The 10 Best States for a Solar-Powered Home

If you’ve been thinking about going solar, you’re not alone. Solar energy is a phenomenal way to transition from a traditional electrical service to producing your own power. Start by evaluating the cost of going solar and whether your system will pay for itself in your state. Here are the 10 best states for solar energy.

Installing solar panels and introducing solar energy into your home is an eco-friendly decision that will pay off over time. It helps save you money through financial returns and lower utility bills. Not only is it good for the environment, but it’s good for your wallet.

Installing a solar panel system costs an average of $27,200, but it’s a great long-term investment for homeowners and a selling point for buyers. Here’s a look at the 10 best states for solar energy, solar panel cost, ROI, and more.

1. California

California consistently ranks at the top of solar energy lists for good reason. With mostly sunny days, it’s a prime state for solar power to boom. According to the Bureau of Land Management, the The Crimson Solar Project invested $550 million for solar energy on public lands in the state, making it one of the best states as far as solar energy goes.

Solar provides more than 20% of electricity to the state of California, and that number is rising. The cost to install solar panels in California is $19,000 to $32,700.

Solar Facts About California

Here’s a look at California solar energy facts, courtesy of Solar Energy Industires Association® (SEIA):

• Time to see return on investment: 5.5–6.5 years

• Enough solar installed to power 8,548,370 homes

• Solar companies in the state: 2,144

2. Nevada 

Nevada is a great place to install solar—just ask its residents. There are more solar panels installed in this state than any other. This is likely due to the fact that Nevada has the third highest number of clear, sunny days annually in the country. Plus, the cost of solar installation in the state is reasonable.

Solar Facts About Nevada 

Here are some solar facts about Nevada:

• Out of every 1,000 homes in Nevada, over 420 have solar

• The state has 158 clear, sunny days every year

• 27.7% of the state’s electricity is generated from solar panels

3. Arizona

When you get over 260 to 300 days of clear, sunny days every year, going solar in Arizona seems like an easy decision. The cost savings offset the expense of running nonstop air conditioning over time. You can expect to pay slightly below the national average for a solar installation.

Solar Facts About Arizona

Here’s a look at solar energy facts about Arizona, courtesy of SEIA:

• Time to see return on investment: 7.1–8.7 years

• Enough solar installed to power 810,751 homes

• Solar companies in the state: 315

4. New Mexico 

New Mexico is one of the best states for solar panel installation. Ideal conditions for oslar are common in this state, with 160 clear, sunnys per year. The cost to install solar is slightly above the national average, but considering the extreme weather that requires homeowners to run their HVAC for most of the year, it’s a worthwhile investment.

Solar Facts About New Mexico

Check out these solar facts about New Mexico:

• 10% of the state gets its electricity from solar panels

• The state aims to have 50% renewable energy by 2030

• An average homeowner will break even on solar panel installation costs in 13 years

5. Colorado

Although Colorado doesn’t get as many clear, sunny days as the states higher up on this list, this state still gets 115 clear days and 130 partly cloudy days annually. Even with snowfall in the winter, you can expect to get plenty of power to make solar panels worthwhile.

Solar Facts About Colorado

These are a few solar facts about Colorado:

• There are over 149,600 solar installations in the state

• Colorado is projected to increase their solar by 3,372 megawatts in the next five years

• Utility companies with more than 500,000 customers are required to have 100% renewable energy by 2050

6. Utah 

If you go solar in Utah, you can take advantage of the 125 sunny, clear days, plus 101 partially sunny days, every year. The price to install a system in Utah is slightly less than the national average, so the solar panels will eventually pay for themselves. 

Solar Facts About Utah

Here are some interesting solar facts about Utah:

• The state gets 16% of its electricity from solar systems

• There are over 76,200 solar installations

• The Utah Renewable Energy Systems Tax Credit gives residents a state tax credit of up to $800

7. Texas

Texas is unique in that it has its own power grid, making it a prime candidate to become the best state for solar energy. Because Texas does not regulate its electric utilities, there is a lot of variation in solar incentives, depending on where you live.

However, this state’s economy is growing fast, so the state needs renewable energy to match that growth. The cost to install solar panels in Texas is $22,800 to $37,700.

Solar Facts About Texas

Here’s a look at solar energy facts in Texas, courtesy of SEIA:

• Time to see solar panel return on investment: 7.5–9.1 years

• Enough solar installed to power 1,082,407 homes

• Percentage of the state's electricity from solar: 2.27%

8. Florida

Nicknamed the sunshine state, it's no surprise that Florida ranks high in solar energy. With only 3% of the state’s electricity coming from solar energy, renewable energy is quickly growing. Florida also offers property tax exemption and sales tax exemption for solar panels. The cost to install solar panels in Florida is $19,580 to $30,340.

Solar Facts About Florida

Here’s a look at Florida solar energy facts, courtesy of SEIA:

• Time to see return on investment: 11.9–14.5 years

• Enough solar installed to power 842,897 homes

• Solar companies in the state: 411

9. Rhode Island 

Rhode Island has 98 sunny, clear days and 103 partially sunny days every year, making it a great place to get solar panels. Going solar can potentially save Rhode Island homeowners $44,000 over 20 years. The Rhode Island Energy Renewable Energy Growth Program allows residents to get an electric bill credit of 28.75 cents per kWh of energy for the first 15 years.

Solar Facts About Rhode Island

These solar facts will give you a closer look at what’s happening in Rhode Island in this sector:

• The state has invested $1.7 billion in solar

• 13.9% of the state’s electricity comes from solar

• There are over 22,400 solar installations in Rhode Island

10. Massachusetts 

If you live in Massachusetts, your home might be a good fit for solar because there are almost 100 sunny days and a little over 100 partially sunny days annually. The average solar payback period is shorter than it is in other sunny states at only 8 years, which means you’ll get your investment back fairly quickly.

Solar Facts About Massachusetts 

Here are solar facts about Massachusetts:

• The state gets 24.6% of its electricity from solar

• There are over 182,700 solar installations in the state

• Massachusetts exceeded its solar power target for 2020 and continues to grow

Solar Tax Credits and Incentives

Solar tax credits and incentives help you save money, which is key because solar installation is a big investment. These tax breaks and incentives can change from year to year, so it’s best to check the current offerings before committing to a solar system.

Federal solar tax credits range from 26% to 30%, depending on when you install the panels. You have to own the panels, so this won’t apply if you opt for a solar panel lease.

Many states offer their own tax credits on top of federal ones. These differ drastically from place to place, and they’re commonly in the form of a percentage of the costs up to a certain dollar amount. Some states offer incentives in the way of electric bill credits.

Should I Avoid Solar If My State Isn’t on the List?

Whether you live in one of the best states for solar energy or not, harnessing the power of the sun can be an environmentally-friendly, money-saving choice for homeowners. This list is short, so you shouldn’t say no to solar just because your state isn’t on it.

You can benefit from solar energy even in states known for their rainy weather, like Oregon and Washington. Solar panels work during the winter and without direct sunlight, so don’t take your state for granted.

Keep in mind that it will take longer for you to get your investment back and you won’t save as much on electricity as you would in sunnier states. However, you will still save tens of thousands of dollars in the long run, so it’s worthwhile if you can finance it in a way that makes sense for your household. A solar panel pro in your area can discuss your options and estimate how much a solar system costs for your home.