Solar Panel Cost by State: 2026 Pricing Guide
Solar costs vary significantly by state: a system that costs $2.45/W in Arizona might run $3.04/W in Massachusetts. Labor rates, permitting friction, market competition, and state policies all play a role. This guide provides cost per watt, estimated payback, net metering status, and key incentives for every state.
How to Use This Guide
All costs below are for a typical 8 kW residential system (sufficient for an average home) using standard-tier equipment. Costs are gross (before incentives). Payback periods assume a cash purchase with no federal residential tax credit (25D expired), but include state incentives where applicable.
For personalized numbers based on your actual electricity usage and roof, use our ROI Calculator and System Size Calculator.
State-by-State Cost Table
| State | Avg Cost/W | 8 kW System | Est. Payback | Net Metering |
|---|---|---|---|---|
| Alabama | $2.65 | $21,200 | 9–12 years | None |
| Alaska | $2.94 | $23,520 | 9–12 years | Net metering |
| Arizona | $2.45 | $19,600 | 11–14 years | Net billing |
| Arkansas | $2.55 | $20,400 | 10–13 years | Net billing |
| California | $2.99 | $23,920 | 7–10 years | Net billing |
| Colorado | $2.75 | $22,000 | 11–14 years | Net metering |
| Connecticut | $3.04 | $24,320 | 7–10 years | Net metering |
| Delaware | $2.91 | $23,280 | 10–13 years | Net metering |
| Florida | $2.54 | $20,320 | 8–11 years | Net metering |
| Georgia | $2.64 | $21,120 | 9–12 years | None |
| Hawaii | $3.04 | $24,320 | 4–7 years | Net billing |
| Idaho | $2.63 | $21,040 | 16–19 years | Net metering |
| Illinois | $2.84 | $22,720 | 10–13 years | Net metering |
| Indiana | $2.54 | $20,320 | 9–12 years | Net billing |
| Iowa | $2.63 | $21,040 | 13–16 years | Net metering |
| Kansas | $2.46 | $19,680 | 10–13 years | Net billing |
| Kentucky | $2.46 | $19,680 | 10–13 years | Net billing |
| Louisiana | $2.55 | $20,400 | 9–12 years | Net billing |
| Maine | $3.00 | $24,000 | 7–10 years | Net metering |
| Maryland | $2.84 | $22,720 | 8–11 years | Net metering |
| Massachusetts | $3.04 | $24,320 | 7–10 years | Net metering + SMART |
| Michigan | $2.74 | $21,920 | 8–11 years | Net billing |
| Minnesota | $2.82 | $22,560 | 12–15 years | Net metering |
| Mississippi | $2.55 | $20,400 | 8–11 years | Net billing |
| Missouri | $2.46 | $19,680 | 12–15 years | Net metering |
| Montana | $2.72 | $21,760 | 14–17 years | Net metering |
| Nebraska | $2.54 | $20,320 | 13–16 years | Net metering |
| Nevada | $2.54 | $20,320 | 13–16 years | Net billing |
| New Hampshire | $3.09 | $24,720 | 8–11 years | Net metering |
| New Jersey | $2.89 | $23,120 | 8–11 years | Net metering + SuSI |
| New Mexico | $2.63 | $21,040 | 11–14 years | Net metering |
| New York | $3.04 | $24,320 | 6–9 years | Net metering + NY-Sun |
| North Carolina | $2.54 | $20,320 | 10–13 years | Net metering |
| North Dakota | $2.54 | $20,320 | 15–18 years | Net billing |
| Ohio | $2.74 | $21,920 | 9–12 years | Net metering |
| Oklahoma | $2.55 | $20,400 | 14–17 years | Net billing |
| Oregon | $2.82 | $22,560 | 13–16 years | Net metering |
| Pennsylvania | $2.75 | $22,000 | 8–11 years | Net metering + SRECs |
| Rhode Island | $3.19 | $25,520 | 7–10 years | Net metering + REG |
| South Carolina | $2.54 | $20,320 | 9–12 years | Net billing |
| South Dakota | $2.54 | $20,320 | 12–15 years | Net billing |
| Tennessee | $2.46 | $19,680 | 10–13 years | None |
| Texas | $2.44 | $19,520 | 8–11 years | None |
| Utah | $2.54 | $20,320 | 13–16 years | Net billing |
| Vermont | $3.00 | $24,000 | 9–12 years | Net metering |
| Virginia | $2.75 | $22,000 | 10–13 years | Net metering |
| Washington | $2.82 | $22,560 | 15–18 years | Net metering |
| West Virginia | $2.54 | $20,320 | 9–12 years | Net billing |
| Wisconsin | $2.72 | $21,760 | 10–13 years | Net metering |
| Wyoming | $2.63 | $21,040 | 12–15 years | Net billing |
| Washington D.C. | $3.14 | $25,120 | 8–11 years | Net metering + SRECs |
Top 10 Cheapest States (Cost Per Watt)
- Texas: $2.44/W. Large, competitive market. No statewide net metering, so export value varies by utility.
- Arizona: $2.45/W. Excellent solar resource, mature market, high competition. Net billing (not full net metering) slightly reduces ROI.
- Kansas: $2.46/W. Among the lowest install costs in the country, though net billing reduces export credits.
- Kentucky: $2.46/W. Low costs, but net billing weakens export value.
- Missouri: $2.46/W. Low costs with net metering still in place.
- Tennessee: $2.46/W. Low costs in TVA territory, but no statewide net metering.
- Florida: $2.54/W. Excellent sun, no state income tax on solar. Net metering intact.
- Nevada: $2.54/W. Great sun, competitive market. Net billing rates reduce export value.
- North Carolina: $2.54/W. Large solar market, growing residential. Net metering available.
- Utah: $2.54/W. Low cost of living, good solar resource. Net billing (not net metering) affects export value.
Top 10 States for ROI (Payback Period)
These states combine decent costs with high electricity rates and/or strong incentives:
- Hawaii: 4–6 years. Highest electricity rates in the nation ($0.45–$0.52/kWh) more than compensate for higher installation costs. Battery storage often required.
- New York: 6–9 years. NY-Sun incentive program provides substantial rebates. High utility rates ($0.20–$0.30/kWh).
- California: 7–10 years. Despite NEM 3.0 reducing export credits, high utility rates ($0.25–$0.40/kWh) and abundant sunshine keep solar viable.
- Massachusetts: 7–10 years. SMART program provides performance payments. High rates ($0.25–$0.32/kWh). Higher installation costs but incentives compensate.
- Connecticut: 7–10 years. High utility rates ($0.24–$0.30/kWh). Net metering intact. RSIP incentives available.
- Rhode Island: 7–10 years. Renewable Energy Growth (REG) program provides strong performance payments.
- Washington D.C.: 8–11 years. Excellent SREC market ($272–$455/credit) plus high utility rates.
- New Jersey: 8–11 years. SuSI program provides ongoing revenue. High utility rates.
- Arizona: 11–14 years. Among the lowest costs per watt; excellent solar resource makes up for net billing.
- Nevada: 13–16 years. Low cost and good sun, but net billing export rates and modest utility rates stretch payback.
How Local Electricity Rates Affect ROI
Your electricity rate is the single biggest factor in solar ROI, more important than system cost. Solar panels produce the same amount of energy regardless of what you paid for them, but each kWh offsets more of your bill when rates are high.
Example: An 8 kW system producing 10,000 kWh/year saves:
- $1,500/year at $0.15/kWh
- $2,000/year at $0.20/kWh
- $2,500/year at $0.25/kWh
- $3,500/year at $0.35/kWh
The system cost is the same in every state. The savings, and therefore the ROI, vary dramatically based on what your utility charges. Use our ROI Calculator to estimate savings with your specific rate.
Regional Trends in 2026
Northeast (NY, MA, CT, NJ, RI, VT, NH, ME, PA)
Highest installation costs but best ROI due to high utility rates and strong state incentives. Net metering is intact in most of these states. SREC markets in PA and DC, plus New Jersey's SuSI program, provide ongoing revenue. The federal credit expiration matters less here because state programs fill the gap.
Southeast (FL, GA, SC, NC, AL, MS, LA)
Lower costs and good solar resource, but generally weaker policy support. Florida is the standout, with low costs, excellent sun, and net metering. Alabama and Mississippi have limited net metering and no state incentives, making payback longer despite the sunshine.
Southwest (AZ, NV, NM, UT, TX)
Best solar resource in the country and among the lowest costs. Arizona and Nevada are the sweet spots. Texas has enormous potential but net metering varies wildly by utility. Utah and New Mexico offer good value.
Midwest (IL, MN, MI, OH, IN, WI, IA)
Moderate costs and moderate solar resource. Illinois and Minnesota have the best incentives in the region. Indiana and Kansas have moved to net billing, reducing export credits. Overall decent but not exceptional solar economics.
Pacific Northwest (WA, OR)
Adequate summer solar but long, cloudy winters. Washington's cheap hydroelectric power (some of the lowest rates in the country) makes solar ROI marginal. Oregon is slightly better due to higher rates and incentive programs.
Mountain West (CO, MT, WY, ID)
Colorado is the standout, with good incentives, net metering, and decent solar. Montana and Idaho have net metering but fewer incentives. Wyoming has limited policy support.
Get personalized numbers for your state
Our free ROI Calculator uses your actual electricity rate, usage, and local solar data to estimate your payback period and 25-year savings. No sign-up required.
Calculate My ROI →Sources: NREL Solar Market Report 2025, SEIA U.S. Solar Market Insight Q1 2026, DSIRE state incentive database, EnergySage Marketplace pricing data, EIA state electricity rates, Berkeley Lab Tracking the Sun report.