3 guides

Solar rules by state

Electricity prices, sunshine and export rules differ a lot between states, so the same system can pay back in 6 years in one state and 15 in another. Pick your state below to see the basics, then read the state guides.

Choose a state

California

Average home electricity price: 33.3¢/kWh ([object Object])
Typical yearly output per kW: 1,677 kWh
How exports are credited: Net billing New PG&E, SCE and SDG&E solar customers (applied since April 15, 2023) are on the Net Billing Tariff: solar you use offsets retail rates, but exports earn hourly avoided-cost values, often a few cents, locked for 9 years. An electrification time-of-use rate is required.
Programs to check: SGIP battery incentives (limited funding) (opens in a new tab)
Solar property-tax exclusion (systems completed before 2027) (opens in a new tab)

as of 2026-10: CPUC Decision D.22-12-056 (Net Billing Tariff) (opens in a new tab)

Arizona

Average home electricity price: 15.4¢/kWh ([object Object])
Typical yearly output per kW: 1,755 kWh
How exports are credited: Net billing New APS and TEP customers are on net billing: solar used at home offsets retail, and exports earn the Resource Comparison Proxy (RCP) export rate, locked for 10 years at the rate in effect when you connect. The RCP can step down for later customers.
Programs to check: Arizona Residential Solar Energy Credit (Form 310) (opens in a new tab)

as of 2026-10: DSIRE program database (opens in a new tab)

Nevada

Average home electricity price: 13.5¢/kWh ([object Object])
Typical yearly output per kW: 1,753 kWh
How exports are credited: Reduced credit NV Energy net metering (systems up to 25 kW) is in its final tier: solar used at home saves the full retail rate, and exported energy earns credits worth 75% of retail that roll month to month, with the rate locked for 20 years.

as of 2026-10: NV Energy: Net metering (opens in a new tab)

Texas

Average home electricity price: 16.1¢/kWh ([object Object])
Typical yearly output per kW: 1,421 kWh
How exports are credited: Varies by utility Texas has no statewide net metering. In competitive areas (Oncor, CenterPoint, AEP Texas, TNMP) your retail electric provider decides whether and how it pays for exports. City utilities set their own rules; Austin Energy pays a Value of Solar rate.
Programs to check: Solar property-tax exemption (Tax Code §11.27) (opens in a new tab)

as of 2026-10: Austin Energy: Value of Solar rate (opens in a new tab)

Florida

Average home electricity price: 15.3¢/kWh ([object Object])
Typical yearly output per kW: 1,568 kWh
How exports are credited: Full retail credit Florida PSC Rule 25-6.065 requires FPL, Duke Energy Florida and TECO to credit exports one-for-one at the retail rate. Excess credits roll over monthly and are paid at avoided cost at the annual true-up. Co-ops and city utilities set their own rules.
Programs to check: Property-tax exclusion for residential solar (Fla. Stat. 193.624) (opens in a new tab)

as of 2026-10: Florida PSC Rule 25-6.065 (opens in a new tab)

North Carolina

Average home electricity price: 14.9¢/kWh ([object Object])
Typical yearly output per kW: 1,446 kWh
How exports are credited: Net billing Duke Energy’s Residential Solar Choice rate requires time-of-use pricing with critical-peak hours. Exports net against usage within each time period monthly; leftover excess earns a low avoided-cost rate. Minimum bills and grid-access charges apply.

as of 2026-10: DSIRE program database (opens in a new tab)

South Carolina

Average home electricity price: 15.9¢/kWh ([object Object])
Typical yearly output per kW: 1,446 kWh
How exports are credited: Net billing Under Act 62 “Solar Choice” tariffs, new Duke and Dominion Energy SC customers take a time-of-use rate; exports offset usage within the monthly billing period, and net excess is credited at roughly avoided cost.
Programs to check: SC Solar Energy Tax Credit (25% of cost, limits apply) (opens in a new tab)

as of 2026-10: DSIRE program database (opens in a new tab)

Georgia

Average home electricity price: 15.4¢/kWh ([object Object])
Typical yearly output per kW: 1,402 kWh
How exports are credited: Avoided-cost credit Georgia Power’s monthly-netting program is full. New customers get instantaneous netting: each exported kWh earns the solar avoided-cost rate plus a small adder, well below retail. Georgia has no state solar tax credit.

as of 2026-10: DSIRE program database (opens in a new tab)

New Jersey

Average home electricity price: 24¢/kWh ([object Object])
Typical yearly output per kW: 1,330 kWh
How exports are credited: Full retail credit PSE&G, JCP&L, ACE and RECO offer full retail net metering: exports earn retail kWh credits that roll over, and any surplus at the annual true-up is paid at a wholesale rate.
Programs to check: SuSI / ADI solar renewable energy certificates (opens in a new tab)

as of 2026-10: DSIRE program database (opens in a new tab)

Massachusetts

Average home electricity price: 30.1¢/kWh ([object Object])
Typical yearly output per kW: 1,300 kWh
How exports are credited: Full retail credit Eversource, National Grid and Unitil credit residential net metering at close to the full retail rate, and credits roll forward. Massachusetts also offers SMART 3.0 incentives and a state residential energy credit.
Programs to check: SMART 3.0 solar incentive (opens in a new tab)

as of 2026-10: Mass.gov: Net metering (opens in a new tab)

New York

Average home electricity price: 29.4¢/kWh ([object Object])
Typical yearly output per kW: 1,320 kWh
How exports are credited: Full retail credit Residential systems up to 25 kW still get Phase One net metering: exports earn retail-rate credits that roll monthly. Systems connected after 2022 pay a small monthly Customer Benefit Contribution.
Programs to check: NY-Sun incentives (opens in a new tab)

as of 2026-10: DSIRE program database (opens in a new tab)

Illinois

Average home electricity price: 19.2¢/kWh ([object Object])
Typical yearly output per kW: 1,300 kWh
How exports are credited: Reduced credit For systems energized since January 1, 2025, ComEd and Ameren credit exports at the energy supply portion of the rate, not delivery charges. Earlier systems keep full retail credit. Illinois Shines and Solar for All add incentives.
Programs to check: Illinois Shines (Adjustable Block Program) (opens in a new tab)
Illinois Solar for All (opens in a new tab)

as of 2026-10: DSIRE program database (opens in a new tab)

Virginia

Average home electricity price: 16.8¢/kWh ([object Object])
Typical yearly output per kW: 1,400 kWh
How exports are credited: Full retail credit Dominion Energy and Appalachian Power credit exports at retail with an annual true-up. Rules for new customers are under review at the State Corporation Commission, so confirm current terms with your utility.

as of 2026-10: DSIRE program database (opens in a new tab)

Maryland

Average home electricity price: 21.3¢/kWh ([object Object])
Typical yearly output per kW: 1,392 kWh
How exports are credited: Full retail credit BGE, Pepco, Delmarva and Potomac Edison offer full retail net metering: credits roll monthly, and any surplus is paid out each year at a lower supply rate.
Programs to check: Maryland Energy Administration programs (opens in a new tab)

as of 2026-10: DSIRE program database (opens in a new tab)

Pennsylvania

Average home electricity price: 21¢/kWh ([object Object])
Typical yearly output per kW: 1,330 kWh
How exports are credited: Full retail credit PECO, PPL, Duquesne and FirstEnergy utilities credit exports at retail up to your yearly use; year-end surplus is paid at the price to compare (generation and transmission only).

as of 2026-10: DSIRE program database (opens in a new tab)

State Guides

Solar Panels in Arizona: APS, TEP and SRP Export Rates, Tax Breaks and Savings in 2026

Solar panels in Arizona in 2026: APS, TEP and SRP export rates, the $1,000 state tax credit, property tax rules, HOA law and real savings math.

Updated Oct 18, 2026

State Guides

Solar Panels in Florida: Net Metering, Hurricanes and Real Savings in 2026

Solar panels in Florida in 2026: how PSC net metering works, sales and property tax exemptions, HOA rights, hurricane backup and real savings math.

Updated Oct 18, 2026

State Guides

Solar Panels in Texas: Buyback Plans, Savings and Outage Backup in 2026

Are solar panels worth it in Texas? How buyback plans, Austin Energy and CPS rules, tax exemptions, HOA law and outages change your savings in 2026.

Updated Oct 18, 2026

25D credit (Residential Clean Energy Credit): A 30% federal tax credit homeowners could claim for solar and batteries they paid for. It ended for expenditures made after December 31, 2025; the IRS counts the expense when installation is completed.
48E credit: A federal business tax credit for clean electricity property. Companies that own leased or PPA systems on homes may claim it, subject to construction deadlines and sourcing rules. The homeowner does not claim it.
Avoided cost: What it would cost a utility to produce or buy the same power elsewhere. Some states pay rooftop exports at an avoided-cost rate, which is far below retail.
Dealer fee: A charge a solar lender takes from the loan, usually built into the amount you borrow so the advertised interest rate looks low. The CFPB has warned these fees can add tens of percent to the price.
Degradation: The slow loss of a panel’s output over time. NREL research puts the median around 0.5% per year, and most panel warranties guarantee roughly 80–90% of original output after 25 years.
Escalator: A yearly percentage increase written into a lease or PPA, often 0–3%. A 2.9% escalator raises the payment by about 100% over 25 years.
FEOC rules: Federal “foreign entity of concern” sourcing limits added in 2025 that a business must meet to claim 48E credits on projects starting construction in 2026 or later.
Interconnection: Your utility’s approval to connect a solar system to the grid. Most utilities require an application before installation and a final permission to operate (PTO) before you turn it on.
Inverter: The device that turns the direct current (DC) from panels or batteries into the alternating current (AC) your home uses. Types include string inverters, microinverters and hybrid inverters that also manage a battery.
Islanding (backup mode): When a solar-plus-battery system disconnects from the grid during an outage and keeps powering your home. Ordinary grid-tied solar without a battery shuts off in an outage for line-worker safety.
kW (kilowatt): A unit of power: how fast electricity is made or used at one moment. Solar system size is quoted in kW of panel capacity (DC). A 7 kW system has panels rated 7,000 watts in total.
kWh (kilowatt-hour): A unit of energy: using 1 kW for one hour. Your electric bill charges you per kWh, and solar output and battery capacity are measured in kWh.
Microinverter: A small inverter mounted under each panel. Shade on one panel affects only that panel, and each panel can be monitored separately. Usually costs a little more than one central string inverter.
NABCEP certification: A voluntary professional certification for solar installers from the North American Board of Certified Energy Practitioners. It is a useful signal, but you should also check state contractor licensing.
NEM 3.0: The common name for California’s Net Billing Tariff, which applies to new rooftop solar customers of PG&E, SCE and SDG&E who applied on or after April 15, 2023. Exports earn hourly values far below retail rates.
Net billing: A billing rule where exported solar earns a credit set by a separate, usually lower, export rate rather than the full retail price. California’s Net Billing Tariff (often called NEM 3.0) is the best-known example.
Net metering: A billing rule where each kWh your panels send to the grid earns a credit equal (or close) to the retail price you pay. Credits offset power you buy later, often rolling over month to month.
Offset: The share of your yearly electricity use that solar is designed to produce. A 100% offset aims to match a year of use; under low export credits a smaller offset can pay back faster.
Payback period: How many years of bill savings it takes to recover what you paid for a system. A shorter payback means a better investment, all else equal.
Peak sun hours: Daily sunlight expressed as the number of hours at full-strength sun (1,000 watts per square meter). Five peak sun hours means the day’s sunlight equals five hours of full sun.
PPA (power purchase agreement): A contract where a company owns the system and you pay for the electricity it produces at a set price per kWh, often rising each year.
PTO (permission to operate): The utility’s final go-ahead to switch on a grid-connected system. Running a system before PTO can violate your utility agreement.
Round-trip efficiency: The share of energy you get back out of a battery compared with what went in. About 90% is typical for home lithium batteries.
Solar lease: A contract where a company owns the panels on your roof and you pay a fixed monthly amount, often with a yearly increase (escalator), usually for 20–25 years.
Specific yield: Yearly energy a solar system produces per kW of capacity, in kWh/kW. It depends on sunshine, tilt, direction and shade. Sunny Southwest roofs often reach 1,600–1,800; cloudier northern roofs 1,100–1,300.
Time-of-use (TOU) rate: An electricity plan where the price per kWh changes by time of day, with the highest prices in late afternoon and evening. Batteries save money by covering those peak hours.
True-up: The annual settlement on a net metering or net billing account. Charges and credits from the past 12 months are totaled, and you pay any balance owed. Leftover credits may be paid out at a low rate or lost.
Usable capacity: The share of a battery’s energy you can actually draw. Spec sheets list it in kWh; compare usable, not total, capacity between batteries.

Solar rules by state

Your state at a glance

California

Arizona

Nevada

Texas

Florida

North Carolina

South Carolina

Georgia

New Jersey

Massachusetts

New York

Illinois

Virginia

Maryland

Pennsylvania

Solar Panels in Arizona: APS, TEP and SRP Export Rates, Tax Breaks and Savings in 2026

Solar Panels in Florida: Net Metering, Hurricanes and Real Savings in 2026

Solar Panels in Texas: Buyback Plans, Savings and Outage Backup in 2026

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