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Best States For Solar Energy: Exploring Top Solar States In America

Every year, more people choose solar panels for their homes and businesses. Compared to the first quarter of 2022, the number of residential solar systems installed increased by 30% in 2023. Homeowners can benefit financially from solar energy in most cases, however state-by-state variations in this regard can be significant. The Database of State Incentives for Renewable Energy finds out the solar potential of the state and also gathers information regarding solar incentives available in each state. This helps in deciding which state is the best state for solar energy in the United States.

This article aims to provide an in-depth look at some of the best states for solar energy, including their regulatory environments, tax incentives, and net metering policies. With the growing need for sustainable energy, harnessing the power of the sun is becoming an increasingly popular choice for residential and commercial audience.

What are the five best states for solar energy production?

According to Forbes Homes, survey, 48% of US residents want to install Solar panels in the future. However, concerns like upfront cost, the return on investment, and navigating local regulations were the common considerable factors for homeowners before going solar. The fact is not deniable that some states are better than others when it comes to solar incentives and state rebates. According to the Solar Energy Industries Association (SEIA) quarterly report 2024, the following are the best states for solar energy production.

California:

California is among the best states for solar energy production because of its 300 sunny days. Almost 25% of California’s electricity comes from solar energy. Moreover, the state has invested approximately $75 billion dollars in solar technology.

According to the SEIA report, the residential solar installation has topped off the previous solar panel installation with 1.57 gigawatts worth of solar installation in a single year. Out of this total installation, 36% of the installation takes place just in the Golden State. When it comes to megawatts installation, California leads the way here too. With 38,144 MW of power production, the state comes first in the line of the best states for solar energy.

According to an estimation, in 2024 the annual solar installations will reach up to 30 to 40 gigawatts in the United States. And California will be the state to drive the record volumes in this regard. This will happen because the solar industry in California will rush to get the sales up before the state shift to new net metering policies. However, California was the first state to incentivize renewable energy in 1976, making it the best state for solar energy production. Currently, the state has 2,000 solar companies and 10,510,648 homes that use solar energy.

Texas:

The Lone Star State is also among the best states for solar energy. In Texas 16,173 MW of solar was installed last year. Texas is leading the way in residential solar production. Out of total electricity production in Texas, 4.7 percent comes from solar energy. Approximately 1,855,828 homes use solar energy to power their home. Texas is likely to invest fourteen billion dollars in solar energy. This will increase the solar capacity of Texas to almost 1,525 megawatts. Which is almost 45% more than the last year. The Lone State also receives 135 clear sunny days for solar energy production. Hence increasing the state potential of solar production. The solar industry of Texas also offers 10,346 jobs to its citizens.

North Carolina:

The Mid-Atlantic state is no exception to getting benefits from its geographical location. Due to better geographical location and state tax incentives, North Carolina is among the best states for solar energy production. The number of clear sunny days in North Carolina is 109 which improves the solar potential of the state. However, North Carolina contains approximately 8,147 megawatts of solar installation. Almost 9.0% of total electricity production in the state takes place through solar radiation. This amount of energy is enough to power 955,987 homes which in turn makes North Carolina the best place for solar energy production. The average Installation cost of solar panels in North Carolina after a 30% Federal Tax Credit is $10,390. The total solar investment in North Carolina stands at a whopping $10 billion dollars.

Florida:

It is not surprising that the Sunshine State is among the best places for solar energy production. Almost 5.4% of state energy is generated from solar energy which is more than enough to power 1,157,337 Floridian’s homes. Thus, making it among the best states for solar panels installation. Currently, in Florida 9,791 megawatts of solar energy is installed. The state has an investment worth $10.5 billion in solar technology. Due to this, the state can offer 11,761 solar jobs, making it the best place for solar energy production. In 2021, an addition of 525 megawatts was made to the total solar capacity of Florida. This has doubled the cumulative solar capacity of Florida in less than a year. The number of clear days in Florida is about 101.

Arizona:

Arizona is the sunniest state in the country, receiving 193 clear days for solar power production. The Grand Canyon State has about 306 solar companies which include 57 manufacturers, 144 installers, and 105 non-designate. The solar industry in Arizona is responsible for creating 8,278 solar jobs, making it among the best states for solar energy. Almost 10% of the state’s energy now comes from solar energy alone.

Currently, 953,394 households in Arizona utilize solar energy. Furthermore, Arizona invests heavily in its solar sector as well, which is approximately $14.3 billion. This places Arizona in the second position right after California on the list of best states for solar energy. This makes Arizona the best place for solar panel installation as well, hence increasing the solar potential of the state. According to SEIA the total solar capacity of the USA is increasing by the year.

How solar incentives impacts the solar potential of the state?

The main reason behind solar energy’s popularity is that it is not only incentivized at the federal level but also many states will provide certain rebates to solar users. However, understanding your state legislature can help you get a clearer picture of solar panels’ upfront cost and their payback period.

The federal government offers incentives for solar panels which are known as Investment Tax Credits (ITC). ITC currently allows homeowners to claim 30% of the initial installation cost of solar panel systems.

Moreover, some states offer incentives when it comes to solar power. which includes state-based tax incentives, rebates, and Solar Renewable Energy Certificates (SREC).

To make an informed decision, it is better to consult with a local solar installer near you. SolarSME is among the top tier solar panel installation companies in the U.S. Get a FREE quote and go solar.

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