Find out exactly when your solar panels pay for themselves.
Free, state-specific solar payback calculator using real 2026 electricity rates, incentives, and net metering rules. No email required.
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Built on EIA, NREL, and DSIRE data · Updated for 2026 · No signup, no spam
10 fastest payback states in 2026
Assumes a $150/month electric bill and 95% bill offset. Click a state for the full breakdown.
| Rank | State | Avg rate | Net cost | Year-1 savings | Payback |
|---|---|---|---|---|---|
| #1 | Hawaii | 41¢ | $3,570 | $1,926 | 1.8 yr |
| #2 | California | 30.5¢ | $7,393 | $1,710 | 4.2 yr |
| #3 | New York | 21¢ | $9,539 | $1,710 | 5.3 yr |
| #4 | Arizona | 14.5¢ | $10,370 | $1,709 | 5.7 yr |
| #5 | Massachusetts | 26.5¢ | $10,436 | $1,710 | 5.8 yr |
| #6 | New Mexico | 14.5¢ | $10,511 | $1,709 | 5.8 yr |
| #7 | Connecticut | 27.5¢ | $10,846 | $1,710 | 6 yr |
| #8 | Rhode Island | 24.5¢ | $12,170 | $1,710 | 6.6 yr |
| #9 | Nevada | 14¢ | $12,429 | $1,709 | 6.8 yr |
| #10 | Maine | 22.5¢ | $13,801 | $1,711 | 7.4 yr |
How does solar payback actually work?
1. Gross system cost
The all-in price installers quote, typically $2.65–$3.40 per watt depending on your state and system size. A typical 10 kW system runs $26,500–$34,000 before any incentives.
2. Subtract incentives
The 30% federal credit comes off first, then any state tax credits, utility rebates, and SREC value. Net cost typically lands at 50–65% of gross.
3. Divide by annual savings
Multiply your system's first-year production (kW × peak sun hours × 365 × 0.78 derate) by your electric rate. That's your year-1 savings. Net cost ÷ year-1 savings ≈ simple payback.
5 slowest payback states
These states still benefit from the 30% federal credit, but lower electricity rates and weaker net metering rules push payback past 12 years for many homeowners.
| State | Avg rate | Net cost | Year-1 savings | Payback |
|---|---|---|---|---|
| Washington | 11¢ | $29,963 | $1,710 | 14.7 yr |
| Oregon | 12.5¢ | $24,801 | $1,710 | 12.5 yr |
| North Dakota | 11.5¢ | $23,975 | $1,711 | 12.2 yr |
| Nebraska | 11¢ | $23,101 | $1,711 | 11.8 yr |
| South Dakota | 12¢ | $22,467 | $1,710 | 11.5 yr |
Get real prices for your roof
The fastest free way to confirm your payback estimate is to get actual installer quotes. Marketplaces like EnergySage send up to 4 competing bids without phone harassment.