Solar Panel Cost by State (2025 Guide)

Average Solar Cost in 2025

The national average cost of solar is $2.50-$3.50 per watt installed. For a typical 7 kW system, that's $17,500-$24,500 before incentives.

Federal Tax Credit (ITC)

The federal Investment Tax Credit covers 30% of your total system cost through 2032. It steps down to 26% in 2033 and 22% in 2034.

For a $21,000 system: $21,000 × 30% = $6,300 tax credit, making your net cost $14,700.

States with the Best Solar Value

Best value = high electricity rates + high sun + good incentives:

  • California: High rates (27¢/kWh), excellent sun (5.5 hrs), NEM 3.0 available
  • Hawaii: Highest rates (43¢/kWh), great sun (5.5 hrs), fastest payback
  • Massachusetts: High rates (25¢/kWh), SMART program incentives
  • Connecticut: High rates (25.5¢/kWh), strong net metering
  • New York: High rates (20¢/kWh), NYSERDA incentives + net metering

States Where Solar Takes Longer to Pay Off

  • Washington: Low rates (10.5¢/kWh), lower sun (3.8 hrs)
  • Idaho: Very low rates (10.9¢/kWh)
  • Utah: Low rates (11.4¢/kWh) despite good sun

Use our cost calculator to estimate for your specific state.