How Much Can Solar Save You in 2026? State-by-State Breakdown of ROI

As electricity rates rise across the U.S. and the 30% Federal Solar Tax Credit remains in effect through 2032, more homeowners are asking an important question: “How much can solar actually save me where I live?”

The answer: A lot — and even more in 2026, thanks to increased utility rates, better battery technology, and stronger solar incentives in many states.

Below is a state-by-state breakdown of payback periods, savings estimates, and updated policies for 2026 in some of the nation’s top solar markets.

State-by-State Solar ROI in 2026

Savings vary depending on utility rates, sunlight exposure, and local incentives. Here’s what homeowners can expect in several high-adoption solar states:

California

Average Payback Period: 5–7 years
Why Savings Are High:

• Some of the nation’s highest electricity rates
• Strong sunshine year-round
• High utility price inflation

Net Metering Update:
California’s NEM 3.0 gives lower export rates—but solar + battery systems greatly increase ROI.

Typical Bill Example:

• Before Solar: ~$260/month
• After Solar + Battery: ~$40–$60/month

Texas

Average Payback Period: 7–9 years
Why Savings Are Strong:

• Fastest-growing energy rates in the South
• Extreme heat waves increasing bills
• Ample sun and large roof space

Net Metering Update:
Varies by utility. Many retail electric providers still offer full-rate buyback plans.

Typical Bill Example:

• Before Solar: ~$200/month
• After Solar: ~$35–$60/month

Florida

Average Payback Period: 8–10 years
Why Savings Are Growing:

• Significant utility rate increases across the state
• Strong year-round sunlight
• 30% federal tax credit lowers upfront cost

Net Metering Update:
Florida currently retains full retail net metering, making solar ROI extremely favorable.

Typical Bill Example:

• Before Solar: ~$180/month
• After Solar: ~$20–$50/month

Arizona

Average Payback Period: 6–8 years
Why Savings Are High:

• Top solar irradiation in the U.S.
• Very high summer electricity demand
• Competitive solar pricing

Net Metering Update:
Arizona utilities no longer offer full retail net metering, but solar still offsets most on-site usage.

Typical Bill Example:

• Before Solar: ~$210/month
• After Solar: ~$30–$60/month

New York

Average Payback Period: 8–11 years
Why Solar Still Works Well:

• High electricity rates
• Strong state incentives
• NY-Sun rebate programs in some regions

Net Metering Update:
New systems fall under Value of Distributed Energy Resources (VDER). Savings vary by zone but remain strong.

Typical Bill Example:

• Before Solar: ~$220/month
• After Solar: ~$40–$70/month

How Much Can Solar Save YOU?

Here’s an example of what a typical homeowner saves after switching to solar:

Before Solar:

• Monthly electric bill: $180–$260
• Annual cost: $2,160–$3,120

After Solar:

• New bill with solar: $20–$60
• Annual cost: $240–$720

Estimated Yearly Savings:
$1,800–$2,400+

Over 25 years, that’s $45,000–$60,000+ in savings, not including future utility rate hikes.

What Impacts Your Solar ROI in 2026?

• Local electricity rates
• Roof direction and shading
• Availability of state or utility rebates
• Whether you add a home battery
• Your utility’s net metering rules

The best part? A custom quote tells you exactly what your savings will look like.

Ready to See Your Real 2026 Savings?

Solar savings aren’t one-size-fits-all — they depend on your home, your utility, and your goals.

📞 Get a free custom quote today
We’ll calculate:
✔ Your cost to go solar
✔ Your estimated payback period
✔ Expected monthly and annual savings
✔ Incentives you qualify for
✔ Battery options for maximum ROI

Start 2026 with lower bills and greater energy independence — your future self will thank you.