Solar energy has never been more affordable nationwide — but dramatic price differences have emerged across the United States, according to EnergySage's Solar and Storage spring 2025 marketplace report.
The newly released 20th edition of this report reveals that Arizona leads the nation with the lowest solar prices (at just $1.99 per watt), while Tennessee ranks as the most expensive ($3.35 per watt). This price gap means homeowners in Tennessee would pay over $15,000 more for a typical 11.5 kilowatt solar system compared to those in Arizona.
Further, installing solar panels in Arizona costs nearly 41% less than in Tennessee, allowing homeowners to recoup their investment much faster while reducing their reliance on dirty fuel-generated electricity.
EnergySage's report also shares that states with high solar adoption, like California, Florida, and Texas, all have median prices substantially below the national median of $2.50 per watt. These favorable economics have driven battery attachment rates to record highs in these states.
Additionally, the report indicates that median solar prices decreased in all top 10 solar states between the first and second half of 2024, with Arizona maintaining its position as the most affordable state for four consecutive years. States with competitive solar markets tend to offer lower prices, regardless of their electricity rates.
Finally, the report emphasizes that solar pricing varies by region, with the price spread between the highest and lowest-priced states increasing from $1.20 per watt to $1.36 per watt between the first and second half of 2024.
Wherever you reside, going solar remains one of the best ways to save money on home energy while reducing planet-heating pollution. EnergySage's free tools make it easy for homeowners to compare quotes from vetted local installers and save up to $10,000 on installations thanks to rebates like those offered through the Inflation Reduction Act.
However, these generous incentives may not be available forever. President Trump has said he wants to eliminate the subsidies to reduce federal spending, though this would require a congressional act. Either way, the future of these incentives is uncertain, and taking advantage of them earlier rather than later could be worth thousands of dollars.
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They're too expensive 💰 
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