Solar by State: Your Complete Guide to Going Solar Across America

Solar energy is not a one-size-fits-all investment. A homeowner in Phoenix and a homeowner in Columbus get very different numbers when it comes to costs, savings, and payback, even if they install the same system. The sunshine hours, electricity rates, net metering policies, and state incentives vary enough that the financial case for solar looks completely different depending on where you live.

IntegrateSun installs residential and commercial solar systems across 12 states plus Washington D.C. This guide gives you the key facts for each state: what solar costs, what incentives are available in 2026, how net metering works with your local utility, and what to expect from your investment. Each state section links to a full, in-depth guide for that state.

Key insight: After the federal residential solar tax credit (Section 25D) expired on December 31, 2025, the differences between states matter more than ever. States with strong local incentives, high electricity rates, or lucrative SREC markets (Maryland, D.C., Ohio, Pennsylvania) now offer significantly better returns than states with limited incentives. Use this guide to understand where your state stands.

Compare All 12 States at a Glance

Use this table to quickly compare the key metrics across every state IntegrateSun serves. Click through to each state's full guide for detailed incentive breakdowns, city-level information, and financing options.

Note on payback periods: All estimates assume cash purchase, no federal residential tax credit, and typical system sizing for each state. TPO options (leases and PPAs) change the payback calculation since there is no upfront investment. SREC income (in D.C., Maryland, Ohio, Pennsylvania) significantly shortens payback and is included in those state estimates.

Why Solar Economics Vary So Much by State

Three variables drive most of the difference in solar returns from state to state. Understanding them helps you evaluate whether solar makes sense for your specific situation.

1. Electricity Rate

The higher your electricity rate, the more each kWh your solar panels produce is worth to you. A 9 kW system generating 14,000 kWh per year saves approximately $1,708 in California at 12.2 cents per kWh in Texas, but saves $3,920 in California at 28 cents per kWh. That is more than double the annual savings from the same system in the same climate, purely due to the electricity rate difference.

This is why states like California, Maryland, and Connecticut have strong solar economics despite fewer peak sun hours than Sun Belt states. Their high electricity rates more than compensate.

2. Net Metering Policy

Net metering determines what you get paid when your solar panels produce more electricity than you can use. The difference between full retail rate net metering (Maryland at 17.5 cents per kWh) and below-retail solar buyback (Georgia at 7.2 cents, Oklahoma at 2-8 cents) is enormous over 25 years.

In states with strong net metering, your solar system effectively uses the grid as free storage. You export surplus daytime electricity at full value and draw it back at night at the same value. In states with weak net metering, you want to consume as much solar as possible directly and add battery storage to avoid exporting at low rates.

3. State and Utility Incentives

The federal residential tax credit was the great equalizer that made solar attractive everywhere. With it gone, state-level incentives now determine whether solar is an obvious investment or requires more careful analysis.

Best incentive states: Washington D.C. (SRECs $300-400+), Maryland (SRECs + MEA grant + county credits), North Carolina (PowerPair up to $9K), Texas (Oncor rebate up to $9K with battery)
Good incentive states: Arizona (25% state credit, full tax exemptions), Ohio and Pennsylvania (SREC markets), Colorado (utility rebates + tax exemptions)
Limited incentive states: Georgia and Oklahoma have the fewest state incentives, making solar viability more dependent on electricity rate trends and self-consumption strategy

State-by-State Solar Guides

Click the link in each state section to access the full IntegrateSun guide for that state, including city-level details, local utility information, current incentive program status, and how to get a free quote.

Texas & Houston Solar Guide

5.0-5.4 peak sun hours/day | 12.2¢/kWh avg. (rising) | Rates up 21% since 2020

Top incentive: Oncor rebate up to $9,000 for solar+battery (solar $0.50/W up to $5K, battery $0.50/W up to $4K). AEP Texas SMART Source rebate $1,500-$3,000. 100% property tax exemption on solar-added value. Solar buyback plans through retail electricity providers (TXU, Chariot, Green Mountain).

Net metering: No statewide net metering law. Solar buyback plans available through retail electricity providers in deregulated areas. Oncor buyback and similar utility programs credit excess generation. Rates and availability vary by provider.

Estimated payback: 9-12 years (shorter for solar+battery with Oncor rebate)

Cities served: Houston, Dallas, Austin, San Antonio, Fort Worth, El Paso, Plano, Arlington

Full Guide: Solar in Texas | solar in houston

California Solar Guide

5.5-6.0 (LA/San Diego: up to 6.5) peak sun hours/day | 28-34¢/kWh (SDG&E customers pay up to 40¢) | Among highest rates in the US and rising

Top incentive: SGIP battery rebates for storage systems (income-qualified focus). Property tax exclusion on solar-added value (sunsets 2027). No state income tax credit. NEM 3.0 (now called Net Billing Tariff) replaced full retail net metering for new installations.

Net metering: NEM 3.0 / Net Billing Tariff for new customers. Export credits are based on "avoided cost" rates rather than full retail, significantly below previous NEM 2.0 rates. Battery storage is now essential to maximize ROI in California by storing solar energy for use during expensive evening peak hours rather than exporting at low credit rates.

Estimated payback: 10-15 years (shorter with battery storage maximizing self-consumption under NEM 3.0)

Cities served: Los Angeles, San Diego, San Francisco, Sacramento, San Jose, Fresno, Oakland, Bakersfield, Anaheim

Full Guide: solar in california

Arizona Solar Guide

6.5-7.5 (best in the nation) peak sun hours/day | 12-14¢/kWh | Competitive pricing, lowest installation costs nationally ($2.07/W avg.)

Top incentive: 25% Arizona state income tax credit on residential solar installations, capped at $1,000. 100% sales tax exemption on solar equipment. 100% property tax exemption on solar-added home value. Competitive installation market drives lowest per-watt costs nationally.

Net metering: Net metering varies by utility. APS (Arizona Public Service) and SRP have moved to export rate structures below full retail rate. Tucson Electric Power (TEP) offers its own net metering program. Battery storage increasingly important in Arizona to maximize self-consumption under utility rate structures and during hot summer peak hours.

Estimated payback: 8-11 years

Cities served: Phoenix, Tucson, Scottsdale, Mesa, Chandler, Glendale, Tempe, Peoria, Gilbert, Surprise

Full Guide: solar in arizona

Nevada Solar Guide

5.8-6.5 (Las Vegas: 6.4+) peak sun hours/day | 11-14¢/kWh | Rising steadily

Top incentive: Net metering through NV Energy. Property tax exemption on solar-added value (up to $20,000 additional home value exempt). Sales tax abatement on solar equipment. No state income tax.

Net metering: NV Energy offers net metering for residential customers. Excess solar energy earns bill credits. Contact NV Energy for current export compensation rates and program details.

Estimated payback: 9-12 years

Cities served: Las Vegas, Henderson, Reno, North Las Vegas, Sparks, Carson City, Mesquite

Full Guide: solar in nevada

Colorado Solar Guide

5.5-6.0 (high altitude improves performance) peak sun hours/day | 13-16¢/kWh | Rising

Top incentive: Sales and use tax exemption on solar and battery equipment. Property tax exemption on solar-added home value. Xcel Energy Solar Rewards program (customers in Xcel territory). Black Hills Energy and other utility rebate programs. Net metering statewide.

Net metering: Colorado has a strong net metering policy. Xcel Energy, the state's largest utility, offers net metering with full retail rate credits for residential systems up to 120% of annual consumption. Other utilities vary. Credits can be rolled forward month to month.

Estimated payback: 9-12 years

Cities served: Denver, Colorado Springs, Aurora, Fort Collins, Lakewood, Thornton, Arvada, Westminster

Full Guide: solar in colorado

Maryland Solar Guide

4.2-4.7 peak sun hours/day | 17.9¢/kWh (up 37% since 2021) | One of the fastest-rising rates in the mid-Atlantic

Top incentive: SRECs (Solar Renewable Energy Credits) at $55-80 each, earned for 15 years. Full retail rate net metering (1:1 credits, roll over indefinitely). Maryland Solar Access Program (MSAP) grants for income-qualified homeowners. $1,000 MEA Residential Clean Energy Grant. 6% sales tax exemption. Property tax exemption. County-level credits: Anne Arundel (up to $2,500), Baltimore County (up to $5,000).

Net metering: One of the strongest net metering policies in the country. BGE, Pepco, Delmarva, and SMECO credit solar exports at full retail rate (approximately 17.5¢/kWh). Credits roll over indefinitely. Annual cash-out option in April at a lower generation rate.

Estimated payback: 8-11 years (including SREC income)

Cities served: Baltimore, Annapolis, Silver Spring, Rockville, Frederick, Columbia, Bethesda, Bowie, Towson

Full Guide: solar in maryland

Related reading: solar panel cost in maryland

Washington, D.C. Solar Guide

4.2-4.6 peak sun hours/day | 13-15¢/kWh | Rising; D.C.'s SREC value makes it the best solar economics in America despite moderate rates

Top incentive: D.C. SRECs: $300-400+ per certificate (highest in the nation). Earn 1 SREC per 1,000 kWh produced. A 8 kW system earns $2,400-$4,000+ annually from SRECs alone for 15 years. No sales tax on solar. Property tax exemption. Solar for All program (free solar for low-income residents). Full retail rate net metering through Pepco.

Net metering: Full retail rate net metering through Pepco. Credits tracked in kWh, carry forward. Fixed monthly service charge (~$18/month) cannot be offset by credits.

Estimated payback: 5-7 years (fastest payback in IntegrateSun's service area)

Cities served: All D.C. neighborhoods served: Capitol Hill, Georgetown, Dupont Circle, Adams Morgan, Columbia Heights, Tenleytown, Brookland, Anacostia, Petworth

Full Guide: solar in washingtondc

North Carolina Solar Guide

4.7-5.1 (coast: 5.1, mountains: 4.4) peak sun hours/day | 12-14¢/kWh | Up 24% since 2020; NC is #2 solar state in the nation by installed capacity

Top incentive: Duke Energy PowerPair rebate: up to $9,000 combined for solar+battery ($0.36-$0.60/W for solar + $5,400 for qualifying battery). 80% property tax exemption on solar-added home value. Solar Access Law protects homeowners' right to install solar. EnergizeNC Solar for All program for low-to-moderate income households.

Net metering: Varies by utility. Duke Energy customers (majority of NC) now on Net Metering Bridge (NMB) rider with exports credited at $0.034/kWh (well below retail). Bridge Rate available through Dec 31, 2026. Dominion Energy customers in northeastern NC receive full retail 1:1 net metering. Brunswick Electric still offers traditional net metering.

Estimated payback: 9-13 years

Cities served: Charlotte, Raleigh, Durham, Greensboro, Winston-Salem, Fayetteville, Wilmington, Asheville, Cary, Chapel Hill

Full Guide: solar in north-carolina

Pennsylvania Solar Guide

3.8-4.5 peak sun hours/day | 14-18¢/kWh | Rising; higher rates offset lower-than-average sunshine

Top incentive: SREC market: earn 1 SREC per MWh of production, sell for additional income (prices fluctuate). Full retail rate net metering through PECO, PPL, and other utilities. $500 PECO rebate for qualifying installations. Property tax exemptions vary by locality.

Net metering: Full retail rate net metering required by PA Public Utility Commission. Credits roll forward month to month. Excess annual credits paid out at generation rate.

Estimated payback: 10-13 years

Cities served: Philadelphia, Pittsburgh, Allentown, Erie, Reading, Scranton, Bethlehem, Lancaster, Harrisburg, York

Full Guide: solar in pennsylvania

Georgia Solar Guide

4.8-5.2 peak sun hours/day | 13.5-14¢/kWh (up 13% since 2021) | Rising; limited state incentives mean self-consumption is key

Top incentive: Georgia Power Solar Buy Back program credits excess solar at approximately 7.2¢/kWh (below retail rate). Georgia BRIGHT federally funded solar program for eligible

homeowners (no upfront cost). Georgia Power Community Solar program. Solar easement laws protect your right to sunlight.

Net metering: Georgia does not have full retail net metering. Georgia Power offers a Solar Buy Back / Net Billing program at approximately 7.2¢/kWh for exported energy (roughly half the retail rate). Credits roll forward monthly but battery storage is strongly recommended to maximize self-consumption and avoid exporting at below-retail rates.

Estimated payback: 11-15 years (battery storage reduces payback by improving self-consumption)

Cities served: Atlanta, Savannah, Augusta, Macon, Columbus, Athens, Roswell, Sandy Springs, Marietta

Full Guide: solar in georgia

Oklahoma Solar Guide

5.2-5.5 (230+ sunny days/year) peak sun hours/day | 11-12.2¢/kWh (up 21% since 2020) | Rising; lower rates extend payback but strong sun compensates

Top incentive: Net metering required for investor-owned utilities (OG&E, PSO). Dollar-based credits roll forward indefinitely. 100% property tax exemption on solar-added home value for 5 years. RECs (Renewable Energy Certificates) tradeable through North American Renewables Registry.

Net metering: Oklahoma Corporation Commission mandates net metering for all investor-owned utilities. Credits valued at avoided cost rate ($0.02-$0.08/kWh depending on utility). Credits roll forward indefinitely and can offset all charges on your bill.

Estimated payback: 11-14 years

Cities served: Oklahoma City, Tulsa, Norman, Edmond, Broken Arrow, Lawton, Moore, Midwest City, Stillwater

Full Guide: solar in oklahoma

Ohio Solar Guide

4.0-4.7 (Columbus/Cincinnati: 4.5-4.7; Cleveland: 4.0-4.2) peak sun hours/day | 13-16¢/kWh (up 26% since 2021) | Rising sharply; AEP and FirstEnergy rate increases driving solar adoption

Top incentive: SREC market (earn 1 SREC per MWh, value $3-$12 each). Net metering from investor-owned utilities (AEP Ohio, Duke Energy Ohio, AES Ohio, FirstEnergy). Sales tax exemption on solar equipment. Property tax exemption for systems up to 250 kW. ECO-Link program: up to 3% interest rate reduction on bank loans. Cincinnati and Cleveland: residential property tax abatement for 15 years.

Net metering: Net metering required for investor-owned utilities. Credits carried forward continuously. Excess energy credited at generation rate (~$0.11/kWh) rather than full retail ($0.16-0.17/kWh). Cash payout available after 12 months for unused credits.

Estimated payback: 10-14 years

Cities served: Columbus, Cleveland, Cincinnati, Dayton, Akron, Toledo, Youngstown, Canton, Dublin

Full Guide: solar in ohio

Related reading: Ohio solar costs, Ohio net metering guide, best solar panels for Ohio weather

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Which State Is Best for Solar?

Based on the combination of incentives, electricity rates, net metering, and production potential, here is how IntegrateSun's service states rank for solar returns in 2026:

Tier 1: Outstanding returns (payback under 10 years)

Washington D.C.: SREC income alone can cover $3,000-$4,000/year. Fastest payback in our service area at 5-7 years.
Maryland: Rising rates (17.9 cents) + full retail net metering + SRECs + county credits. One of the strongest East Coast markets.
Arizona: Lowest installation costs in the nation + state tax credit + no sales or property taxes on solar. Excellent for cash purchases.

Tier 2: Strong returns (payback 9-12 years)

Texas: Lower rates but Oncor and AEP rebates (up to $9K with battery) compress payback significantly for eligible customers.
Nevada: Strong sun, no state income tax, property tax exemption. Solid long-term investment.
Colorado: High altitude improves panel output, utility rebates available, strong net metering.
North Carolina: PowerPair rebate up to $9K makes solar+battery very competitive. #2 solar state nationally.

Tier 3: Good returns requiring longer horizon (payback 10-14 years)

Pennsylvania: SREC income supplements savings, full retail net metering, rising rates make long-term returns strong.
Ohio: Rising rates (+26%), SREC market, good incentives. City abatement programs in Columbus, Cincinnati, Cleveland.
California: High rates but NEM 3.0 changes the math. Battery storage essentially required for strong ROI.

Tier 4: Viable but requires analysis (payback 11-15 years)

Georgia: Limited incentives, below-retail solar buyback. Still financially viable for long-term homeowners with high electricity usage.
Oklahoma: Lower rates, limited state incentives. Best suited for high-consumption homes or those pairing solar with battery for self-consumption.

Where Leases and PPAs Are Available

Solar leases and Power Purchase Agreements (Third-Party Ownership or TPO) allow homeowners to go solar with no upfront cost. The financing company owns the system, claims the Section 48E commercial tax credit, and passes savings to you through lower monthly payments.

TPO availability by state in IntegrateSun's service area:

Full TPO availability (leases + PPAs): Texas, California, Arizona, Nevada, Maryland, Washington D.C., North Carolina, Pennsylvania, Colorado, Ohio
Limited TPO availability: Georgia, Oklahoma (check availability with IntegrateSun for current options)

TPO options are especially valuable in states where the federal commercial credit provides meaningful savings that offset the below-retail net metering rates. In Georgia and Oklahoma, where export credits are low, a lease or PPA that maximizes self-consumption through smart load scheduling can deliver comparable value to ownership.

Talk to a Solar Expert Today

IntegrateSun installs solar across all 12 states and D.C. listed in this guide. Our team understands the specific incentive programs, utility interconnection processes, and installation requirements in each market.

Not sure where to start? Our team will guide you through costs, incentives, and the best setup for your home.

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