Solar panels cost about $2.60 per watt nationally in 2026, but the state you live in moves that from $2.12 in Florida to $3.23 in Minnesota among the 15 states we tabulate below, based on EnergySage’s marketplace data (page updated June 30, 2026). On an 8 kW system, that spread is $8,880 (our arithmetic). A second dataset, Lawrence Berkeley National Laboratory’s (LBNL) Tracking the Sun, which covers 2024 installs, ranks the states quite differently. This guide shows both side by side, explains why states differ, and warns against picking a state ranking on price alone.
Solar Cost per Watt by State: Two Datasets
The table uses two sources. EnergySage’s figures come from quotes on its marketplace and are before incentives, per its cost page (June 30, 2026). LBNL’s figures, from its October 2025 data update, are medians of reported installed prices for 2024 systems, in 2024 dollars. The last column is our arithmetic: an 8 kW system at the EnergySage rate.
| State | EnergySage 2026 ($/W) | LBNL 2024 median ($/W) | 8 kW at EnergySage rate |
|---|---|---|---|
| Florida | $2.12 | $4.7 | $16,960 |
| Texas | $2.25 | $4.1 | $18,000 |
| Arizona | $2.27 | $3.6 | $18,160 |
| Nevada | $2.37 | $2.9 | $18,960 |
| Oregon | $2.44 | $3.6 | $19,520 |
| North Carolina | $2.44 | $4.5 | $19,520 |
| Washington | $2.51 | $3.7 | $20,080 |
| California | $2.52 | $4.0 | $20,160 |
| Maryland | $2.58 | $4.1 | $20,640 |
| New Jersey | $2.59 | $3.8 | $20,720 |
| Colorado | $2.64 | $4.7 | $21,120 |
| Connecticut | $2.67 | $4.1 | $21,360 |
| New York | $2.75 | $4.1 | $22,000 |
| Massachusetts | $2.90 | $3.4 | $23,200 |
| Minnesota | $3.23 | $4.4 | $25,840 |
| US national | $2.60 | $4.0 | $20,800 |
The same EnergySage data lists higher figures elsewhere, including Hawaii at $3.43, Tennessee at $3.51 and Alabama at $3.82. Alabama against Florida is a $1.70 per watt gap, or $13,600 on 8 kW (our arithmetic).
Why the Two Rankings Disagree
Florida is the cheapest state of the 15 in EnergySage’s 2026 data and the most expensive, tied with Colorado, in LBNL’s 2024 data. Texas is second cheapest at $2.25 in one dataset but $4.1 in the other. Massachusetts goes the other way: $2.90 in EnergySage, which is the second highest of the 15, but $3.4 in LBNL, near the low end.
The datasets differ in at least three ways:
- Different years. One covers 2026 quotes, the other 2024 installs.
- Quotes versus completed sales. EnergySage shows what installers bid to shoppers on its platform. LBNL reports what was actually reported as installed.
- Financing. LBNL’s prices include loan dealer fees. In its 2024 data, cash purchases had a median of $3.5 per watt and loans $4.7, a $1.2 gap. A state where most buyers take loans will look more expensive in LBNL’s figures even if its cash prices are low.
LBNL’s own commentary on state differences points to financing choices, market size, population density, permitting, and in at least one case a single large installer’s unusual pricing. We take that as a reason not to read one dataset as the final word on any state. If you want the national picture and how size and brand affect it, see our solar panel cost per watt guide.
What Makes a State Cheaper or Pricier
Price per watt is set by local conditions, and several of them are worth checking on your own quote.
Labor and overhead. EnergySage’s 12 kW breakdown (system price $31,135) attributes 7% to labor, 18% to sales and marketing, 11% to overhead and 11% to profit. Those lines are set by local wages, installer competition and how much the installer spends to win each job. That is nearly half the price (47% by our addition), so local differences here carry a lot of weight.
Permitting and interconnection. The same breakdown puts permitting and interconnection at 8%, or about $0.21 per watt at $2.59 per watt (our arithmetic). Cities and utilities differ on fees and approval time, and a slow process adds cost for the installer.
Market size. LBNL lists market size among the reasons state prices differ. Our reading is that more installers means more bids for you to compare, but we cannot show the size of that effect from the sources we opened.
Incentives and net metering. These change what you pay or earn, so they do not appear in the per-watt prices above. The federal 30% credit is no longer available for property placed in service after December 31, 2025, per the IRS (page updated July 4, 2026), so the table needs no federal adjustment. State rebates and utility export rules vary and change often. Check your utility and state energy office before you sign.
Lower Cost per Watt Does Not Mean Faster Payback
A cheap system in a low-rate state can pay back slowest. Our solar panel payback period guide combines EnergySage’s payback estimates (September 3, 2026) with the EIA’s July 2026 residential electricity rates. A few of its rows:
| State | EIA rate (July 2026) | EnergySage payback |
|---|---|---|
| Massachusetts | 30.49 c/kWh | 7.32 years |
| California | 33.61 c/kWh | 7.73 years |
| New Jersey | 25.19 c/kWh | 8.84 years |
| New York | 29.90 c/kWh | 12.02 years |
| Texas | 15.88 c/kWh | 12.92 years |
| Arizona | 15.38 c/kWh | 13.23 years |
| Florida | 15.03 c/kWh | 16.30 years |
Florida has the lowest cost per watt in EnergySage’s table and the longest payback in this list. Massachusetts has one of the highest prices per watt and the shortest payback. Electricity rates explain that: a system that offsets 30 cents of power each kilowatt-hour earns back faster than one that offsets 15 cents. You can look up your own state’s rate in our average electric bill by state guide, and test your numbers with our solar panel payback calculator.
How to Use the State Numbers
Use the table as a sanity check, not a quote. If your bid is far above your state’s EnergySage figure, ask the installer why. If it is far below, check what is excluded, such as the inverter, permits or a roof repair. Compare bids on the same basis, cash or financed, and divide each by system size in watts. Our solar panel installation cost guide covers system types and what a typical quote includes.
The Bottom Line
EnergySage’s 2026 data puts solar between $2.12 per watt in Florida and $3.23 in Minnesota among 15 big states, against a national $2.60. LBNL’s 2024 medians run from $2.9 in Nevada to $4.7 in Florida and Colorado, against $4.0 nationally. The two rankings disagree because of timing, quotes versus completed sales, and loan fees. Labor, overhead, permitting and market size push prices up or down, and no federal credit offsets any of them in 2026. Cost per watt is only half the story, because your local electricity rate decides how fast the system pays back. Get at least three quotes and run the payback numbers before choosing.
FAQ
Which state has the cheapest solar panels in 2026?
In EnergySage’s 2026 marketplace data, Florida is the cheapest of the 15 states we tabulated at $2.12 per watt, followed by Texas at $2.25 and Arizona at $2.27. In LBNL’s 2024 install data, Nevada is the lowest at a $2.9 median. The two datasets disagree, so get local quotes.
Why is solar more expensive in some states?
Labor, overhead, permitting and interconnection, financing choices and the number of competing installers all vary by state. LBNL also notes that a single large installer’s pricing can shift a state’s median. We could not isolate the size of each factor from the sources we reviewed.
Does the cheapest state per watt have the best payback?
Not necessarily. Florida has the lowest EnergySage price per watt but the longest payback in our list, 16.30 years, because its electricity rate of 15.03 cents per kWh is low. Massachusetts costs more per watt but pays back in 7.32 years at 30.49 cents per kWh.
Can I get a federal tax credit for solar in 2026?
No. The IRS says the 30% residential clean energy credit is not available for property placed in service after December 31, 2025. State and utility incentives may still apply where you live.