The Best and Worst States for Solar

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August 15, 2017 | By RGR Marketing Blog

Where You Live Matters When It Comes to Solar

Solar energy is one of the most popular alternative energy resources for both residential and commercial markets. But, when it comes to things like solar energy costs and efficiency, not every state is the same.

For instance, Hawaii might seem like it’s made for solar energy with as much sunshine as it receives, but after the installed solar systems threatened to overwhelm Hawaii’s main electricity provider, Hawaii Electric Industries (HEI), with excess energy that was sold back to the utility provider, the state intervened and removed its net energy metering program. Hawaii remains committed to having a 100% renewable energy portfolio by 2040, but at the moment, it’s not one of the best states for solar because of the loss of net metering.

As for the rest, here are the five best (and worst) states for solar energy.

Top Five States for Solar

California – There are several reasons why California is one of the top five states for solar. For starters, the state receives plenty of sunshine annually with 68% of its weather being sunny days. But, even more important are the state’s strong anti-pollution measures in the 1960s and ‘70s that helped reduce air pollution, a major cause of inefficient solar production. California also has a $3.3 billion subsidy for its solar panel manufacturing industry. Lastly, the state’s New Solar Homes Partnership provides homeowners with individual incentives of $10,000 or more to build energy efficient homes with solar power arrays included.
New Mexico – In New Mexico, you can expect sunny days 76% of the time. But, making the state even more pro-solar is the fact that by 2020, the state’s Renewable Portfolio Standard will require no less than 20% of the state's entire power output to be produced by renewable energy sources. Homeowners also fare well in New Mexico, earning up to $9,000 in tax credits that can be used towards the purchase and installation of solar panels.
Massachusetts – Massachusetts is one of a few states that allows homeowners to lease solar panels rather than buying them outright. This makes the concept much more acceptable for some homeowners. Tax incentives and rebate programs also help make the shift to solar easier. Massachusetts is so committed to solar energy that the state makes direct payments ($70 million per year) to school districts and municipalities that install photo-voltaic arrays on their new or existing structures.
New York – New York has money saving tax incentives and state rebate programs that take some of the financial burden from those homeowners looking to convert. These measures also help households achieve much quicker payback time frames.
New Jersey – Although New Jersey is a small state by land mass, it has the second-highest solar capacity in the country, being second only to California. The reason for this is due to the state’s aggressive practices of luring solar power companies. New Jersey also has a program in effect called the WARMAdvantage program, which offsets the cost of homeowners' solar water heater installations, thus making it an easier decision to go solar in the Garden State.

Bottom Five States for Solar

North Dakota – On paper, North Dakota looks like it shouldn’t be among the bottom five states. After all, it has several solar policies in place. The problem with North Dakota is that the policies it has are very weak. In fact, the only real benefit North Dakota offers homeowners who want to go solar is that its property tax exemption will cover 100% of the value of the solar power system after 5 years.
Arkansas – While Arkansas does have a net metering program in place, it has a very low system capacity limit that prevents systems higher than 25kW for homeowners and 300kW for non-residential installations being installed. In order for the state to climb out of the bottom five, it needs to increase the maximum system size to larger than 500 kW at the very least.
Oklahoma – Oklahoma talks big about its solar goals, but it never implements the policies and incentives to support it within the state. For starters, the state barely offers any subsidies for renewable sources of energy, solar included. It also refuses to penalize businesses that don’t comply with its goal of attaining 15% of its electricity from renewable energy sources by 2020. Instead, the state looks to volunteers to help them reach that goal. Making it even worse is the fact that Oklahoma requires homeowners to pay upfront for their solar panels, basically ensuring they’ll never reach the number of volunteers they need to get where they want to be by 2020.
Mississippi – During the Great Depression, Mississippi’s commitment to hydroelectric dams made it a pioneer in alternative energy sources. But, that was then and this is now. Today, the state relies on “unclean” coal and oil for its energy production. The state also fails to offer any significant incentives for families and businesses who are considering making the switch to solar power or other any other form of renewable energy. All of this makes Mississippi one of the most expensive states for solar power installations.
Missouri – Missouri’s northwestern corner seems like it would be ideal for solar power because it receives more annual sunshine than just about any other area to the east. But, when it comes to taking advantage of this, Missouri basically shoots itself in the foot. The state offers barely any subsidies for homeowners who want to go solar. And, while it is true that Saint Louis offers at least some subsidies, most tend to get scaled back or eliminated entirely by lawmakers. Like Mississippi, Missouri continues to rely on coal for more than 80% of its total power production, despite its wealth of alternative energy resources.

If you’re a homeowner in one of the bottom five states, don’t let that stop you from looking into solar energy. All across the United States, individual jurisdictions have shied away from their state government’s ideals by offering local subsidies that can help lower the cost of solar power installation for their homeowners and businesses. So, if you can find help from your state government, turn to your local government as they might have a program that can help.

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