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	52.72¢	5.7	3.4 yrs	$85,024
2	California	34.74¢	5.6	4.0 yrs	$53,024
3	Rhode Island	29.23¢	4.0	6.9 yrs	$26,085
4	Massachusetts	29.61¢	3.9	7.0 yrs	$25,592
5	Maine	29.59¢	3.9	7.0 yrs	$25,566
6	New York	29.49¢	3.8	7.2 yrs	$24,425
7	Arizona	15.18¢	6.5	6.5 yrs	$22,790
8	New Jersey	24.95¢	4.2	7.5 yrs	$22,360
9	New Hampshire	27.01¢	3.9	7.7 yrs	$22,128
10	District of Columbia	24.39¢	4.3	7.7 yrs	$21,970
11	New Mexico	15.06¢	6.3	7.4 yrs	$20,444
12	Colorado	17.13¢	5.5	7.8 yrs	$19,588
13	Maryland	21.84¢	4.3	7.9 yrs	$19,484
14	Connecticut	24.32¢	4.0	8.3 yrs	$19,375
15	Vermont	24.44¢	3.8	8.7 yrs	$17,869
16	Texas	15.94¢	5.2	7.6 yrs	$17,608
17	Michigan	22.99¢	3.8	8.4 yrs	$17,246
18	Nevada	13.11¢	6.4	8.1 yrs	$17,115
19	Florida	15.10¢	5.3	7.8 yrs	$16,631
20	Pennsylvania	21.73¢	3.9	8.7 yrs	$16,353
21	Delaware	19.29¢	4.3	8.6 yrs	$16,158
22	Georgia	16.36¢	4.7	8.8 yrs	$14,719
23	Illinois	19.89¢	4.0	9.3 yrs	$14,581
24	Wyoming	15.24¢	5.2	9.3 yrs	$14,474
25	Kansas	15.71¢	4.9	9.1 yrs	$14,329
26	Wisconsin	19.56¢	4.0	9.4 yrs	$14,130
27	Virginia	17.22¢	4.4	9.2 yrs	$13,915
28	Utah	13.37¢	5.5	9.2 yrs	$13,572
29	South Carolina	15.55¢	4.7	9.3 yrs	$13,419
30	Oklahoma	14.33¢	5.1	9.4 yrs	$13,208
31	Ohio	19.19¢	3.8	9.8 yrs	$12,733
32	Alabama	16.40¢	4.4	9.7 yrs	$12,683
33	Indiana	17.51¢	4.1	9.8 yrs	$12,557
34	Missouri	16.22¢	4.4	10.0 yrs	$12,202
35	Minnesota	17.52¢	4.2	10.4 yrs	$12,119
36	Mississippi	14.88¢	4.6	10.1 yrs	$11,625
37	North Carolina	14.74¢	4.6	10.0 yrs	$11,615
38	South Dakota	15.36¢	4.6	10.4 yrs	$11,539
39	Iowa	15.93¢	4.3	10.4 yrs	$11,222
40	Idaho	14.37¢	4.7	10.4 yrs	$11,104
41	Montana	15.14¢	4.6	11.3 yrs	$10,353
42	Alaska	28.21¢	3.0	13.1 yrs	$10,013
43	Arkansas	14.12¢	4.5	10.8 yrs	$9,948
44	Louisiana	13.49¢	4.7	10.9 yrs	$9,901
45	Oregon	16.32¢	4.0	11.7 yrs	$9,282
46	Tennessee	14.07¢	4.3	11.2 yrs	$9,120
47	Nebraska	13.25¢	4.7	11.4 yrs	$9,096
48	West Virginia	15.45¢	3.9	11.6 yrs	$8,616
49	Kentucky	14.26¢	4.2	11.7 yrs	$8,492
50	North Dakota	14.12¢	4.4	12.3 yrs	$8,205
51	Washington	14.91¢	3.6	13.7 yrs	$5,738

Top 10 in detail

#1. Hawaii — $85,024 20-year net

Hawaii combines very high electricity rates (52.72¢/kWh) with excellent sunshine (5.7 peak sun hours/day). Payback: 3.4 years. Full Hawaii solar breakdown →

#2. California — $53,024 20-year net

California combines very high electricity rates (34.74¢/kWh) with excellent sunshine (5.6 peak sun hours/day). Payback: 4.0 years. Full California solar breakdown →

#3. Rhode Island — $26,085 20-year net

Rhode Island combines very high electricity rates (29.23¢/kWh) with modest sunshine (4.0 peak sun hours/day). Payback: 6.9 years. Full Rhode Island solar breakdown →

#4. Massachusetts — $25,592 20-year net

Massachusetts combines very high electricity rates (29.61¢/kWh) with modest sunshine (3.9 peak sun hours/day). Payback: 7.0 years. Full Massachusetts solar breakdown →

#5. Maine — $25,566 20-year net

Maine combines very high electricity rates (29.59¢/kWh) with modest sunshine (3.9 peak sun hours/day). Payback: 7.0 years. Full Maine solar breakdown →

#6. New York — $24,425 20-year net

New York combines very high electricity rates (29.49¢/kWh) with modest sunshine (3.8 peak sun hours/day). Payback: 7.2 years. Full New York solar breakdown →

#7. Arizona — $22,790 20-year net

Arizona combines moderate electricity rates (15.18¢/kWh) with excellent sunshine (6.5 peak sun hours/day). Payback: 6.5 years. Full Arizona solar breakdown →

#8. New Jersey — $22,360 20-year net

New Jersey combines above-average electricity rates (24.95¢/kWh) with modest sunshine (4.2 peak sun hours/day). Payback: 7.5 years. Full New Jersey solar breakdown →

#9. New Hampshire — $22,128 20-year net

New Hampshire combines very high electricity rates (27.01¢/kWh) with modest sunshine (3.9 peak sun hours/day). Payback: 7.7 years. Full New Hampshire solar breakdown →

#10. District of Columbia — $21,970 20-year net

District of Columbia combines above-average electricity rates (24.39¢/kWh) with modest sunshine (4.3 peak sun hours/day). Payback: 7.7 years. Full District of Columbia 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:

Nebraska — $9,096 20-year net, 11.4 year payback
West Virginia — $8,616 20-year net, 11.6 year payback
Kentucky — $8,492 20-year net, 11.7 year payback
North Dakota — $8,205 20-year net, 12.3 year payback
Washington — $5,738 20-year net, 13.7 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

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Sense home energy monitor — see which loads to offset first
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