Question 1

Which state has the best solar savings in 2025?

Accepted Answer

Massachusetts, California, and New York consistently rank among the best states for solar savings due to their high electricity rates ($0.21–$0.29/kWh). Despite fewer sun hours than Arizona or Texas, high rates mean every kWh of solar production is worth more. Massachusetts homeowners can save $2,000–$3,500/year; California homeowners often save $2,500–$4,000/year.

Question 2

Which state has the shortest solar payback period?

Accepted Answer

Massachusetts and California often have the shortest payback periods (6–8 years) due to their high electricity rates. Arizona and Nevada have excellent sun hours but moderate rates — paybacks typically run 8–11 years. States with low rates like Idaho and Utah tend to have longer paybacks (12–16 years) despite good sun.

Question 3

Does more sunshine always mean better solar ROI?

Accepted Answer

No — electricity rate matters more than sun hours for financial ROI. Massachusetts gets only 3.8 peak sun hours/day but pays $0.29/kWh — one of the best solar ROI states. Utah gets 5.3 hours but pays only $0.11/kWh — mediocre ROI despite excellent sun. The best combination is high sun hours AND high electricity rates, like California (5.8 hrs, $0.28/kWh).

Question 4

Are these savings estimates before or after the 30% federal tax credit?

Accepted Answer

The payback periods in this comparison are before the 30% federal Investment Tax Credit (ITC). Applying the ITC reduces your net system cost by 30%, which shortens payback by roughly 2–4 years in most states. For example, a 10-year payback becomes a 7-year payback after the ITC. The ITC is available through at least 2032.

Question 5

How do state solar incentives affect these comparisons?

Accepted Answer

State incentives vary significantly and are not included in this comparison (which uses only federal ITC). States with strong additional incentives include Massachusetts (SMART program, 15% state tax credit), New York (NY-Sun incentives, 25% state tax credit), New Jersey (SREC market), and Maryland (state rebates). Adding state incentives can reduce payback by 1–3 more years in the most incentive-rich states.

State	Sun Hrs/Day	Rate ($/kWh)	Avg Bill	System Size	Annual Savings	Payback	25-Yr Savings
California	5.82	$0.2768	$179	4.8 kW	$2,250	6 yrs	$56,400
Massachusetts	3.84	$0.2922	$167	6.4 kW	$2,100	9 yrs	$52,400
Arizona	6.57	$0.1341	$175	8.4 kW	$2,150	10 yrs	$54,000
Nevada	6.01	$0.1344	$139	7.2 kW	$1,700	11 yrs	$42,500
Florida	5.44	$0.1425	$167	9.2 kW	$2,100	11.5 yrs	$52,100
Texas	5.2	$0.1352	$161	9.6 kW	$1,950	12.5 yrs	$49,300
Colorado	5.37	$0.1395	$117	6.8 kW	$1,500	12.5 yrs	$37,200
New York	3.79	$0.2098	$133	7.2 kW	$1,650	12.5 yrs	$41,800
New Jersey	4.21	$0.1787	$132	7.6 kW	$1,650	12.5 yrs	$41,700
Maryland	4.35	$0.1576	$148	9.2 kW	$1,850	14 yrs	$46,000
Georgia	4.74	$0.1309	$155	10.4 kW	$1,900	14.5 yrs	$47,100
North Carolina	4.71	$0.1306	$140	9.6 kW	$1,700	15 yrs	$43,100
Virginia	4.37	$0.1371	$147	10.4 kW	$1,800	15.5 yrs	$45,500
Illinois	3.98	$0.1504	$117	8.4 kW	$1,450	16 yrs	$36,700
Ohio	3.73	$0.1491	$127	9.6 kW	$1,550	17 yrs	$39,000

Solar Savings by State

States Ranked by Solar Payback Period

Full State Comparison

Key Takeaways from the State Comparison

🏆 Best ROI: High-Rate States

☀️ Best Sun: Southwest States

💰 25-Year Savings: Significant Everywhere

📉 After the 30% ITC: Much Better

State-Specific Solar Calculators

Frequently Asked Questions

Related Solar Resources