Solar Panel Savings by State 2026: Which States Save the Most?
See average solar savings by state in 2026. California, Massachusetts, and New York homeowners save the most — find out where your state ranks.
Solar Savings Rankings by State
Solar savings vary dramatically by state, driven primarily by local electricity rates and sun hours. Here are the top and bottom states for solar savings on a typical 8 kW system:
| State | Avg. Rate (¢/kWh) | Annual Savings (8 kW) | Payback Period | 25-Yr ROI |
|---|---|---|---|---|
| Hawaii | 38¢ | $3,800–$4,500 | 5–6 yrs | $80,000+ |
| California | 30¢ | $2,800–$3,400 | 6–8 yrs | $60,000+ |
| Massachusetts | 27¢ | $2,400–$3,000 | 6–8 yrs | $55,000+ |
| New York | 24¢ | $2,200–$2,800 | 6–8 yrs | $50,000+ |
| Connecticut | 26¢ | $2,300–$2,900 | 6–8 yrs | $50,000+ |
| Texas | 14¢ | $1,200–$1,600 | 8–10 yrs | $30,000+ |
| Florida | 14¢ | $1,300–$1,700 | 8–10 yrs | $32,000+ |
| Arizona | 13¢ | $1,400–$1,800 | 7–9 yrs | $35,000+ |
Why Electricity Rates Matter More Than Sun
It might seem like Arizona or Nevada would offer the best solar savings due to abundant sunshine. But electricity rates are actually the bigger driver of savings. Massachusetts gets significantly less sun than Arizona, yet Massachusetts homeowners often save more money because they pay 2x the electricity rate. The combination of moderate sun and high rates often beats the combination of excellent sun and low rates.
Frequently Asked Questions
Which state has the best solar ROI?
Hawaii has the highest electricity rates and excellent sun, making it the top state for solar ROI. On the mainland, Massachusetts, California, and New York consistently rank highest due to their high electricity rates.
Is solar worth it in low-electricity-rate states?
Solar is still worth it in low-rate states if you have high usage, but payback periods are longer (10–14 years vs. 7–10 years) now that the federal residential tax credit has expired. State incentives and net metering policies become more important in lower-rate states.
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