Solar Panel ROI by State
25-year NPV analysis for a 7 kW residential solar system in every US state. Rankings based on solar irradiance, utility rates, state incentives, and net metering policy.
50
States Analyzed
$10,557
Average 25-Year NPV
10.3 yr
Avg Payback Period
Top 10 States for Solar ROI
1
CACalifornia
25-Year NPV
$41,579
Payback
5 years
Avg Rate
$28.2¢/kWh
Irradiance
1,600 kWh/kW
2
HIHawaii
25-Year NPV
$68,203
Payback
3 years
Avg Rate
$39.8¢/kWh
Irradiance
1,600 kWh/kW
3
NYNew York
25-Year NPV
$20,948
Payback
6 years
Avg Rate
$22.2¢/kWh
Irradiance
1,180 kWh/kW
4
MAMassachusetts
25-Year NPV
$27,033
Payback
6 years
Avg Rate
$28.2¢/kWh
Irradiance
1,220 kWh/kW
5
AZArizona
25-Year NPV
$14,954
Payback
8 years
Avg Rate
$13.2¢/kWh
Irradiance
1,750 kWh/kW
6
NVNevada
25-Year NPV
$12,806
Payback
8 years
Avg Rate
$13.2¢/kWh
Irradiance
1,700 kWh/kW
7
CTConnecticut
25-Year NPV
$24,321
Payback
7 years
Avg Rate
$27.2¢/kWh
Irradiance
1,200 kWh/kW
8
NJNew Jersey
25-Year NPV
$12,340
Payback
9 years
Avg Rate
$18.2¢/kWh
Irradiance
1,250 kWh/kW
9
NMNew Mexico
25-Year NPV
$15,834
Payback
7 years
Avg Rate
$13.8¢/kWh
Irradiance
1,700 kWh/kW
10
FLFlorida
25-Year NPV
$10,982
Payback
9 years
Avg Rate
$14.2¢/kWh
Irradiance
1,450 kWh/kW
All 50 States — Solar ROI Rankings
| Rank | State | Irradiance | Avg Rate | Net Cost | 25-Yr NPV | Payback | LCOE |
|---|---|---|---|---|---|---|---|
| #1 | California | 1,600 | $28.2¢/kWh | $13,573 | $41,579 | 5yr | $0.125 |
| #2 | Hawaii | 1,600 | $39.8¢/kWh | $10,680 | $68,203 | 3yr | $0.107 |
| #3 | New York | 1,180 | $22.2¢/kWh | $9,455 | $20,948 | 6yr | $0.130 |
| #4 | Massachusetts | 1,220 | $28.2¢/kWh | $13,945 | $27,033 | 6yr | $0.170 |
| #5 | Arizona | 1,750 | $13.2¢/kWh | $11,740 | $14,954 | 8yr | $0.101 |
| #6 | Nevada | 1,700 | $13.2¢/kWh | $12,985 | $12,806 | 8yr | $0.113 |
| #7 | Connecticut | 1,200 | $27.2¢/kWh | $14,455 | $24,321 | 7yr | $0.177 |
| #8 | New Jersey | 1,250 | $18.2¢/kWh | $13,720 | $12,340 | 9yr | $0.162 |
| #9 | New Mexico | 1,700 | $13.8¢/kWh | $11,256 | $15,834 | 7yr | $0.101 |
| #10 | Florida | 1,450 | $14.2¢/kWh | $12,495 | $10,982 | 9yr | $0.128 |
| #11 | Maine | 1,200 | $24.8¢/kWh | $14,210 | $20,868 | 7yr | $0.174 |
| #12 | Colorado | 1,550 | $14.2¢/kWh | $13,720 | $11,378 | 9yr | $0.131 |
| #13 | New Hampshire | 1,200 | $25.2¢/kWh | $14,455 | $21,202 | 7yr | $0.177 |
| #14 | Maryland | 1,280 | $15.8¢/kWh | $13,965 | $8,768 | 10yr | $0.161 |
| #15 | Rhode Island | 1,220 | $26.8¢/kWh | $14,700 | $24,104 | 7yr | $0.177 |
| #16 | Illinois | 1,200 | $16.2¢/kWh | $14,210 | $7,460 | 10yr | $0.174 |
| #17 | South Carolina | 1,380 | $13.2¢/kWh | $9,730 | $10,528 | 8yr | $0.112 |
| #18 | Texas | 1,500 | $13.8¢/kWh | $12,740 | $10,835 | 9yr | $0.126 |
| #19 | Pennsylvania | 1,180 | $16.2¢/kWh | $14,112 | $7,155 | 10yr | $0.176 |
| #20 | North Carolina | 1,350 | $12.2¢/kWh | $13,132 | $4,876 | 11yr | $0.144 |
| #21 | Utah | 1,550 | $11.2¢/kWh | $13,230 | $5,916 | 11yr | $0.126 |
| #22 | Iowa | 1,250 | $13.8¢/kWh | $8,965 | $9,904 | 8yr | $0.118 |
| #23 | Oregon | 1,200 | $12.2¢/kWh | $13,965 | $1,513 | 15yr | $0.171 |
| #24 | Delaware | 1,250 | $14.2¢/kWh | $13,720 | $5,843 | 11yr | $0.162 |
| #25 | Minnesota | 1,200 | $14.2¢/kWh | $14,210 | $4,341 | 13yr | $0.174 |
| #26 | Michigan | 1,100 | $18.2¢/kWh | $14,112 | $8,329 | 10yr | $0.189 |
| #27 | Vermont | 1,180 | $21.2¢/kWh | $14,455 | $14,415 | 8yr | $0.180 |
| #28 | Georgia | 1,400 | $13.2¢/kWh | $13,132 | $7,487 | 10yr | $0.139 |
| #29 | Ohio | 1,150 | $14.2¢/kWh | $13,818 | $3,882 | 13yr | $0.177 |
| #30 | Kansas | 1,400 | $13.8¢/kWh | $13,720 | $7,883 | 10yr | $0.144 |
| #31 | Virginia | 1,300 | $13.2¢/kWh | $13,622 | $5,193 | 11yr | $0.155 |
| #32 | Alabama | 1,400 | $13.5¢/kWh | $13,328 | $7,801 | 10yr | $0.141 |
| #33 | Louisiana | 1,380 | $11.8¢/kWh | $13,328 | $4,402 | 11yr | $0.143 |
| #33 | Wisconsin | 1,150 | $15.2¢/kWh | $14,112 | $5,029 | 11yr | $0.181 |
| #34 | Missouri | 1,300 | $12.2¢/kWh | $13,622 | $3,503 | 13yr | $0.155 |
| #35 | Indiana | 1,180 | $14.2¢/kWh | $13,818 | $4,436 | 13yr | $0.173 |
| #36 | Idaho | 1,400 | $10.2¢/kWh | $13,622 | $1,451 | 15yr | $0.144 |
| #37 | Montana | 1,350 | $11.8¢/kWh | $13,965 | $3,189 | 13yr | $0.152 |
| #38 | Arkansas | 1,370 | $11.2¢/kWh | $13,475 | $3,007 | 14yr | $0.145 |
| #39 | Nebraska | 1,400 | $11.8¢/kWh | $13,818 | $4,129 | 13yr | $0.145 |
| #40 | Mississippi | 1,400 | $12.2¢/kWh | $13,328 | $5,436 | 11yr | $0.141 |
| #41 | Oklahoma | 1,450 | $11.2¢/kWh | $13,328 | $4,345 | 11yr | $0.136 |
| #42 | Kentucky | 1,250 | $11.8¢/kWh | $13,622 | $2,061 | 14yr | $0.161 |
| #43 | South Dakota | 1,350 | $12.8¢/kWh | $13,965 | $4,943 | 11yr | $0.152 |
| #44 | Tennessee | 1,320 | $11.8¢/kWh | $13,328 | $3,482 | 13yr | $0.149 |
| #45 | Alaska | 1,010 | $23.4¢/kWh | $14,455 | $12,619 | 9yr | $0.210 |
| #46 | North Dakota | 1,300 | $11.8¢/kWh | $14,112 | $2,248 | 14yr | $0.160 |
| #47 | Washington | 1,100 | $11.2¢/kWh | $13,965 | -$1,502 | 17yr | $0.187 |
| #48 | West Virginia | 1,200 | $12.8¢/kWh | $13,818 | $2,622 | 14yr | $0.170 |
| #49 | Wyoming | 1,450 | $11.2¢/kWh | $13,818 | $3,765 | 13yr | $0.140 |
Methodology
Rankings are based on the 25-year Net Present Value (NPV) of a 7 kW residential solar system using state-specific data:
- Solar irradiance — NREL PVWatts data for south-facing systems at 20° tilt
- Utility rates — EIA average residential rates (2024), escalated at 4%/year
- System cost — NREL ATB + EnergySage market data ($/W varies by state)
- Incentives — 30% federal ITC + state credits where applicable
- Panel degradation — 0.5%/year over 25 years
- Discount rate — 6% (moderate opportunity cost assumption)
- O&M — 1% of system cost annually, plus inverter replacement at year 12
These are representative averages. Your actual ROI depends on your specific utility, consumption pattern, roof orientation, and system size. Use the calculator for a personalized analysis.
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