Is Solar Worth It in Your State? The 5 Factors That Decide

1. Your electricity rates

The more you pay per kWh, the more every kWh your panels produce is worth. That's why solar can pay off well in some cloudier, high-rate states and less well in sunny states with cheap power.

2. How much sun your roof gets

Location, roof direction, tilt, and shade all affect production. South-facing roofs with no shade are ideal, but east- and west-facing roofs can still work well. Ask installers for a production estimate based on your specific roof.

3. Net metering and export rules

Net metering credits you for extra power you send to the grid. Some states credit you at the full retail rate; others pay much less for exported power, which makes a battery more valuable. Look up your utility's current policy before you get quotes.

4. State and local incentives

Federal incentives for homeowner-owned systems changed in 2025, so make sure every quote reflects the incentives that are actually available today.

• State tax credits or rebates
• Utility rebates and performance payments
• Solar renewable energy credits (SRECs) in some states
• Property and sales tax exemptions for solar equipment

5. Installed cost in your area

Installation prices vary by region based on labor costs, permitting, and competition. Compare quotes on cost per watt: total price divided by system size in watts. In 2026, the national average is about $2.78 per watt before incentives, or roughly $20,500 for a typical home system. On average, systems take about 11 years to pay for themselves, and much less in states with high electricity rates.