Solar Power Cost & Incentives Explained 2025 – All 50 States

HOW TO USE THIS GUIDE

  • Cost figure = “Average 6 kW home system after 30 % federal tax credit” (cash purchase).
  • All $/W values are the net cash price after the 30 % ITC.
  • Click any state name to open its full 1-page profile (rebate links, net-metering rules, local utility bonuses, etc.).
  • Data sources: EnergySage marketplace quotes closed Feb-28-2025 , DSIRE, state agencies, and utility filings.

COST & KEY INCENTIVE TABLES

A. Lowest-cost states (after incentives, 6 kW system)

RankStateNet Cost$/WQuick-hits (2025)Code
1Arizona$18,799$2.0725 % state tax credit (up to $1,000) + strong net-meteringAZ
2Nevada$18,939$2.17NV Energy upfront rebate $0.20/WNV
3California$14,476$2.30NEM 3.0 but high TOU savings; SGIP battery rebatesCA
4Texas$20,308$2.06No statewide rebate but many utility rebates (CPS, Oncor, AEP)TX
5New Mexico$18,594$2.8610 % state tax credit + up to $6.50/ft²NM

B. Highest-cost states (after incentives, 6 kW system)

RankStateNet Cost$/WWhy it’s higherCode
46Indiana$27,504$3.18Limited state incentivesIN
47Iowa$27,927$3.16No statewide rebate; modest net-metering capsIA
48Kansas$25,732$3.08Small utility rebates onlyKS
49Wyoming$27,919$3.54No state incentives; low competitionWY
50West Virginia$31,636$3.10Only federal credit + property tax exemptionWV

C. Every state in alphabetical order

StateNet Cost 6 kW$/WState-specific 2025 highlights (sample)Code
Alabama$30,427$3.12TVA “Green Switch” buy-back at avoided-cost onlyAL
AlaskaNet-metering cap 25 kW; cold-climate install premiumAK
Arizona$18,799$2.07$1,000 state tax credit; APS & SRP demand-based exportAZ
Arkansas$23,164$2.50Net-metering ends new enrollments 2023; grandfathered 20 yrsAR
California$14,476$2.30NEM 3.0 reduces export value; add battery for best ROICA
Colorado$20,321$2.82Xcel Solar*Rewards ~$0.03/kWh 10-yr PBI; sales-tax exemptCO
Connecticut$21,781$2.77CT Green Bank 10-yr loan 0–2.9 %; NEM 1:1 retailCT
Delaware$21,347$2.41Delmarva Power Green Energy Program $0.70/WDE
Florida$21,092$2.11Property-tax exemption; FPL net-metering @ retailFL
Georgia$22,787$2.57GA Power monthly net excess @ avoided-cost; $0.25/W rebateGA
Hawaii$20,138$3.39No net-metering; Customer Grid-Supply + battery incentivesHI
Idaho$22,334$2.53Rocky Mountain Power upfront rebate $1,100-$2,400ID
Illinois$24,666$2.99Illinois Shines SRECs + $300/kW Smart Inverter rebateIL
Indiana$27,504$3.18Net-metering phased to avoided-cost + 25 % adderIN
Iowa$27,927$3.16MidAm $0.20/W rebate; net-metering cap 1 MWIA
Kansas$25,732$3.08Westar $0.25/W rebate ending 2025; net excess @ wholesaleKS
Kentucky$27,372$2.72Net-metering @ retail; TVA territory limitedKY
Louisiana$20,813$2.44No state rebate; Entergy $0.50/W in select areasLA
Maine$24,385$3.02Net-metering restored 2024; Efficiency Maine $2,000 rebateME
Maryland$25,665$2.69$1,000 state rebate; robust SREC marketMD
Massachusetts$23,107$3.19SMART tariff $0.20-$0.30/kWh 10 yrs; 15 % tax credit up to $1,000MA
Michigan$22,476$3.12Consumers Energy upfront $0.25/W; property-tax exemptMI
Minnesota$25,038$2.94Xcel Solar*Rewards $0.03/kWh 10 yrs + SolarSense rebateMN
Mississippi$22,261$2.79Net-metering @ avoided-cost; no statewide rebateMS
Missouri$25,265$2.82Ameren $0.25/W rebate; Columbia $500-$1,250MO
Montana$22,787$2.61Net-metering @ retail; NorthWestern Energy $0.50/WMT
Nebraska$21,266$2.24No state rebate; LES $0.375/WNE
Nevada$18,939$2.17NV Energy $0.20/W upfront; net-metering @ 75 % retailNV
New Hampshire$22,468$3.16Net-metering @ retail; state rebate $0.20/WNH
New Jersey$22,728$2.56Transition Incentive (TREC) $152/MWh 15 yrsNJ
New Mexico$18,594$2.8610 % state tax credit; PNM $0.10/WNM
New York$23,279$2.83NY-Sun $0.20/W + 25 % state tax credit to $5,000NY
North Carolina$21,298$2.30Duke Energy $0.40/W; net-metering @ retailNC
North DakotaNet-metering @ avoided-cost; small co-op rebatesND
Ohio$23,024$2.58ECO-Link loan 3 % below market; SREC $40-$60OH
Oklahoma$23,245$2.33Net-metering @ avoided-cost; OG&E $0.25/WOK
Oregon$20,992$2.64Solar + Storage rebate $0.20-$0.50/W; net-metering @ retailOR
Pennsylvania$23,422$2.71SREC $35-$45; PA Sunshine $0.75/W (closed 2023)PA
Rhode Island$22,135$3.26REGrowth tariff $0.27-$0.34/kWh 15 yrsRI
South Carolina$22,495$2.5225 % state tax credit up to $3,500; net-metering @ retailSC
South DakotaNet-metering @ avoided-cost; no state incentivesSD
Tennessee$27,325$3.34TVA limited programs; low installer competitionTN
Texas$20,308$2.06No statewide rebate; strong utility programs (CPS $2,500)TX
Utah$21,020$2.61Rocky Mountain Power $400-$1,200 rebate; net excess @ avoided-costUT
Vermont$21,460$2.89Green Mountain Power $0.06/kWh adder; net-metering @ retailVT
Virginia$26,126$2.85Net-metering @ retail; $1,000 state rebateVA
Washington$22,646$2.58No state rebate; net-metering @ retail; sales-tax exemptWA
Washington, D.C.$19,921$2.90Solar For All income-qualified free installs; SREC $400+DC
West Virginia$31,636$3.10No state rebate; property-tax exempt onlyWV
Wisconsin$24,133$3.00Focus on Energy $0.20/W; net-metering @ retailWI
Wyoming$27,919$3.54No state incentives; net excess @ avoided-costWY

UNIVERSAL 2025 INCENTIVES THAT APPLY IN ALL 50 STATES

IncentiveValueKey Notes
Federal Investment Tax Credit (ITC)30 % of total system cost (including batteries)Applies to systems placed in service 2022-2032. Credit steps down to 26 % in 2033 and 22 % in 2034, then expires unless extended .
MACRS accelerated depreciationUp to 15 % additional benefit for businesses5-year depreciation schedule for commercial solar installations .
Utility & local rebates$0.10–$2.50 per installed wattAlways stackable with federal credit but will reduce the basis for the ITC .
Net-metering or successor tariffsVaries38 states currently mandate retail-rate or near-retail credits; others use avoided-cost or time-of-use export rates .

GET YOUR CUSTOM QUOTE & FULL STATE PAGE

  • Click any state link above to view: exact rebate forms, interconnection rules, financing programs (PACE, low-interest loans), and installer rankings.
  • Need an apples-to-apples quote for your roof? Use the EnergySage portal (filtered to your ZIP code) or your state energy office solar map.

QUICK TAKEAWAYS FOR 2025

Cheapest solar (after incentives): Arizona, Nevada, California, Texas, New Mexico.

Most generous state stack: New York, Massachusetts, Maryland, Minnesota, Colorado.

Act before 2033: the 30 % federal credit is scheduled to drop to 26 % and then 22 % before disappearing .

Batteries now qualify for the 30 % ITC—hybrid and off-grid systems jumped in popularity.

Utility rebate deadlines—many expire at year-end (CPS Energy TX, Oncor TX, ComEd IL, NV Energy, etc.).

Data last updated 15-Jul-2025.