Solar Panel Payback Period by State
Compare the estimated solar panel payback period for a standard 6 kW residential system across all 50 US states and the District of Columbia. Each state's calculation uses local average peak sun hours, electricity rates, and installation costs. The federal 30% Investment Tax Credit is included in all estimates, along with any applicable state incentives.
All States Comparison Table
The table below ranks every state by solar payback period for a 6 kW system. Click any state name for a detailed breakdown including system size comparisons, state-specific incentives, and environmental impact data. States with shorter payback periods generally have higher electricity rates, more sun hours, or valuable state incentive programs.
| # | State | Sun Hours | Rate (c/kWh) | Cost/Watt | Net Metering | SRECs | Net Cost (6kW) | Annual Savings | Payback | 25-Yr Savings |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Hawaii (HI) | 5.5 | 33c | $3.10 | No | No | $8,020 | $3,180/yr | 2.5 years | $103,081 |
| 2 | California (CA) | 5.5 | 30c | $2.90 | Yes | No | $12,180 | $2,891/yr | 4.2 years | $88,821 |
| 3 | New York (NY) | 3.8 | 23c | $3.20 | Yes | No | $8,640 | $1,531/yr | 5.6 years | $44,863 |
| 4 | New Mexico (NM) | 6 | 14.5c | $2.80 | Yes | No | $10,080 | $1,524/yr | 6.6 years | $43,175 |
| 5 | Massachusetts (MA) | 3.8 | 28c | $3.30 | Yes | Yes | $12,860 | $1,864/yr | 6.9 years | $52,274 |
| 6 | Arizona (AZ) | 6.5 | 13.5c | $2.60 | Yes | No | $10,920 | $1,537/yr | 7.1 years | $42,794 |
| 7 | South Carolina (SC) | 4.8 | 13.5c | $2.80 | Yes | No | $8,260 | $1,135/yr | 7.3 years | $31,408 |
| 8 | Connecticut (CT) | 3.8 | 27c | $3.20 | Yes | Yes | $13,440 | $1,798/yr | 7.5 years | $49,368 |
| 9 | Rhode Island (RI) | 3.8 | 25c | $3.15 | Yes | No | $13,230 | $1,665/yr | 7.9 years | $44,925 |
| 10 | Nevada (NV) | 6 | 13c | $2.65 | Yes | No | $11,130 | $1,367/yr | 8.1 years | $36,616 |
| 11 | Colorado (CO) | 5.5 | 15c | $3.00 | Yes | No | $12,600 | $1,445/yr | 8.7 years | $37,900 |
| 12 | New Hampshire (NH) | 3.8 | 23c | $3.20 | Yes | No | $13,440 | $1,531/yr | 8.8 years | $40,063 |
| 13 | Maine (ME) | 3.8 | 22c | $3.15 | Yes | No | $13,230 | $1,465/yr | 9.0 years | $37,947 |
| 14 | Florida (FL) | 5.2 | 13.5c | $2.65 | Yes | No | $11,130 | $1,230/yr | 9.0 years | $31,839 |
| 15 | Texas (TX) | 5 | 13c | $2.70 | No | No | $11,340 | $1,139/yr | 10.0 years | $28,448 |
| 16 | New Jersey (NJ) | 4 | 18c | $3.00 | Yes | Yes | $12,600 | $1,261/yr | 10.0 years | $31,473 |
| 17 | Utah (UT) | 5.5 | 11.5c | $2.70 | Yes | No | $11,340 | $1,108/yr | 10.2 years | $27,377 |
| 18 | Vermont (VT) | 3.5 | 21c | $3.25 | Yes | No | $13,650 | $1,288/yr | 10.6 years | $31,341 |
| 19 | Alaska (AK) | 3 | 24c | $3.20 | Yes | No | $13,440 | $1,261/yr | 10.7 years | $30,633 |
| 20 | Kansas (KS) | 4.8 | 13.5c | $2.90 | Yes | No | $12,180 | $1,135/yr | 10.7 years | $27,488 |
| 21 | Maryland (MD) | 4.2 | 16c | $3.05 | Yes | Yes | $12,810 | $1,177/yr | 10.9 years | $28,323 |
| 22 | Alabama (AL) | 4.7 | 13c | $2.80 | No | No | $11,760 | $1,070/yr | 11.0 years | $25,639 |
| 23 | Georgia (GA) | 4.7 | 13c | $2.85 | No | No | $11,970 | $1,070/yr | 11.2 years | $25,429 |
| 24 | Pennsylvania (PA) | 3.8 | 17c | $3.05 | Yes | Yes | $12,810 | $1,132/yr | 11.3 years | $26,736 |
| 25 | North Carolina (NC) | 4.7 | 12.5c | $2.80 | Yes | No | $11,760 | $1,029/yr | 11.4 years | $24,201 |
| 26 | Illinois (IL) | 4 | 16c | $3.10 | Yes | Yes | $13,020 | $1,121/yr | 11.6 years | $26,156 |
| 27 | Delaware (DE) | 4.2 | 14.5c | $2.95 | Yes | Yes | $12,390 | $1,067/yr | 11.6 years | $24,886 |
| 28 | Michigan (MI) | 3.5 | 18c | $3.10 | Yes | No | $13,020 | $1,104/yr | 11.8 years | $25,544 |
| 29 | Iowa (IA) | 4.2 | 14.5c | $3.00 | Yes | No | $12,600 | $1,067/yr | 11.8 years | $24,676 |
| 30 | Wisconsin (WI) | 3.8 | 16.5c | $3.10 | Yes | No | $13,020 | $1,099/yr | 11.9 years | $25,363 |
| 31 | Oklahoma (OK) | 5 | 11.5c | $2.85 | Yes | No | $11,970 | $1,007/yr | 11.9 years | $23,227 |
| 32 | Missouri (MO) | 4.5 | 13c | $2.90 | Yes | Yes | $12,180 | $1,025/yr | 11.9 years | $23,629 |
| 33 | Mississippi (MS) | 4.7 | 12c | $2.85 | No | No | $11,970 | $988/yr | 12.1 years | $22,552 |
| 34 | Indiana (IN) | 4 | 14c | $2.95 | No | No | $12,390 | $981/yr | 12.6 years | $21,889 |
| 35 | Virginia (VA) | 4.3 | 13c | $2.95 | Yes | No | $12,390 | $979/yr | 12.7 years | $21,830 |
| 36 | Tennessee (TN) | 4.4 | 12c | $2.80 | No | No | $11,760 | $925/yr | 12.7 years | $20,561 |
| 37 | South Dakota (SD) | 4.5 | 12.5c | $3.00 | Yes | No | $12,600 | $986/yr | 12.8 years | $21,832 |
| 38 | Minnesota (MN) | 4 | 14.5c | $3.10 | Yes | No | $13,020 | $1,016/yr | 12.8 years | $22,483 |
| 39 | Arkansas (AR) | 4.6 | 11.5c | $2.85 | Yes | No | $11,970 | $927/yr | 12.9 years | $20,411 |
| 40 | District of Columbia (DC) | 4.2 | 14.5c | $3.30 | Yes | Yes | $13,860 | $1,067/yr | 13.0 years | $23,416 |
| 41 | Wyoming (WY) | 5 | 11c | $3.00 | Yes | No | $12,600 | $964/yr | 13.1 years | $21,067 |
| 42 | Montana (MT) | 4.5 | 12c | $3.00 | Yes | No | $12,600 | $946/yr | 13.3 years | $20,455 |
| 43 | Nebraska (NE) | 4.5 | 12c | $3.00 | Yes | No | $12,600 | $946/yr | 13.3 years | $20,455 |
| 44 | Ohio (OH) | 3.8 | 14c | $3.00 | Yes | Yes | $12,600 | $932/yr | 13.5 years | $19,967 |
| 45 | Idaho (ID) | 4.7 | 10.5c | $2.85 | Yes | No | $11,970 | $865/yr | 13.8 years | $18,237 |
| 46 | Louisiana (LA) | 4.8 | 10c | $2.85 | Yes | No | $11,970 | $841/yr | 14.2 years | $17,413 |
| 47 | West Virginia (WV) | 3.8 | 12.5c | $3.00 | Yes | No | $12,600 | $832/yr | 15.1 years | $16,478 |
| 48 | Kentucky (KY) | 4 | 11c | $2.80 | Yes | No | $11,760 | $771/yr | 15.3 years | $15,174 |
| 49 | North Dakota (ND) | 4.2 | 11.5c | $3.10 | Yes | No | $13,020 | $846/yr | 15.4 years | $16,544 |
| 50 | Oregon (OR) | 3.5 | 12.5c | $3.00 | Yes | No | $12,600 | $767/yr | 16.4 years | $14,180 |
| 51 | Washington (WA) | 3.5 | 11c | $3.00 | Yes | No | $12,600 | $675/yr | 18.7 years | $10,967 |
How We Calculate Solar Payback
Our solar payback calculations use a consistent methodology across all states. Annual electricity production is calculated as: system size (kW) x 1,000 x peak sun hours x 365 days x 0.80 system efficiency factor. Gross installation cost uses each state's average cost per watt. The federal 30% ITC and any state incentives are subtracted to determine net cost.
Payback period is simply the net cost divided by first-year annual savings. Our 20-year and 25-year savings projections account for 0.5% annual panel degradation (panels produce slightly less each year) and 3% annual electricity rate inflation (the national historical average), providing a more realistic long-term picture than simple flat-rate projections.
Note that these are estimates based on state averages. Your actual results will vary based on your specific roof orientation, shading, local utility rate structure, and chosen installer. Use our main calculator to customize these variables for your situation.
Key Insights Across States
High electricity rates matter more than sun hours. States like Hawaii, Massachusetts, and Connecticut have faster payback periods than many sunbelt states because their high electricity rates (25-33 cents/kWh) mean each kilowatt-hour of solar production offsets more expensive grid power. Arizona has the most sun hours but moderate rates, while Hawaii has both excellent sun and the highest rates — making it the best state for solar economics.
State incentives can be game-changers. New York's 25% state tax credit (up to $5,000) dramatically reduces the net cost and accelerates payback. Hawaii's 35% state credit stacks on top of already excellent economics. States without incentives rely entirely on the federal ITC, so the 30% credit is especially critical there.
Every state shows positive 25-year savings. Even states with the longest payback periods (13+ years) still generate tens of thousands of dollars in net savings over the 25-year panel lifespan. Rising electricity rates and declining panel costs continue to improve solar economics nationwide.