Best States for Solar in 2026: Top 10 Ranked

Best States for Solar in 2026: Top 10 Ranked

Not all states are created equal when it comes to solar energy. We ranked the best states based on a combination of sun exposure, electricity rates, incentives, net metering policies, and overall payback period.

1. California

Payback: ~6 years

| Rate: 31.02¢/kWh |

Sun: 5.8 peak hours Despite changes to net metering (NEM 3.0), California's sky-high electricity rates make solar an incredible investment. The average homeowner saves $50,000+ over 25 years.

2. Hawaii

Payback: ~4 years

| Rate: 43.18¢/kWh |

Sun: 5.9 peak hours The highest electricity rates in the nation make Hawaii the best ROI for solar. A 35% state tax credit plus the federal ITC covers 65% of costs.

3. Massachusetts

Payback: ~6 years

| Rate: 28.57¢/kWh |

Sun: 4.1 peak hours Generous state incentives including the SMART program, 15% state tax credit, and full retail net metering make Massachusetts surprisingly excellent for solar.

4. New York

Payback: ~6 years

| Rate: 23.20¢/kWh |

Sun: 3.9 peak hours The 25% state tax credit (up to $5,000), NY-Sun rebate, and full retail net metering create one of the best incentive packages in the country.

5. New Jersey

Payback: ~6 years

| Rate: 18.82¢/kWh |

Sun: 4.2 peak hours New Jersey's SREC-II program adds significant ongoing income. Combined with property and sales tax exemptions, NJ is a solar powerhouse.

6. Connecticut

Payback: ~7 years

| Rate: 29.79¢/kWh |

Sun: 4.2 peak hours High electricity rates and the Green Bank's incentive programs make Connecticut one of the best northeast states for solar.

7. Rhode Island

Payback: ~6 years

| Rate: 27.09¢/kWh |

Sun: 4.1 peak hours The Rhode Island Renewable Energy Fund offers $0.85/W rebates — among the most generous in the nation.

8. Maryland

Payback: ~7 years

| Rate: 16.41¢/kWh |

Sun: 4.5 peak hours Maryland's SREC program, property and sales tax exemptions, and full retail net metering create a strong value proposition.

9. Arizona

Payback: ~8 years

| Rate: 14.03¢/kWh |

Sun: 6.5 peak hours The most sunshine in the nation means maximum energy production. Despite modest incentives, the sheer solar output makes Arizona excellent.

10. Colorado

Payback: ~9 years

| Rate: 15.05¢/kWh |

Sun: 5.5 peak hours Full retail net metering, Xcel Energy rebates, and 300+ days of sunshine per year make Colorado a top-tier solar state.

Honorable Mentions

Florida: Excellent sunshine, property and sales tax exemptions, full retail net metering

Texas: Great sunshine, competitive pricing, growing market

Nevada: Outstanding sun hours, though reduced net metering dampens savings

South Carolina: 25% state tax credit, full retail net metering

The Bottom Line

Even states that didn't make the top 10 can offer excellent solar value. The federal 30% tax credit is available everywhere, and most states offer some form of additional incentive. Your specific savings depend on your electricity usage, roof conditions, and local installer pricing.