Solar Energy in the United States: Complete 2026 Guide

Q: How much do solar panels cost in the US in 2026?

The national average cost of residential solar in 2026 is about $2.70 per watt before incentives, so a typical 7 kW system runs roughly $18,900. After the current federal and state incentives, many homeowners pay 30 to 50 percent less. Costs vary meaningfully by state, system size, equipment tier, and roof complexity, which is why our state cost-per-watt table breaks the numbers down for all 50 states plus Washington, D.C.

Q: What is the federal solar tax credit in 2026?

The residential clean energy credit under section 25D has been phased out for owned residential systems placed in service in 2026 under the One Big Beautiful Bill Act. Section 48E still provides a credit for leased, third-party-owned, and commercial systems. State and local incentives, net metering, and property or sales tax exemptions remain important levers, so check our incentive finder and your state page for the credits that still apply where you live.

Q: How long does it take for solar to pay for itself?

The average solar payback period in the United States is roughly 8 to 11 years, depending on local electricity rates, sun exposure, system cost, and net metering policy. States with high utility rates and strong sunshine often pay back in 5 to 7 years, while lower-rate or lower-sun states can take 12 years or more. Our solar payback by state page ranks every state so you can see exactly where you stand.

Q: Which states are best for solar in 2026?

The best states for solar combine high electricity rates, strong peak sun hours, and favorable net metering or incentive programs. California, Nevada, Arizona, Massachusetts, New York, and New Jersey consistently rank near the top, while high-rate states like Maryland and Connecticut have become far more attractive as utility prices climb. Use our cost-per-watt and payback tables to compare any two states side by side.

Q: How many peak sun hours does the US get?

The contiguous United States averages about 4.7 peak sun hours per day, but the range is wide. Arizona and Nevada can exceed 6.5 hours, while the Pacific Northwest and parts of the Northeast may see 3.5 to 4.0 hours. More sun means more kilowatt-hours from the same array, which directly improves payback. Each state page lists the average peak sun hours used in our production estimates.

Q: Is solar worth it in 2026 without the federal credit?

Yes, in much of the country. With electricity rates rising and equipment costs falling, payback periods of 7 to 10 years are still common even without the 25D credit, particularly in high-rate states. Pairing panels with a battery and joining a virtual power plant program can further shorten payback. Our solar worth-it analysis and ROI calculator model these scenarios using your actual usage and local rates.

The topical hub for U.S. residential solar — current cost-per-watt data for all 50 states plus Washington, D.C., payback math, the state of incentives after the 2026 federal changes, and the free calculators that turn these numbers into a decision for your roof.

Avg. Cost / Watt

$2.78

Avg. Payback

10.7 yrs

Cheapest / Watt

$2.50

Arizona

Fastest Payback

3.1 yrs

Hawaii

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The National Solar Landscape

Solar power has become one of the fastest-growing sources of electricity in the United States. More than five million American homes now have rooftop solar, and residential installations continue to set records as panel prices fall, inverters get smarter, and homeowners look for relief from rising utility bills. The U.S. added tens of gigawatts of solar capacity over the past year alone, and the technology now supplies a meaningful share of the grid in states like California, Nevada, Arizona, and Texas. Growth has not been even, though — adoption depends heavily on local electricity rates, sunshine, incentive programs, permitting rules, and net metering policy, which is why understanding your own state is the single most important step in evaluating solar.

How Solar Works

A residential solar system turns sunlight into usable electricity through photovoltaic panels, usually mounted on a south-, west-, or east-facing roof. Each panel contains silicon cells that generate direct current when struck by sunlight; an inverter then converts that direct current into the alternating current your home uses. Any energy you produce offsets power you would otherwise buy from the utility, and in states with net metering or a solar buyback program, surplus energy sent back to the grid earns credits on your bill. A grid-tied system without batteries stops producing during an outage for safety reasons, so homeowners who want backup power add a battery. Modern systems are modular, monitored through a phone app, and typically degrade less than one percent per year — meaning a well-installed array will still produce the large majority of its original output after twenty-five years.

Solar Costs by State

Click any column header to sort. Data compiled June 2026 for a 7 kW residential system.

Jump to your state:

State	Cost / Watt	7 kW System	Payback (yrs)
Arizona	$2.50	$17,500	9.9
Texas	$2.50	$17,500	8.8
Kansas	$2.51	$17,570	11.3
Kentucky	$2.51	$17,570	11.1
Missouri	$2.51	$17,570	12.5
Tennessee	$2.51	$17,570	11.0
Arkansas	$2.60	$18,200	11.3
Florida	$2.60	$18,200	9.2
Indiana	$2.60	$18,200	9.9
Louisiana	$2.60	$18,200	10.4
Mississippi	$2.60	$18,200	9.3
Nebraska	$2.60	$18,200	13.5
Nevada	$2.60	$18,200	12.1
North Carolina	$2.60	$18,200	10.9
North Dakota	$2.60	$18,200	15.6
Oklahoma	$2.60	$18,200	12.1
South Carolina	$2.60	$18,200	9.8
South Dakota	$2.60	$18,200	12.5
Utah	$2.60	$18,200	14.2
West Virginia	$2.60	$18,200	10.2
Idaho	$2.69	$18,830	16.5
Iowa	$2.69	$18,830	13.8
New Mexico	$2.69	$18,830	11.9
Wyoming	$2.69	$18,830	13.2
Alabama	$2.70	$18,900	9.7
Georgia	$2.70	$18,900	10.4
Montana	$2.78	$19,460	15.1
Wisconsin	$2.78	$19,460	10.5
Colorado	$2.80	$19,600	12.0
Michigan	$2.80	$19,600	9.2
Ohio	$2.80	$19,600	9.9
Pennsylvania	$2.80	$19,600	9.0
Virginia	$2.80	$19,600	10.6
Minnesota	$2.88	$20,160	13.2
Oregon	$2.88	$20,160	13.8
Washington	$2.88	$20,160	16.2
Illinois	$2.90	$20,300	10.6
Maryland	$2.90	$20,300	9.0
New Jersey	$2.95	$20,650	9.0
Delaware	$2.97	$20,790	10.6
Alaska	$3.00	$21,000	9.5
California	$3.05	$21,350	5.7
Maine	$3.06	$21,420	8.1
Vermont	$3.06	$21,420	9.6
Connecticut	$3.10	$21,700	8.0
Hawaii	$3.10	$21,700	3.1
Massachusetts	$3.10	$21,700	7.8
New York	$3.10	$21,700	7.4
New Hampshire	$3.16	$22,120	8.6
District of Columbia	$3.20	$22,400	8.6
Rhode Island	$3.25	$22,750	8.0

Solar Incentives in 2026

Even after the 2026 phase-out of the residential 25D credit under the One Big Beautiful Bill Act, incentives remain a major part of the solar value proposition. Section 48E still applies to leased and third-party-owned systems that began construction before July 4, 2026, and many states layer on their own income tax credits, property tax exemptions, sales tax exemptions, rebates, and performance-based incentives such as solar renewable energy certificates. Net metering and successor tariff programs also vary widely — from full retail-rate crediting to lower export compensation — and this single policy choice can swing a payback period by several years. Our incentive finder maps the programs available in your area.

Financing & Ownership

How you pay for a system changes the math almost as much as where you live. A cash purchase or a low-interest loan on an owned system keeps the full long-term savings and any remaining state or local incentives, while a lease or power purchase agreement lowers or eliminates upfront cost in exchange for giving the installer the incentive rights and a monthly payment. After the 2026 changes to the residential credit, section 48E continues to favor leased and third-party-owned systems (for projects that began construction before July 4, 2026), which makes comparing cash, loan, lease, and PPA options one of the most consequential decisions in a solar project.

State-by-State Guide

Cost-per-watt, payback, and in-depth guides for all 50 states + D.C.