Solar Payback Period by State
Compare solar panel payback periods, costs, and ROI for all 50 states — updated for 2026
Calculate your exact payback period
Use our free ROI calculator with your specific numbers
How We Calculate Payback Periods
All payback estimates use a standard 7kW residential system with:
- System efficiency factor of 77% (inverter + wiring + soiling losses)
- State-averaged cost per watt from local installer data
- State-averaged utility rates from EIA data
- Peak sun hours based on NREL solar resource data
- No incentives applied (actual payback may be faster with state/local rebates)
Rate source & methodology: Residential electricity rates are anchored to the U.S. Energy Information Administration Electric Power Monthly Table 5.6.A (March 2026 residential retail price). Annual savings are computed as production × the state retail rate, which represents an upper bound on offset value for full-retail net-metering states. In net-billing / NEM 3.0 states (e.g., California, Hawaii, Arizona), exports earn less than retail, so real-world savings with no battery may be somewhat lower than shown here; adding battery storage to shift exports into self-consumption typically closes most of that gap. Florida's rate reflects full retail (1:1) net metering — the 2022 phase-out bill was vetoed and never became law.
Your actual payback may vary based on roof orientation, shading, local installer pricing, and available incentives. Use our ROI Calculator for a personalized estimate.
All 50 States — Ranked by Payback Period
| Rank | State | Payback | Cost | Savings/yr | Sun hrs | 25yr ROI |
|---|---|---|---|---|---|---|
| 1 | Hawaii | 3.2 yrs | $24,800 | $7,835 | 6 | 690% |
| 2 | California | 5.8 yrs | $24,400 | $4,175 | 5 | 328% |
| 3 | New York | 7.5 yrs | $24,800 | $3,307 | 4.4 | 233% |
| 4 | Massachusetts | 8 yrs | $24,800 | $3,112 | 4.3 | 214% |
| 5 | Maine | 8.3 yrs | $24,480 | $2,948 | 4.1 | 201% |
| 6 | District of Columbia | 8.7 yrs | $25,600 | $2,934 | 4.6 | 187% |
| 7 | New Hampshire | 8.8 yrs | $25,280 | $2,882 | 4.2 | 185% |
| 8 | Illinois | 9 yrs | $23,200 | $2,575 | 4.3 | 177% |
| 9 | Texas | 9 yrs | $20,000 | $2,229 | 5.4 | 179% |
| 10 | Maryland | 9.2 yrs | $23,200 | $2,515 | 4.6 | 171% |
| 11 | New Jersey | 9.2 yrs | $23,600 | $2,571 | 4.4 | 172% |
| 12 | Pennsylvania | 9.2 yrs | $22,400 | $2,435 | 4.5 | 172% |
| 13 | Florida | 9.4 yrs | $20,800 | $2,210 | 5.8 | 166% |
| 14 | Michigan | 9.4 yrs | $22,400 | $2,377 | 4.3 | 165% |
| 15 | Mississippi | 9.5 yrs | $20,800 | $2,191 | 5.4 | 163% |
| 16 | Alaska | 9.7 yrs | $24,000 | $2,481 | 3.5 | 158% |
| 17 | Connecticut | 9.7 yrs | $24,800 | $2,561 | 4.4 | 158% |
| 18 | Vermont | 9.8 yrs | $24,480 | $2,500 | 4 | 155% |
| 19 | Alabama | 9.9 yrs | $21,600 | $2,190 | 5.2 | 153% |
| 20 | South Carolina | 10 yrs | $20,800 | $2,072 | 5.1 | 149% |
| 21 | Arizona | 10.1 yrs | $20,000 | $1,989 | 5.2 | 149% |
| 22 | Indiana | 10.1 yrs | $20,800 | $2,051 | 4.5 | 147% |
| 23 | Ohio | 10.2 yrs | $22,400 | $2,206 | 4.5 | 146% |
| 24 | Rhode Island | 10.2 yrs | $26,000 | $2,545 | 4.3 | 145% |
| 25 | West Virginia | 10.5 yrs | $20,800 | $1,983 | 4.7 | 138% |
| 26 | Georgia | 10.6 yrs | $21,600 | $2,029 | 5.1 | 135% |
| 27 | Louisiana | 10.6 yrs | $20,800 | $1,954 | 5.5 | 135% |
| 28 | Wisconsin | 10.7 yrs | $22,240 | $2,082 | 4.2 | 134% |
| 29 | Delaware | 10.8 yrs | $23,760 | $2,190 | 4.5 | 130% |
| 30 | Virginia | 10.8 yrs | $22,400 | $2,079 | 4.7 | 132% |
| 31 | North Carolina | 11.2 yrs | $20,800 | $1,857 | 4.9 | 123% |
| 32 | Tennessee | 11.3 yrs | $20,080 | $1,781 | 4.9 | 122% |
| 33 | Kentucky | 11.4 yrs | $20,080 | $1,768 | 4.7 | 120% |
| 34 | Arkansas | 11.5 yrs | $20,800 | $1,803 | 5 | 117% |
| 35 | Kansas | 11.5 yrs | $20,080 | $1,748 | 4.6 | 118% |
| 36 | New Mexico | 12.1 yrs | $21,520 | $1,773 | 5 | 106% |
| 37 | Colorado | 12.3 yrs | $22,400 | $1,826 | 4.5 | 104% |
| 38 | Nevada | 12.4 yrs | $20,800 | $1,673 | 4.9 | 101% |
| 39 | Oklahoma | 12.4 yrs | $20,800 | $1,680 | 5 | 102% |
| 40 | Missouri | 12.7 yrs | $20,080 | $1,580 | 4.6 | 97% |
| 41 | South Dakota | 12.8 yrs | $20,800 | $1,620 | 4.1 | 95% |
| 42 | Minnesota | 13.5 yrs | $23,040 | $1,703 | 4 | 85% |
| 43 | Wyoming | 13.5 yrs | $21,520 | $1,598 | 4.3 | 86% |
| 44 | Nebraska | 13.8 yrs | $20,800 | $1,502 | 4.4 | 81% |
| 45 | Iowa | 14.1 yrs | $21,520 | $1,527 | 4.3 | 77% |
| 46 | Oregon | 14.1 yrs | $23,040 | $1,634 | 4 | 77% |
| 47 | Utah | 14.5 yrs | $20,800 | $1,432 | 4.4 | 72% |
| 48 | Montana | 15.5 yrs | $22,240 | $1,437 | 3.9 | 62% |
| 49 | North Dakota | 16 yrs | $20,800 | $1,299 | 3.8 | 56% |
| 50 | Washington | 16.6 yrs | $23,040 | $1,389 | 3.7 | 51% |
| 51 | Idaho | 16.9 yrs | $21,520 | $1,272 | 4.1 | 48% |