Data study · Updated June 2026

Best & worst states for solar in 2026

We ranked all 50 states and D.C. by solar payback period — how fast a typical home system pays for itself — using each state's average electricity rate, real multi-year sunlight data, and 2026 incentives (after the federal tax credit ended for purchases). Lower payback = better.

Best payback
Hawaii
Highest electricity rate
Hawaii (41.2¢)
Most sunlight
Arizona (6.6 hrs)

Top 10 best states for solar

#StateRateSun hrsNet costPayback25-yr savings
1Hawaii41.2¢5.9$7,5403.3 yrs$70,952
2California31.4¢5.6$12,3106.8 yrs$49,593
3Massachusetts29.9¢4.3$17,2408.1 yrs$55,507
4New Mexico14.2¢6.5$9,2608.2 yrs$28,983
5New York24.3¢4.2$14,2908.2 yrs$45,200
6Rhode Island29.1¢4.3$17,5858.2 yrs$55,706
7Maine27.1¢4.2$16,7759.2 yrs$45,128
8New Hampshire28.3¢4.2$17,9109.8 yrs$43,993
9Connecticut29.8¢4.2$22,05010 yrs$53,179
10Arizona14.7¢6.6$16,55010.4 yrs$37,602

10 hardest states for solar payback

Low electricity rates and weaker incentives make solar slower to pay off here — though it can still be net-positive over a system's 25-year life.

StateRateSun hrsPayback
Washington11.1¢3.824 yrs
North Dakota11.3¢4.523.4 yrs
South Dakota12.6¢4.623.2 yrs
Tennessee12.5¢4.722.2 yrs
Indiana15¢4.420 yrs
Kentucky13¢4.519.7 yrs
Alabama15.2¢4.619.2 yrs
Louisiana12.1¢4.919 yrs
Idaho11.4¢4.918.9 yrs
Alaska24.1¢318.7 yrs

Full ranking — all 50 states + D.C.

#StatePaybackRelative payback
1Hawaii3.3 yrs
2California6.8 yrs
3Massachusetts8.1 yrs
4New Mexico8.2 yrs
5New York8.2 yrs
6Rhode Island8.2 yrs
7Maine9.2 yrs
8New Hampshire9.8 yrs
9Connecticut10 yrs
10Arizona10.4 yrs
11New Jersey10.9 yrs
12Florida11.2 yrs
13Nevada11.4 yrs
14Vermont11.8 yrs
15Illinois12.1 yrs
16South Carolina12.1 yrs
17Washington, D.C.12.3 yrs
18Maryland12.4 yrs
19Colorado12.7 yrs
20Delaware13.1 yrs
21Texas13.5 yrs
22Pennsylvania13.7 yrs
23Wisconsin13.8 yrs
24Minnesota14.5 yrs
25Virginia14.6 yrs
26Missouri14.7 yrs
27Michigan15.1 yrs
28Arkansas15.9 yrs
29Georgia16 yrs
30Iowa16.3 yrs
31North Carolina16.3 yrs
32West Virginia16.3 yrs
33Kansas16.4 yrs
34Oregon17.1 yrs
35Wyoming17.1 yrs
36Nebraska17.2 yrs
37Ohio17.2 yrs
38Utah17.4 yrs
39Mississippi17.5 yrs
40Oklahoma17.8 yrs
41Montana18.4 yrs
42Alaska18.7 yrs
43Idaho18.9 yrs
44Louisiana19 yrs
45Alabama19.2 yrs
46Kentucky19.7 yrs
47Indiana20 yrs
48Tennessee22.2 yrs
49South Dakota23.2 yrs
50North Dakota23.4 yrs
51Washington24 yrs

Notable cities: fastest solar payback

CitySun hrsNet costPayback
Honolulu, HI5.69$7,8703.4 yrs
Santa Clarita, CA5.58$12,3106.8 yrs
Bakersfield, CA5.49$12,6206.9 yrs
Fontana, CA5.49$12,6206.9 yrs
Moreno Valley, CA5.46$12,6206.9 yrs
San Jose, CA5.37$12,9307.1 yrs
Fresno, CA5.31$12,9307.1 yrs
Riverside, CA5.37$12,9307.1 yrs
Irvine, CA5.33$12,9307.1 yrs
San Bernardino, CA5.4$12,9307.1 yrs

How we ranked the states

For each state we modeled a typical home system using the local average electricity rate, multi-year solar-irradiance data for its cities, typical installed price per watt, the state's net-metering regime, and 2026 incentives (the federal purchase credit ended Dec 31, 2025). We then computed the payback period and ranked states fastest-to-slowest. Full assumptions are on our methodology page. Figures are planning estimates, not quotes.

Cite this study. This data is free to reference with attribution. Please credit SunFigure and link to sunfigure.com/best-states-for-solar.

Frequently asked questions

What is the best state for solar in 2026?
By payback period, the strongest states combine high electricity rates, good sunlight, and supportive net metering — typically high-rate sunny states. See the full ranking above; it's calculated from local rates, real irradiance, and current (2026) incentives.
Did the end of the federal tax credit change which states are best?
Yes. With the 30% federal purchase credit gone after December 31, 2025, payback periods lengthened everywhere, and states with their own incentives and high electricity rates pulled further ahead of low-rate states.
Can I cite this study?
Yes — this data is free to cite or reference with a link back to SunFigure. See the citation box at the end.