Solar Savings Calculator
How much do solar panels really cost — and how fast do they pay for themselves? We break it down by state, powered by real data.
Estimate Your Solar Savings
Enter your home address and monthly bill. We'll analyze your actual roof using Google's solar data — roof size, panel placement, shade, and annual sunlight — to estimate your savings.
Solar Savings Calculator
How Much Do Solar Panels Cost in 2026?
The average American pays $2.50–$3.50 per watt installed — that's $17,500–$24,500 for a typical 7 kW home system before incentives. After the 30% federal tax credit, you're looking at $12,250–$17,150 out of pocket.
Costs vary widely by state. Arizona and Texas are among the cheapest at around $2.16–$2.24/W, while Massachusetts and New York run $3.18–$3.35/W. But higher-cost states often have higher electricity rates and better incentives — so the payback period doesn't always track with installation cost.
The table below shows estimated costs, after-incentive pricing, and payback periods for every state.
How Much Do Solar Panels Cost by State?
Average installed cost per watt, estimated system cost, cost after the 30% federal ITC, and payback period. Click any column header to sort.
| # | State ↕ | $/Watt ↕ | 7kW Cost ↕ | After ITC ↕ | Rate (¢/kWh) ↕ | Payback ↕ |
|---|---|---|---|---|---|---|
| 1 | Hawaii | $2.7 | $18,900 | $13,230 | 42.68¢ | 3 yr |
| 2 | California | $2.8 | $19,600 | $13,720 | 30.15¢ | 4.3 yr |
| 3 | Connecticut | $2.95 | $20,650 | $14,455 | 29.89¢ | 4.6 yr |
| 4 | Maine | $2.85 | $19,950 | $13,965 | 25.99¢ | 5.1 yr |
| 5 | Rhode Island | $3.1 | $21,700 | $15,190 | 27.57¢ | 5.2 yr |
| 6 | Alaska | $2.8 | $19,600 | $13,720 | 24.39¢ | 5.4 yr |
| 7 | Massachusetts | $3.35 | $23,450 | $16,415 | 28.88¢ | 5.4 yr |
| 8 | New Hampshire | $3.18 | $22,260 | $15,582 | 25.18¢ | 5.9 yr |
| 9 | New York | $3.18 | $22,260 | $15,582 | 22.76¢ | 6.5 yr |
| 10 | Michigan | $2.78 | $19,460 | $13,622 | 19.3¢ | 6.7 yr |
| 11 | Vermont | $3.05 | $21,350 | $14,945 | 21.26¢ | 6.7 yr |
| 12 | Florida | $2.19 | $15,330 | $10,731 | 14.95¢ | 6.8 yr |
| 13 | New Jersey | $2.88 | $20,160 | $14,112 | 19.58¢ | 6.9 yr |
| 14 | Pennsylvania | $2.7 | $18,900 | $13,230 | 17.65¢ | 7.1 yr |
| 15 | Arizona | $2.16 | $15,120 | $10,584 | 14.26¢ | 7.1 yr |
| 16 | Nevada | $2.36 | $16,520 | $11,564 | 14.93¢ | 7.4 yr |
| 17 | Texas | $2.24 | $15,680 | $10,976 | 14.01¢ | 7.5 yr |
| 18 | Illinois | $2.82 | $19,740 | $13,818 | 17.3¢ | 7.6 yr |
| 19 | New Mexico | $2.44 | $17,080 | $11,956 | 14.95¢ | 7.6 yr |
| 20 | Wisconsin | $2.8 | $19,600 | $13,720 | 17.21¢ | 7.6 yr |
| 21 | Ohio | $2.58 | $18,060 | $12,642 | 15.41¢ | 7.8 yr |
| 22 | Delaware | $2.72 | $19,040 | $13,328 | 16.02¢ | 7.9 yr |
| 23 | South Carolina | $2.5 | $17,500 | $12,250 | 14.71¢ | 7.9 yr |
| 24 | Kansas | $2.56 | $17,920 | $12,544 | 14.86¢ | 8 yr |
| 25 | Maryland | $2.82 | $19,740 | $13,818 | 16.47¢ | 8 yr |
| 26 | Georgia | $2.48 | $17,360 | $12,152 | 14.21¢ | 8.1 yr |
| 27 | Indiana | $2.6 | $18,200 | $12,740 | 15.05¢ | 8.1 yr |
| 28 | District of Columbia | $2.95 | $20,650 | $14,455 | 16.84¢ | 8.2 yr |
| 29 | Virginia | $2.62 | $18,340 | $12,838 | 14.67¢ | 8.3 yr |
| 30 | Iowa | $2.8 | $19,600 | $13,720 | 15.7¢ | 8.3 yr |
| 31 | Colorado | $2.68 | $18,760 | $13,132 | 15.07¢ | 8.3 yr |
| 32 | Minnesota | $2.84 | $19,880 | $13,916 | 15.33¢ | 8.6 yr |
| 33 | North Carolina | $2.52 | $17,640 | $12,348 | 13.68¢ | 8.6 yr |
| 34 | Alabama | $2.65 | $18,550 | $12,985 | 14.43¢ | 8.6 yr |
| 35 | West Virginia | $2.6 | $18,200 | $12,740 | 13.86¢ | 8.8 yr |
| 36 | Missouri | $2.54 | $17,780 | $12,446 | 13.42¢ | 8.8 yr |
| 37 | South Dakota | $2.7 | $18,900 | $13,230 | 14.21¢ | 8.9 yr |
| 38 | Mississippi | $2.7 | $18,900 | $13,230 | 13.61¢ | 9.3 yr |
| 39 | Kentucky | $2.45 | $17,150 | $12,005 | 12.34¢ | 9.3 yr |
| 40 | Oklahoma | $2.6 | $18,200 | $12,740 | 12.95¢ | 9.4 yr |
| 41 | Oregon | $2.62 | $18,340 | $12,838 | 12.96¢ | 9.4 yr |
| 42 | Tennessee | $2.52 | $17,640 | $12,348 | 12.49¢ | 9.4 yr |
| 43 | Utah | $2.48 | $17,360 | $12,152 | 11.91¢ | 9.7 yr |
| 44 | Arkansas | $2.62 | $18,340 | $12,838 | 12.6¢ | 9.7 yr |
| 45 | Louisiana | $2.7 | $18,900 | $13,230 | 12.86¢ | 9.8 yr |
| 46 | Montana | $2.68 | $18,760 | $13,132 | 12.59¢ | 9.9 yr |
| 47 | Nebraska | $2.8 | $19,600 | $13,720 | 12.97¢ | 10.1 yr |
| 48 | North Dakota | $2.75 | $19,250 | $13,475 | 12.54¢ | 10.2 yr |
| 49 | Idaho | $2.56 | $17,920 | $12,544 | 11.25¢ | 10.6 yr |
| 50 | Wyoming | $2.7 | $18,900 | $13,230 | 11.92¢ | 10.6 yr |
| 51 | Washington | $2.58 | $18,060 | $12,642 | 11.3¢ | 10.7 yr |
What Solar Incentives & Tax Credits Are Available?
Between federal, state, and utility programs, most homeowners can cut their solar costs by 30–50%. Here's what's available.
Investment Tax Credit
Claim 30% of your total installation cost — panels, labor, battery storage, permitting — as a federal income tax credit. No cap. Carry unused credit forward.
State Credits & Rebates
StateMany states stack additional incentives on top of the federal credit. New York offers a $5,000 rebate. South Carolina has a 25% state tax credit (up to $3,500). Massachusetts runs the SMART performance program.
Solar Renewable Energy Credits
In SREC states (NJ, MA, MD, DC, PA, OH, IL), your panels earn tradeable credits worth $20–$400+ per MWh. This ongoing revenue stream can cut years off your payback.
Net Metering
Send excess solar to the grid and get bill credits. ~38 states + DC offer net metering, though some are shifting to lower "net billing" rates. Still the biggest ROI driver after system cost.
How Does Rooftop Solar Work?
Rooftop solar converts sunlight into usable electricity for your home in five steps.
Sunlight Hits Panels
PV cells convert photons into DC electricity.
Inverter Converts
DC becomes usable AC power for your home.
Home Uses Power
Solar powers your home before the grid kicks in.
Excess to Grid
Surplus earns net metering credits on your bill.
Battery (Optional)
Store solar for evening use or outage backup.
Already Have Solar?
Even with panels, most homes still pull from the grid at night. In deregulated states, you can choose your provider — and pair solar with the best available rate.
Frequently Asked Questions
How much do solar panels cost in 2026?
The average cost is $2.50 to $3.50 per watt before incentives — roughly $17,500 to $24,500 for a 7 kW system. After the 30% federal tax credit, that drops to $12,250–$17,150. Arizona is among the cheapest at $2.16/W; Massachusetts is among the highest at $3.35/W.
What is the federal solar tax credit?
The Investment Tax Credit (ITC) gives you a 30% tax credit on your total solar installation cost — panels, inverters, batteries, labor, and permitting. It applies through 2032, steps down to 26% in 2033 and 22% in 2034. No cap. Unused credit carries forward.
How long do solar panels take to pay for themselves?
The average payback period is 6 to 9 years. States with high electricity rates and strong sun — California, Massachusetts, Hawaii — often see payback in 5–6 years. After payback, panels generate essentially free electricity for 20+ more years. Typical lifetime savings: $30,000–$40,000.
What is net metering?
Net metering lets you send excess solar electricity to the grid and earn bill credits. When your panels produce more than you use (midday), the surplus flows to the grid. At night, you draw from the grid and use those credits. About 38 states + DC offer net metering, though some are shifting to lower "net billing" compensation.
Should I buy, lease, or get a PPA?
Buying (cash or loan) delivers the highest long-term savings — you own the system, claim the ITC, and keep all the energy. Leasing means a third party owns the panels and you pay a monthly fee. A PPA lets you buy the electricity at a discounted rate without owning anything. For most homeowners with tax liability, buying with a solar loan is the best financial move.
Does solar work on cloudy days?
Yes — solar panels still produce electricity on cloudy days, just at reduced output (typically 10–25% of peak). Annual production accounts for all weather patterns. Even in cloudier states like Washington and Oregon, solar panels produce enough energy to deliver meaningful savings thanks to long summer days and relatively high electricity rates.
Does going solar lower my electricity bill?
In most cases, yes — significantly. A properly sized solar system can reduce your electricity bill by 70–100%. Savings are largest in states with high electricity rates and strong solar resources like California, Massachusetts, Connecticut, and Hawaii.
Where does this data come from?
Installation and capacity data: EIA Form 861 (2023). Cost estimates: NREL benchmarks and EnergySage marketplace data. The savings calculator uses the Google Solar API (Project Sunroof), which analyzes your actual roof via satellite imagery to estimate solar panel capacity, production, and sunshine hours. Incentive info from DSIRE and IRS publications.
Sources: U.S. Energy Information Administration (EIA) Form 861, Google Solar API (Project Sunroof), NREL Annual Technology Baseline, EnergySage Marketplace Intel Report, Database of State Incentives for Renewables & Efficiency (DSIRE), IRS Publication 5855. Cost and incentive data reflect 2025–2026 estimates and may vary by installer, location, and system configuration.