Is Solar Worth It in 2026?
The federal solar tax credit is gone. We analyzed all 50 states + DC to find out where solar still pays off.
Urgent tax credit deadlines
- Section 30D EV credit (up to $7,500) — expires June 30, 2026 (12 days left).
- Section 48E solar ITC safe harbor — construction must start by July 4, 2026 (16 days left).
Key change for 2026: The federal residential solar Investment Tax Credit (25D) expired on January 1, 2026. Without the 30% federal credit, payback periods are significantly longer. State-level incentives and net metering policies now matter more than ever.
National Avg Cost/Watt
$3.05
Avg Payback (No ITC)
15.6 yr
Avg Payback (With 30% ITC)
10.9 yr
Avg Electricity Rate
$0.154
Top 5 States for Solar in 2026
Shortest payback periods without the federal ITC
Browse All States
Select a state to see detailed solar analysis, incentives, and payback estimates
Excellent Viability (8 states)
Good Viability (30 states)
Alabama
14.4 yr payback
Arkansas
14 yr payback
Colorado
16.4 yr payback
Delaware
16.1 yr payback
District of Columbia
18 yr payback
Florida
16.4 yr payback
Illinois
16 yr payback
Indiana
14 yr payback
Iowa
15 yr payback
Kansas
14.2 yr payback
Kentucky
13.9 yr payback
Maine
15.9 yr payback
Maryland
17 yr payback
Massachusetts
18 yr payback
Michigan
14.4 yr payback
Mississippi
14.6 yr payback
New Hampshire
16 yr payback
New Mexico
16.8 yr payback
New York
19.4 yr payback
North Carolina
16.1 yr payback
North Dakota
14.6 yr payback
Oregon
16.6 yr payback
Pennsylvania
16 yr payback
South Carolina
14.7 yr payback
South Dakota
13.5 yr payback
Texas
13.9 yr payback
Vermont
15.1 yr payback
Virginia
16.3 yr payback
Washington
15.9 yr payback
West Virginia
13.7 yr payback
Fair Viability (9 states)
What Changed in 2026?
Before 2026 (with 30% ITC)
- 30% federal tax credit on total system cost
- $7,000+ savings on a typical 7kW system
- National avg payback: ~10.9 years
2026 (no federal ITC)
- 0% federal tax credit (expired Jan 1, 2026)
- Full system cost falls on the homeowner
- National avg payback: ~15.6 years
Data is for estimation purposes only. Actual costs, savings, and payback periods will vary based on local factors, installation specifics, and policy changes. Consult a qualified solar installer for personalized estimates.