Ranked comparison
Cheapest states for solar in 2026
Every state ranked by the estimated cost of a typical 8 kW residential system before incentives, using our published $-per-watt assumptions (last reviewed September 2026). Sticker price is only half the story — a cheap system in a cheap-electricity state can still pay back slowly — so we show estimated payback alongside.
| # | State | Cost per watt | 8 kW system | Est. payback |
|---|---|---|---|---|
| 1 | Alabama | $2.30–$3.05 | $18,400–$24,400 | 12–17 yrs |
| 2 | Texas | $2.35–$3.05 | $18,800–$24,400 | 12–15 yrs |
| 3 | Arizona | $2.35–$3.10 | $18,800–$24,800 | 10–14 yrs |
| 4 | Florida | $2.35–$3.10 | $18,800–$24,800 | 13–17 yrs |
| 5 | Georgia | $2.35–$3.10 | $18,800–$24,800 | 15–19 yrs |
| 6 | Louisiana | $2.35–$3.10 | $18,800–$24,800 | 17–23 yrs |
| 7 | Mississippi | $2.35–$3.10 | $18,800–$24,800 | 15–19 yrs |
| 8 | Oklahoma | $2.35–$3.10 | $18,800–$24,800 | 16–21 yrs |
| 9 | Arkansas | $2.40–$3.15 | $19,200–$25,200 | 16–22 yrs |
| 10 | Kentucky | $2.40–$3.15 | $19,200–$25,200 | 17–23 yrs |
| 11 | Missouri | $2.40–$3.15 | $19,200–$25,200 | 17–22 yrs |
| 12 | Nebraska | $2.40–$3.15 | $19,200–$25,200 | 18–23 yrs |
| 13 | Nevada | $2.40–$3.15 | $19,200–$25,200 | 12–15 yrs |
| 14 | New Mexico | $2.40–$3.15 | $19,200–$25,200 | 11–15 yrs |
| 15 | North Carolina | $2.40–$3.15 | $19,200–$25,200 | 16–21 yrs |
| 16 | South Carolina | $2.40–$3.15 | $19,200–$25,200 | 15–20 yrs |
| 17 | Tennessee | $2.40–$3.15 | $19,200–$25,200 | 17–22 yrs |
| 18 | Utah | $2.40–$3.15 | $19,200–$25,200 | 17–22 yrs |
| 19 | Idaho | $2.45–$3.20 | $19,600–$25,600 | 20–26 yrs |
| 20 | Indiana | $2.45–$3.20 | $19,600–$25,600 | 15–20 yrs |
| 21 | Kansas | $2.45–$3.20 | $19,600–$25,600 | 15–19 yrs |
| 22 | Ohio | $2.45–$3.20 | $19,600–$25,600 | 15–20 yrs |
| 23 | South Dakota | $2.45–$3.25 | $19,600–$26,000 | 17–22 yrs |
| 24 | West Virginia | $2.45–$3.25 | $19,600–$26,000 | 17–23 yrs |
| 25 | Iowa | $2.50–$3.25 | $20,000–$26,000 | 17–22 yrs |
| 26 | North Dakota | $2.50–$3.30 | $20,000–$26,400 | 21–28 yrs |
| 27 | Pennsylvania | $2.50–$3.30 | $20,000–$26,400 | 14–18 yrs |
| 28 | Virginia | $2.50–$3.30 | $20,000–$26,400 | 16–22 yrs |
| 29 | Wyoming | $2.50–$3.30 | $20,000–$26,400 | 18–24 yrs |
| 30 | Colorado | $2.55–$3.30 | $20,400–$26,400 | 13–17 yrs |
| 31 | California | $2.55–$3.35 | $20,400–$26,800 | 7–9 yrs |
| 32 | Michigan | $2.55–$3.35 | $20,400–$26,800 | 14–18 yrs |
| 33 | Montana | $2.55–$3.35 | $20,400–$26,800 | 19–25 yrs |
| 34 | Wisconsin | $2.55–$3.35 | $20,400–$26,800 | 15–20 yrs |
| 35 | Delaware | $2.60–$3.40 | $20,800–$27,200 | 14–18 yrs |
| 36 | Illinois | $2.60–$3.40 | $20,800–$27,200 | 16–20 yrs |
| 37 | Maryland | $2.60–$3.40 | $20,800–$27,200 | 13–18 yrs |
| 38 | Minnesota | $2.60–$3.40 | $20,800–$27,200 | 17–22 yrs |
| 39 | Oregon | $2.60–$3.40 | $20,800–$27,200 | 19–25 yrs |
| 40 | Washington | $2.60–$3.40 | $20,800–$27,200 | 25–33 yrs |
| 41 | New Jersey | $2.65–$3.45 | $21,200–$27,600 | 13–17 yrs |
| 42 | Washington, D.C. | $2.70–$3.55 | $21,600–$28,400 | 14–18 yrs |
| 43 | New York | $2.75–$3.55 | $22,000–$28,400 | 11–15 yrs |
| 44 | Connecticut | $2.80–$3.60 | $22,400–$28,800 | 10–12 yrs |
| 45 | Maine | $2.80–$3.60 | $22,400–$28,800 | 11–14 yrs |
| 46 | Massachusetts | $2.80–$3.60 | $22,400–$28,800 | 10–13 yrs |
| 47 | New Hampshire | $2.80–$3.60 | $22,400–$28,800 | 10–13 yrs |
| 48 | Rhode Island | $2.80–$3.60 | $22,400–$28,800 | 10–13 yrs |
| 49 | Vermont | $2.80–$3.60 | $22,400–$28,800 | 14–18 yrs |
| 50 | Alaska | $2.90–$3.90 | $23,200–$31,200 | 15–20 yrs |
| 51 | Hawaii | $2.90–$3.90 | $23,200–$31,200 | 5–7 yrs |
Which state has the cheapest solar panels?
Using our published installed-cost assumptions, Alabama is the cheapest market: a typical 8 kW system runs roughly $18,400–$24,400 before incentives ($2.30–$3.05 per watt).
Why do solar prices differ by state?
Labor rates, permitting complexity, market competition, customer-acquisition costs and typical system sizes all differ by state. High-cost-of-living states with older housing stock (roof and electrical work) tend to sit at the expensive end.
Is the cheapest state also the best state for solar?
Not necessarily. A cheap install with cheap electricity and weak export compensation can pay back more slowly than an expensive install in a high-rate state. Payback, not sticker price, is the better ranking for value — see our payback-by-state comparison.
Costs are broad assumptions before incentives, not quotes. No federal credit is subtracted — the Section 25D residential credit ended for systems installed after 2025. See methodology and each state page for sources.