Are Solar Panels Worth It in My State? ( 2026 “Secret” Math)

Solar panels are worth it in most US states in 2026, but only if your electricity rate, roof, and net metering policy align. The national average rate hit 18.05¢/kWh this year, up 5.4% from 2025. That single number is why are solar panels worth it in my state, which has become the most searched solar question of the year. This guide gives you every answer, by state tier, bill size, financing type, and real dollar outcome.

No federal residential tax credit exists for owner-purchased systems in 2026. The Section 25D credit expired on December 31, 2025. That changes your upfront math. It does not change whether solar makes financial sense over 25 years.

Here is what nobody tells you upfront: the states with the highest electricity rates are the exact states where solar pays back fastest, even without federal incentives. Your utility bill is a more powerful predictor of solar ROI than any government program.

Key Facts Before You Read Further

• National average electricity rate: 18.05¢/kWh in 2026, up 21% since 2022
• No federal tax credit for homeowner-purchased systems starting January 1, 2026
• Solar leases and PPAs still qualify for Section 48E federal credit through December 31, 2027
• Average installed system cost in 2026: $2.50–$3.50 per watt before incentives
• Average payback period in 2026: 8–12 years without federal credit
• 38 states plus D.C. still offer net metering in some form
• 36 states offer property tax exemptions on solar systems
• Lifetime savings range: $37,000–$154,000 over 25 years, depending on your state and usage

Are Solar Panels Worth It in My State? The Direct Answer

Yes, solar panels are a good investment in most US states where electricity rates exceed 15¢/kWh and full retail net metering applies. That covers roughly 28 states where the financial case is solid even after the federal credit expired.

The wrong way to answer this question is to use one national average. The right way is to sort states by electricity rate, because that single number decides almost everything.

Here is how the math actually works. A household using 900 kWh per month at 18¢/kWh pays $194/month, $2,328/year, to the utility. At a 5% annual rate increase, that same household spends over $37,000 in electricity over 12 years. A solar system costing $19,000 installed produces that same electricity at $0/kWh for 25 years. Even at a 10-year payback, 15 years of free power follow.

That logic holds for most of the country. Where it breaks down is in states with rates below 13¢/kWh, such as Louisiana (12.44¢), North Dakota (10.92¢), Oklahoma, and Arkansas, where the math stretches to 15+ year payback periods that most homeowners find hard to justify.

What the 2026 Electricity Rate Map Tells You

The single biggest factor in whether are solar panels worth it in my state is your electricity rate, not sunshine, not incentives. States paying over 20¢/kWh almost always produce a strong solar ROI. States under 13¢/kWh rarely do.

The national average residential electricity rate climbed 21% in five years, rising from 14.92¢/kWh in 2022 to 18.05¢/kWh in 2026. 

Highest-rate states, clearest solar ROI:

• Hawaii: 39.89¢/kWh, 2.2x the national average
• California: 33.75¢/kWh
• Massachusetts: 31.51¢/kWh
• Rhode Island: 31.30¢/kWh
• Maine: 29.55¢/kWh, with a 17.6% year-over-year spike, the largest single-state jump nationally

Mid-range states, solid ROI with good roof:

• New York: ~22¢/kWh
• Connecticut: ~24¢/kWh
• New Jersey: ~20¢/kWh
• Maryland: ~19¢/kWh
• Florida: ~16¢/kWh

Lower-rate states, longer payback, honest assessment needed:

• Texas: 16.18¢/kWh
• Georgia: 14.60¢/kWh
• Tennessee: 13.12¢/kWh
• Louisiana: 12.44¢/kWh
• North Dakota: 10.92¢/kWh

Every kilowatt-hour your panels produce is one you don’t buy from a utility whose prices are climbing year after year. Solar essentially locks in your electricity cost at $0 per kWh for the next 25+ years.

How Net Metering Decides Your Real Savings

Net metering policy is the second-most important factor; it determines what you earn for excess power your system sends to the grid. A full retail-rate state credits you 18¢–31¢ per kWh exported. A reduced-credit state might pay 3¢–8¢ for the same kilowatt-hour.

That gap can mean the difference between a 7-year payback and a 14-year payback on the same system.

According to SEIA, 34 states plus Washington D.C., offer genuine 1:1 retail net metering as of 2026. Most net metering contracts are guaranteed for 20-year terms, which means signing up now locks in that credit rate for two decades.

States with the strongest net metering in 2026:

• New Jersey: Full 1:1 retail credit, no cap, plus ADI program paying $85.90/MWh for 15 years
• Massachusetts: Full 1:1 retail plus SMART program incentive payments
• Maine: Full retail at 29–30¢/kWh, 20-year lock-in
• New York: Full retail through NYSERDA
• Maryland, Connecticut, Vermont: Full retail with strong consumer protections

States where net metering has weakened:

• California: NEM 3.0 since 2023, export credit rates for new installations cut by roughly 75% compared to the previous policy. Battery storage is now essential for California installs.
• Nevada and Arizona: Shifted to net billing at reduced export rates
• Indiana and Tennessee: Export credits at just 3–4¢/kWh
• Texas: No statewide net metering policy; it depends entirely on your utility

What this means for your decision:

• If you’re in a full-retail net metering state, a well-sized system can eliminate most of your annual bill
• What surprises many homeowners is that net metering credits do not translate to a zero bill. Grid connection fees, basic service charges, and in some states fixed solar surcharges still apply regardless of how much electricity your system produces. These fixed charges typically run $10 to $25 per month.
• If you’re in a reduced-credit state like California, pair panels with battery storage, it’s the only way the numbers work cleanly

What I noticed when reviewing 2026 state-level net metering filings is that several utility commissions are currently reviewing their policies. Homeowners in states like North Carolina and Ohio who sign interconnection agreements now are grandfathered into existing terms for 20 years.

The Real Cost of Going Solar in 2026: State-by-State Breakdown

In 2026, a typical 8–10kW residential solar system costs $20,000–$29,000 installed before any state incentives. That’s your real number; no federal credit applies to owner-purchased systems this year.

Solar costs range from $2.30/W in Arizona to $3.60/W in Massachusetts. National average: $2.85/W or $19,950 for a 7kW system based on SEIA 2026 data.

Cost per watt by region:

These are the installed costs, panels, inverter, racking, permits, labor, and utility inspection. They do not include battery storage, electrical panel upgrades ($1,500–$3,000), roof repairs if needed ($2,000–$8,000), or tree trimming ($500–$2,500).

Hidden costs most installers don’t lead with:

• Electrical panel upgrade: required if your panel is 100 amps or older
• Roof inspection: most installers require it; replacements must happen before installation
• HOA approval process: required in some communities, can add 4–8 weeks
• Utility interconnection fee: typically $50–$300, depending on your state

Solar ROI Scenarios: What Real Homeowners Pay and Save

Your payback period is the total net system cost divided by annual electricity savings. In 2026, the national average payback runs 8–12 years, longer than the 6–8 years under the federal credit.

Here is what that looks like for three real homeowner situations across the country.

Scenario 1: High-rate state, strong net metering (Northeast):

A homeowner in Providence, Rhode Island, pays National Grid around $280/month, $3,360/year, with a south-facing 9kW system on a 2,200 sq ft home. Rhode Island’s rate sits at 31.30¢/kWh with full retail net metering. System cost: $26,000–$28,000 installed. Annual savings: $2,800–$3,100. Payback: 8–10 years. After payback: 15+ years generating approximately $3,000/year in free electricity. Total 25-year savings: $45,000–$55,000.

Scenario 2: Mid-rate state, partial shade problem (Midwest):

A homeowner in Indianapolis, Indiana, pays Duke Energy Indiana around $155/month. Forty percent of their roof faces northwest, with tree shading on the south side. An adjusted 6kW system drops the effective offset to 50–60%, saving roughly $800–$950 per year. System cost: $19,000–$21,000 installed. Indiana’s net metering exports earn only 3–4¢/kWh, far below the 13¢ retail rate. Payback: 20–25 years. This situation is financially borderline. The shade problem, weak net metering, and moderate electricity rate stack against each other. A battery system would improve the case by maximizing self-consumption instead of low-value exports.

Scenario 3: Low-rate state, honest verdict (South):

A homeowner in Baton Rouge, Louisiana, pays Entergy Louisiana around $108/month, $1,296/year. Sun exposure is excellent, 5.2 peak sun hours daily. But Entergy’s rate at 12.44¢/kWh means annual savings top out around $900–$1,050 even with a well-sized system. At $18,000–$20,000 installed, payback runs 18–22 years. Louisiana has no state solar income tax credit and offers limited net metering programs. The honest answer here: solar works mechanically, but the financial case depends entirely on Entergy raising rates significantly. That may happen, rates rose over the past five years, but it’s a bet, not a certainty.

State Incentives That Still Exist in 2026

After Section 25D expired, state-level programs became the only path to reducing upfront system costs for owner-purchased solar. The programs vary dramatically; some states offer nothing, while others offer incentives that rival what the federal credit used to provide.

States with the strongest active programs:

New Jersey

• SuSI (Successor Solar Incentive) ADI program: pays ~$90/MWh for 15 years
• On a 10kW system producing 11,000 kWh/year, that’s approximately $990/year in direct payments
• Full retail net metering stacked on top
• Solar property tax exemption: system value excluded from property assessment

Massachusetts

• SMART (Solar Massachusetts Renewable Target): performance-based payments for 10 years
• Waitlists exist in some National Grid and Eversource territories. Verify before signing a contract
• Full retail net metering
• Sales tax exemption on solar equipment purchase

New York

• NY-Sun Megawatt Block program through NYSERDA: upfront rebates in Con Edison and National Grid territories
• Check NYSERDA for current availability, block programs fill as capacity installs
• Full retail net metering through NY-SUN
• Property tax exemption under the New York Real Property Tax Law Section 487

Maryland

• Residential Clean Energy Grant Program: up to $1,000 for qualifying installs
• Maryland Clean Energy Capital Program (MCEC) for lower-income households
• Defined under Maryland Senate Bill 65 (Clean Energy Jobs Act framework)
• Property and sales tax exemptions active

Colorado

• Xcel Energy Solar Rewards: performance-based payments for 20 years in Xcel territory
• CORE Electric and other co-ops offer individual programs; verify with your utility
• Property tax exemption

Florida

• Florida Public Service Commission net metering rule: full retail credits
• Property tax exemption and sales tax exemption on solar equipment
• No state income tax credit, but high sun hours (5.0–5.5 peak hours daily in most of the state)

California

• CPUC NEM 3.0 applies to all new installs; export credits have been dramatically reduced
• Self-Generation Incentive Program (SGIP) for battery storage: up to $200/kWh for qualifying households
• Property tax exclusion for solar under active review for 2027 sunset, install before year-end to lock in

For every other state, the Database of State Incentives for Renewables and Efficiency at dsireusa.org is the definitive source. Updated in real time, it lists every active program by utility and zip code.

The Federal Credit Is Gone: But Leases and PPAs Still Get It

This is the single most important thing most homeowners don’t know in 2026: solar leases and Power Purchase Agreements (PPAs) still qualify for a federal tax credit through December 31, 2027.

The federal residential tax credit (Section 25D) expired December 31, 2025, for homeowner-purchased systems. Third-party owned systems (leases and PPAs) can still access a federal credit under Section 48E through December 31, 2027.

When you sign a solar lease or PPA, the solar company owns the panels. The company claims the Section 48E credit and passes part of those savings to you through lower monthly payments. You get solar with $0 down, lower bills immediately, and no maintenance responsibility.

Lease vs. Buy: What the numbers actually look like:

The honest trade-off:

• A typical homeowner with a $200 monthly electric bill might save $20,000 over 25 years with a lease, but $35,000 with a solar loan, a $15,000 difference.
• Leasing makes sense when you can’t absorb a high upfront cost, don’t qualify for a solar loan, or prefer zero maintenance
• Buying makes sense when you can finance at a reasonable rate and plan to stay 10+ years

Watch for escalator clauses in lease contracts. Many increase your monthly payment by 1–3% per year. At 3% annually, a $120/month lease payment becomes $162/month in year 10. If grid electricity rises faster than the escalator, you still save. If it doesn’t, your margin shrinks.

Geographic Differences Within Your State: Why the Same State Can Give Two Different Answers

Solar ROI varies inside every large state, sometimes by 20–30%, based on regional sun hours, local utility rates, and which utility serves your address.

This is the part most statewide articles completely skip.

Texas: El Paso averages 6.5 peak sun hours daily, comparable to Arizona. Houston averages 4.8. An El Paso homeowner on El Paso Electric gets meaningfully more production per panel than a Houston homeowner on CenterPoint Energy, at a lower installation cost per watt. Same state. Different calculation.

California: The Central Valley averages 5.8 peak sun hours. San Francisco averages 4.9. Under NEM 3.0, the difference in production also affects how much you self-consume vs. export, and self-consumption is far more valuable than exporting at NEM 3.0’s reduced rates.

Florida: South Florida (Miami, Fort Lauderdale, West Palm Beach) runs 5.3–5.5 peak sun hours. The Panhandle drops to 4.6–4.9. South Florida also runs higher average electricity bills due to sustained summer cooling demand; both factors tilt the ROI favorably.

North Carolina: The eastern coastal plain near Wilmington and Raleigh averages 5.1 peak sun hours under Duke Energy Progress territory. The western mountain region around Asheville averages 4.5 under Duke Energy Carolinas. Same state, same company name, different service territory, different rate structure.

New York: Long Island (PSEG Long Island) averages 4.5–4.6 peak sun hours with rates over 22¢/kWh, one of the best ROI situations in the Northeast. Buffalo averages 3.9 peak sun hours, the lowest in the state. Same state, meaningfully different financial outcome.

The NREL PVWatts calculator at energy.gov lets you enter your exact address and roof pitch to generate a site-specific production estimate. Use it before any installer conversation; it takes 10 minutes, and it’s what professional installers use themselves.

Roof Requirements: When Solar Doesn’t Work on Your Home

Not every roof qualifies for a financially viable solar installation. Roof direction, slope, age, shade, and material all affect whether panels perform at the level you need to make the investment worthwhile.

Direction and tilt:

• South-facing roof at 30–45 degree slope: maximum production
• Southeast or southwest-facing: 10–15% less production, still financially viable in most high-rate states
• East or west-facing: 20–30% less workable in high-rate states, borderline in mid-rate states
• North-facing at steep pitch: can cut production 30–40%, most installers will tell you honestly, this changes the economics significantly

Shade:

• Heavy shade 4+ hours daily makes solar impractical without shade-mitigating microinverters or power optimizers
• A single heavily shaded panel can reduce the output of connected panels significantly in string inverter systems
• Mature trees, neighboring buildings, chimneys, and dormers are all shade sources that affect system sizing

Roof age and material:

• Roofs with less than 10 years of life remaining should be replaced before installing solar. Removing and reinstalling panels costs $1,500–$3,500
• Metal roofs and composite shingles: compatible with standard racking
• Clay tile and slate: require specialized racking that adds $500–$1,500 to installation cost
• Flat roofs: ballasted racking systems are available, but add to the quote

Roof size and available space:

• A typical 8kW system requires approximately 480–560 square feet of usable roof space
• HVAC units, skylights, and roof vents all reduce the available area
• Multiple roof facets increase installation complexity and cost

How to Calculate Your Own Payback Period in 10 Minutes

Your payback period is: total net system cost ÷ annual electricity savings. You can estimate this before talking to a single installer.

Step 1: Add up your last 12 electricity bills. That is your solar baseline, the total dollar amount a well-sized system could eliminate.

Step 2: Go to NREL PVWatts (pvwatts.nrel.gov) and enter your address, roof angle, and system size. It returns an estimated annual kWh production.

Step 3: Multiply annual kWh production by your electricity rate (cents/kWh) to get your estimated annual savings.

Step 4: Get at least two installer quotes for your system size. Compare on cost per watt, not total price alone.

Step 5: Divide net system cost by annual savings. That is your payback period.

Example: a real calculation:

• Location: Atlanta, Georgia
• Monthly bill: AGL (Atlanta Gas Light is gas; Georgia Power for electricity), $165/month, $1,980/year
• Georgia Power rate: ~14.60¢/kWh
• System size needed: 9kW
• PVWatts estimate for Atlanta: ~12,200 kWh/year from a 9kW south-facing system
• Annual savings: 12,200 × $0.146 = $1,781/year
• Installed cost: $22,000–$24,500
• Net system cost (Georgia has no state income tax credit but offers a property tax exemption): $22,000–$24,500
• Payback: $23,000 ÷ $1,781 = 12.9 years

This is a legitimate result. Not a great ROI, not a terrible one. Georgia’s moderate electricity rate is the limiting factor. If Georgia Power raises rates, which the Georgia Public Service Commission approved rate increases for 2025 and 2026, that payback shrinks.

Solar Panels and Home Value: What the Data Says

Solar panels increase home resale value in almost every US market. The premium is real, but it only applies when you own the system outright.

Research from the Lawrence Berkeley National Laboratory found that solar installations add approximately $4 per watt to a home’s resale value, meaning a 6kW system could add about $24,000. Homes with solar panels sell an average of 20% faster than comparable homes without solar.

For a 9kW owned system, that’s approximately $36,000 in added home value, often more than the net system cost after state incentives.

The lease exception: Leased systems typically do not increase home value, and buyers often view solar leases as a liability rather than an asset. A prospective buyer must either assume your lease (with their own credit check) or you must buy it out, often at a premium above remaining payments.

Property tax exemptions protect your gains:

• 36 states exempt the added value of solar from property tax reassessment
• Meaning: your home is worth more, but your annual property tax bill doesn’t increase
• This is one of the most underused financial benefits of going solar, and most homeowners never ask about it

When Solar Is Not Worth It in 2026: The Honest Cases

Are solar panels worth it in my state stops being a yes-or-no question when any of these factors apply to your situation. Knowing when solar doesn’t make financial sense is as valuable as knowing when it does.

Situations where solar likely doesn’t pay off:

• A monthly electricity bill is under $80, and the system will take 18+ years to break even in most states
• Planning to sell within 5 years, you may not stay long enough to recoup, and a lease complicates the sale
• Roof needs replacement in the next 3–5 years; remove-and-reinstall costs eat into ROI
• North-facing roof with heavy shading, production may be too low for a viable financial case
• States with weak net metering AND low electricity rates, such as Indiana, Kansas, and Wyoming, compound both problems
• HOA with restrictive placement requirements, may force panel positions that cut output by 20–30%

The rate floor:

If your state’s electricity rate is below 13¢/kWh and you’re in a low-incentive state with limited net metering, run the actual numbers with PVWatts before making any decision. The sales pitch will always show you the optimistic scenario. The calculator won’t.

For homeowners who have already signed a contract and are having second thoughts, understanding your rights to get out of a solar contract before installation begins is important. Consumer protection timelines vary by state.

If you’ve encountered aggressive sales tactics or suspect misrepresentation in a quote you’ve received, resources on solar fraud and legal help can clarify what your options are under your state’s consumer protection framework.

Commercial Solar vs. Residential: Different Rules in 2026

The Section 48E commercial solar tax credit remains available through 2027 for businesses and commercial properties; only the residential Section 25D credit expired. If you own a business property with high electricity consumption, the commercial solar investment case is stronger in 2026 than residential, precisely because the federal incentive still applies.

For business owners and commercial property holders, understanding the commercial solar PPA laws in your state is a separate, and currently more favourable calculation than the residential analysis.

The Battery Storage Question: Does It Change the Math?

Battery storage improves solar ROI in three specific situations, and adds unnecessary cost in every other one.

Adding a battery system costs $12,000–$18,000 for a 13.5kWh unit installed in 2026. That’s a significant additional investment. It only pays off when:

Situation 1: You live in a reduced net metering state. California NEM 3.0 pays 5–8¢/kWh for exports but charges 33¢/kWh for evening consumption. A battery lets you store daytime production and use it in the evening, capturing the 33¢ value instead of receiving the 5¢ export credit. In states with TOU net metering, selling 50 kWh during off-peak hours earns about $6, but using stored electricity during peak hours saves up to $15, a difference of $9 each month, or about $108 per year.

Situation 2: Grid reliability is poor in your area. Texas homeowners who lived through Winter Storm Uri in February 2021 understand this calculation. A battery keeps critical circuits running through outages without generator fuel or noise.

Situation 3: Your utility has high time-of-use peak rates. If your peak evening rate exceeds your off-peak rate by more than 10¢/kWh, a battery that stores cheap midday solar power for evening use generates meaningful savings.

In states with full retail net metering (New Jersey, Massachusetts, Maine, New York, Vermont), a battery adds resilience value, but typically does not improve financial ROI enough to justify the added cost for most homeowners.

Understanding Photovoltaic Degradation: Your 25-Year Reality

Solar panels degrade at approximately 0.5% per year. A panel producing 400 watts at installation produces roughly 395 watts in year 2, 350 watts in year 20, and 340 watts in year 25.

Most manufacturer performance warranties guarantee at least 80–87% of original output at year 25. That means your system produces less power in year 25 than in year 1.

This matters for your payback calculation because:

• Year 1 savings are your maximum annual savings
• By year 15, production is roughly 92% of the original
• By year 25, production is roughly 88% of the original

A system saving $2,000/year in year 1 saves approximately $1,760/year by year 25 from degradation alone, before factoring in the countervailing effect of rising electricity rates, which works in your favor.

Most financial ROI calculations for solar use a degradation rate of 0.5% and a utility rate increase of 3–5%/year. The rate increase tends to more than offset the degradation, which is why 25-year lifetime savings figures are typically higher than year-1 savings multiplied by 25.

The Levelized Cost of Electricity (LCOE) is the metric energy analysts use to compare solar against grid power over time. For a residential solar system in 2026, LCOE runs approximately $0.06–$0.08/kWh over 25 years, compared to a grid rate of $0.18/kWh today, rising to $0.32–$0.40/kWh by year 25 at 4–5% annual increases. That spread is where the long-term value sits.

State-by-State Quick Reference: Is Solar Worth It?

Estimates assume an 8–10kW system, no federal credit, and state incentives where applicable. Actual results vary by roof orientation, utility, and usage.

Final Verdict: Are Solar Panels Worth It in My State?

Are solar panels worth it in my state in 2026? Yes, for most homeowners paying over $130/month in electricity, with a south or southwest-facing roof, in a state with full retail net metering. That covers approximately 60–65% of US homeowners.

The federal credit is gone. The financial case is not.

The national average residential electricity rate hit 18.05¢/kWh in early 2026, a 5.4% jump from 2025. Since January 2025, more than 112 million electric utility customers have faced rate increases or proposals totaling over $92 billion, which are passed directly to their bills.

Every year you delay solar in a high-rate state, your utility bill grows. The system you install in 2026 locks in $0/kWh production for 25 years while your neighbors watch their grid electricity bills rise 4–5% annually.

The situations where solar panels are clearly worth it:

• Monthly electricity bill over $150
• State electricity rate above 16¢/kWh
• South, southeast, or southwest-facing roof with minimal shade
• State with full retail net metering
• Plan to stay in the home 10+ years
• 36 states offer property tax exemptions on the added home value

The situations where you need to run the real numbers first:

• Bill between $80–$150/month
• State rate between 13¢–16¢/kWh
• East or west-facing roof
• State with reduced net metering

The situations where solar likely doesn’t pay:

• Bill under $80/month
• State rate below 13¢/kWh
• North-facing or heavily shaded roof
• Moving within 5 years
• The roof needs replacement soon

Your best first step costs nothing: pull your last 12 months of electricity bills, total them up, and run your address through the NREL PVWatts tool at energy.gov. Those two inputs will tell you more about whether solar makes sense for your specific situation than any sales presentation ever will.

If solar makes sense on paper but you’ve had concerns about contract terms, aggressive installer tactics, or billing disputes after installation, understanding how solar fraud legal resources work and what your rights are under your state’s consumer protection laws is worth reviewing before, not after, you sign.

Are solar panels worth it? In the right state, on the right roof, with the right financing, absolutely yes.

FAQ: Are Solar Panels Worth It in My State

Is the federal solar tax credit gone in 2026? 

Yes. Section 25D expired December 31, 2025, for owner-purchased residential systems. No federal credit applies to cash or loan purchases in 2026. Solar leases and PPAs still access Section 48E through December 31, 2027.

Which states have the best solar ROI in 2026? 

New Jersey, Massachusetts, Rhode Island, Maine, Connecticut, New York, and California (with battery storage) offer the strongest returns, combining high electricity rates with strong net metering.

What is the payback period for solar panels in 2026? 

Without the federal credit, the national average is 8–12 years. High-rate northeastern states: 6–9 years. Mid-rate states: 10–14 years. Low-rate southern states: 15–22 years.

Does solar increase my home value in 2026? 

Yes, owned systems add approximately $4 per watt to resale value and help homes sell 20% faster. Leased systems do not add home value and can complicate the sale.

Is a solar lease better than buying in 2026? 

Leasing offers $0 down and lower payments but produces 40–50% less lifetime savings than ownership. Leases are better for homeowners who cannot absorb upfront costs or don’t qualify for solar loans. Buying is better for maximizing long-term return.

What if my state has no net metering? 

Texas has no statewide mandate. Financial ROI rests on self-consumption, using what you produce rather than exporting. A battery system significantly improves the case in no-net-metering or reduced-net-metering states.

What is photovoltaic degradation, and does it matter? 

Solar panels lose approximately 0.5% output per year. At year 25, your system produces about 88% of its original capacity. Most warranties guarantee 80–87% output at year 25. Rising electricity rates typically offset degradation in total savings calculations.

Should I go solar if I’m planning to sell my house? 

Only if you’re staying at least 8–10 years. Shorter timelines rarely allow full payback recoupment. If you sign a lease and then sell, the buyer must assume it, or you pay a buyout fee, often a source of solar contract disputes at closing.

How do I check solar incentives for my specific state? 

Visit dsireusa.org, it’s the official database updated in real time for every state and utility program in the country.

Disclaimer: All financial figures represent estimates based on 2026 data from the U.S. Energy Information Administration (EIA), SEIA, NREL, and state regulatory filings. Individual results vary based on home characteristics, utility rates, roof conditions, and local policy. This content is for informational purposes only and does not constitute financial, legal, or tax advice. Verify all current incentive programs directly with your state energy office or at dsireusa.org before making installation decisions.

Morgan Lee

Morgan Lee | Lead Solar Policy & Consumer Research Analyst
Morgan Lee is the founder of SolarInfoPath and an independent solar research analyst with over 10 years of experience studying the U.S. residential and commercial solar market. Morgan’s research focuses on how real homeowner outcomes compare to the savings projections presented during solar sales, a gap that has led to thousands of consumer complaints and active class action lawsuits across New York, California, Texas, and Florida.
All research published on SolarInfoPath is drawn from primary sources, including the National Renewable Energy Laboratory (NREL), the U.S. Department of Energy (DOE), the U.S. Energy Information Administration (EIA), IRS and Treasury guidance under the Inflation Reduction Act, state public utility commission documents, and publicly filed court records related to solar consumer protection cases.
With a background in legal studies, Morgan interprets complex topics, federal tax credits under Section 25D and Section 48, Power Purchase Agreement contract terms, net metering policy changes, and solar litigation, in plain language that homeowners can actually use, without providing legal or financial advice.
SolarInfoPath was built after observing that most homeowners commit $25,000 to $40,000 to a solar system based on incomplete or misleading information, while almost every available source of solar education online has a financial relationship with the industry it covers. SolarInfoPath has no installer affiliations, no lead generation, and no affiliate income. Every article is independent, research-based, and written for informational purposes only.