Solar Savings Calculator by State 2026: Texas, Michigan & New Jersey

How much can you save with solar in Texas, Michigan, or New Jersey in 2026? State-by-state breakdown of costs, incentives, payback periods, and real savings estimates.

How much you save with solar depends heavily on where you live. Your state’s electricity rate, available incentives, and net metering policy can mean the difference between a 7-year payback and a 15-year payback — for the exact same system.

This guide breaks down solar savings estimates for three of the most-searched states: Texas, Michigan, and New Jersey. Use our Solar Savings Calculator to get an instant estimate for your specific ZIP code and monthly bill.

Why Solar Savings Vary So Much by State

Three factors drive the difference:

Electricity rate: States with $0.20+/kWh see much faster payback than states at $0.10/kWh
State incentives: Tax credits, rebates, and SREC programs can reduce costs by thousands
Net metering: Full retail-rate credit for exported power dramatically improves ROI

The federal 30% residential ITC expired December 31, 2025 — see our full ITC status guide for details. In 2026, state and local incentives are the primary financial levers for homeowners.

Solar Savings in Texas (2026)

Avg. electricity rate: ~$0.13/kWh
Avg. system cost (7 kW): ~$18,900
Avg. payback period: 10–13 years

What Incentives Are Available in Texas?

Texas has no state income tax, which means no state solar income tax credit. However:

100% property tax exemption on the added home value from solar (TX Tax Code §11.27 — file Form 50-123 with your county by April 30)
Austin Energy rebate: $2,500 for eligible residential customers in Austin
AEP Texas rebate: up to $3,000 for AEP service territory customers
Net metering: Not mandated statewide — you must choose a retail electricity provider (REP) with a solar buyback plan. Buyback rates range from ~$0.03/kWh to full retail depending on your REP.

Texas Solar Savings Example

For a Texas homeowner with a $150/month electricity bill ($1,800/year):

	Amount
7 kW system gross cost	$18,900
AEP/Austin Energy rebate (if eligible)	−$2,500
Property tax exemption	ongoing savings
Estimated net cost	~$16,400–$18,900
Annual electricity savings	~$1,200–$1,400
Payback period	~12–14 years
25-year net savings	~$30,000–$40,000

Best for: AEP Texas or Austin Energy customers, homeowners with high electricity consumption, those adding battery storage for grid independence after Winter Storm Uri.

Get your free Texas solar estimate → Use our Solar Calculator

Solar Savings in Michigan (2026)

Avg. electricity rate: ~$0.18/kWh
Avg. system cost (7 kW): ~$21,000
Avg. payback period: 10–13 years

What Incentives Are Available in Michigan?

Full property tax exemption on solar system value (systems ≤150 kW)
Sales tax exemption on solar equipment purchases
Distributed Generation (DG) Program: Michigan replaced traditional net metering with a DG program — systems 20 kW or smaller receive full retail-rate credits for excess generation, carried forward to the next billing period
Lansing BWL rebate: $500/kW up to $2,000 for Lansing Board of Water & Light customers
Michigan Saves loans: low-interest financing at 4.44–7.90% APR for up to $50,000, terms up to 15 years

Michigan Solar Savings Example

For a Michigan homeowner with a $150/month electricity bill:

	Amount
7 kW system gross cost	$21,000
Sales tax exemption (6% MI sales tax)	~−$1,260
Property tax exemption	ongoing savings
Estimated net cost	~$19,740
Annual electricity savings	~$1,400–$1,600
Payback period	~12–14 years
25-year net savings	~$35,000–$45,000

Important: Michigan’s DG program credits at full retail rate for systems under 20 kW — which is essentially equivalent to traditional net metering for most residential systems. This makes Michigan more favorable than its moderate sun hours suggest.

Best for: Consumers Energy and DTE Energy customers, homeowners who want to lock in electricity costs as Michigan rates continue rising.

Get your free Michigan solar estimate → Use our Solar Calculator

Solar Savings in New Jersey (2026)

Avg. electricity rate: ~$0.18/kWh
Avg. system cost (7 kW): ~$22,750
Avg. payback period: 7–8 years

New Jersey is one of the best solar markets in the US — consistently ranking in the top 5 states for solar ROI even after the federal ITC expiration.

What Incentives Are Available in New Jersey?

SuSI Program (Successor Solar Incentive): quarterly payments per kWh produced for 15 years — one of the most generous ongoing solar incentives in the country. Contact your installer for current SuSI rates.
SREC market: earn Solar Renewable Energy Credits for each MWh your system produces, sold to utilities
Retail-rate net metering: full credit for excess power exported to the grid
Sales tax exemption on solar equipment
Property tax exemption on the added home value from solar

New Jersey Solar Savings Example

For a New Jersey homeowner with a $150/month electricity bill:

	Amount
7 kW system gross cost	$22,750
Sales tax exemption (6.625% NJ sales tax)	~−$1,500
SuSI program income (15 years)	significant ongoing income
Estimated net cost	~$21,250
Annual electricity savings	~$1,400–$1,600
SuSI/SREC annual income (est.)	$500–$1,500/year
Payback period	7–8 years
25-year net savings	~$50,000–$65,000

Best for: JCP&L, PSE&G, or Atlantic City Electric customers. New Jersey’s SuSI program income on top of electricity savings makes it one of the fastest paybacks in the country.

Get your free New Jersey solar estimate → Use our Solar Calculator

State-by-State Comparison: Texas vs. Michigan vs. New Jersey

	Texas	Michigan	New Jersey
Avg. electricity rate	$0.13/kWh	$0.18/kWh	$0.18/kWh
State tax credit	None	None	None
Best incentive	Property tax exemption + utility rebates	DG program + sales tax exemption	SuSI program + SREC market
Net metering	Varies by REP	DG (retail rate <20 kW)	Retail rate
Avg. payback (2026)	12–14 years	12–14 years	7–8 years
Best for	Austin/AEP customers	Statewide	Statewide

How to Get an Accurate Savings Estimate for Your State

The numbers above are averages. Your actual savings depend on:

Your specific ZIP code (sun hours vary across a state)
Your electricity rate (varies by utility within a state)
Your roof orientation and size
Which utility rebates you qualify for

Use our Solar Savings Calculator for an instant estimate based on your ZIP code and monthly bill. For more precise numbers, get quotes from 3+ local installers — prices vary 20–30% between companies.

For official sun data by location, use NREL’s PVWatts Calculator.

Key Takeaways

Texas: No state credit, but property tax exemption and some utility rebates. Best for Austin Energy/AEP customers. Payback ~12–14 years.
Michigan: Sales tax exemption, strong DG program, low-interest Michigan Saves loans. Payback ~12–14 years.
New Jersey: Top solar state — SuSI program + SREC market + retail net metering. Payback ~7–8 years.
In all three states, the federal residential ITC expired December 31, 2025 — state incentives are now the primary financial driver.

Browse Solar Savings by State

We publish in-depth, 2026-updated savings guides for individual states — each with local incentives, utility rules, net metering details, and a savings example:

California — NEM 3.0, SGIP battery rebates, high-rate ROI
Texas — property tax exemption, REP buyback plans
Florida — net metering, tax exemptions, hurricane backup
New York — 25% state tax credit (up to $5,000), NY-Sun
New Jersey — SuSI / SREC-II production income
Arizona — best US sun + 25% state tax credit
Massachusetts — SMART program + 15% state credit
Michigan — DG program, Michigan Saves loans

More states are added regularly. Don’t see yours yet? Use the Solar Savings Calculator for an instant estimate anywhere in the US.

Sources: EnergySage Texas Solar Incentives, EnergySage Michigan Solar Incentives, EnergySage New Jersey Solar Incentives, DSIRE database, NREL PVWatts, EIA State Electricity Profiles.