Solar Payback Period by State
Compare solar panel payback periods, costs, and ROI for all 50 states — updated for 2026
National Average
15.7 yrs
Fastest Payback
11.8 yrs
Louisiana
States Covered
51
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)
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 | Louisiana | 11.8 yrs | $18,200 | $1,537 | 5.5 | 111% |
| 2 | South Dakota | 13.5 yrs | $19,600 | $1,452 | 4.1 | 85% |
| 3 | West Virginia | 13.7 yrs | $19,600 | $1,433 | 4.7 | 83% |
| 4 | Minnesota | 13.8 yrs | $21,700 | $1,574 | 4 | 81% |
| 5 | Kentucky | 13.9 yrs | $18,900 | $1,359 | 4.7 | 80% |
| 6 | Missouri | 13.9 yrs | $18,900 | $1,357 | 4.6 | 80% |
| 7 | Texas | 13.9 yrs | $20,300 | $1,455 | 5.4 | 79% |
| 8 | Arkansas | 14 yrs | $18,200 | $1,298 | 5 | 78% |
| 9 | Idaho | 14 yrs | $20,300 | $1,452 | 4.1 | 79% |
| 10 | Indiana | 14 yrs | $19,600 | $1,399 | 4.5 | 78% |
| 11 | Wisconsin | 14.1 yrs | $21,000 | $1,487 | 4.2 | 77% |
| 12 | Kansas | 14.2 yrs | $18,900 | $1,330 | 4.6 | 76% |
| 13 | Arizona | 14.3 yrs | $18,900 | $1,320 | 5.2 | 75% |
| 14 | Alabama | 14.4 yrs | $18,900 | $1,309 | 5.2 | 73% |
| 15 | Michigan | 14.4 yrs | $21,000 | $1,455 | 4.3 | 73% |
| 16 | Ohio | 14.5 yrs | $20,300 | $1,399 | 4.5 | 72% |
| 17 | Mississippi | 14.6 yrs | $18,200 | $1,243 | 5.4 | 71% |
| 18 | Nebraska | 14.6 yrs | $19,600 | $1,342 | 4.4 | 71% |
| 19 | North Dakota | 14.6 yrs | $19,600 | $1,346 | 3.8 | 72% |
| 20 | South Carolina | 14.7 yrs | $19,600 | $1,334 | 5.1 | 70% |
| 21 | Iowa | 15 yrs | $20,300 | $1,354 | 4.3 | 67% |
| 22 | Oklahoma | 15 yrs | $18,200 | $1,210 | 5 | 66% |
| 23 | Wyoming | 15 yrs | $20,300 | $1,354 | 4.3 | 67% |
| 24 | Vermont | 15.1 yrs | $23,100 | $1,535 | 4 | 66% |
| 25 | Tennessee | 15.3 yrs | $18,900 | $1,234 | 4.9 | 63% |
| 26 | Utah | 15.4 yrs | $19,600 | $1,272 | 4.4 | 62% |
| 27 | Nevada | 15.6 yrs | $19,600 | $1,253 | 4.9 | 60% |
| 28 | Georgia | 15.7 yrs | $20,300 | $1,294 | 5.1 | 59% |
| 29 | Maine | 15.9 yrs | $23,100 | $1,452 | 4.1 | 57% |
| 30 | Washington | 15.9 yrs | $21,700 | $1,368 | 3.7 | 58% |
| 31 | Illinois | 16 yrs | $21,700 | $1,354 | 4.3 | 56% |
| 32 | New Hampshire | 16 yrs | $23,800 | $1,487 | 4.2 | 56% |
| 33 | Pennsylvania | 16 yrs | $22,400 | $1,399 | 4.5 | 56% |
| 34 | Delaware | 16.1 yrs | $22,400 | $1,390 | 4.5 | 55% |
| 35 | North Carolina | 16.1 yrs | $19,600 | $1,215 | 4.9 | 55% |
| 36 | Virginia | 16.3 yrs | $21,700 | $1,332 | 4.7 | 53% |
| 37 | Colorado | 16.4 yrs | $22,400 | $1,363 | 4.5 | 52% |
| 38 | Florida | 16.4 yrs | $19,600 | $1,196 | 5.8 | 53% |
| 39 | Oregon | 16.6 yrs | $21,700 | $1,306 | 4 | 50% |
| 40 | New Mexico | 16.8 yrs | $20,300 | $1,210 | 5 | 49% |
| 41 | Maryland | 17 yrs | $23,100 | $1,357 | 4.6 | 47% |
| 42 | Montana | 17.1 yrs | $21,000 | $1,228 | 3.9 | 46% |
| 43 | Alaska | 17.6 yrs | $26,600 | $1,515 | 3.5 | 42% |
| 44 | District of Columbia | 18 yrs | $24,500 | $1,357 | 4.6 | 39% |
| 45 | Massachusetts | 18 yrs | $25,900 | $1,438 | 4.3 | 39% |
| 46 | Rhode Island | 18.1 yrs | $24,500 | $1,354 | 4.3 | 38% |
| 47 | New Jersey | 18.6 yrs | $24,500 | $1,316 | 4.4 | 34% |
| 48 | Connecticut | 18.7 yrs | $25,200 | $1,350 | 4.4 | 34% |
| 49 | Hawaii | 19.2 yrs | $29,400 | $1,535 | 6 | 30% |
| 50 | New York | 19.4 yrs | $25,200 | $1,298 | 4.4 | 29% |
| 51 | California | 20.2 yrs | $26,600 | $1,318 | 5 | 24% |