By Sam Wasson
Updated Nov 30, 2022
By Sam Wasson
Updated Nov 30, 2022
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For many years solar power was an unattainable luxury, only available to the wealthy or those in locations with early climate change and green energy initiatives. Thankfully, in recent years, solar panels have become much cheaper, dropping in price by as much as 70% since 2014. With these more attainable prices and an overall increase in statewide incentive programs, solar investments have become an affordable prospect for most homeowners.
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, we’ll go over all the states where homeowners can get the most out of their solar panels and discuss the kinds of incentives those states offer.
Solar energy is a complex topic, with many variables contributing to each state’s solar growth. Environmental factors like yearly sunlight and weather play a part, as well as various, more complex elements like political leanings and pushback from local energy companies. To simplify this, we recommend looking at two major factors, states with the most solar panels per capita and states with the best incentive programs.
States that already have high numbers of panels are leaders in solar generation, possessing robust grids and effective solar programs. These states typically also have powerful environmental factors allowing them to have a higher solar capacity. As a result, states with high amounts of existing solar panels are a safe bet for homeowners, as the basis for investment is already in place.
Some states have been slower to adopt solar initiatives but possess great potential. These states try to kick-start solar energy grids by creating powerful incentive programs and attracting eco-minded homebuyers. These incentives include tax cuts, state funds, loan programs, and other financial boons that allow homeowners to get in on the solar industry with lower upfront costs.
For our list, we used information gathered from the Solar Energy Industries Association. Keep in mind that this article is for informational purposes and is not intended for, nor should it be relied on for any legal, tax, or accounting advice.
California has been one of the leaders of the solar industry since its inception, and that carries true to today, as the state houses more solar companies than any other. While it frequently competes for the No. 1 spot with Texas (dropping to No. 2 in 2021), it has bumped itself back up to the top spot this year. Over 25% of the state’s electricity comes from solar, powering over 9,153,089 homes — we should mention this insanely high number comes mostly from utility-scale solar farms. The Golden State’s total investment in the solar industry sits at just under $80 billion, making it one of the country’s largest solar power investors. It also has a wide range of incentive programs to help homeowners utilize solar panels, such as:
Texas is the runner-up for most homes utilizing solar power at 1,682,330. It’s also a leading solar technology investor, putting $16.6 billion into the field. However, Texas is a key user of fossil fuels (not a surprise being a major oil state), with only about 4% of its total electricity coming from solar power. Unfortunately, its statewide incentive, leasing, and rebate programs are nearly nonexistent, relying on local utility companies to incentivize solar growth. Many utility companies offer these programs, but their value and rates vary from region to region. This extreme locality also applies to net metering programs, making gauging the overall incentives on a statewide basis extremely difficult.
Florida has one of the strangest paths to solar growth out there. From an extremely rocky start in the industry, the Sunshine State has only recently experienced a boom in solar growth starting in 2016 and has been growing steadily ever since. Today Florida has just over a million homes powered by solar electricity, and it has invested over $12 billion into the industry. However, like Texas, Florida still relies heavily on fossil fuels, with solar accounting for only 4.6% of its total electricity. Florida does have several statewide incentive programs available to homeowners:
We want to note that recently, Florida’s future in solar power came into question with Florida House Bill 741. This bill would have functionally stripped away net metering rights to its citizens and gave solar energy advocates and Floridian homeowners a scare last year. Thankfully the bill was vetoed, but it has cast a considerable shadow on Florida’s solar future.
Another up-and-coming state in the renewable energy game is North Carolina, possessing 942,492 homes powered by solar electricity. Impressively, it beats out both Texas and Florida for the total electricity coming from solar, sitting at 8.2%. North Carolina also has some of the most robust and generous incentive and rebate programs on this list, including:
As one of the sunniest, and hottest states in the U.S., it should be no surprise that Arizona has a robust solar system. Just under 10% of Arizona’s electricity comes from solar power, dwarfed only by California. Currently, 789,206 homes are powered by solar electricity, with the state investing $13.4 billion into solar energy. Arizona has an array of incentive programs to help its homeowners invest in solar:
The following states have some of the most impressive incentives we could find. Many of these states also have even more programs and incentives offered by specific utility companies and municipalities.
While New York is only 11th in the national ranking for the number of solar panels, it has incentive programs that rival those of California and Texas. If installing solar panels in New York, homeowners can take advantage of the following incentives:
Rhode Island has some of the most generous and varying financing programs on this list. Here are what homeowners can use to finance their solar panel installation:
Iowa has an impressive list of solar incentives that, when compared to federal incentives, make installing solar panels a financial breeze. Here are the main programs homeowners can take advantage of:
Connecticut offers the widest variety of financial programs on this list, including loan and rebate programs alongside another standard incentive. Here is a quick overview of Connecticut’s best incentives:
Maryland offers the same incentives as most solar-minded states, combined with several additional incentives in the form of a third-party SREC marketplace. It also offers an impressive rebate program, allowing homeowners to get a lump sum after installing a solar panel system.
Here is a list of all Maine’s solar financing incentives:
While we only listed the most impressive states, there are plenty of others with commendable and fast-growing solar programs. Here are some runner-ups that you should consider:
While some states are still resistant to solar technology, others fully embrace it. Many have gone so far as to create powerful financing and incentive programs to attract new homebuyers, solar energy advocates, and businesses promoting solar jobs. If you’re thinking about moving to a new state and are interested in solar power, consider checking out some of the options presented in this article.
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