Best States for Solar Panels (2026) — Ranked by 20-Year Net Savings

Which US states are actually best for rooftop solar in 2026? We ranked all 50 states + DC by projected 20-year net savings on a typical 6 kW system, using current EIA electricity rates, NREL peak-sun-hour data, and state-average installed cost.

How we rank

“Best” here means one thing only: most net dollars saved over 20 years, per $ spent installing. We start with the same 6 kW system in every state and vary the three inputs that actually matter:

Electricity rate — what you avoid buying (higher = more solar savings)
Peak sun hours — how much solar you produce (higher = better)
Installed cost per watt — what solar costs upfront (lower = better)

All numbers assume the 30% federal Investment Tax Credit and a $3.00/W national-average installed cost, adjusted by state.

The full ranking

Sorted by 20-year net savings after install cost. Payback = years to recover net install cost from electricity savings.

Rank	State	Rate	Peak sun hrs	Payback	20-year net
1	Hawaii	46.62¢	5.7	3.9 yrs	$73,145
2	California	35.25¢	5.6	4.0 yrs	$54,000
3	Connecticut	32.24¢	4.0	6.3 yrs	$30,198
4	Massachusetts	29.45¢	3.9	7.1 yrs	$25,379
5	Rhode Island	28.30¢	4.0	7.2 yrs	$24,814
6	New York	29.45¢	3.8	7.3 yrs	$24,373
7	Maine	28.42¢	3.9	7.3 yrs	$24,007
8	District of Columbia	25.41¢	4.3	7.4 yrs	$23,469
9	Arizona	15.48¢	6.5	6.4 yrs	$23,456
10	New Hampshire	27.24¢	3.9	7.6 yrs	$22,434
11	New Mexico	15.15¢	6.3	7.3 yrs	$20,638
12	New Jersey	23.53¢	4.2	8.0 yrs	$20,323
13	Maryland	22.07¢	4.3	7.8 yrs	$19,822
14	Nevada	14.29¢	6.4	7.4 yrs	$19,695
15	Texas	16.99¢	5.2	7.1 yrs	$19,473
16	Colorado	16.54¢	5.5	8.1 yrs	$18,479
17	Vermont	24.56¢	3.8	8.7 yrs	$18,025
18	Florida	15.38¢	5.3	7.7 yrs	$17,138
19	Pennsylvania	21.47¢	3.9	8.8 yrs	$16,007
20	South Carolina	17.06¢	4.7	8.4 yrs	$15,843
21	Delaware	18.79¢	4.3	8.8 yrs	$15,423
22	Illinois	20.47¢	4.0	9.0 yrs	$15,373
23	Michigan	21.39¢	3.8	9.1 yrs	$15,169
24	Mississippi	16.76¢	4.6	8.9 yrs	$14,579
25	Kansas	15.78¢	4.9	9.1 yrs	$14,446
26	Alabama	17.41¢	4.4	9.1 yrs	$14,201
27	Virginia	17.38¢	4.4	9.2 yrs	$14,156
28	North Carolina	16.25¢	4.6	9.0 yrs	$13,988
29	Wisconsin	19.21¢	4.0	9.6 yrs	$13,652
30	Wyoming	14.68¢	5.2	9.7 yrs	$13,479
31	Utah	13.29¢	5.5	9.3 yrs	$13,422
32	Georgia	15.37¢	4.7	9.4 yrs	$13,130
33	Ohio	19.49¢	3.8	9.6 yrs	$13,123
34	Indiana	17.90¢	4.1	9.5 yrs	$13,103
35	Oklahoma	13.31¢	5.1	10.1 yrs	$11,431
36	Louisiana	14.44¢	4.7	10.1 yrs	$11,426
37	Minnesota	16.39¢	4.2	11.1 yrs	$10,498
38	Tennessee	14.94¢	4.3	10.5 yrs	$10,398
39	South Dakota	14.52¢	4.6	11.0 yrs	$10,219
40	Arkansas	14.16¢	4.5	10.8 yrs	$10,009
41	Kentucky	15.02¢	4.2	11.1 yrs	$9,582
42	West Virginia	16.06¢	3.9	11.2 yrs	$9,428
43	Nebraska	13.28¢	4.7	11.4 yrs	$9,144
44	Alaska	27.35¢	3.0	13.5 yrs	$9,132
45	Missouri	14.01¢	4.4	11.6 yrs	$8,880
46	Oregon	15.78¢	4.0	12.1 yrs	$8,544
47	Idaho	12.70¢	4.7	11.7 yrs	$8,422
48	Montana	13.90¢	4.6	12.3 yrs	$8,404
49	Iowa	13.86¢	4.3	12.0 yrs	$8,181
50	North Dakota	12.35¢	4.4	14.0 yrs	$5,545
51	Washington	14.36¢	3.6	14.3 yrs	$5,061

Top 10 in detail

#1. Hawaii — $73,145 20-year net

Hawaii combines very high electricity rates (46.62¢/kWh) with excellent sunshine (5.7 peak sun hours/day). Payback: 3.9 years. Full Hawaii solar breakdown →

#2. California — $54,000 20-year net

California combines very high electricity rates (35.25¢/kWh) with excellent sunshine (5.6 peak sun hours/day). Payback: 4.0 years. Full California solar breakdown →

#3. Connecticut — $30,198 20-year net

Connecticut combines very high electricity rates (32.24¢/kWh) with modest sunshine (4.0 peak sun hours/day). Payback: 6.3 years. Full Connecticut solar breakdown →

#4. Massachusetts — $25,379 20-year net

Massachusetts combines very high electricity rates (29.45¢/kWh) with modest sunshine (3.9 peak sun hours/day). Payback: 7.1 years. Full Massachusetts solar breakdown →

#5. Rhode Island — $24,814 20-year net

Rhode Island combines very high electricity rates (28.30¢/kWh) with modest sunshine (4.0 peak sun hours/day). Payback: 7.2 years. Full Rhode Island solar breakdown →

#6. New York — $24,373 20-year net

New York combines very high electricity rates (29.45¢/kWh) with modest sunshine (3.8 peak sun hours/day). Payback: 7.3 years. Full New York solar breakdown →

#7. Maine — $24,007 20-year net

Maine combines very high electricity rates (28.42¢/kWh) with modest sunshine (3.9 peak sun hours/day). Payback: 7.3 years. Full Maine solar breakdown →

#8. District of Columbia — $23,469 20-year net

District of Columbia combines very high electricity rates (25.41¢/kWh) with modest sunshine (4.3 peak sun hours/day). Payback: 7.4 years. Full District of Columbia solar breakdown →

#9. Arizona — $23,456 20-year net

Arizona combines moderate electricity rates (15.48¢/kWh) with excellent sunshine (6.5 peak sun hours/day). Payback: 6.4 years. Full Arizona solar breakdown →

#10. New Hampshire — $22,434 20-year net

New Hampshire combines very high electricity rates (27.24¢/kWh) with modest sunshine (3.9 peak sun hours/day). Payback: 7.6 years. Full New Hampshire solar breakdown →

The three drivers, explained

1. Electricity rate is 60% of the ranking

The dominant factor. Solar “produces” the rate you would otherwise pay. Hawaii’s 46.6¢/kWh means every kWh solar produces displaces 46.6¢ of grid electricity. Idaho’s 12.7¢/kWh means the same kWh produces displaces 12.7¢. Both save you money, but the Hawaii kWh saves 3.7× as much.

2. Peak sun hours is 25% of the ranking

Not as decisive as rate. The sunniest state (Arizona, 6.5 h/day) produces about 80% more than the least sunny (Alaska, 3.0 h/day). Meaningful, but not enough to flip an expensive-electricity state below a cheap-electricity state.

3. Install cost is 15% of the ranking

The smallest driver. State-average cost per watt ranges from $2.55/W (Texas, Florida) to $4.50/W (Alaska). This changes the gross install by up to 75%, but the federal 30% ITC + 20-year lifespan makes it less decisive than the rate.

Best states for solar — by scenario

Fastest payback (best if you might sell soon)

Hawaii — ~4 years
California — ~4 years
Massachusetts — ~5 years

Highest 20-year cash total (best if you plan to stay)

See top 5 in the ranking table above.

Best incentive stack (federal + state + utility)

Hawaii — 35% state tax credit + 30% federal = 65% effective
South Carolina — 25% state credit + 30% federal = 55% effective
Idaho — 40% first-year state deduction + federal
New York — 25% state credit + NY-Sun rebate + federal
Arizona — 25% state credit + property/sales tax exemption + federal

Worst states for solar in 2026

Cheap-electricity + low-sun states show smaller (or in a few cases marginal) savings:

Idaho — $8,422 20-year net, 11.7 year payback
Montana — $8,404 20-year net, 12.3 year payback
Iowa — $8,181 20-year net, 12.0 year payback
North Dakota — $5,545 20-year net, 14.0 year payback
Washington — $5,061 20-year net, 14.3 year payback

In these states, the cost of imported grid electricity is low enough that solar payback approaches or exceeds panel warranty life. Efficiency-first (LED bulbs, smart thermostat, HPWH) usually pays back faster than PV.

Method & caveats

State rankings compare apples-to-apples using the same 6 kW system, same 30% federal ITC, same 20-year horizon, same $3/W national-avg install cost (state-adjusted). Individual homeowner outcomes vary with:

Real installer quotes (can be 30% below state average with 3+ quotes)
Actual sun exposure (roof orientation, shading)
Local net metering rules (see individual state incentive breakdowns)
Utility-specific rebates (some utilities add $500-$5,000)
Whether you finance or pay cash

Before you buy solar

Affiliate links — we may earn a small commission at no cost to you.

Sense home energy monitor — see which loads to offset first
Solar installation consumer guide
Portable power station — try solar without a full install