How to read this table
The numbers below are 2026 averages for an 8 kW residential cash purchase. Your actual cost depends on roof complexity, equipment selection, and installer competition in your zip code. State incentives shown are the most common — many states have additional utility-specific rebates.
State-by-state pricing and payback
| State | Avg $/W | 8 kW gross cost | Top state incentive | 2026 cash payback |
|---|---|---|---|---|
| Alabama | $2.85 | $22,800 | None significant | 14–17 yrs |
| Alaska | $3.40 | $27,200 | Net metering only | 18–22 yrs |
| Arizona | $2.65 | $21,200 | $1,000 state credit | 10–12 yrs |
| Arkansas | $2.75 | $22,000 | Net metering only | 15–18 yrs |
| California | $3.30 | $26,400 | SGIP for batteries | 9–11 yrs |
| Colorado | $2.95 | $23,600 | Xcel rebates | 11–13 yrs |
| Connecticut | $3.40 | $27,200 | Residential Solar Investment Program | 9–11 yrs |
| Delaware | $3.10 | $24,800 | $700/kW grant (capped) | 11–13 yrs |
| Florida | $2.55 | $20,400 | Sales tax exemption | 13–15 yrs |
| Georgia | $2.70 | $21,600 | None significant | 14–17 yrs |
| Hawaii | $3.50 | $28,000 | 35% state credit (capped $5K) | 6–8 yrs |
| Idaho | $2.85 | $22,800 | State tax deduction | 17–20 yrs |
| Illinois | $3.05 | $24,400 | Illinois Shines (SREC) | 10–12 yrs |
| Indiana | $2.85 | $22,800 | None significant | 14–17 yrs |
| Iowa | $2.95 | $23,600 | State tax credit | 13–15 yrs |
| Kansas | $2.75 | $22,000 | Net metering only | 14–17 yrs |
| Kentucky | $2.80 | $22,400 | None significant | 15–18 yrs |
| Louisiana | $2.70 | $21,600 | None significant | 17–20 yrs |
| Maine | $3.20 | $25,600 | Efficiency Maine rebates | 10–12 yrs |
| Maryland | $3.10 | $24,800 | $1,000 grant + SREC | 9–11 yrs |
| Massachusetts | $3.40 | $27,200 | SMART program | 8–10 yrs |
| Michigan | $2.95 | $23,600 | None significant | 13–15 yrs |
| Minnesota | $3.05 | $24,400 | Solar Rewards (Xcel) | 11–13 yrs |
| Mississippi | $2.75 | $22,000 | None significant | 15–18 yrs |
| Missouri | $2.85 | $22,800 | Ameren rebates | 13–16 yrs |
| Montana | $3.10 | $24,800 | $500 state credit | 16–19 yrs |
| Nebraska | $2.90 | $23,200 | None significant | 15–18 yrs |
| Nevada | $2.65 | $21,200 | NV Energy storage incentive | 11–13 yrs |
| New Hampshire | $3.20 | $25,600 | $1,000 rebate | 10–12 yrs |
| New Jersey | $3.20 | $25,600 | SREC-II program | 8–10 yrs |
| New Mexico | $2.75 | $22,000 | 10% state credit (capped $6K) | 11–13 yrs |
| New York | $3.30 | $26,400 | 25% state credit (capped $5K) | 8–10 yrs |
| North Carolina | $2.85 | $22,800 | Duke Energy rebates | 13–15 yrs |
| North Dakota | $3.00 | $24,000 | None significant | 17–20 yrs |
| Ohio | $2.90 | $23,200 | SREC market | 12–14 yrs |
| Oklahoma | $2.70 | $21,600 | None significant | 15–18 yrs |
| Oregon | $3.10 | $24,800 | Energy Trust of Oregon | 13–15 yrs |
| Pennsylvania | $3.00 | $24,000 | SREC market | 12–14 yrs |
| Rhode Island | $3.30 | $26,400 | Renewable Energy Growth | 9–11 yrs |
| South Carolina | $2.80 | $22,400 | 25% state credit (capped $3,500/yr) | 10–12 yrs |
| South Dakota | $2.95 | $23,600 | None significant | 16–19 yrs |
| Tennessee | $2.75 | $22,000 | TVA Green Connect | 14–17 yrs |
| Texas | $2.65 | $21,200 | Utility rebates (Austin, Oncor) | 11–14 yrs |
| Utah | $2.70 | $21,600 | $400 state credit | 13–15 yrs |
| Vermont | $3.20 | $25,600 | Net metering credits | 10–12 yrs |
| Virginia | $2.95 | $23,600 | SREC market | 11–13 yrs |
| Washington | $2.95 | $23,600 | Sales tax exemption | 17–20 yrs |
| West Virginia | $2.85 | $22,800 | None significant | 14–17 yrs |
| Wisconsin | $2.95 | $23,600 | Focus on Energy rebates | 13–15 yrs |
| Wyoming | $2.85 | $22,800 | None significant | 17–20 yrs |
Best states for solar in 2026
The states where solar still pays back fastest in 2026 (despite no federal credit): Hawaii (highest electric rates in the US plus a 35% state credit), New York (25% state credit + strong net metering), Massachusetts (SMART program performance payments), New Jersey (SREC-II), and California (high rates, though NEM 3.0 reduced export value).
Worst states for solar in 2026
States where solar is hard to justify financially: Washington, Idaho, Louisiana, Wyoming, and Alaska. Low utility rates ($0.10–$0.12/kWh) plus minimal state incentives mean payback periods of 17+ years — close to the panel warranty period.
Get state-specific analysis on your bid
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Analyze My Bid →Frequently asked questions
Why do prices vary so much by state?
Permitting costs, labor rates, market saturation, and competition. California and Northeast permitting can cost $2,000+ per system; Texas and Arizona are closer to $400.
Do state incentives change often?
Yes. SREC values fluctuate quarterly. State credits get capped or eliminated in budget cycles. Always verify current incentives with your state energy office before signing.
What about utility rebates?
Many utilities offer rebates on top of state programs (Xcel in CO/MN, Austin Energy in TX, Duke in NC). These can add $1,000–$3,000 to your incentive stack.
Should I move to a better solar state?
Probably not for solar alone. The lifetime savings difference between a top and bottom state is typically $20K–$40K — not worth uprooting your life.