All 50 States + DC · 2026 · No Federal Tax Credit
Solar Panels by State: 2026 Cost, Payback & ROI
The 30% federal solar tax credit (Section 25D) expired December 31, 2025. All estimates below reflect 2026 math using NREL PVWatts production data, EIA electricity rates, and LBNL average installed costs — no federal credit included. Click any state for a full breakdown.
All States Ranked by Payback Period
Assumes 900 kWh/month home, 100% offset, no state rebate. System cost at $2.95/W (LBNL 2024 avg).
| Rank | State | Rate (¢/kWh) | System (kW) | Cost | Payback | 25-yr Savings |
|---|---|---|---|---|---|---|
| 1 | Hawaii | 38.5¢ | 6.2 | $18,206 | 4.2 yr | $132,970 |
| 2 | California | 29.8¢ | 6.3 | $18,741 | 5.6 yr | $102,922 |
| 3 | Connecticut | 29.5¢ | 8.6 | $25,488 | 7.5 yr | $101,886 |
| 4 | Rhode Island | 27.8¢ | 8.8 | $25,902 | 8.0 yr | $96,014 |
| 5 | New Hampshire | 27.5¢ | 9.0 | $26,550 | 8.3 yr | $94,978 |
| 6 | Massachusetts | 27.2¢ | 9.0 | $26,550 | 8.4 yr | $93,942 |
| 7 | Maine | 24.8¢ | 9.4 | $27,704 | 9.5 yr | $85,653 |
| 8 | New York | 22.5¢ | 9.0 | $26,550 | 10.0 yr | $77,710 |
| 9 | New Mexico | 13.8¢ | 5.7 | $16,768 | 10.3 yr | $47,662 |
| 10 | Arizona | 13.5¢ | 5.7 | $16,768 | 10.5 yr | $46,626 |
| 11 | Vermont | 21.5¢ | 9.2 | $27,000 | 10.6 yr | $74,256 |
| 12 | Nevada | 13.2¢ | 5.7 | $16,768 | 10.7 yr | $45,590 |
| 13 | New Jersey | 18.5¢ | 8.4 | $24,891 | 11.2 yr | $63,894 |
| 14 | Colorado | 14.2¢ | 6.5 | $19,309 | 11.3 yr | $49,043 |
| 15 | Texas | 14.2¢ | 6.5 | $19,309 | 11.3 yr | $49,043 |
| 16 | Florida | 14.0¢ | 7.0 | $20,555 | 12.2 yr | $48,353 |
| 17 | Maryland | 16.2¢ | 8.2 | $24,136 | 12.3 yr | $55,951 |
| 18 | Alaska | 23.4¢ | 12.0 | $35,400 | 12.5 yr | $80,818 |
| 19 | District of Columbia | 16.0¢ | 8.3 | $24,508 | 12.6 yr | $55,260 |
| 20 | Pennsylvania | 16.8¢ | 8.8 | $25,902 | 12.7 yr | $58,023 |
| 21 | Kansas | 13.2¢ | 7.1 | $20,824 | 13.0 yr | $45,590 |
| 22 | South Carolina | 13.5¢ | 7.3 | $21,527 | 13.1 yr | $46,626 |
| 23 | Michigan | 17.0¢ | 9.4 | $27,704 | 13.3 yr | $58,714 |
| 24 | Georgia | 13.0¢ | 7.2 | $21,240 | 13.4 yr | $44,899 |
| 25 | Utah | 10.8¢ | 6.0 | $17,700 | 13.4 yr | $37,301 |
| 26 | Delaware | 14.8¢ | 8.3 | $24,508 | 13.5 yr | $51,116 |
| 27 | Alabama | 13.2¢ | 7.5 | $21,972 | 13.6 yr | $45,590 |
| 28 | North Carolina | 12.8¢ | 7.5 | $21,972 | 13.9 yr | $44,208 |
| 29 | Illinois | 14.5¢ | 8.6 | $25,488 | 14.2 yr | $50,079 |
| 30 | Oklahoma | 11.5¢ | 6.8 | $20,165 | 14.2 yr | $39,718 |
| 31 | Virginia | 13.5¢ | 8.0 | $23,600 | 14.2 yr | $46,626 |
| 32 | Wisconsin | 15.2¢ | 9.0 | $26,550 | 14.2 yr | $52,497 |
| 33 | Mississippi | 12.2¢ | 7.3 | $21,527 | 14.3 yr | $42,136 |
| 34 | Minnesota | 13.8¢ | 8.6 | $25,488 | 14.9 yr | $47,662 |
| 35 | Arkansas | 11.8¢ | 7.6 | $22,437 | 15.2 yr | $40,754 |
| 36 | Missouri | 12.0¢ | 7.8 | $23,087 | 15.4 yr | $41,445 |
| 37 | Montana | 11.8¢ | 7.8 | $23,087 | 15.6 yr | $40,754 |
| 38 | South Dakota | 11.8¢ | 7.8 | $23,087 | 15.6 yr | $40,754 |
| 39 | Ohio | 13.5¢ | 9.0 | $26,550 | 15.7 yr | $46,626 |
| 40 | Indiana | 13.1¢ | 8.8 | $26,115 | 15.9 yr | $45,244 |
| 41 | Louisiana | 10.8¢ | 7.3 | $21,527 | 15.9 yr | $37,301 |
| 42 | Wyoming | 10.5¢ | 7.1 | $20,961 | 15.9 yr | $36,264 |
| 43 | Tennessee | 11.5¢ | 7.8 | $23,087 | 16.0 yr | $39,718 |
| 44 | Nebraska | 10.5¢ | 7.3 | $21,527 | 16.3 yr | $36,264 |
| 45 | Oregon | 12.5¢ | 9.0 | $26,550 | 16.8 yr | $43,172 |
| 46 | Idaho | 10.2¢ | 7.5 | $21,972 | 17.0 yr | $35,228 |
| 47 | Iowa | 11.5¢ | 8.4 | $24,891 | 17.0 yr | $39,718 |
| 48 | West Virginia | 12.0¢ | 8.8 | $25,902 | 17.0 yr | $41,445 |
| 49 | Kentucky | 11.2¢ | 8.3 | $24,508 | 17.2 yr | $38,682 |
| 50 | North Dakota | 10.8¢ | 8.2 | $24,136 | 17.5 yr | $37,301 |
| 51 | Washington | 10.5¢ | 9.8 | $28,964 | 20.9 yr | $36,264 |
West States
Southwest States
Arizona
13.5¢/kWh · 1,900 kWh/kW/yr
System cost
$16,768
25-yr savings
$46,626
Colorado
14.2¢/kWh · 1,650 kWh/kW/yr
System cost
$19,309
25-yr savings
$49,043
New Mexico
13.8¢/kWh · 1,900 kWh/kW/yr
System cost
$16,768
25-yr savings
$47,662
Oklahoma
11.5¢/kWh · 1,580 kWh/kW/yr
System cost
$20,165
25-yr savings
$39,718
Texas
14.2¢/kWh · 1,650 kWh/kW/yr
System cost
$19,309
25-yr savings
$49,043
Utah
10.8¢/kWh · 1,800 kWh/kW/yr
System cost
$17,700
25-yr savings
$37,301
Northwest States
Alaska
23.4¢/kWh · 900 kWh/kW/yr
System cost
$35,400
25-yr savings
$80,818
Idaho
10.2¢/kWh · 1,450 kWh/kW/yr
System cost
$21,972
25-yr savings
$35,228
Montana
11.8¢/kWh · 1,380 kWh/kW/yr
System cost
$23,087
25-yr savings
$40,754
Oregon
12.5¢/kWh · 1,200 kWh/kW/yr
System cost
$26,550
25-yr savings
$43,172
Washington
10.5¢/kWh · 1,100 kWh/kW/yr
System cost
$28,964
25-yr savings
$36,264
Wyoming
10.5¢/kWh · 1,520 kWh/kW/yr
System cost
$20,961
25-yr savings
$36,264
Southeast States
Alabama
13.2¢/kWh · 1,450 kWh/kW/yr
System cost
$21,972
25-yr savings
$45,590
Arkansas
11.8¢/kWh · 1,420 kWh/kW/yr
System cost
$22,437
25-yr savings
$40,754
Florida
14.0¢/kWh · 1,550 kWh/kW/yr
System cost
$20,555
25-yr savings
$48,353
Georgia
13.0¢/kWh · 1,500 kWh/kW/yr
System cost
$21,240
25-yr savings
$44,899
Kentucky
11.2¢/kWh · 1,300 kWh/kW/yr
System cost
$24,508
25-yr savings
$38,682
Louisiana
10.8¢/kWh · 1,480 kWh/kW/yr
System cost
$21,527
25-yr savings
$37,301
Mississippi
12.2¢/kWh · 1,480 kWh/kW/yr
System cost
$21,527
25-yr savings
$42,136
North Carolina
12.8¢/kWh · 1,450 kWh/kW/yr
System cost
$21,972
25-yr savings
$44,208
South Carolina
13.5¢/kWh · 1,480 kWh/kW/yr
System cost
$21,527
25-yr savings
$46,626
Tennessee
11.5¢/kWh · 1,380 kWh/kW/yr
System cost
$23,087
25-yr savings
$39,718
Virginia
13.5¢/kWh · 1,350 kWh/kW/yr
System cost
$23,600
25-yr savings
$46,626
West Virginia
12.0¢/kWh · 1,230 kWh/kW/yr
System cost
$25,902
25-yr savings
$41,445
Northeast States
Connecticut
29.5¢/kWh · 1,250 kWh/kW/yr
System cost
$25,488
25-yr savings
$101,886
Delaware
14.8¢/kWh · 1,300 kWh/kW/yr
System cost
$24,508
25-yr savings
$51,116
District of Columbia
16.0¢/kWh · 1,300 kWh/kW/yr
System cost
$24,508
25-yr savings
$55,260
Maine
24.8¢/kWh · 1,150 kWh/kW/yr
System cost
$27,704
25-yr savings
$85,653
Maryland
16.2¢/kWh · 1,320 kWh/kW/yr
System cost
$24,136
25-yr savings
$55,951
Massachusetts
27.2¢/kWh · 1,200 kWh/kW/yr
System cost
$26,550
25-yr savings
$93,942
New Hampshire
27.5¢/kWh · 1,200 kWh/kW/yr
System cost
$26,550
25-yr savings
$94,978
New Jersey
18.5¢/kWh · 1,280 kWh/kW/yr
System cost
$24,891
25-yr savings
$63,894
New York
22.5¢/kWh · 1,200 kWh/kW/yr
System cost
$26,550
25-yr savings
$77,710
Pennsylvania
16.8¢/kWh · 1,230 kWh/kW/yr
System cost
$25,902
25-yr savings
$58,023
Rhode Island
27.8¢/kWh · 1,230 kWh/kW/yr
System cost
$25,902
25-yr savings
$96,014
Vermont
21.5¢/kWh · 1,180 kWh/kW/yr
System cost
$27,000
25-yr savings
$74,256
Midwest States
Illinois
14.5¢/kWh · 1,250 kWh/kW/yr
System cost
$25,488
25-yr savings
$50,079
Indiana
13.1¢/kWh · 1,220 kWh/kW/yr
System cost
$26,115
25-yr savings
$45,244
Iowa
11.5¢/kWh · 1,280 kWh/kW/yr
System cost
$24,891
25-yr savings
$39,718
Kansas
13.2¢/kWh · 1,530 kWh/kW/yr
System cost
$20,824
25-yr savings
$45,590
Michigan
17.0¢/kWh · 1,150 kWh/kW/yr
System cost
$27,704
25-yr savings
$58,714
Minnesota
13.8¢/kWh · 1,250 kWh/kW/yr
System cost
$25,488
25-yr savings
$47,662
Missouri
12.0¢/kWh · 1,380 kWh/kW/yr
System cost
$23,087
25-yr savings
$41,445
Nebraska
10.5¢/kWh · 1,480 kWh/kW/yr
System cost
$21,527
25-yr savings
$36,264
North Dakota
10.8¢/kWh · 1,320 kWh/kW/yr
System cost
$24,136
25-yr savings
$37,301
Ohio
13.5¢/kWh · 1,200 kWh/kW/yr
System cost
$26,550
25-yr savings
$46,626
South Dakota
11.8¢/kWh · 1,380 kWh/kW/yr
System cost
$23,087
25-yr savings
$40,754
Wisconsin
15.2¢/kWh · 1,200 kWh/kW/yr
System cost
$26,550
25-yr savings
$52,497
What Determines Solar ROI by State?
Two numbers drive most of the variation in solar ROI across states: your electricity rate and your solar resource.
Electricity rate determines what you save per kilowatt-hour your panels produce. Hawaii at 38.5¢/kWh saves nearly four times as much per kWh as Idaho at 10.2¢/kWh. This is the single biggest lever in solar economics — more so than the solar resource.
Solar resource (measured in kWh per kW installed per year from NREL PVWatts) determines how much electricity your system produces. Arizona and Nevada lead at 1,900 kWh/kW/year — about 70% more than Washington state at 1,100 kWh/kW/year. A 6 kW system in Phoenix produces roughly 11,400 kWh/year; the same system in Seattle produces about 6,600 kWh.
The best solar economics combine high electricity rates with strong sun — Hawaii, California, and the New England states with rates above 25¢/kWh tend to top the rankings. States like Idaho and Washington face both low rates and limited sun, creating the longest payback periods in the country.
What Changed in 2026?
The residential solar Investment Tax Credit (Section 25D) expired December 31, 2025 for homeowners. Through 2025, a $20,000 system effectively cost $14,000 after the 30% federal credit. In 2026, that same system costs the full $20,000 (minus any remaining state incentives). This shifts payback periods roughly 2–4 years longer across the board.
State incentives remain. New York's NY-Sun program, Massachusetts' SMART program, New Jersey's SREC market, Iowa's 15% state credit, and Arizona's 25% state credit (up to $1,000) are still active. The calculator on each state page can be used to model these rebates. For a full list, check DSIRE (dsireusa.org).
Calculate Your Specific Solar ROI
The state pages use 900 kWh/month as a typical home. Enter your actual electric bill, state rebate amounts, and desired offset percentage for a personalized estimate.
All estimates use NREL PVWatts v8 production data, EIA 2025 residential electricity rates, and LBNL 2024 average installed costs ($2.95/W). Assumes 0.5%/yr panel degradation and 2.5%/yr electricity rate escalation. No Section 25D federal credit is included. State rebates are not reflected in the pre-computed figures. Actual results vary by roof orientation, shading, utility rate structure, and local permit costs. Consult a licensed installer before making any purchasing decision.