Best States for Commercial Solar Economics
A Table of State Incentives, Rates, and Other Useful Data Points – Updated December 2023
Currently, our top states for commercial solar projects include California, Illinois, New Jersey, Rhode Island, Massachusetts, New York, Michigan, and Pennsylvania, however many states are still attractive depending on the area and financial models available like PPAs and proprietary programs.
Solar economics are influenced by a variety of factors. The table below provides an overview of key elements such as local solar incentives, state clean energy targets, net metering policies, and average electricity costs.
| No. | State | Main Electric Utility | 2nd Largest Utility | Name of Local Incentive Program | State Clean Energy Goal | Net Metering | Avg. Commercial Electricity Price (cents/kWh) | Avg. Industrial Electricity Price (cents/kWh) |
|---|---|---|---|---|---|---|---|---|
| 1 | California | PG&E | Southern California Edison | California Solar Initiative (CSI), Self-Generation Incentive Program (SGIP) | 100% carbon-free electricity by 2045 | Full Retail | 16.58 | 13.05 |
| 2 | Connecticut | Eversource | United Illuminating | Connecticut Green Bank, Residential Solar Investment Program | 100% carbon-free electricity by 2040 | Full Retail | 15.5 | 13.12 |
| 3 | Massachusetts | National Grid | Eversource | Massachusetts Solar Loan Program, SMART Incentive Program | Net-zero greenhouse gas emissions by 2050 | Full Retail | 15.36 | 12.38 |
| 4 | Vermont | Green Mountain Power | Vermont Electric Coop | Vermont Small Scale Renewable Energy Incentive Program | Full Retail | 14.96 | 11.35 | |
| 5 | New Hampshire | Eversource | Liberty Utilities | New Hampshire PUC Solar Rebate, Renewable Energy Fund Grants | Full Retail | 14.82 | 12 | |
| 6 | Rhode Island | National Grid | – | Rhode Island Renewable Energy Fund, REF Small-Scale Solar Grants | 100% renewable energy electricity by 2033 | Full Retail | 14.45 | 11.92 |
| 7 | New York | ConEd | National Grid | NY-Sun Initiative, Energy Efficiency Programs | 100% carbon-free electricity by 2040 | Full Retail | 13.2 | 6.52 |
| 8 | Maine | Central Maine Power | Versant Power | Efficiency Maine Trust Incentive Program | 100% clean energy by 2050 | Full Retail | 12.58 | 8.68 |
| 9 | New Jersey | PSEG | Jersey Central Power & Light | New Jersey Clean Energy Program, Solar Renewable Energy Certificates | 100% carbon free electricity by 2035 | Full Retail | 11.64 | 9.62 |
| 10 | Maryland | Baltimore Gas & Electric | Pepco | Maryland Energy Administration Solar Grants, EmPOWER Maryland | Net-zero greenhouse gas emissions by 2045 | Full Retail | 10.53 | 7.82 |
| 11 | Michigan | Consumers Energy | DTE Energy | Michigan Saves Home Energy Loan Program, Utility Rebate Program | Economy-wide carbon neutrality by 2050 | Inflow/Outflow | 10.4 | 7.09 |
| 12 | Wisconsin | We Energies | Alliant Energy | Focus on Energy Rebates, Renewable Rewards Program | 100% carbon-free electricity by 2050 | Yes | 10.37 | 7.34 |
| 13 | Florida | Florida Power & Light | Duke Energy Florida | Florida PACE Financing Program, Solar Together | Full Retail | 10.36 | 8.01 | |
| 14 | Delaware | Delmarva Power | DEC | Delaware Green Energy Program, Energize Delaware | Full Retail | 10.35 | 8.83 | |
| 15 | Arizona | Arizona Public Service | Tucson Electric Power | Arizona Solar & Wind Incentives, Residential Arizona Public Service Solar Credit | Avoided Cost | 10.31 | 7.27 | |
| 16 | Montana | Northwestern Energy | Montana-Dakota Utilities | Montana Renewable Energy Systems Tax Credit, Universal System Benefits Program | Yes | 10.25 | 6.75 | |
| 17 | Kansas | Westar Energy | KCP&L | Kansas Energy Efficiency Interest Rate Reduction Program | Yes | 10.24 | 7.89 | |
| 18 | Ohio | FirstEnergy | AEP Ohio | Ohio Energy Credits, Energy Efficiency Program for Businesses | Full Retail | 10.14 | 7.08 | |
| 19 | Missouri | Ameren Missouri | KCP&L | Missouri Energy Efficiency Investment Act, Ameren Missouri Solar Rebate Program | Full Retail | 9.78 | 7.19 | |
| 20 | Colorado | Xcel Energy | Black Hills Energy | Colorado Energy Office Programs, Xcel Energy Solar*Rewards Program | 100% carbon-free electricity by 2050 for Xcel Energy | Full Retail | 9.75 | 6.85 |
| 21 | New Mexico | PNM | El Paso Electric | New Mexico Energy Conservation and Management Division Tax Credits, PNM Solar Incentives | 100% carbon-free electricity by 2045 | Full Retail | 9.71 | 6.12 |
| 22 | South Dakota | Xcel Energy | Black Hills Energy | South Dakota Renewable Energy Systems Exemption | Yes | 9.69 | 6.95 | |
| 23 | Minnesota | Xcel Energy | Minnesota Power | Minnesota Power SolarSense Program, Xcel Energy Solar*Rewards | 100% carbon-free electricity by 2040 | Full Retail | 9.66 | 6.82 |
| 24 | Indiana | Duke Energy | Indianapolis Power & Light | Indiana Net Metering | Avoided Cost | 9.66 | 6.65 | |
| 25 | Tennessee | Tennessee Valley Authority | – | Tennessee Valley Authority Green Power Providers | Yes | 9.64 | 7.21 | |
| 26 | North Dakota | Xcel Energy | Basin Electric Power Coop | North Dakota Property Tax Exemption for Renewables | Yes | 9.61 | 7.14 | |
| 27 | Mississippi | Entergy Mississippi | Mississippi Power | Mississippi Net Metering | Yes | 9.59 | 7.02 | |
| 28 | Pennsylvania | PECO Energy | FirstEnergy | Pennsylvania Sunshine Solar Rebate Program, Alternative Energy Portfolio Standards | Full Retail | 9.57 | 6.75 | |
| 29 | South Carolina | Duke Energy | Dominion Energy | South Carolina Solar Rebate Program, Palmetto Clean Energy (PaCE) Program | Full Retail | 9.54 | 6.38 | |
| 30 | Georgia | Georgia Power | Georgia EMC | Georgia Power Solar Buyback, Georgia Energy Efficiency and Conservation Block Grant | Avoided Cost | 9.54 | 6.65 | |
| 31 | Nebraska | Nebraska Public Power District | Omaha Public Power District | Nebraska Dollar and Energy Savings Loans | Net-zero carbon emissions from generation resources by 2050 for Nebraska Public Power District and Omaha Public Power District; 2040 for Lincoln Electric System | Yes | 9.45 | 6.53 |
| 32 | Oklahoma | Oklahoma Gas & Electric | Public Service Company of Oklahoma | Oklahoma Energy Efficient Homes Package, OG&E Solar Power Program | Voluntary | 9.37 | 6.75 | |
| 33 | Alabama | Alabama Power | TVA | AlabamaSAVES Revolving Loan Program | Limited | 9.37 | 6.63 | |
| 34 | Wyoming | Rocky Mountain Power | – | Wyoming Business Council Renewable Energy Grants | Yes | 9.24 | 7.71 | |
| 35 | West Virginia | FirstEnergy | Appalachian Power | West Virginia Energy Efficiency Program | Yes | 9.15 | 6.58 | |
| 36 | Oregon | Pacific Power | Portland General Electric | Oregon Energy Trust Solar Incentive Program, Oregon Solar + Storage Rebate Program | Greenhouse gas emissions reduced 100 percent below baseline emissions by 2040 | Full Retail | 9.07 | 6.45 |
| 37 | Kentucky | LG&E | KU | Kentucky Public Utilities Commission Demand-Side Management Programs | Yes | 9.03 | 7.19 | |
| 38 | Alaska | Chugach Electric | Golden Valley | Alaska Renewable Energy Fund, Alaska Energy Efficiency Interest Rate Reduction Program | Yes | 8.96 | 7.03 | |
| 39 | Illinois | ComEd | Ameren | Illinois Solar for All Program, Future Energy Jobs Act | 100% clean energy by 2050 | Full Retail | 8.96 | 6.52 |
| 40 | Iowa | MidAmerican Energy | Alliant Energy | Iowa Energy Center Alternative Energy Revolving Loan Program | Yes | 8.96 | 5.95 | |
| 41 | Washington | Puget Sound Energy | Avista | Washington Renewable Energy System Incentive Program, Washington Energy Efficiency Grants | 100% zero-emissions electricity by 2045 | Full Retail | 8.86 | 4.79 |
| 42 | Hawaii | HECO | KIUC | Hawaii Energy Efficiency Program, GoSolar Hawaii | 100% renewable energy by 2045 through the RPS | Full Retail | 8.8 | 6.98 |
| 43 | Louisiana | Entergy Louisiana | Cleco | Louisiana Net Metering, Louisiana Tax Credit for Solar Energy Systems | Net zero greenhouse gas emissions by 2050 | Full Retail | 8.76 | 5.53 |
| 44 | Virginia | Dominion Energy | Appalachian Power | Virginia Clean Energy Program, Solarize Virginia | 100% carbon-free electricity by 2045 for Dominion Energy and 2050 for Appalachian Power Company | Pilot Program | 8.71 | 6.59 |
| 45 | North Carolina | Duke Energy | Dominion Energy | North Carolina Clean Energy Technology Center Programs, Duke Energy Solar Rebates | Carbon neutrality in the electricity sector by 2050 | Full Retail | 8.64 | 5.94 |
| 46 | Nevada | NV Energy | Valley Electric Association | Nevada Solar Energy Systems Incentive Program, NV Energy SolarGenerations Rebate Program | 100% carbon-free electricity by 2050 | Full Retail | 8.63 | 6.22 |
| 47 | Utah | Rocky Mountain Power | – | Utah Solar Incentive Program, Energy Efficiency Fund | Transitioning | 8.39 | 5.71 | |
| 48 | Arkansas | Entergy Arkansas | SWEPCO | Arkansas Renewable Energy Development Incentive (REDI), Entergy Solutions Program | Full Retail | 8.34 | 6.08 | |
| 49 | Texas | Oncor | CenterPoint Energy | Texas PACE Program, Oncor Solar Photovoltaic Standard Offer Program | Full Retail | 8.25 | 5.66 | |
| 50 | Idaho | Idaho Power | Avista | Idaho Energy Efficiency Rebate Program, Idaho Power Solar Program. | Yes | 8.18 | 6.09 |