 homeowner payback should be modeled without an automatic federal solar credit unless a tax professional confirms a specific exception.

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.