Comparing the financial return of solar in every state

Last year, Geostellar put out this comparison of financial returns for going solar in every U.S. State. The chart accounts for 3 major factors in the cost of solar: The cost of installing solar, the cost of electricity that the panels will displace and the state incentives available that help make it worthwhile. According to the chart, last year, Hawaii led the way with a 24% Internal Rate of Return (IRR). Here is a list of the top 10:

State: IRR

  1. Hawaii: 24%
  2. DC: 20%
  3. New York: 17%
  4. Connecticut: 16%
  5. Colorado: 15%
  6. Massachusetts: 15%
  7. New Mexico: 13%
  8. California: 12%
  9. South Carolina: 12%
  10. Delaware: 12%

Several of the top states are in the northeast where high electricity rates and good state incentives drive the returns. Meanwhile, Hawaii boasts the perfect storm of some of the highest state incentives and highest electricity rates. Surprisingly, New Jersey, on of the leading solar states in the U.S. didn’t crack the top 10, while the 12% IRR in South Carolina stands out considering the lack of solar in the southeastern U.S.


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