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The Best States for Solar Panel Savings

The words "Best States For Solar" over an outline of the United States.
PublishedFebruary 27, 2024
UpdatedMay 17, 2024
AuthorBrian ChurchWriterEditorCory O'Brien HeadshotCory O'BrienSenior Director - Growth Marketing
In this article
States with the Most Solar Energy Potential
Our Top Solar States in 2024
Connect with Palmetto in Your State

Solar panel installations have been skyrocketing in the United States since 2008, but not necessarily in a uniform distribution across the country.

While some states have been going steady for over a decade, other viable regions have been slower to catch the wave. All in all, things are looking bright though, as solar panels are now installed at a higher capacity than any other electricity source in the US.

After walking through the attributes that make certain regions ideal for saving money with solar, below, we will highlight some of the best states for home solar panels today.

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States with the Most Solar Energy Potential

When looking at a map of the continental US displaying annual expected sunlight, such as this one from the National Renewable Energy Laboratory, you may be quick to notice that the sun shines in the American Southwest more than anywhere else year-round.

Although Florida is not far behind with its fair share of annual sun (and rain), parts of California, Arizona, New Mexico, Texas, Nevada, Utah, and Colorado can generally expect the most annual sunlight in the country, and thus the highest amount of pure solar energy potential. According to the World Population Review, the ten sunniest major American cities all lie within this region, as illustrated below.

The Sunniest Cities In The US

Now, if you’re sitting there reading this on a cloudy day and thinking that solar is only for the sunniest places in the country, then you would be mistaken. In reality, nearly every location in the US receives enough sunlight to generate usable solar power year-round, with possibilities for grid-tied solar panels or off-grid systems all over America.

So… what makes solar more valuable in certain states than others (besides sunlight alone)? Well, to save the most money on energy expenses, the best states for solar generally have:

  • High retail residential electricity prices that can be offset by solar
  • Local green energy tax incentives or rebates to reduce investment costs
  • An established solar market with net energy metering laws or utility programs that compensate homeowners for solar energy shared with the grid

Our Top Solar States in 2024

Picking favorites is never fun, but there are certain states whose ideal solar conditions deserve praise in the roaring 2020s. Listed alphabetically below, we’ll look at a few of the best states to go solar as an American today.

Wherever you live, you can calculate your solar savings with Palmetto.


First, let's talk about the sunniest state in the country… beautiful Arizona. Home to millions living in America’s sunniest cities, opportunities are everywhere to install solar panels in Arizona, with over 10% of the state’s electricity generated from sunlight. Although AZ’s once mighty net metering laws have changed, Arizonans may qualify for both a federal tax credit (valued at 30% of the system price) as well as a state income tax credit (of up to $1,000) to reduce the cost of a solar energy system.

Notable neighbor: Northwest of the Grand Canyon State, there are currently enough solar panels in Nevada installed to power over 1 million homes. The third sunniest state in the country (with New Mexico at #2), NV has been a solar hub for over a decade with longstanding net metering programs through NV Energy and the Valley Electric Association.

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Although not located in the Southwest, it is no secret that Florida (commonly referred to as the Sunshine State) is a great place to produce solar power. Over the last few years, solar panel installations in Florida have accelerated so rapidly that some estimates believe the state is now going solar at a faster rate than any other in the country. So while Florida may have lagged behind a bit in the 2010s, it is now on the brink of reaching its full potential, with the average local price of solar panel systems lowering by 42% in the last ten years.


While New England may not be as sunny as Florida or Arizona, Massachusetts is no doubt one of the top states to go solar as an American homeowner. Considering that Massachusetts’ average residential electricity rates are among the highest in the country, locals can save a lot on utility energy bills by installing solar panels in MA and enrolling in net metering or another program unique to the Bay State.

Notable neighbor: The number of new residential solar panels installed in Rhode Island annually has steadily grown since 2016, with residents of the country’s smallest state eligible for net metering and virtual net metering programs.


Perhaps not the first energy source that most people associate with Texas, the Lone Star State has become a leader in solar power since the turn of the decade. In a growing economy with a growing population, solar panels in Texas are booming and homeowners in regions all across the state may be able to save big with a rooftop or gound-mounted installation. While some utilities in TX do not offer traditional net metering programs, most of the state's major electricity providers offer “solar buyback programs,” which can yield similar savings.

North Carolina

Last but not least, we would like to take a moment and shine some light on one of our favorite states in the country: North Carolina, home to our new headquarters. From innovative businesses to massive installations and the country’s most comprehensive Database of State Incentives for Renewables and Efficiency, NC has been a leader in everything solar for many, many years. Today, homeowners going solar in North Carolina can choose to buy or lease panels to optimize their savings.

Notable neighbor: Of course, many homeowners can also save money with solar panels in South Carolina. Palmetto’s namesake state, SC has its own solar income tax credit and strong net metering policies.

Connect with Palmetto in Your State

Since 2011, Palmetto’s goal has been to expand access to solar energy everywhere! Helping more and more Americans save money with green electricity at home every year, we are now proud to serve nearly half of the country with high-quality residential solar energy services.

To learn more about saving money with solar in your neck of the woods, please find your state below. If you do not see your state listed, you can also speak with a Palmetto advisor today to potentially discover solar savings in your area.

Going on a deep dive? Learn more in our library of residential solar energy resources.

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About the AuthorBrian ChurchWriter

Brian is a writer, NABCEP PV associate and outdoor enthusiast living in Denver, Colorado. As a freelancer, Brian has written hundreds of articles to help individuals, businesses and our planet benefit from solar power and sustainable energy systems.

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