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Top States for Solar Energy Production in the US?

Top States for Solar Power
Top States for Solar Energy

There is no doubt that the popularity of solar energy [1] is expanding at a significant clip in almost all countries, thanks to a couple of significant reasons. 

The first reason is the faster technical advancement in the global solar industry. Everything from supply chain and panel mounting structure to modules has invested in solar energy and is improving with time.

The second thing is the sustainability, clean-energy source, and pollutant-free nature of the solar panels. Thirdly, governments/utilities are providing significant rebates because they would like to add renewable generating units to an existing portfolio due to government mandates or other facts. As a result, the users are now enjoying attractive solar rebates. Because of these additional rebates that are offered by consumers are enjoying lower LCOE- Levelized Cost of Electricity [2] for different solar projects and solar installations. 

The Top States For Solar Power

#1 California

When you consider the state rank list based on solar power consumption, California’s name tops the list. Known as the sunshine state in the USA, California generated more than 48 billion kWh of power in the year 2020.

It is expected that by the end of 2022, the state will attain RPS 33 percent renewable energy output. The state has also witnessed the highest electricity rates. 

Several authorities and solar companies encourage residential owners to opt for solar energy for efficient and eco-friendly power generation. They also record numbers of residents who have also invested in solar panels. 

The rebates for solar power here vary from one utility company to another, ranging from USD 700 to USD 1000.

Even though they don’t offer tax credits to the users, you will enjoy different solar tax exemptions in California. This state has become one of the top solar states in the USA. 

#2 Texas

Texas, unfortunately, was a little slow at adopting renewable energy policies. As per the reports, Texas aims at a smaller RPS goal of around 4 percent. Well, the goal is increasing, but it is still unknown.

In terms of rebates, Texas doesn’t offer attractive rebates, but you can still enjoy some benefits. However, solar farms in the state are now taking necessary steps to promote this energy. 

They don’t provide tax credits as well as tax exemptions. But as one of the top states for solar power, they offer property tax exemptions.

#3 Florida

Florida’s renewable energy program is witnessing a faster solar energy generation growth rate than other states. Even though the state has various renewable energy sources, the main focus is on solar energy. 

Did you know Colorado is the first state in the USA to implement an effective renewable solar energy portfolio before any other state?

Even though the state has lower power costs, the government offers attractive rebates, varying from one utility company to another. You can enjoy a rebate of USD 15,000 for solar installations. What’s more? The state also provides the residents with 100 percent property tax exemption and installation tax expectations. You can also enjoy some other incentives based on your power consumption level. 

#4 Arizona

With a few clouds and a bright sky, Arizona never loses an opportunity to take advantage of solar energy ahas s the state witnessed one of the sunniest states in the country. And Arizona’s legislature and solar industry are now working towards improving it. 

As per the EARPC- Environment Arizona Research Policy Center, the state has the highest solar capacity per capita in the USA. On the other hand, the RPS is moderate. 

By the end of 2025, the state is expected to use 15 percent of total renewable energy sources. As one of the best solar states in the country, the state offers lower electricity costs. The rebate may vary, but the average rebates for residential solar installations are around USD 100/kW. 

On the other hand, the state offers around 25 percent of the solar generation system cost in the form of tax credits, which can go up to USD 1000. There are also some property tax exemptions to consider. 

#5 North Carolina

When it comes to talking about the top solar states, you can’t ignore North Carolina. For more than eight years, the state has been working towards attaining its RPS goals, which is around 25 percent.

The electricity cost in this state is relatively higher than the national average. But to manage this, the government offers an attractive rebate program, and you can enjoy around USD 1250 to USD 3,750 per kW. 

On the other hand, you will not get tax credits or performance payments, and the tax exemptions on the properties are managed by the local authority. Even though the policies look a little aggressive, this is an excellent place to go solar. All your costs related to the installations will pay off within ten to fifteen years. 

#6 Nevada

The state has forests, mountains, deserts, lakes and witnesses more sunny days than most other states in the nation, And all these things are helping the state to deploy different solar as well as other renewable energy programs. 

Speaking about the RPS goal of the state, it is 30 percent, and the government is planning to achieve that by the end of 2022.

It is projected that investor-owned utilities will drive more than 20 percent of electricity from the sun. On the other hand, the state’s rural electric cooperatives are projected to generate more than 10 percent of total electricity from the sun.

Now, regarding the tax benefit, New Mexico offers attractive tax credits. You can get 10 percent or up to USD 9000 reb on solar installation sites on solar installations. Like other states, they also offer property and sales tax exemptions. 

Can You Lease Solar Systems? 

If you talk about the golden state, i.e, California, there is no option for leasing a solar power system. You will also not find this facility in New York. Even though personal leasing allows the buyers to save buying and installation costs, you will not enjoy discounts and rebates if you want to lease.

Why? You are not the actual owner of the system. Even though this requires a higher initial investment, you will enjoy a better return on your investment in the long run. In recent years,  systems costs will decrease, creating more opportunities to use solar systems. You don’t have to worry about producing energy as long as the sun is there. 

Solar Energy Industries Association Supporting the Transformation

The journey to attain the maximum advantages of renewable energy can be complex. But with the guidance of the right people, the process becomes more manageable. This is where the SEIA comes into play. 

The organization is promoting the importance of residential solar and taking necessary steps to develop a robust solar market to power multiple places. 

They create a robust framework for solar power and plan to attain more than 30 percent of the total U.S. electricity generation through solar power by the end of 2030. The organization aims to create more solar states to let ordinary people enjoy their lifestyles. 


Some significant factors that support the solar market’s growth in states of solar are grants, attractive rebates, discounts, and other essential incentives. The governments of these states also offer required support to the residents and solar farms. 

Even though solar power systems are costly, homeowners who want to install the panels and system can enjoy rebates. You can check out more details about the incentives by going through the State Incentives for Renewable Energy’s database. 

Speaking about the federal level, the government of the USA provides people with the Federal Residential Energy Tax Credit. This facility is available for: 

  • Energy system equipment, for example, solar battery or inverter installations.
  • Solar cells or PV panel installations.
  • Sales tax
  • Inspection and permitting

When the renewable energy program was first introduced, people received a 30 percent deduction. However, recently released data has informed that by the end of 2023, the rate is forecasted to go down to 22 percent. 

So, no matter whether you are living in Rhode Island, Fort Mill, Texas, New York, New Jersey or Mexico, if you are planning to install a solar system, then it is the right time to get it done to enjoy property tax exemptions and other incentives.

However, when it comes to solar system installations, you should always hire a professional and skilled contractor. And before finalizing your deal, prefer to ask for a free quote and compare the costs with other service providers. 


What Is The Best State For Solar Power? 

After going through this article on the top states of solar, it can be said that California is the best state that has perfectly utilized the solar market’s growth in solar energy.

Also called “Sunny California,” the state has emerged as one of the top states for solar to use renewable energy in the right way. Most homeowners are now adopting solar energy to understand the importance of solar energy panels and solar power. Besides, the state’s solar energy industries association promotes the installation of residential solar panels. 

As per a report, the state’s cumulative solar capacity is around 29 472 MW, and as per the data submitted by the state energy information administration, the solar systems are now generating energy for more than 7,900,000 homes. As the electricity increases with time, people are trying to lower the consumption of power coming from a power grid. And solar companies are also helping them in that. 

What Is The Best Location For Solar Energy?

When it comes to enjoying efficient and successful solar power installations, homeowners should carefully consider the location of the solar installation.

In general, solar panels are installed fixedly on the house roof, and you need to ensure that the panels are facing south. Solar technology depends on sunlight. Solar panels will generate more power when they are exposed to more sunlight. And this generally comes from the southern part.

Remember that there is a great difference between the True South and the Magnetic South, and during your solar panel installations, you need to make sure that the panels are facing the true south. 

What Are the Top Financial Benefits of Using Solar Energy? 

There is no doubt that the electricity prices are increasing with time. Every month, homeowners in states like New Jersey, New York, Texas, and more deal with an increased net metering cost. However, solar energy allows them to enjoy various financial incentives. A home powered by this energy can enjoy various tax incentives or exemptions. 

Other Benefits To Consider

You will also shave on the monthly electricity bills, and you don’t have to deal with a higher property tax. A Solar-powered home generally attracts less property tax. Well, how much you can save in a month will vary depending on your area’s solar policies and electricity rates. 

What Is Net Metering?

Speaking about net metering, it is a system that your nation’s authority will use to credit homeowners using solar panel systems for the total electricity generated by the system.

With this, you will only have to pay for the electricity that you have utilized that your panels can produce. The policies can differ from one nation to another. 

Is It Possible To Go Off The Grid With Solar Panels? 

Well, based on your preference and the current rules and regulations related to solar panels in your country, you can prefer to go completely off the grid or partially off-grid. 

However, during solar installation on your property, you should prefer to stay connected to the power grid. But this will allow you to get power when the solar system is not generating power.

If you want to go entirely off the grid, then you can use large solar batteries to store power for future consumption. 

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