Save on Electricity in These States

Explore how residents in top states can save on electricity through solar energy, tax credits, and energy-efficient practices.

Last updated

December 24, 2024

Author: Matt from Currents

Learn about energy for your home or business.

Want to slash your power bills? Here's how to save in the top 5 states:

New Mexico: 293 sunny days/year, 40% solar savings
Utah: Cheap rates at 11.78¢/kWh, 30% solar savings
Colorado: $400/year less than national average
Illinois: Deregulated market, free energy audits
Maine: Solar breaks even in 8 years despite few sunny days

Key ways to cut costs:

Get a home energy audit
Switch to energy-efficient appliances
Install a smart meter
Use LED bulbs and unplug electronics
Check for state/federal rebates

Solar tax credits:

30% federal credit
Up to 25% additional state credit in some areas
SRECs can earn extra cash in some markets

Next steps:

Check your state's incentives
Get multiple solar quotes
Understand net metering rules
Consider adding battery storage
Explore financing options

With the right approach, you can significantly reduce your electricity costs while helping the environment.

1. New Mexico

New Mexico's solar energy potential is off the charts. With 293 sunny days a year, it's no surprise the Land of Enchantment is a solar powerhouse.

Let's crunch the numbers:

New Mexico households spend about $1,044 yearly on electricity - that's less than the national average. But here's the kicker: install solar panels, and you could cut your energy bills by over $1,200 a year.

A typical 6 kW solar setup in New Mexico costs around $14,280 upfront. But don't let that number scare you. After the 30% federal tax credit and the state's 10% credit, you're looking at just $8,568. That means you could get back 40% of your investment in under a year!

New Mexico's solar perks don't stop there:

1. New Solar Market Development Tax Credit

This gem gives you a 10% tax credit on solar installations, up to $6,000. For a 6 kW system, that's an extra $1,428 in your pocket.

2. Property Tax Exemption

Your property taxes won't go up because of your solar panels. It's like a free home upgrade!

3. Net Metering

Extra electricity you generate gets credited to your account. You might end up with little to no electric bills.

David Bartle, Content Marketing Associate, nails it:

"Going solar is the best way to lower your electric bills."

In New Mexico, that's spot on.

Pro Tip: Jump on that New Solar Market Development Tax Credit early in the year. There's a $12 million budget cap for 2023, and it's first-come, first-served.

New Mexico's energy future looks bright. The state wants 100% renewable energy by 2045. And they're making progress:

Solar energy production up 63.21% in the last year
Coal use for electricity down 19.46%
Non-renewable fuel types for electricity down 10.96%

With numbers like these, New Mexico's solar revolution is in full swing.

2. Utah

Utah's got some of the cheapest electricity in the US. Let's dive into the numbers and see why.

As of August 2024, Utah's residential electricity rate is 11.78 cents per kilowatt-hour (kWh). That's a tiny 0.9% bump from last year, but still way below the national average of 16.63 ¢/kWh.

What does this mean for your pocket? Utah folks are looking at an annual electricity bill of about $1,047.27 in 2024. Compare that to Hawaii, where they're expecting to shell out nearly $2,500 more.

Why so cheap? Jona Whitesides from Rocky Mountain Power spills the beans:

"We have a mixed portfolio approach that keeps the costs really low."

They're mixing it up with hydro, wind, and solar power to keep those bills down.

But Utahns aren't just sitting pretty. They're jumping on the solar bandwagon too. Homes with solar panels could slash their electric bills by about 30%.

Here's what solar might cost you in Utah:

System Size	System Cost	Cost After Federal Tax Credit
6 kW	$16,320	$11,424
8 kW	$21,760	$15,232
10 kW	$27,200	$19,040

Thanks to the Federal Solar Tax Credit, you can get back 30% of what you spend on solar panels. Not too shabby.

Want to save even more? Try these:

Cut down on shower time and switch to LED lights.
Think about going solar. Utah's got plenty of sunshine.
Keep an eye out for new local incentives.
Look into Rocky Mountain Power's net metering program. You could earn credits for extra energy you produce.

Utah's cheap energy and growing solar scene put residents in a sweet spot. By making the most of these low rates and maybe adding some solar to the mix, Utahns can keep their energy bills among the lowest in the country.

3. Colorado

Colorado's energy scene is a mix of affordability and green power. In 2022, Coloradans paid about $104 a month for electricity, way less than the $137 national average. That's $400 a year staying in your pocket.

But it's not just cheap rates. Colorado's going all-in on renewable energy, and smart residents are using this to cut their bills even more.

Here's the breakdown:

Monthly electricity use: 920 kWh
Electricity rate: 15 ¢/kWh
Yearly electricity cost: $1,632

These numbers are good, but Colorado's clean energy push means even more savings. Big utility companies have to go 100% clean by 2050. This long-term plan is already paying off for consumers.

Solar Power Savings

Colorado's sun isn't just for skiing - it's a goldmine for solar energy. Here's why solar in Colorado makes sense:

1. Great Return on Investment

A typical 6.2 kW solar system costs about $21,000 before incentives. But with federal and state help, you'll break even in just over 12 years. After that, it's pure savings.

2. Long-term Benefits

If electricity prices go up by 1.8% each year, solar can save you:

$1,600 in year one
$8,500 over five years
$17,700 over ten years
A massive $38,900 over twenty years

3. Boost Your Home's Value

The National Renewable Energy Laboratory says every $1 saved on yearly electricity bills adds $20 to your home's value. That's a big boost.

Local Perks

Colorado cities are sweetening the deal:

Boulder gives grants for up to half of solar installation costs, maxing out at $8,000. Plus, you get 15% back on sales tax for solar tech.
Colorado Springs has a rebate program for businesses based on system size.
Aspen gives back a chunk of your total solar project cost, with different caps for homes and businesses.

"Colorado's clean energy commitments and generous solar incentives make it an excellent state to go solar." - Tamara Jude, Content Writer

Community Solar: Savings for All

Don't own a roof? No worries. Colorado's community solar programs usually save you 5-15% on electricity. You support clean energy and save money.

Colorado's energy plan is clear: cheap, green, and for everyone. Whether it's low rates, solar panels, or community programs, there's a way for every Coloradan to save. As the state moves towards 100% clean energy, expect even more chances to cut costs while going green.

4. Illinois

Illinois has a unique energy scene. The state's deregulated market lets you pick your energy supplier. Sounds great, right? Well, it's not that simple.

As of June 2024, Illinois residents pay about $116.28 per month for electricity. They use around 720 kWh at 16.15 cents per kWh. That's less than the U.S. average of $147.52, but there's still room to cut costs.

The deregulated market is a double-edged sword. Jim Chilsen from the Citizens Utility Board (CUB) in Illinois drops this bombshell:

"Since 2015, Illinois consumers on alternative electricity suppliers have lost $1.8 billion because they're on plans with higher rates than the utility."

Yikes! So, if you're shopping around, compare rates carefully. Read the fine print before you sign anything.

Want to slash your electric bill? Illinois has some tricks up its sleeve:

1. Energy Assistance Programs

If you're struggling to pay your bills, check out the Illinois Low Income Home Energy Assistance Program and the Illinois Home Weatherization Assistance Program.

2. Free Home Energy Assessments

ComEd and Ameren will come to your house and tell you how to save energy. For free!

3. Solar Incentives

Illinois is big on solar. The Illinois Shines Program can save you about $7,000 if you install solar panels.

4. Smart Inverter Rebate

This program gives you $300 per kW of solar or $300 per kWh of storage. Install a 5 kW system, and you could pocket $1,500.

5. Net Metering

This policy's changing after December 13, 2024. If you're thinking about solar, act fast to lock in better rates.

A 5 kW solar system in Illinois costs about $15,177. But wait! After the 30% federal tax credit, it drops to $10,624. That's $4,553 back in your pocket.

Not ready for solar? Try these:

Switch to LED bulbs
Buy energy-efficient appliances (look for the ENERGY STAR label)
Join demand response programs (some utilities pay you to use less electricity during peak hours)

Illinois is going green. Renewable energy use for electricity jumped 9.28% last year. This shift might lead to more stable (and maybe lower) electricity costs down the road.

5. Maine

Maine's solar energy scene is heating up, despite its chilly reputation. With only 100 sunny days a year, you might think solar's a no-go. But you'd be wrong.

Here's the scoop on solar in Maine:

Solar panels cost $3.33 per watt
A 6 kW system runs about $19,980
The 30% federal tax credit knocks it down to $13,990

That's $5,990 back in your pocket!

But wait, there's more. Maine's got some sweet deals:

Low-interest loans for solar setups
No property tax hike for solar installations
Net metering (sell extra energy back to the grid)

Most folks break even on their solar investment in just over 8 years. After that? Free electricity.

"Maine residents have several incentives available to make solar energy more financially accessible." - New England Clean Energy Inc.

Not ready for solar? No worries. Starting January 2024, your electricity bill's getting a haircut:

Central Maine Power customers save about $32 a month
Versant Power customers in northern Maine save around $18 a month

Why? Natural gas prices are down, and that's powering half of New England's grid.

"Our prices are completely dependent on natural gas. And I'd love to see us transition off of natural gas to renewable resources." - Carolyn Gilbert, Commissioner of the Maine Public Utilities Commission

Struggling with energy costs? Maine's got your back:

LIHEAP: Federal help for home energy bills
Efficiency Maine Insulation Program: Save money by weatherizing your home
Free Home Energy Assessments: Find out how to cut your energy use

Maine's proving that even in the land of lobsters and lighthouses, solar power can shine bright. And with or without solar, Mainers are set to see some serious savings on their energy bills.

Solar Tax Credits by State

The federal solar tax credit gives you a 30% rebate on solar installations. But some states offer even more. Let's look at the best state-level solar tax credits and programs.

New York: Solar Energy System Equipment Credit

New Yorkers can claim 25% of their solar costs, up to $5,000, on top of the federal credit. Here's how it works for a $20,000 system:

Federal credit: $6,000
NY state credit: $5,000
Total savings: $11,000

New York also has sales tax exemptions and net metering to save you more.

South Carolina: Big State Tax Credit

South Carolina offers a 25% state tax credit, up to $35,000 or 50% of your tax liability for the year. Add that to the federal credit, and you could cut your solar costs in half.

"Combined with the ITC, this incentive can add up to significant savings for homeowners who go solar." - EcoWatch Team

New Mexico: Per-Square-Foot Credit

New Mexico gives you up to $6.50 per square foot of solar panel installation until 2032. For a 300 square foot installation, that's up to $1,950 in state tax credits on top of the federal incentive.

Maryland: Battery Storage Credit

Maryland is the first state to offer an income tax credit for energy storage systems. It's great for homeowners thinking about solar panels with battery backup.

California: Solar Leader

California doesn't have a state-wide tax credit, but it leads in other ways:

No property tax increase for solar systems
Net metering program
Local rebates (vary by utility)

California is also looking at better solar and battery rebates for low-income households.

New Jersey: Successor Solar Incentive (SuSI) Program

New Jersey's SuSI program pays you for your solar production. It's one of the best states for solar investment. You get this on top of net metering and other perks.

State	Main Solar Incentive	Other Benefits
New York	25% tax credit (max $5,000)	No sales tax, Net metering
South Carolina	25% tax credit (max $35,000)	No property tax increase
New Mexico	$6.50/sq ft tax credit	No property tax increase
Maryland	Battery storage tax credit	Grants for low-income solar
California	Varies by utility	No property tax increase, Net metering
New Jersey	SuSI program payments	Net metering

These incentives can change and may have specific rules. Always check with a local solar installer or tax expert for the latest info in your area.

To save the most:

Move fast on limited-time offers. Some states cap their yearly incentive budgets.
Stack federal and state incentives. Use all the credits you can.
Look into local utility programs. Many have extra rebates or pay you for performance.

Ways to Cut Your Power Bill

Want to slash your electricity costs? You're in luck. Here are some smart strategies to help you save:

Home Energy Audits

Many utility companies offer free home energy audits. These assessments spot inefficiencies and give you tailored recommendations. For example, the TVA EnergyRight program has a free DIY Home Energy Assessment. You'll get a report with specific energy-saving tips for your home.

Energy-Efficient Appliances

Swapping old appliances for energy-efficient models can lead to big savings:

A new HVAC system can cut heating and cooling costs by up to 20%
An ENERGY STAR® heat pump water heater can save about $300 a year
ENERGY STAR® windows can reduce energy bills by up to 15%

Many states and utility companies offer rebates for these upgrades. TVA EnergyRight, for instance, gives rebates up to $1,500 for home energy improvements:

Upgrade	Project	Rebate Amount
HVAC System	TVA Preferred Air Source Heat Pump	$1,500
Water Heating	Heat Pump Water Heater	$800
Air Sealing	Envelope Air Sealing	$300
Insulation	Attic Insulation	$500

Smart Meter Technology

Smart meters show your energy use in real-time. This helps you track and manage your electricity consumption better. You can spot peak usage times and adjust your habits.

"Smart meters allow you to see how much energy you're using in near real-time." - Valda Energy, Energy Management Expert

Want a smart meter? Call your energy supplier using the number on your latest bill.

Simple Lifestyle Changes

Small tweaks in your daily routine can add up:

Use LED bulbs - they use 75% less energy and last 25 times longer than incandescent lights
Unplug electronics when not in use to avoid "phantom" energy use
Wash clothes in cold water - it can save you $63 a year
Get a programmable thermostat to manage heating and cooling better

State and Federal Rebate Programs

Many states offer rebates for energy-efficient upgrades. For example:

New Mexico: Eligible households can get up to $14,000 through Home Energy Rebate Programs
Illinois: Plans to give 100% of rebate funds to low-income households for energy-efficient improvements

Check with your state's energy office or local utility provider for rebates in your area.

Make Money From Your Solar Panels

Solar panels aren't just about cutting electricity bills - they can be a cash cow too. Here's how to turn your solar setup into a money-making machine:

Net Metering: Your Ticket to Profit

Net metering is the easiest way to start cashing in on your solar panels. It's available in over 40 states and lets you sell extra electricity back to the grid. Here's the deal:

Your panels make more power than you use
The extra juice goes back to the grid
You get credits on your utility bill

Take Massachusetts, where electricity costs about $0.30 per kilowatt-hour (kWh). With net metering, some folks end up with negative electricity bills. That's right - the power company pays them!

Solar Renewable Energy Credits (SRECs): Cash for Clean Energy

SRECs are another way to milk your solar panels for money. These credits represent the green benefits of solar energy, and utility companies will pay for them.

In Washington D.C., the SREC market is on fire. SRECs are selling for about $430 each. At that rate, solar systems pay for themselves in just over three years. Talk about a sweet return!

Currents: Your Solar Money Manager

Currents

Currents is like a personal assistant for your solar profits. They offer:

Automatic SREC selling
Tips on energy-saving upgrades
Help connecting energy gadgets like batteries and EV chargers

With Currents, you can max out your solar profits without getting lost in the weeds of energy markets.

Show Me the Money: What Can You Expect?

Your profit potential depends on where you live and how big your system is. But here's a taste:

In Florida, an average 6 kW solar system can save around $13,000 over its lifetime
Californians can pocket up to $32,000 with solar panels

And that's just savings. Add in SREC sales and net metering credits, and your solar panels could become a nice little side hustle.

The Long Game: More Than Just Quick Cash

Solar panels aren't a get-rich-quick scheme. They're a long-term play:

They can boost your home's resale value by about 4%
The Solar Investment Tax Credit (ITC) lets you claim back 30% of your installation costs
As electricity rates climb, so do your savings (and potential earnings)

Ready to Turn Your Roof into a Cash Machine?

Here's your game plan:

Check out your state's net metering rules
Look into SREC markets near you
Think about using Currents to automate your solar profits
Talk to a local solar pro about designing a system that'll make you the most money

Solar panels aren't just about going green - they're about making green too. So why not let your roof work for you?

Next Steps

Ready to slash your power bills? Here's your roadmap to energy savings:

Check Your State's Incentives

Each state has its own solar perks. New York offers a 25% state tax credit (up to $5,000) on top of the federal 30% credit. South Carolina? You can claim a 25% state tax credit up to $35,000.

Pro tip: Use the DSIRE database to find local incentives. Filter by your state and look for solar-specific programs.

Get Multiple Quotes

Don't settle for the first offer. Reach out to at least three solar installers in your area. Compare their offers, but don't just focus on price. Look at equipment quality, warranty terms, installation timeline, and customer reviews.

Understand Net Metering

Net metering can be a game-changer. In Massachusetts, where electricity costs about $0.30 per kWh, some homeowners end up with negative electricity bills!

Check your utility's net metering policy. Some states, like Illinois, are changing their programs, so act fast to lock in better rates.

Consider Solar + Storage

Adding a battery to your solar system can boost savings and provide backup power. In California, the Self-Generation Incentive Program (SGIP) offers rebates for combined solar and battery systems. Rebates vary by utility and battery capacity.

Explore Financing Options

Don't let upfront costs scare you off. Many states offer low-interest loans for solar projects. Maine, for example, provides low-interest financing for solar installations.

Maximize Federal Tax Credit

The federal solar tax credit offers a 30% deduction on your total system cost, including labor and materials. This credit is available through 2032.

To claim it:

Keep all receipts from your solar installation
Use IRS Form 5695 to calculate your credit
Include the credit on your Form 1040 and Schedule 3

This credit is non-refundable but can roll over to future years if your tax liability is lower than the credit amount.

Look into SRECs

Solar Renewable Energy Credits (SRECs) can be a goldmine in some states. In Washington D.C., SRECs are selling for about $430 each, allowing solar systems to pay for themselves in just over three years.

Consider using a service like Currents to automate SREC selling and maximize your profits.

Don't Forget Energy Efficiency

While going solar is great, don't overlook simple energy-saving measures:

Switch to LED bulbs (75% less energy use)
Unplug electronics when not in use
Wash clothes in cold water (saves about $63 annually)
Install a programmable thermostat

Many utilities offer free home energy audits to identify more savings opportunities.

FAQs

What state has the best solar program?

New York takes the cake for the best solar program in the US. Here's why:

25% state tax credit (up to $5,000)
No sales or property tax on solar setups
Easy-to-get solar loans
Tons of local perks
Killer net metering (you get paid $0.69 to $1.09 per kilowatt-month for extra power)

Greg Fasullo, CEO of Elevation, puts it this way:

"New York ranks as the top state for solar incentives because it combines what we consider to be the basics - including sales and property tax exemptions - with affordable loan programs, several local incentives and an outstanding net metering policy."

New York's got over 40 ways to save on solar, and the average setup costs just $6,519 after all the discounts. That's why it's the place to be for solar power.

What region of the US is best for solar energy?

The Southwest is solar central, and Arizona's the star of the show. Here's what makes Arizona shine:

Clear skies for about 200 days a year
Cranks out 115+ MW of solar per 100,000 people
Home to 306 solar companies (57 makers, 144 installers)
$14.3 billion invested in solar

Greg Fasullo, CEO of Elevation, says:

"Arizona is the best state for solar energy when it comes to the amount of sunlight homes can receive."

But don't count out other states. Hawaii's got the fastest solar payback at just 2.38 years, and Massachusetts is often called the most solar-friendly state overall.