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Solar Payback Years

How many years until solar pays for itself?

Since January 2026 there is no federal tax credit for buying home solar. This is the payback at today's installed prices, without it.

Roof faces

Pays back in year 13

Cost up front
$25,410
Saved per year
$2,054
Ahead after 25 years
$25,932

Full breakdown for California

The 30% tax credit ended with 2025

The Residential Clean Energy Credit paid back 30% of a solar system's cost. The 2025 budget law ended it, and the IRS says it is not available for property placed in service after December 31, 2025. On a typical 7.7 kW system that is about $8,000 to $9,000 less back from the government, which adds several years to payback. Many solar sites and installer quotes still count it. The numbers here do not.

Payback by state

Years for a 7.7 kW south-facing system at each state's median installed price. Select a state for its breakdown.

All states ranked

  1. Alabama, 16.0 yr
  2. Alaska, 13.5 yr
  3. Arizona, 18.3 yr
  4. Arkansas, 17.8 yr
  5. California, 12.4 yr
  6. Colorado, 13.3 yr
  7. Connecticut, 10.2 yr
  8. Delaware, 14.3 yr
  9. District of Columbia, 10.5 yr
  10. Florida, 14.2 yr
  11. Georgia, 15.8 yr
  12. Hawaii, 8.1 yr
  13. Idaho, 19.8 yr
  14. Illinois, 14.3 yr
  15. Indiana, 19.0 yr
  16. Iowa, 16.4 yr
  17. Kansas, 15.4 yr
  18. Kentucky, 19.2 yr
  19. Louisiana, 19.1 yr
  20. Maine, 8.4 yr
  21. Maryland, 13.4 yr
  22. Massachusetts, 9.1 yr
  23. Michigan, 20.3 yr
  24. Minnesota, 15.5 yr
  25. Mississippi, 17.5 yr
  26. Missouri, 15.6 yr
  27. Montana, 17.9 yr
  28. Nebraska, 18.4 yr
  29. Nevada, 18.9 yr
  30. New Hampshire, 11.1 yr
  31. New Jersey, 11.3 yr
  32. New Mexico, 14.3 yr
  33. New York, 10.5 yr
  34. North Carolina, 23.3 yr
  35. North Dakota, 20.7 yr
  36. Ohio, 14.1 yr
  37. Oklahoma, 16.4 yr
  38. Oregon, 18.9 yr
  39. Pennsylvania, 12.2 yr
  40. Rhode Island, 9.6 yr
  41. South Carolina, 16.0 yr
  42. South Dakota, 16.6 yr
  43. Tennessee, 19.6 yr
  44. Texas, 25.3 yr
  45. Utah, 27.4 yr
  46. Vermont, 12.4 yr
  47. Virginia, 14.4 yr
  48. Washington, 18.7 yr
  49. West Virginia, 18.5 yr
  50. Wisconsin, 15.3 yr
  51. Wyoming, 16.4 yr

How the payback is worked out

Solar output

NREL's PVWatts model gives a year of output per kilowatt for a 20° roof in the state's largest city, using typical-year weather and 14% system losses.

What each kWh is worth

With full net metering, every solar kWh is worth your retail rate. In states that pay less for power you send back to the grid, we assume you use 40% of your solar at home (saving the retail rate) and export the rest at the state's export rate.

Cost

Berkeley Lab's median installed price for home systems put in during 2025, by state where it has enough data, otherwise the national median of $3.60 per watt. No federal credit. You can type your own quote into the calculator.

What it leaves out

Rising electricity prices (which shorten payback) and panel wear (which lengthens it) roughly cancel out, so both are left out. Batteries, financing costs and local rebates are not included.