Solar Incentives by State
The same solar system pays off in 5 years in one state and 14 in another. The difference is your electricity rate, your net metering rules and your local rebates. Pick your state below for the local numbers.
Sources: DSIRE, EIA, NREL
Updated October 2026 — federal credits have ended. The One Big Beautiful Bill Act (signed July 4, 2025) ended the 30% federal Residential Clean Energy Credit (25D: solar, batteries, geothermal) and the Energy Efficient Home Improvement Credit (25C: air-source heat pumps, up to $2,000) for anything installed after December 31, 2025. Systems completed by Dec 31, 2025 can still be claimed on a 2025 return. Any 30% or $2,000 figure on this page applies only to those installs — our calculators now default to $0 federal credit. What is still available in 2026 →
Why state matters more than sunshine
The best solar states aren't always the sunniest — they're the ones with high electricity rates and strong net metering. Hawaii pays back in 6–8 years on $0.40+/kWh power, while sunny-but-cheap states like Louisiana take 15–19. The 30% federal tax credit ended for systems installed after December 31, 2025, so for a 2026 install your state's rates, rebates and SRECs decide almost everything. Find yours in the table below.
Advertisement
Quick-pick your state
2026 solar snapshot — all 26 states
Electricity rates are 2025 residential averages (EIA). Payback ranges assume a 7 kW system at $3.00/W with no federal credit (2026 installs), after state incentives. Click any state for full local detail.
| State | Avg rate (¢/kWh) | Net metering | Est. payback | Headline incentive |
|---|---|---|---|---|
| Hawaii | ~41 | CGS / smart export | 6–8 yrs | Highest US rates + 35% state credit |
| Connecticut | ~32 | Net billing | 8–11 yrs | Residential Renewable Energy Solutions |
| Rhode Island | ~30 | Full retail | 8–11 yrs | REF grants + net metering |
| New Hampshire | ~29 | Net metering | 10–12 yrs | Residential solar rebate |
| Maine | ~28 | Net energy billing | 10–12 yrs | Strong NEB + high rates |
| Vermont | ~23 | Net metering | 11–14 yrs | Net metering adder |
| New Jersey | ~18 | Net metering | 8–11 yrs | SuSI SREC-II program |
| Maryland | ~17 | Full retail | 10–12 yrs | $1,000 grant + SRECs |
| Illinois | ~16 | Net metering | 10–14 yrs | Illinois Shines SRECs |
| Michigan | ~18 | Distributed generation | 12–15 yrs | Rising rates + DG tariff |
| Wisconsin | ~17 | Net metering | 12–15 yrs | Focus on Energy rebates |
| South Carolina | ~14 | Net billing | 11–15 yrs | Strong sun + utility programs |
| North Carolina | ~13 | Net billing (bridge) | 12–16 yrs | Duke Energy rebate history |
| Florida | ~15 | Full retail (1:1) | 11–15 yrs | Sales + property tax exemption |
| Georgia | ~14 | Monthly netting | 12–16 yrs | Strong sun, limited incentives |
| Virginia | ~14 | Net metering | 12–16 yrs | Net metering + SRECs |
| Pennsylvania | ~17 | Full retail | 11–15 yrs | Net metering + SRECs |
| Ohio | ~16 | Net metering | 12–16 yrs | Net metering + SRECs |
| Indiana | ~16 | Excess credit (post-NEM) | 14–17 yrs | Sales tax exemption |
| Missouri | ~13 | Net metering | 14–17 yrs | Ameren / Evergy rebates |
| New Mexico | ~14 | Net metering | 11–15 yrs | 10% state tax credit |
| Nevada | ~14 | Net billing (75%) | 12–16 yrs | Excellent sun + storage incentives |
| Utah | ~11 | Net billing (export) | 14–17 yrs | Strong sun, low rates |
| Washington | ~11 | Net metering | 15–19 yrs | Sales tax exemption |
| Idaho | ~11 | Net metering | 15–19 yrs | 100% state tax deduction |
| Louisiana | ~12 | Net billing (avoided cost) | 15–19 yrs | High sun, low rates |
How to read this table
Three columns decide most of your solar economics:
- Electricity rate — the higher your rate, the more each solar kWh saves you. This is the single biggest driver of payback. It's why Hawaii and the Northeast pay back fastest.
- Net metering — how your utility credits the excess power you export. "Full retail" 1:1 net metering is best; "net billing" pays a lower export rate; post-NEM states credit you least.
- Headline incentive — the standout state-level program. With the 30% federal credit gone for 2026 installs, these now carry most of the incentive value. SRECs (solar renewable energy certificates) can be worth thousands over time in states like Illinois, New Jersey and Maryland.
Whatever your state, the Solar Payback Calculator lets you plug in your own electric bill and see a personalized result. For the borrowing side, the Loan Calculator and Financing Calculator compare how you pay for it.