The Best And Worst States for Solar Energy

1. California

California came in as the best state for solar energy for good reason. The state has the largest solar energy usage, with over 28% of its energy deriving from solar. With 146 clear days, the Golden State is the fourth sunniest state in the nation, so it’s no wonder that a whopping 38.2% of California homes are powered by solar energy.

Demand for solar technology drives California’s solar trends, bringing over 200 jobs in the solar industry for every 100,000. This makes it easy for California residents to choose from many top solar companies to maximize their savings when buying solar systems.

Underlying Metrics

• California has the highest percentage of energy run by solar, at 28.80%.
• California has the second-highest number of solar-powered homes (382 homes per 1,000 households).
• The state ranks third for the most solar installations from top solar companies with 124.22 MW of solar installed per 100,000 residents.
• California also ranks third for the most solar jobs, with 200.15 jobs per 100,000 residents.
• California ranks fourth for the most clear days, with 146 days per year.
• The average cost of solar panel installations in California is 12.74% of the state’s median household income, making it the fifth most affordable state for solar energy.

2. Nevada

Nevada ranks second on our list because the state has the most solar installations in the country, the most solar jobs and the most number of homes powered by solar energy. Over 425 homes per 1,000 households are powered by solar energy.

However, going solar is less affordable than in 14 other solar states. Still, Nevada has an average of 158 clear days annually, coming in third nationally. You’ll generate more electricity from your Nevada residence compared to nearly all other states, which could help offset any higher upfront costs.

Underlying Metrics

• Nevada ranks first for the most solar installations, with 230.51 MW of solar installed per 100,000 residents.
• Nevada also has the most solar jobs, with 237.97 jobs per 100,000 residents.
• Nevada has the most solar-powered homes (426 homes per 1,000 households).
• Nevada ranks second for the most energy run by solar, at 26.17%.
• Nevada also has 158 clear days per year, the third highest of all states.
• Nevada is the 15th most affordable state for solar, and the average cost of installation was 14.86% of the state’s median household income.

3. Utah

Utah is third on our list and third in the country for solar affordability—a solar installation costs nearly 12.7% of the median household income. The state has 125 days of clear skies and around 175 homes powered by solar per 1,000 households. Utah also ranks eighth for the number of solar installations, sporting roughly 92 MW of solar energy for every 100,000 residents.

But with plenty of solar jobs in anticipation of growing its solar initiative over the next 5 years, we could see this number leap drastically.

Underlying Metrics

• Utah ranks second for the most solar jobs, with 216.22 solar jobs per 100,000 residents.
• The average solar installation cost in Utah is 12.66% of the state’s median household income, making Utah the third most affordable state for solar energy.
• Utah ranks sixth for the most energy run by solar, at 15.18%.
• Utah has the seventh most solar-powered homes (176 homes per 1,000 households).
• Utah ranks eighth for the most solar installations, with 91.99 MW of solar installed per 100,000 residents.
• Utah ranks ninth for the most clear days per year out of all states, with 125 days in total.

4. Arizona

Arizona is the best state for solar energy when it comes to the amount of sunlight homes can receive. The Copper State has nearly 200 days of clear weather per year and produces over 115 MW of solar energy per 100,000 residents.

At the same time, we ranked Arizona fourth because it’s not as affordable as other contenders and doesn’t have as many solar jobs per person. Arizona is the 12th most affordable state to go solar, taking up almost 14.3% of the median household income. With so many sunny days, however, you could recoup these costs faster than more affordable states that have less clear weather.

Underlying Metrics

• Arizona has the most clear days per year out of all states, with 193 days in total.
• The state has 115.33 MW of solar installed per 100,000 residents, the fifth highest of all states.
• Arizona also has the sixth most solar-powered homes (181 homes per 1,000 households).
• Arizona ranks eight for the most solar jobs, with 113.29 jobs per 100,000 residents.
• The state ranks ninth for the highest percentage of energy run by solar, at 10.50%.
• The average cost of solar installation is 14.29% of the state’s median household income, making Arizona the twelfth most affordable state for solar energy.

5. Hawaii

Hawaii ranks fifth for solar energy because it is the most affordable state for going solar, with the average solar installation taking up 12.40% of the median household income. This affordability may be why Hawaii comes in second for the most solar installations. Over 133 MW of solar equipment is installed per 100,000 residents. Hawaii also ranks third nationally for the number of homes powered by solar energy—367 homes per 1,000 people.

Underlying Metrics

• The average cost of solar installation is 12.40% of the state’s median household income, making Hawaii the most affordable state for solar energy.
• Hawaii has the second most solar installations, with 133.66 MW of solar installed per 100,000 residents.
• Hawaii has the third most homes powered by solar (367 homes per 1,000 households).
• The state also ranks fourth for the highest percentage of energy run by solar, at 19.47%.
• Hawaii ranks fifth for the most solar jobs, with 166.16 jobs per 100,000 residents.

6. Colorado

We ranked Colorado sixth for solar energy because it has a solid national standing. While Colorado doesn’t make it to the top five for any statistics, it’s consistently ranked in the top ten for its high number of clear days, number of homes powered by solar, number of solar jobs and affordability.

The state falls slightly short for the total megawatts of solar installed per 100,000 residents, ranking 13th. We also deducted from its score because of its lower percentage of energy run by solar, coming in 10th at a little under 10% of all energy deriving from solar.

Underlying Metrics

• Colorado has 136 clear days per year, the sixth highest of all states.
• Colorado ranks seventh for the most solar jobs, with 130.58 jobs per 100,000 residents.
• The state has the eight most solar-powered homes (150 homes per 1,000 households).
• Colorado also ranks eighth as the most affordable state for solar energy, where the average installation cost is 13.75% of the state’s median household income.
• The state ranks tenth for the highest percentage of energy run by solar, at 9.90%.
• Colorado has 71.37 MW of solar installed per 100,000 residents, ranking thirteenth highest of all states.

7. New Mexico

New Mexico ranks seventh largely because it has more clear days per year than 48 other states. 167 days a year are clear, allowing residents to benefit from more energy production than residents in a cloudier climate. New Mexico also comes in fourth for the highest amount of solar energy installed and the number of homes powered by solar energy.

Even with these high statistics, New Mexico falls a little short on its overall percentage of energy run by solar, scoring 12th in the nation at just over 9%.

Underlying Metrics

• New Mexico has the second-highest number of clear days per year, with 167 days in total.
• The state has the fourth most homes powered by solar (295 homes per 1,000 households).
• New Mexico also ranks fourth for the most solar energy installed, with 121.89 MW of solar installed per 100,000 residents.
• New Mexico has 95.25 solar jobs per 100,000 residents, ranking 10th highest of all states.
• New Mexico ranks 12th for the highest percentage of energy run by solar, at 9.13%.

8. Rhode Island

Coming in eighth place, Rhode Island has many homes powered by solar energy but only ranks 25th for affordability, bumping it down on our list. The state is fifth for the number of homes powered by solar energy and seventh both for the most solar generation per 100,000 residents and the percentage of energy run by solar systems across the state.

Underlying Metrics

• Rhode Island ranks fifth for the most solar-powered homes (187 homes per 1,000 households).
• Rhode Island ranks seventh for the most solar installed relative to population with 94.08 MW of solar installed per 100,000 residents.
• The state also ranks seventh for the highest percentage of energy run by solar, at 12.77%.
• Rhode Island has the ninth-highest number of solar jobs per resident, with 99.57 jobs per 100,000 residents.
• Rhode Island ranks 25th as the most affordable state for solar energy, where the average installation cost is 16.39% of the state’s median household income.

9. Massachusetts

Massachusetts earned its way onto our top ten best states for solar energy because of its ambitious solar initiative. The state has a high percentage of energy run by solar, at almost 25%. Massachusetts ranks sixth for solar jobs, with over 150 jobs per 100,000 residents and comes in 10th for the most solar energy-powered homes.

Massachusetts falls short in affordability—it’s the 21st most affordable state for investing in solar energy. A Massachusetts resident earning the median household income uses a little over 16% of that income to pay off solar equipment.

Underlying Metrics

• Massachusetts ranks third for the highest percentage of energy run by solar, at 23.75%.
• Massachusetts ranks sixth for the number of solar jobs, with 157.89 jobs per 100,000 residents.
• Massachusetts ranks 11th for the most megawatts of solar installed per 100,000 residents at 74.95 MW.
• The state has the 10th most homes powered by solar (138 homes per 1,000 households).
• Massachusetts is the 21st most affordable state for solar energy, where the average cost of installation is 16.05% of the state’s median household income.

10. Texas

Texas solar statistics show it’s projected to rank number one nationally for growth projection according to the Solar Energy Industries Association (SEIA), making it a top choice for those looking to install solar panels.

However, we ranked Texas 10th because, despite its high solar goals, residents spend over 15% of the median household income on solar on average—this is higher than in 15 other states. Additionally, only 6.26% of energy is run by solar equipment in Texas, putting it at 19th nationally.

Underlying Metrics

• Texas ranks sixth for the most solar installations, with 107.03 MW of solar installed per 100,000 residents.
• Texas has the seventh-highest number of clear days, with 135 days per year.
• The state ranks 11th for the most homes powered by solar (128 homes per 1,000 households).
• Texas is also the 16th most affordable state for solar energy, where the average cost of installation is 15.34% of the state’s median household income.
• Texas ranks 19th for the highest percentage of energy run by solar, at 6.26%.

1. West Virginia

We ranked West Virginia as the worst state for solar energy because it has the highest costs for installing solar panels on homes. To install solar panels in West Virginia, residents typically use up nearly 22% of their earnings per year based on the state’s median household income. It’s no wonder that West Virginia comes in second for the lowest percentage of solar energy usage.

To make matters worse, the state has the third lowest number of sunny days, with only 60 days annually of clear skies.

Underlying Metrics

• West Virginia is the least affordable state for solar energy, where the average cost of installation is 21.74% of the state’s median household income.
• West Virginia ranks second for the lowest percentage of energy run by solar, at 0.13%.
• West Virginia has the fourth lowest number of solar jobs with 21.29 of jobs per 100,000 residents.
• West Virginia has the seventh lowest amount of solar installations with 9.29 MW of solar installed per 100,000 residents.
• With 10 homes per 1,000 households powered by solar, West Virginia ties for the seventh lowest in this category.
• West Virginia also has the third lowest number of clear days at 60 days total per year.

2. Kentucky

Kentucky is second on our list of worst states for solar energy because it has the lowest number of solar installations. There’s little to no solar initiative in Kentucky, with only five homes per 1,000 households utilizing solar energy. Kentucky also ranks seventh nationally for the least amount of energy run by solar across the U.S.

Underlying Metrics

• Kentucky has the third lowest amount of solar installations, with 4.23 MW of solar installed per 100,000 residents.
• With five homes per 1,000 households powered by solar, Kentucky ties for the third lowest in this category.
• Only 0.45% of the state’s energy is run by solar, the seventh lowest of all states.
• Kentucky is the ninth least affordable state for solar energy, where the average cost of solar installation accounts for 18.83% of the state’s median household income.

3. North Dakota

North Dakota comes in third because it has the lowest number of solar installations for residents and the lowest number of homes that use solar energy. Fewer than one home per 1,000 utilizes solar energy, and only 0.01% of energy in North Dakota derives from solar energy.

Underlying Metrics

• North Dakota has the lowest amount of solar installations, with 0.26 MW of solar installed per 100,000 residents.
• North Dakota also has the lowest number of homes powered by solar (less than one home per 1,000 households).
• North Dakota ranks last for the percentage of energy run by solar, at 0.01%.
• The state also has the twelfth lowest number of solar jobs, with 33.62 jobs per 100,000 residents.

4. Alaska

Alaska’s lack of solar jobs makes it the fourth worst state for switching to solar energy. The state ranks the lowest for solar jobs, with only 10 jobs per 100,000 residents. Alaska also has the second-lowest number of solar installations and the third-lowest number of homes powered by solar energy in the nation.

Underlying Metrics

• Alaska has the lowest number of solar jobs, with 10.09 jobs per 100,000 residents.
• Alaska has the second lowest amount of solar installations, with 4.09 MW of solar installed per 100,000 residents.
• The state also has the third-lowest number of solar-powered homes (five homes per 1,000 households).
• Alaska has the fourth lowest number of clear days, at 61 days per year.
• Alaska has the fifth lowest percentage of energy run by solar, at 0.38%.

5. Oklahoma

The fifth worst state on our list is Oklahoma because it has very few solar energy initiatives. The state ranks third for the percentage of solar energy, with just 0.28% of energy run by solar. Oklahoma also falls toward the bottom nationally for the number of solar installations, number of homes powered by solar, and solar jobs. To top that off, the cost of going solar in Oklahoma is the 10th least affordable.

Underlying Metrics

• Oklahoma has the third lowest percentage of energy run by solar, at 0.28%.
• Oklahoma has the fourth lowest amount of solar installations, with 4.70 MW of solar installed per 100,000 residents.
• Oklahoma also has the fourth lowest number of homes powered by solar (6 homes per 1,000 households).
• The state has the fifth lowest number of solar jobs, with 21.69 jobs per 100,000 residents.
• Oklahoma is the 10th least affordable state for solar energy where the average cost of solar installation accounts for 18.60% of the state’s median household income.

Federal, state and local solar incentives play roles in which states are most and least solar-friendly. All 50 states have the federal solar tax credit. This credit is for solar panel systems installed between 2017 and 2034. Solar panels installed from now until 2032 are eligible for a 30% tax credit, which will drop to 26% in 2033, 22% in 2034 and then expire in 2035 if Congress does not renew the credit.

State-based solar tax credits vary from state to state, so it’s important to consider your location as you budget for solar panels. Here are some of the best state incentives for solar energy:

• Net metering: Many states have net metering programs that allow you to receive a lower electricity bill for sending extra energy produced by your solar panels back to the electric grid. Utility companies offset the amount based on local or state-based ratios. Check with your local utility company to see how much electricity you can offset for the energy your panels produce.
• Property tax exemptions: Installing solar panels can increase property taxes, but if your state has property tax exemptions in place, you could see an increase in your home’s value without needing to pay extra taxes.
• State tax credits: Some states offer their own tax credits in addition to the federal tax credit. For instance, New York is one of the best states for solar incentives. New York residents can receive a 25% solar credit for up to $5,000 for going solar.

Some states are more equipped than others to support residents as they switch to solar—especially financially. It’s no surprise, then, that a recent Forbes study found that nearly 50% of the participants plan on going solar, but more than a third fear upfront costs. If you live in California or Utah where solar is in-demand these costs may be less limiting than in states like West Virginia, where costs are high and demand is low and far between.

For homeowners who reside in states with poor solar initiatives, whether solar power is worth it depends on the amount of sunlight, costs, incentives and personal goals for lowering their carbon footprint.

Installing solar panels on your home can be a big decision. Forbes Advisor has plenty of resources to help you get started and make the best choices no matter which state you call home. Our guide on the best solar panels for homes can help you get started.

To determine the best and worst states for solar, the Forbes Home team analyzed six metrics across four categories including current solar infrastructure, jobs created by solar, sunlight impact and trends as well as initial installation costs in each state. Each metric was given an individual weighting to provide every state a score scaled out of 100.

Current Solar Infrastructure – 60% of score

This metric includes megawatts of solar installed in each state per 100,000 residents, the number of homes powered by solar per 1000 households and the percentage of state energy run by solar. These metrics were analyzed and collected from state-level data presented by the Solar Energy Industries Association (SEIA).

Solar Jobs – 10% of score

This metric is made up of the calculation of jobs that are currently available and in practice in each state in regards to solar energy. Some of these jobs include physicists, chemists, engineers, conductors, construction managers, real estate brokers, sales representatives and more. This data came from the SEIA.

Weather implications – 15% of score

This metric includes the average number of days per year that are considered “clear.” Meaning, days with less than 30% cloud coverage. This climatic data was sourced and analyzed by the National Oceanic and Atmospheric Administration (NOAA).

Installation costs – 15% of score

This metric used data from a Forbes Home article explaining solar incentives and costs by state. We then deducted the Federal Tax Incentive of 30% in each state to calculate the average costs. We also pulled annual income by state data from the U.S. Census. We determined affordability by analyzing the average cost of installation after a 30% federal tax credit as a share of median income per state.

Sources

• New York State Energy Research and Development Authority
• Solar Energy Industries Association