Electricity Rates by State
Your local electricity rate is one of the biggest factors in determining your solar savings and payback period. States with higher utility costs — like Hawaii at $0.39/kWh and California at $0.28/kWh — see the fastest solar ROI, while states like Idaho ($0.10/kWh) still benefit thanks to state incentives and rising utility prices. Explore the rates and solar potential for each of our focus states below.
How Electricity Rates Affect Solar ROI
| State | Avg. Rate | Payback Period | 25-Year Savings |
|---|---|---|---|
| Hawaii | $0.39/kWh | 5 years | $65,000 |
| California | $0.28/kWh | 5 years | $50,000 |
| Texas | $0.13/kWh | 6 years | $38,000 |
| Idaho | $0.10/kWh | 9 years | $28,000 |
Data reflects 2026 averages for a typical 6kW residential solar system. Savings estimates based on current rates and available incentives.
Why Electricity Rates Matter for Solar
Higher Rates = Faster Payback
Every kilowatt-hour your solar panels generate offsets electricity you would have purchased from the utility. The higher your rate, the more each kWh of solar production is worth and the faster your system pays for itself.
Rising Utility Costs
Electricity rates have historically risen 2-3% per year. Going solar locks in your energy cost for 25+ years, protecting you from future rate hikes and increasing your total lifetime savings.
Explore by State
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