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Guide · reviewed 2026-11-13

Solar Cost and Electricity Rate by State — 2026

By Jian Yuan · Last reviewed 2026-11-13 · Editorial standards

Your state determines three of the four largest inputs to a solar estimate: what grid power costs, how much sun the roof receives, and what the utility pays for exports. The fourth — installed $/W — comes from your…

Overview

Your state determines three of the four largest inputs to a solar estimate: what grid power costs, how much sun the roof receives, and what the utility pays for exports. The fourth — installed $/W — comes from your installer. This table lists all 50 states and DC with EIA's August 2026 residential rates verbatim, our installed-cost benchmark and its provenance, the NREL solar-resource band applied, and the export regime we could verify. Rates are preliminary EIA estimates for 2026; they are not your utility tariff.

How to read the cost column

For twelve states we carry EnergySage's September 2026 marketplace state averages. For every other state we apply a 2.80 $/W national modeling benchmark, bracketed by the 2026 EnergySage national average of roughly $2.60/W and LBNL's 2025 install-year cash-purchase median of about $3.00/W. We label these rows rather than presenting them as measured state prices. A real quote can differ by a dollar per watt.

Why rate and cost can point in opposite directions

Hawaii has the highest residential rate in the table at 47.18 ¢/kWh and one of the highest installed costs at $3.43/W. California combines a 29.75 ¢ rate with a low $2.52/W marketplace benchmark but a low export credit. Louisiana has the lowest rate at 12.87 ¢ and no verified statewide credit. High rate is good for payback; low export credit is bad; cheap hardware helps. Only a full model combines them.

Where the numbers come from

Electricity rates: EIA Electric Power Monthly, Table 5.6.A, August 2026 residential column (U.S. total 18.16 ¢/kWh, released October 23, 2026). Note that Table 5.6.B is a year-to-date series (U.S. 18.19) and must not be mixed with 5.6.A. Installed cost: EnergySage September 2026 state marketplace averages and the LBNL Tracking the Sun 2026 data update (covering installations through 2025). Solar resource: NREL NSRDB state-level climatology bands.

What the table cannot tell you

Your utility's export rate, your roof's shade, your household's load profile, your tax liability, and the incentives your specific utility offers. Use the table to choose a starting point, then open your state page and replace every default with a real number.

Key figures worth keeping

How this shows up in a real estimate

A common mistake is to treat the rate column as a ranking of solar economics. It is not. California's 29.75-cent rate is attractive until you apply a roughly 4-cent export credit; Louisiana's 12.87-cent rate is unattractive even with cheap hardware; Hawaii's 47.18-cent rate is paired with the highest installed cost in our table at $3.43/W. The state page runs all of them through the same cash-flow model, which is the only way to see the combined effect. Use this table to pick a starting point, not a conclusion.

Checklist before you decide

Planning estimates only — not a quote, tax advice, legal advice or financial advice. State benchmarks are not your utility tariff. Verify every incentive with the program administrator and get at least three written installer quotes.

Frequently asked questions

Which state has the cheapest electricity?

Louisiana at 12.87 ¢/kWh in August 2026, with North Dakota and Utah close behind at 13.31 ¢.

Which has the highest?

Hawaii at 47.18 ¢/kWh, followed by Maine at 32.11 ¢ and Massachusetts at 30.48 ¢.

Are these my actual rates?

No. They are statewide residential averages published by EIA and flagged as preliminary for 2026. Your tariff, including fixed charges and time-of-use periods, will differ.

Why is the $/W the same for many states?

Because we only had verified state-level marketplace prices for twelve states. Rather than invent a number, we apply a labeled national benchmark and tell you to enter your quote.

Sources and further reading

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