Note: In July 2024, SunPower notified dealers it would be halting all new shipments and project installations. The company also noted it would “no longer be supporting new Leases and PPA sales nor new project installations of these financing options.”
Solar power was an unattainable luxury for many years, only available to the wealthy or those in locations with early climate change and green energy initiatives. Thankfully, solar panels have become much cheaper in recent years, dropping by as much as 70 % since 2014. Solar investments, like solar panels, have become affordable for most homeowners with these more attainable prices and an overall increase in statewide incentive programs.
While not all states have created impressive solar programs, many have gone out of their way to incentivize and finance solar energy. In this article, I’ll go over all the states where you can get the most out of your solar panels and discuss the kinds of incentives those states offer.
What Factors Should You Consider When Moving to a State for Solar Power?
Solar energy is a complex topic, with many variables contributing to each state’s solar growth. Environmental factors like yearly sunlight and weather, as do more complex elements like political leanings and pushback from local energy companies, play a part.
To simplify the evaluation process, we recommend looking at two major factors — states with the most solar panels per capita and states with the best incentive programs:
States with existing solar panels — These states already have high solar capacity and robust infrastructure to support you investing in solar power. They also tend to have advantageous environmental conditions that enable effective solar energy generation.
States with financial incentives — Some states try to spur solar adoption by offering generous rebates, tax credits, funds, and other financial incentives. This allows you to start with solar power at a lower up-front cost, even if the state is still increasing its overall solar capacity.
Evaluating solar capacity and financial incentives will help determine the most solar-friendly locations.
What States Have the Most Solar Panels?
California has held the top spot for solar capacity, though it competes closely with Texas. In 2021, over 25% of California’s electricity came from solar energy — enough to power over 9 million homes. The state has invested nearly $79.2 billion into solar energy.
Besides California and Texas, states like Florida, North Carolina, and Arizona also have over 1 million solar-powered homes.
The table below shows five high-ranking states for homes powered by solar power, the percentage of electricity that comes from solar, and the total investment in the solar industry for each state.
| State | Homes Powered by Solar | Percent Electricity from Solar | Solar Industry Investment |
|---|---|---|---|
| California | 9,153,089 | 27% | $79.2 billion |
| Texas | 1,682,330 | 4% | $16.6 billion |
| Florida | 1,058,032 | 4.6% | $12.2 billion |
| North Carolina | 942,492 | 8.2% | N/A |
| Arizona | 789,206 | 9.7% | $13.4 billion |
California has been on the leading edge of solar adoption for years. Established solar companies have helped homeowners like you take advantage of the state’s investments and policies supporting renewable energy.
Notably, the Golden State has a wide range of incentive programs to offset the cost of going solar in California:
- Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH): Offers no-cost solar systems to households in underprivileged communities meeting income requirements.
- Self-Generation Incentive Program (SGIP): Provides rebates for installing energy storage systems alongside solar panels.
Texas and Florida rely more heavily on fossil fuels than solar power. They also lack robust statewide incentives and mainly depend on local utility companies to promote solar adoption. However, cities and municipalities within these states may offer strong incentive programs.
Ultimately, daylight hours, state policies, existing solar infrastructure, and financial incentives all contribute to solar success. States with high solar capacity and generous monetary incentives are typically the best options for homeowners.
Related: Florida’s Top Solar Installation Companies
What Are the Best States for Solar Power Incentives?
New York offers a dollars-per-watt rebate and a 30% tax credit. These offers are combinable with the federal tax credit. No sales tax is charged on solar, either.
Rhode Island exempts solar equipment from sales tax and property tax increases. It also offers a lucrative net metering program paying elevated rates for excess solar electricity fed back to the grid.
Among Connecticut’s solar incentives are multiple low-cost solar loans, tax exemptions, and statewide net metering.
With state and federal incentives combined, the overall savings on going solar can add up substantially:
| State | Key Solar Incentives |
|---|---|
| New York | Up to 50% system cost savings from state and federal credits |
| Rhode Island | Lucrative net metering; 7% sales tax exemption |
| Iowa | Possible 15% tax credit; solar easement rights |
| Connecticut | Low-cost solar loans; tax exemptions |
So, What’s the Best State for Solar Power?
California remains the leader if you’re looking at which state offers homeowners the most potential benefit from adopting solar power. The sheer scale of California’s solar infrastructure means you can tap into a robust grid. The state even offers solar adopters like you generous rebates, tax exemptions, innovative financing programs, and other savings.
For now, California remains the undisputed leader regarding capacity and financial incentives. California is undoubtedly the best state for homeowners, focusing on solar power access and savings potential.
FAQs About Moving for Solar Power
Does it make financial sense to move for better solar incentives?
It can, but it depends on your situation. Calculate potential long-term savings and compare that to the costs of moving. Also, factor in home values in solar-friendly areas. Deeper solar savings could offset higher mortgage payments.
How much sunlight is needed for effective solar panels?
Most solar equipment works well with around five to six peak daylight hours. Parts of California, the Southwest, Southeast, and West, get over six hours of solid sunlight daily. New England and the Pacific Northwest tend to be cloudier.
Do solar panels work in cold weather?
Yes, they just produce less energy compared to sunny conditions. Solar efficiency declines above 77°F, but panels still produce some electricity from ambient light on cloudy days. Enough snow cover can temporarily impact winter solar production.
Will homeowners insurance cover my solar panels?
Yes, but notify your provider about the addition. The value gets factored into dwelling coverage. Damage claims would fall under property insurance, subject to your deductible. Displaced power claims also require add-on riders.
How do I transport solar panels during a move?
Carefully disassemble panels and safely pack them along with labeled hardware. Wrap panels to prevent scratching. Use soft tie-downs inside trucks or trailers to avoid jarring or shifting during transport. Consider hiring professional solar component movers if relocating an extensive, complex system.
