Solar Payback by State: Why Cheap Electricity Hurts the Math

In low-rate states, every kilowatt-hour you offset is worth less. That can matter more than sunshine.

A data-led explanation of why great sun does not automatically mean great payback.

Key takeaways

undefined should be judged with conservative payback assumptions, not a single optimistic quote number.

Check the strongest assumption against public sources, current rates, and the homeowner's bill context.

Use the next-step links to compare rankings, rerun the calculator, and verify the methodology before treating the estimate as final.

Solar payback by state depends on electricity value

Sunshine matters, but the value of the electricity you avoid buying often matters more. A sunny state with cheap grid power can have weaker solar economics than a cloudier state with expensive electricity.

Electricity rates turn production into savings

A rooftop system produces kilowatt-hours. The local utility rate decides how many dollars those kilowatt-hours are worth. That is why rate context belongs near every solar payback number.

The Sun Belt solar payback paradox

High solar production can be offset by lower utility rates or weaker export-credit policy. That is the Sun Belt paradox: the resource is excellent, but the payback is not automatically exceptional.

How to compare solar payback by state

Use state rankings as a first screen, then adjust the calculator with your own electricity rate and export-credit assumptions. If the result only works in the optimistic case, treat quotes carefully.