Trevor has worked in home improvement and residential solar since 2016 and maintains the EcoGen Solar Cost Index.
Two identical solar systems, installed the same week for the same price, can be a decade apart on payback depending on the state they sit in. The panels do not care where they are. The rules do: what your utility pays for exported power, what your state pays you to install, and what grid power costs when your roof offsets it.
This ranking is built from the same state-by-state facts we publish and maintain on every EcoGen America state guide: crediting rules as written in each tariff, incentive programs as they stand this year, retail rates as utilities actually bill them, and fair install pricing from the EcoGen Solar Cost Index. No state paid to be here, and the order changes when the rules do.
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How We Ranked the States
Four questions decide the order, in this priority: Does the utility credit your exported power at or near the retail rate? Does the state still pay you anything to install, now that the federal residential credit is gone? How expensive is the grid power your roof replaces? And what does a fairly priced system cost there? A state can rank high on cheap installs alone and still sit low here, because crediting and rates carry the most weight in what a homeowner actually keeps.
The Top 10 States for Solar in 2026
1. Washington, D.C.
The District runs the best rooftop solar economics in America, and it is not close. A typical 7 kW system mints about eight renewable energy certificates a year that trade at $360 to $400 apiece, roughly $3,000 in annual income before a single bill credit, on top of Pepco’s full-retail net metering. Small row-house roofs are the only real constraint. Details in our Washington, D.C. solar guide.
2. New Jersey
New Jersey pairs the 12th highest residential rate in the country, 23.23¢/kWh, with one of the strongest incentive stacks left anywhere: full 1-to-1 net metering plus 15 years of SREC-II income at $76.50 per certificate, locked on your registration date. Typical paybacks run 7 to 9 years. Start with our New Jersey solar guide.
3. Massachusetts
Grid power at 30 to 34¢/kWh does most of the work, and the redesigned SMART 3.0 program adds performance income on top. Purchased systems pay back in 6 to 9 years, faster with a battery. The May 2026 program redesign changed the enrollment rules most guides still describe incorrectly; our Massachusetts solar guide tracks the current version.
4. New York
New York kept its own 25% state credit, up to $5,000, when the federal one died, and it is one of the only state credits that reaches lease and PPA customers too. Statewide power averaged 24.4¢ and touched nearly 30¢ in February 2026. Cash-buyer paybacks run 7 to 11 years at a competitive $2.77/W. See our New York solar guide.
5. Connecticut
Connecticut homeowners lock a 20-year RRES tariff election on some of the highest power rates in the country, with CT Green Bank Smart-E financing behind them. The Netting-versus-Buy-All election matters more than the panel brand, and it cannot be changed once made. Our Connecticut solar guide walks the decision.
6. New Mexico
A 10% refundable state credit worth up to $6,000, retail-rate net metering with credits that roll forward indefinitely, and 300+ days of high-desert sun. The credit draws from an annual statewide allocation, so early filers win. Details in our New Mexico solar guide.
7. Maryland
Full-retail net metering with a hard deadline attached: the deal closes to new systems at a 3,000 MW statewide cap or on July 1, 2027, whichever comes first, and systems connected before the line keep today’s terms. SRECs around $40 ride on top of a typical 9-year payback. Our Maryland solar guide tracks the cap.
8. Delaware
The Mid-Atlantic’s last big upfront grant, $0.70 per watt up to $6,000, stacks on full retail net metering and a 10-year-locked SREC rate, while Delmarva’s supply rates jumped 19 to 20% in June 2026. The grant runs while funds last. See our Delaware solar guide.
9. Maine
No rebate stack, no paperwork pyramid: Maine simply pays 30.34¢/kWh for grid power, the 4th highest rate in the country, and credits every exported kilowatt-hour at that same rate under protected 1-to-1 net billing. An expensive grid your roof undercuts is the whole pitch. Our Maine solar guide has the numbers.
10. Minnesota
The strongest solar economics in the upper Midwest: one-to-one retail net metering written into law for systems under 40 kW, plus Xcel’s Solar*Rewards performance payments for 10 years. The program waitlists when its annual budget runs out, so application timing is part of the math. Details in our Minnesota solar guide.
The Top 10 at a Glance
Rank | State | The Headline Deal | Crediting |
|---|---|---|---|
1 | Washington, D.C. | SRECs near $400 each, about $3,000/yr on a 7 kW system | Full retail |
2 | New Jersey | SREC-II income locked 15 years at $76.50 | Full retail |
3 | Massachusetts | 30¢+ grid power plus SMART 3.0 income | Full retail |
4 | New York | 25% state credit, leases included | Utility-varied |
5 | Connecticut | 20-year locked RRES tariff election | Netting or Buy-All |
6 | New Mexico | 10% refundable credit to $6,000 | Full retail, rolls forward |
7 | Maryland | Full retail until the 2027 cap | Full retail (closing) |
8 | Delaware | $0.70/W grant plus locked SRECs | Full retail |
9 | Maine | 30.34¢ power, 1:1 protected netting | Full retail |
10 | Minnesota | Netting in law plus Solar*Rewards | Full retail |
Where Solar Is Hardest Right Now
Honesty cuts both ways. Alabama is the hardest place in America to make rooftop solar pay: Alabama Power bills solar owners $5.41 per kilowatt of panels every month, a fee upheld in federal court this March, on top of roughly 3¢ export credits. South Dakota has no net-metering law at all. Tennessee’s TVA territory pays a few cents for exports, making a typical system’s surplus worth about $52 a year. Solar can still work in all three, but only sized tightly to what the house itself consumes, and anyone promising otherwise is selling.
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Best States for Solar FAQs
What is the best state for solar in 2026?
By homeowner economics, Washington, D.C. leads: SREC income near $3,000 a year on a typical system plus full-retail net metering. Among states, New Jersey ranks first on the strength of 15-year locked SREC-II income and 1-to-1 crediting.
Does sunshine decide which states are best for solar?
Less than most people expect. Cloudy New Jersey outranks sunny Arizona here because crediting rules and power prices move the payback math far more than a 15 to 20% production difference does.
Is solar still worth it without the federal tax credit?
In the states on this list, yes: their economics run on state programs, crediting rules and high power prices rather than the expired 25D credit. In states with weak crediting and cheap power, the case is narrower and depends on consuming most of what you generate.
Can my state move up or down this list?
Yes, and several will. Maryland’s full-retail crediting closes to new systems by July 2027, North Carolina’s Bridge Rate window ends January 1, 2027, and Vermont trims its rate almost yearly. Rankings follow the rules, and the rules are moving.
References & Research Sources
State figures above are maintained on the linked EcoGen America state guides, each carrying its own primary sources: utility tariff filings, state statutes and program pages, and the EcoGen Solar Cost Index for fair install pricing. Key primaries: Pepco and D.C. PSC filings (D.C.), NJ BPU SREC-II registration terms (New Jersey), Massachusetts DOER SMART 3.0 guidance, NYSERDA and NY tax law (New York), CT PURA RRES docket (Connecticut), New Mexico EMNRD credit rules, Maryland PSC net metering orders, Delaware Green Energy Program terms, Maine PUC net billing rules, and Minnesota statute 216B.164 with Xcel Solar*Rewards program documents. Accessed September 2026.