The Best Cities To Add Solar To A Home

As local, state and federal governments are working to reduce their dependency on fossil fuels and try to curb the effects of climate change, homeowners are turning to rooftop solar to electrify their homes efficiently and cost-effectively. With decreasing costs, more financing options and financial incentives, adding solar to homes has become more popular. In fact, a recent survey from Rocket Homes^SM found that 66.5% of non-solar households would be interested in getting it in the future.

Due to differences in local climate, economics and geography, going solar offers more benefits in some places than others. While solar power is good for the planet anywhere, these U.S. cities may be some of the best places in the country to add solar to a home.

Finding The Best Cities To Add Solar To A Home

The researchers at BestPlaces.net used the following metrics to determine the rankings for the best cities to add solar to a home:

• Average annual electricity rates per kilowatt hour (kWh)
• Percent of cloud coverage throughout the year
• Solar installs per 100,000 residents (statewide)
• Buyback (net meter) programs (statewide)
• Percent of solar homes using solar for heating
• State incentive programs
• Angle of the sun
• Elevation effect

Some areas of the U.S. have distinct advantages when it comes to solar energy. The relentless sunshine in the Southern states is very different from the dark and cloudy climate of Northern states. To avoid concentrating on just the sunniest states and to provide insights for the entire country, we determined the top three solar places for each of the four Census regions (Northeast, Midwest, South and West). 

The Northeast

1. New York City, New York

Population: 19,895,340

Electricity rates: $0.20367 per kWh

New York City has higher electricity rates than 99% of metro areas in the country. That means NYC residents who switch to solar may feel some of the biggest positive impact when it comes to saving on their electric bills. While that should be incentive enough, the state of New York also has more than 100 policies and incentive programs that benefit solar homes, including the Solar Energy System Equipment Credit, which allows solar residents to reduce their state tax payments by up to $5,000 or 25% of total solar energy expenses, whichever is lower.

2. Boston, Massachusetts

Population: 4,873,019

Electricity rates: $0.17423 per kWh

Because of New England’s diverse weather conditions and often gray winters, there’s a misconception that solar doesn’t make sense for that particular region of the country. The city of Boston has been balking at that myth for years. In 2007, the U.S. Department of Energy named the city a “Solar America City,” and in 2009, Mayor Menino launched the energy-efficiency program Renew Boston to make city buildings more energy-efficient. The city’s initiatives have set a trend both nationally and in the state of Massachusetts, which ranks in the top 15% of the country for residential solar installations per 100,000 people.

3. New Haven, Connecticut 

Population: 854,757

Electricity rates: $0.18711 per kWh

With electricity rates that are higher than 98% of U.S. metropolitan areas, the New Haven area makes switching to solar almost a no-brainer. Paying almost $0.19 per kWh on average, residents will also appreciate Connecticut’s net metering policy, which credits solar homeowners for any excess power their system produces that they don’t use. And when their system can’t produce enough electricity and they need to supplement it, they can use that credit to save money.

The Midwest

1. Bloomington, Minnesota 

Population: 3,654,908

Electricity rates: $0.12654 per kWh

Minnesota has more policies and incentive programs benefiting solar homes than almost 90% of U.S. states. Residents who install solar panels on their homes won’t have to pay the 7% sales tax on their solar purchase, thanks to the state’s sales tax exemption for solar. Even better, one lucky homeowner can get up to 60% of the price of installation paid for if they win the SolarSense lottery-based rebate. 

2. Kansas City, Missouri

Population: 2,157,990

Electricity rates: $0.11558 per kWh

Clouds can obstruct sunlight and even reflect it back into space. So, while solar panels will still work when it’s cloudy, they’re not as efficient and don’t produce as much energy. Ranking in the top 25% of metro areas for most unobscured daylight, Kansas City provides optimal skies for solar energy production. The city itself has made solar installations easier for residents, too. In 2016, it was one of the first in the nation to earn the Gold SolSmart award from the U.S. Department of Energy for promoting solar energy and being “open for solar business.”

3. Chicago, Illinois 

Population: 9,458,539

Electricity rates: $0.12408 per kWh

The solar buyback programs offered by the state of Illinois score higher than 75% percent of the buyback programs offered by other states. One incentive of note is the Adjustable Block Program, which gives solar homeowners a Solar Renewable Energy Certificate (SREC) for each megawatt hour (MWh) of electricity their system generates over a 15-year period. Utility companies buy these certificates, which can turn into thousands of dollars in savings for the homeowner. In addition to this incentive, Chicago residents will be able to decrease their utility costs by switching to solar. And with some of the highest electricity rates in the state of Illinois, their savings can be some of the biggest in the Prairie State.

The South

1. Salisbury, Maryland 

Population: 415,726

Electricity rates: $0.13282 per kWh

With the Clean and Renewable Energy Standard (CARES) plan, Maryland is on the way to 100% clean electricity by 2040 and has more solar installs per 100,000 residents than 75% of the country. Many Salisbury residents are taking it a step further, using solar energy for more than just electricity. The city ranks in the top 15% for the number of solar homes that use the sun’s energy for heating fuel.

2. Baltimore, Maryland 

Population: 2,800,053

Electricity rates: $0.13701 per kWh

As Maryland remains motivated to hitting 100% clean energy by 2040, the state offers several incentive programs to its citizens. For example, homeowners who install solar shingles or solar photovoltaic (solar PV) technology on their homes can receive a $1,000 rebate – just like that. The state’s net metering policy also gives solar homeowners credit on future electric bills for the extra electricity their panels create. And Baltimore residents may benefit from this credit more than others in the state. The city has higher electricity rates than 70% of the country’s other metro areas.

3. El Paso, Texas

Population: 844,124

Electricity rates: $0.12148 per kWh

Solar is most effective when the sky conditions are just right, meaning there’s not too much cloud coverage and the position of the sun is providing the most power to the panel. El Paso has some of the best sky conditions for solar, with an angle of sun that can produce a higher intensity of light and more unobscured daylight than almost 95% of the country’s metro areas.

The West

1. San Diego, California 

Population: 3,338,330

Electricity rates: $0.18575 per kWh

San Diego ranks in the top 25% of metro areas for an angle of the sun that can deliver a higher light intensity to solar panels. This can be helpful for San Diegans looking to save on the $0.18 per kWh they typically pay for electricity. And since residents are paying some of the highest electricity rates for a metro area, they may benefit more from solar than many other U.S. residents.

2. Bakersfield, California

Population: 999,101

Electricity rates: $0.16586 per kWh

The state of California ranks in the top 10% of the country for the number of solar incentive programs it offers. Along with saving money through the state’s incentives, Bakersfield residents are in a good position to save on their utility bills, too. Ranking in the top 5% of the country’s metro areas for the most unobscured daylight, Bakersfield’s solar homes are likely to generate more power on average than places with cloudier skies.

3. Fresno, California 

Population: 900,202

Electricity rates: $0.16693 per kWh

From 2010 until 2020, the California Public Utilities Commission (CPUC) provided rebates to households that used solar thermal systems to heat their water. Today, the city of Fresno ranks in the top 1% of the country for the percent of homes using solar energy as heating fuel. While that rebate is no longer available, there are plenty of other incentives offered by the state and by the city of Fresno. Thanks to the Transformative Climate Communities Program (TCC), residents who live in the Transform Fresno project area may receive a free installation of an up-to-6k Watts solar system and own it free and clear.

Summary: Solar Panel Installation Has Many Benefits – No Matter The Location

While some places may make more solar sense than others, people can see advantages no matter their location. Solar customers aren’t just helping the environment; they’re also benefiting personally from their solar projects. Along with lower energy bills and local incentives, there can also be real estate incentives. Solar panel installation is a home improvement that could potentially increase home value by thousands of dollars. Our research has found that “home listings with solar spend 13.3% less time on the market and are 24.7% more likely to sell over ask.”

Let’s also not forget the tax incentive homeowners can get for installing a solar photovoltaic, or solar PV, system on their homes. Right now, the federal tax credit is as follows:

• 30% for any system installed before December 31, 2019
• 26% for systems installed between 2020 and 2022
• 22% for any system installed in 2023

The tax credit is set to expire in 2024, but Congress can renew it for more years.

While homeowners will save on energy costs and financially benefit in other ways from installing solar, they must be aware of installation costs, which can be high. According to HomeAdvisor, the average cost to have solar panels installed is $17,000 – $33,000, though it depends on the type of solar panel and the home’s location. Many people have several financing options to help. It’s important for homeowners to weigh their options and compare costs before deciding to invest.

Methodology: Finding The Best Cities For Solar

In this study, we reveal the best places in the United States to add solar power to the home. The research team at BestPlaces.net collected and analyzed statistics for eight key metrics which measure the factors involved in using residential solar energy. We chose metrics that are as current as possible and as detailed as possible to provide the most relevant insight. For example, the most recent utility rates for the entire U.S. are only available for 2020, released in February 2022.

The places analyzed in our study are the 150 largest metropolitan areas in the United States. These 150 metro areas are home to nearly three-fourths (74%) of all U.S. residents. Metropolitan areas are particularly useful for our rankings because they include not only each area's major cities but also the surrounding counties, which include the suburbs.

Each data category is normalized and transformed to a common range of 0 – 100 points for scoring and comparison. Weights are applied to each metric which reflects its importance in the study. The weighted scores for each metric are summed to create the overall Best Places for Solar score for each place. The final scores are sorted to produce the final rankings.