How State Electricity Rates Impact Solar Savings

Electricity price is the anchor variable for most savings estimates. The higher your utility cost per kWh, the more value each solar-generated kWh creates for your household.

That is why identical systems can produce very different financial outcomes across states. A home in a high-rate market often sees faster payback and larger 25-year savings than a similar home in a low-rate market.

Escalation assumptions also matter. If utility rates increase over time, avoided-cost savings compound. Conservative, transparent assumptions are generally better than aggressive growth projections when comparing installers.

When evaluating proposals, always ask which baseline rate and escalation percentage were used. Clear assumptions make quote comparisons far more reliable.