Solar Energy Savings by State 2026: Monthly & Annual Breakdown

How much will solar actually cut your electric bill? The short answer: $80–$320 per month, depending on where you live. But the range is wide because savings depend on your state's electricity rate, your system's production, and your net metering policy.

This guide breaks down average monthly and annual solar savings for a 10 kW system in every U.S. state — using 2026 electricity rate data, real net metering structures, and honest accounting for states where export rates differ from retail rates.

For a personalized estimate, use our Solar ROI Calculator — it adjusts for your specific state, monthly bill, and Energy Community ITC eligibility.

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Why Solar Savings Vary So Much by State

Three factors drive most of the variation:

1. Electricity Rate

The single biggest lever. A 10 kW system in California ($0.27/kWh average) saves 2.6× more per kWh than the same system in Louisiana ($0.104/kWh). This is why high-rate states like CT, MA, RI, HI, and CA consistently top the savings rankings — not because they're the sunniest.

2. Solar Resource (Peak Sun Hours)

Arizona's 6.0+ peak sun hours/day produce far more electricity than Seattle's 3.9. A 10 kW system generates roughly:

• 7,800–9,000 kWh/year in Southwest states (AZ, NM, NV, CA desert)
• 5,500–7,500 kWh/year in Southeast and Midwest states
• 4,500–5,800 kWh/year in Pacific Northwest, Great Lakes, and Northern states

3. Net Metering Policy

Retail-rate net metering credits every exported kWh at full retail value (e.g., $0.15–$0.28/kWh). Avoided-cost export (used in AL, TN, MS, IN, and some utilities) credits exported power at only $0.03–$0.06/kWh. In avoided-cost states, buyers who design for self-consumption (consuming 80%+ of solar on-site) capture far more value than buyers who size to maximize production.

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50-State Solar Savings Table (10 kW System, 2026)

The table below shows monthly savings and annual savings for a properly sized 10 kW system in each state. Savings assume:

• Net metering credits applied to electricity bill
• 80–90% self-consumption in avoided-cost states (system right-sized to avoid year-end waste)
• Production based on each state's annual peak sun hours
• 2026 average retail electricity rate per EIA data

State	Avg Rate (¢/kWh)	Annual Production (kWh)	Annual Savings	Monthly Savings
Hawaii	40.6¢	17,400	$7,068	$589
Connecticut	26.8¢	11,200	$3,002	$250
Rhode Island	26.2¢	11,400	$2,987	$249
Massachusetts	25.4¢	10,900	$2,769	$231
California	27.3¢	15,600	$3,014 *	$251 *
New York	22.8¢	11,100	$2,531	$211
New Hampshire	26.4¢	10,800	$2,851	$238
Vermont	22.4¢	10,600	$2,374	$198
Maine	24.7¢	10,200	$2,519	$210
Maryland	17.8¢	11,800	$2,100	$175
New Jersey	17.1¢	11,900	$2,035	$170
Virginia	14.8¢	12,200	$1,806	$150
Delaware	15.6¢	12,000	$1,872	$156
Pennsylvania	14.9¢	11,300	$1,684	$140
New Mexico	14.6¢	16,200	$2,365	$197
Arizona	13.9¢	17,800	$2,474	$206
Nevada	12.8¢	16,900	$2,163	$180
Colorado	14.2¢	14,500	$2,059	$172
Utah	11.4¢	15,600	$1,778	$148
Florida	13.7¢	14,200	$1,945	$162
South Carolina	13.3¢	13,600	$1,809	$151
North Carolina	12.9¢	13,400	$1,729	$144
Georgia	12.4¢	13,800	$1,174 **	$98 **
Texas	13.4¢	14,900	$1,997	$166
Illinois	14.4¢	12,000	$1,728	$144
Michigan	17.8¢	11,500	$2,047	$171
Wisconsin	17.7¢	11,200	$1,982	$165
Minnesota	13.6¢	12,200	$1,659	$138
Ohio	13.5¢	12,100	$1,634	$136
Indiana	12.9¢	12,200	$775 **	$65 **
Missouri	12.2¢	13,100	$1,598	$133
Iowa	11.2¢	12,600	$1,411	$118
Kansas	13.7¢	14,200	$1,945	$162
Nebraska	11.1¢	13,600	$1,510	$126
Oregon	11.8¢	12,800	$1,510	$126
Washington	10.3¢	12,200	$1,257	$105
Idaho	10.1¢	13,400	$605 **	$50 **
Montana	10.7¢	13,800	$1,477	$123
Wyoming	11.8¢	14,600	$1,723	$144
Oklahoma	12.2¢	14,700	$1,793	$149
Arkansas	10.8¢	13,900	$1,501	$125
Louisiana	10.4¢	14,400	$1,498	$125
Mississippi	11.5¢	14,100	$812 **	$68 **
Alabama	13.1¢	14,600	$955 **	$80 **
Tennessee	12.2¢	13,600	$830 **	$69 **
Kentucky	12.0¢	13,000	$832 ***	$69 ***
West Virginia	12.6¢	12,800	$1,613	$134
South Dakota	12.8¢	14,700	$1,882	$157
North Dakota	10.8¢	13,900	$1,501	$125
Alaska	23.1¢	5,800	$1,340	$112

Notes:

• *California figures reflect NEM 3.0 battery-storage-optimized scenario (buyers without battery see lower savings under Smart Export tariff)
• ** Avoided-cost net billing states — figures assume 80% self-consumption design; buyers who oversize see significantly lower savings
• *** Mixed territory (LG&E/KU retail NEM vs. TVA GPP avoided-cost buyback in eastern KY)

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States With the Highest Solar Savings

Hawaii — $589/Month ($7,068/Year)

Hawaii is in a class of its own. With the highest electricity rates in the U.S. at $0.40–$0.46/kWh (HECO territory), every kWh of solar-generated electricity that replaces grid power saves more than anywhere else in the country. The catch: Hawaii uses the Smart Export tariff ($0.14–$0.20/kWh for exported power vs. $0.40–$0.46/kWh retail), which makes battery storage effectively mandatory to capture maximum savings. With a properly sized battery bank, Hawaii buyers can offset 85–95% of their bill and achieve the country's highest solar savings.

See our Hawaii solar incentives guide for details on the 35% state tax credit that stacks with the 30% federal ITC.

Connecticut — $250/Month ($3,002/Year)

Connecticut's RSIP (Residential Solar Incentive Program) pays $0.20–$0.26/kWh on every kWh produced for 6 years — on top of retail-rate net metering and a full property/sales tax exemption. This combination gives Connecticut buyers 3–4 year payback periods and strong ongoing savings. With Eversource rates at $0.26–$0.28/kWh, every kWh of production has high value.

See our Connecticut solar incentives guide for the complete RSIP program details.

Rhode Island — $249/Month ($2,987/Year)

Rhode Island's Renewable Energy Fund (REF) rebate ($0.20–$0.35/W standard; $0.50–$0.65/W for income-qualified households) makes it one of the strongest upfront incentive markets in New England. Combine that with National Grid rates of $0.22–$0.27/kWh and retail-rate net metering protected by statute, and Rhode Island buyers consistently see high monthly savings.

See our Rhode Island solar incentives guide.

Massachusetts — $231/Month ($2,769/Year)

Massachusetts SMART (Solar Massachusetts Renewable Target) pays a per-kWh incentive on all solar production for 10 years — on top of retail-rate net metering. With Eversource/National Grid rates approaching $0.26–$0.29/kWh, Massachusetts buyers see some of the fastest payback periods in the country (4–7 years) and high ongoing monthly savings.

See our Massachusetts solar incentives guide.

New Hampshire — $238/Month ($2,851/Year)

New Hampshire's high Eversource rates ($0.24–$0.28/kWh), full retail-rate net metering, and zero state sales tax (saves $1,500–$3,000 upfront) give buyers exceptional savings relative to their sun resource. Manchester and Concord buyers see 8–10 year paybacks and strong ongoing savings.

See our New Hampshire solar incentives guide.

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States Where Solar Savings Are Limited

Indiana — $65/Month ($775/Year) in Standard Avoided-Cost Design

Indiana removed its statewide net metering mandate in 2022. AES Indiana and Duke Energy Indiana now credit exported solar at $0.03–$0.06/kWh vs. retail $0.14–$0.16/kWh. A buyer who right-sizes for self-consumption (exports very little) can still capture $65–$90/month in savings — but a buyer who oversizes expecting full retail credit will be deeply disappointed.

The workaround: design a system that covers 80–90% of your annual load without significant export. In Indiana, solar is still viable — but installer education is critical.

See our Indiana solar incentives guide.

Idaho — $50/Month ($605/Year) in Standard Right-Sized Design

Idaho Power's annual true-up at avoided cost ($0.024–$0.040/kWh) means any system producing more than your annual electricity consumption earns nearly nothing on excess export. In Boise at $0.10/kWh retail, margins are already thinner than national average. Right-sizing to 90% of annual load helps significantly — see our Idaho solar incentives guide for the exact sizing methodology.

Tennessee — $69/Month ($830/Year)

TVA's Green Power Providers program credits exported solar at only ~$0.048/kWh vs. retail $0.12/kWh — and adds a mandatory $15.64/month Power Service Connection fee. Self-consumption design is critical. With the PSC fee factored in, net savings for a right-sized system are approximately $69/month.

See our Tennessee solar incentives guide.

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Maximizing Your Solar Savings: 6 Strategies

1. Know Your Net Metering Policy Before Sizing

In retail-rate states (most of the U.S.), sizing to 100–110% of annual load is generally optimal. In avoided-cost states (Indiana, Idaho, Tennessee, Mississippi, Alabama, APS Arizona), size to 80–90% of annual load to avoid exporting kWhs that earn only $0.03–0.06/kWh.

2. Stack State Incentives With Federal ITC

The federal 30% ITC (or 40% in Energy Community census tracts) reduces your system cost, improving your savings-to-investment ratio. States like Massachusetts, Connecticut, New York, New Jersey, and Illinois offer additional PBI or SREC income that supplements your electric bill savings with direct cash.

3. Optimize for Time-of-Use Rates

In states with TOU pricing (California, Arizona SRP, Hawaii, Illinois, Nevada), solar production timing matters. Evening peak charges are $0.35–$0.52/kWh in some California and Hawaii TOU plans — battery storage lets you shift that solar production from midday (when you're away) to the evening peak, maximizing savings per kWh. See our TOU rates guide.

4. Capture SREC Income in Active Markets

In New Jersey, Maryland, Massachusetts, Illinois, and a few other states, your solar system generates Solar Renewable Energy Credits (SRECs) that you sell to utilities. New Jersey SREC II pays $185–$270/MWh — a 9 kW system earns $900–$1,350/year in SREC income on top of electric bill savings. This income doesn't appear in the savings table above.

See our SREC guide for current state program details.

5. Enroll in a Virtual Power Plant Program

If you have battery storage, enrolling in a VPP program can earn an additional $150–$400/year in bill credits or cash — on top of your electric bill savings. Tesla VPP, Sunrun Shift, and Enphase Grid Services all have active programs. See our Virtual Power Plant guide.

6. Add Future Load Now

If you're planning to buy an EV or switch to a heat pump in the next 3 years, size your solar system for your future load today. Adding 2–4 kW of extra capacity at installation costs roughly 10–15% more but avoids a second installation and a second permitting process later. See our solar + EV charging guide and our whole home electrification guide.

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Regional Savings Patterns

Sun Belt (AZ, NM, NV, TX, FL) — $125–$250/Month

High sun hours (5.0–6.5/day) are partially offset by moderate electricity rates ($0.11–$0.14/kWh in most Sun Belt states). Arizona stands out with 6.0+ sun hours and the APS vs. TEP vs. SRP nuance — buyers in TEP Tucson territory with retail-rate NEM see better savings than APS buyers with net billing. Nevada has PSNC-mandated retail-rate NEM and strong 5.8 sun hours. New Mexico's 10% state income tax credit and excellent sun resource make it a standout.

Northeast/New England (CT, MA, RI, NH, NY, ME) — $110–$589/Month (excl. HI)

The top savings region in the continental U.S. High electricity rates ($0.17–$0.28/kWh), retail-rate net metering in all states, and strong state incentive programs (SMART in MA, RSIP in CT, REF in RI) drive fast payback and high ongoing savings. Despite lower sun hours than the Southwest, these states routinely beat Sun Belt states on both savings and ROI because electricity rate matters more than sunshine.

Mid-Atlantic (MD, NJ, DE, VA, PA) — $125–$175/Month

Mid-Atlantic states have strong SREC markets (NJ, MD, PA), retail-rate net metering, and moderate-to-good sun. The SREC income in NJ and MD can add $100–$200/month in supplemental income for the first 15 years. Virginia's VCEA-protected net metering and 100% property tax exclusion make it the Mid-Atlantic standout for regulatory stability.

Southeast (NC, SC, GA, FL, TN, KY, AL, MS) — $68–$162/Month

Highly variable — the difference between NC's retail-rate net metering under HB 589 ($144/month) and Tennessee's TVA GPP avoided-cost buyback ($69/month) is dramatic. South Carolina's 25% state income tax credit (highest in the region) and Florida's property and sales tax exemptions are the standout incentives. Georgia's Georgia Power ≤10 kW retail-rate threshold is the key consumer fact: systems over 10 kW earn only avoided-cost for export.

Midwest (IL, MI, WI, MN, OH, IN, MO, IA) — $65–$171/Month

Michigan and Wisconsin lead the Midwest for savings — Michigan has high We Energies/Consumers rates ($0.175–$0.185/kWh) and 10-year property tax exemptions; Wisconsin has the highest property tax in the region (1.61% average), making its exemption especially valuable. Illinois Shines' 15-year REC contract adds substantial income on top of electric bill savings. Indiana is the cautionary exception.

Mountain West (CO, UT, WY, MT, ID) — $50–$172/Month

Colorado's 14.2¢/kWh rate and Xcel Solar*Rewards 10-year PBI make it the Mountain West leader. Montana and Wyoming both have strong sun but low rates — Montana's no-sales-tax advantage (saves $1,500–$3,000) and 10-year property tax exemption improve the economics. Idaho's avoided-cost true-up is the key challenge.

Pacific Northwest (WA, OR) — $105–$126/Month

Washington and Oregon have lower rates ($0.10–$0.12/kWh) and lower sun hours (3.9–4.2 PSH/day in western WA/OR), but both have retail-rate net metering protected by statute. Oregon adds the Energy Trust of Oregon cash rebate ($500–$5,000) and the Oregon RETC state income tax credit (30%, up to $6,000). The Pacific Northwest sees lower savings than the national average but faster payback than buyers might expect given the cloudy reputation. See our Pacific Northwest Solar Guide for the regional comparison.

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Savings vs. System Cost: The Key Relationship

Monthly savings alone don't tell the full story — they must be evaluated against the system cost and incentives to determine ROI. A $2,000/year saving on a $28,000 system (after 30% ITC: $19,600 net cost) produces a 9.8-year payback. The same savings on a $35,000 system (net: $24,500) produces a 12.3-year payback.

Use our Solar ROI Calculator to calculate your personalized:

• Monthly savings projection
• Simple payback period
• 25-year net savings
• Whether Energy Community 40% ITC applies to your location

For a full 25-year financial analysis, see our solar ROI by state comparison — which covers payback period, 25-year savings, and internal rate of return across all 50 states.

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How to Calculate Your Actual Monthly Solar Savings

Step 1: Find your annual electricity consumption — look at your last 12 months of electric bills and sum the kWh column.

Step 2: Estimate system size — divide annual kWh by your state's annual full-sun hours from the table above, then divide by 365 days and by 0.85 (for system losses). Or use our Solar System Designer which does this automatically.

Step 3: Apply your net metering rate — in retail-rate states, multiply annual production by your electricity rate. In avoided-cost states, multiply 80% by retail rate and 20% by avoided-cost rate.

Step 4: Subtract any ongoing fees — TVA territory buyers subtract $15.64/month PSC fee. Some utilities charge small interconnection fees.

Step 5: Add SREC income — if you're in NJ, MA, IL, MD, or CT, add your expected SREC/PBI income to the savings total.

The most efficient path: enter your state and monthly bill into our Solar ROI Calculator to get a complete savings projection in under 60 seconds.

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Frequently Asked Questions

Q: What is the average monthly solar savings in the United States?

A: The national average is approximately $130–$150/month ($1,560–$1,800/year) for a properly sized system. This averages across high-savings states like Hawaii ($589/month) and Connecticut ($250/month) with lower-savings states like Idaho ($50/month) and Indiana ($65/month) in avoided-cost territories.

Q: Does more sunshine always mean more savings?

A: No — electricity rate is often more important than sun hours. Connecticut saves $250/month despite northern winters because its $0.27/kWh rate makes each kWh of solar 2.5× more valuable than in Indiana. Arizona has excellent sun but moderate rates, producing comparable savings to Massachusetts with far better weather.

Q: How much can I save with solar over 25 years?

A: Assuming 4% annual electricity rate inflation, a system installed in 2026 typically saves:

• $35,000–$60,000 over 25 years in high-rate Northeast states
• $20,000–$40,000 over 25 years in Sun Belt states
• $15,000–$25,000 over 25 years in Midwest/Mountain West states See our solar ROI by state comparison for the full 50-state breakdown.

Q: What kills solar savings the most?

A: The top savings killers: (1) Avoided-cost net metering — states like Indiana, Idaho, Tennessee, and Alabama that credit solar exports at $0.03–$0.06/kWh instead of retail rates dramatically reduce savings for systems that export significantly; (2) Hidden loan dealer fees — a 25% dealer fee inflates system cost by $5,000–$8,000, extending payback and reducing effective savings per dollar invested; (3) Lease/PPA — you save 10–20% on your bill but give up the 30% ITC ($8,400–$11,200 on a typical system) and any SREC income. See our solar financing guide for the full cash vs. loan vs. lease comparison.

Q: Does solar save money in winter?

A: Yes, though less than in summer. A system producing 40% less in December still produces real electricity — replacing grid kilowatt-hours at full retail rate. In northern states with high electricity rates (ME, NH, VT, MA), winter production is reduced but the rate remains high, so savings per kWh are identical year-round. Annual billing typically settles winter credits against summer overproduction through net metering's annual true-up.

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Next Steps

Ready to estimate your personal solar savings?

1. Solar ROI Calculator — enter your state and monthly bill for a personalized savings estimate
2. Solar System Designer — design your system with a complete parts list and cost estimate
3. Solar Financing Calculator — compare cash vs. loan vs. lease over 20 years
4. Your state guide — see every incentive available in your specific state
5. Solar ROI by State — compare payback period and 25-year IRR across all 50 states

For solar installers and quotes in your area, see our how to find a solar installer guide and how to compare solar quotes guide.