Solar panels by state: cost, savings and payback
How long solar takes to pay for itself depends on how much sun you get and what you pay for electricity. These estimates size a system for the average home in each state using NREL PVWatts production data and a cost of $2.57 per watt. No federal tax credit is included: the 30% residential credit (25D) does not apply to systems installed after 31 December 2025.
| State | kWh per kW / yr | System size | Est. cost | Year-1 savings | Payback |
|---|---|---|---|---|---|
| Hawaii | 1,622 | 4.0 kW | $10,280 | $2,733 | 3.8 yrs |
| California | 1,677 | 4.0 kW | $10,280 | $1,967 | 5.2 yrs |
| Massachusetts | 1,302 | 5.6 kW | $14,392 | $2,198 | 6.6 yrs |
| Rhode Island | 1,294 | 5.2 kW | $13,364 | $1,951 | 6.9 yrs |
| Maine | 1,319 | 5.2 kW | $13,364 | $1,874 | 7.1 yrs |
| New York | 1,291 | 5.6 kW | $14,392 | $2,012 | 7.2 yrs |
| Connecticut | 1,291 | 6.8 kW | $17,476 | $2,312 | 7.6 yrs |
| District of Columbia | 1,391 | 5.6 kW | $14,392 | $1,865 | 7.7 yrs |
| New Hampshire | 1,258 | 6.4 kW | $16,448 | $2,079 | 7.9 yrs |
| New Jersey | 1,305 | 6.4 kW | $16,448 | $1,921 | 8.6 yrs |
| Maryland | 1,392 | 8.4 kW | $21,588 | $2,427 | 8.9 yrs |
| New Mexico | 1,779 | 6.8 kW | $17,476 | $1,947 | 9.0 yrs |
| Vermont | 1,222 | 6.0 kW | $15,420 | $1,693 | 9.1 yrs |
| Pennsylvania | 1,356 | 7.6 kW | $19,532 | $2,094 | 9.4 yrs |
| Michigan | 1,291 | 6.0 kW | $15,420 | $1,610 | 9.6 yrs |
| Colorado | 1,595 | 7.6 kW | $19,532 | $2,004 | 9.8 yrs |
| Arizona | 1,755 | 7.6 kW | $19,532 | $1,946 | 10.0 yrs |
| Wisconsin | 1,334 | 6.0 kW | $15,420 | $1,499 | 10.5 yrs |
| Illinois | 1,308 | 6.4 kW | $16,448 | $1,582 | 10.6 yrs |
| Alaska | 922 | 8.0 kW | $20,560 | $1,901 | 10.8 yrs |
| Delaware | 1,364 | 8.4 kW | $21,588 | $2,001 | 10.8 yrs |
| Virginia | 1,427 | 9.2 kW | $23,644 | $2,129 | 11.2 yrs |
| Nevada | 1,753 | 6.4 kW | $16,448 | $1,466 | 11.3 yrs |
| Ohio | 1,296 | 8.4 kW | $21,588 | $1,910 | 11.3 yrs |
| Kansas | 1,526 | 7.2 kW | $18,504 | $1,611 | 11.5 yrs |
| Texas | 1,421 | 9.6 kW | $24,672 | $2,137 | 11.7 yrs |
| Alabama | 1,376 | 10.0 kW | $25,700 | $2,249 | 11.7 yrs |
| South Carolina | 1,454 | 9.2 kW | $23,644 | $2,025 | 11.7 yrs |
| Indiana | 1,332 | 8.4 kW | $21,588 | $1,884 | 11.7 yrs |
| Florida | 1,455 | 9.2 kW | $23,644 | $2,028 | 11.8 yrs |
| Minnesota | 1,333 | 6.8 kW | $17,476 | $1,455 | 12.2 yrs |
| Georgia | 1,420 | 9.2 kW | $23,644 | $1,967 | 12.3 yrs |
| Wyoming | 1,533 | 6.4 kW | $16,448 | $1,374 | 12.3 yrs |
| Oklahoma | 1,542 | 8.4 kW | $21,588 | $1,782 | 12.4 yrs |
| Mississippi | 1,414 | 10.0 kW | $25,700 | $2,086 | 12.6 yrs |
| North Carolina | 1,416 | 9.2 kW | $23,644 | $1,853 | 12.8 yrs |
| South Dakota | 1,409 | 8.4 kW | $21,588 | $1,684 | 13.2 yrs |
| Missouri | 1,433 | 8.8 kW | $22,616 | $1,742 | 13.3 yrs |
| Utah | 1,484 | 6.4 kW | $16,448 | $1,249 | 13.5 yrs |
| Iowa | 1,367 | 7.6 kW | $19,532 | $1,445 | 13.7 yrs |
| Louisiana | 1,479 | 10.0 kW | $25,700 | $1,892 | 13.8 yrs |
| West Virginia | 1,219 | 10.4 kW | $26,728 | $1,967 | 14.0 yrs |
| Kentucky | 1,343 | 10.0 kW | $25,700 | $1,842 | 14.2 yrs |
| Idaho | 1,468 | 7.6 kW | $19,532 | $1,389 | 14.2 yrs |
| Montana | 1,344 | 7.6 kW | $19,532 | $1,382 | 14.3 yrs |
| Arkansas | 1,373 | 9.6 kW | $24,672 | $1,719 | 14.4 yrs |
| Tennessee | 1,338 | 10.8 kW | $27,756 | $1,936 | 14.6 yrs |
| Nebraska | 1,423 | 8.4 kW | $21,588 | $1,463 | 14.9 yrs |
| Oregon | 1,121 | 9.2 kW | $23,644 | $1,572 | 15.3 yrs |
| North Dakota | 1,294 | 10.0 kW | $25,700 | $1,594 | 16.7 yrs |
| Washington | 1,088 | 10.4 kW | $26,728 | $1,580 | 17.4 yrs |
Every home is different. Try the solar panel calculator with your own usage and rate, then get real quotes.
Production: PVWatts v8 (largest city in each state; fixed roof mount, 20° tilt, south-facing, 14% losses). Prices and usage: EIA through August 2026. See how we calculate.
States where solar pays back fastest
- Hawaii – about 3.8 years for a 4.0 kW system
- California – about 5.2 years for a 4.0 kW system
- Massachusetts – about 6.6 years for a 5.6 kW system
- Rhode Island – about 6.9 years for a 5.2 kW system
- Maine – about 7.1 years for a 5.2 kW system
Payback is fastest where electricity is expensive and the sun is strong. A sunny state with cheap electricity can take longer than a less sunny state with high rates.
How we estimate solar for each state
We size a system to cover the average home's yearly use in the state, take production per kW from NREL PVWatts for the state's largest city, price it at $2.57 per watt and value the output at the state's 12-month average rate. Full details are on how we calculate. Your roof, shading and quotes will differ – try the solar panel calculator.
Learn before you buy
Frequently asked questions
Which state is best for solar payback?
Hawaii has the shortest estimated payback in our model, about 3.8 years for an average home with no federal tax credit.
Which state gets the most solar production?
Among our state reference cities, Albuquerque (New Mexico) produces the most: about 1,779 kWh per kW of panels per year (NREL PVWatts).
Is there still a federal solar tax credit?
The residential clean energy credit (section 25D) does not apply to expenditures made after 31 December 2025; for solar, the expenditure is treated as made when installation is complete (IRS).
How much does a solar system cost?
At $2.57 per watt, a 7 kW system would cost about $17,990 before incentives. Quotes vary by installer, equipment and roof.
How are these payback estimates calculated?
System size covers the average home's yearly use; production comes from NREL PVWatts; savings use the state's 12-month average rate; payback is the year savings pass the cost, over 25 years.
Sources
- National Laboratory of the Rockies (formerly NREL) – PVWatts Calculator (version 8)
- U.S. Energy Information Administration – Monthly electric power industry report (Form EIA-861M)
- IRS – FAQs on the termination of clean energy credits (section 25D)
- DSIRE – Database of State Incentives for Renewables & Efficiency