The 10 Best US States for Solar Rental Property NOI in 2026

Not every market is created equal. Here's where solar revenue plays cleanest for landlords — and where the regulatory friction still makes it a pass.

How we ranked

Three weights:

Solar resource (kWh per kW per year)
Regulatory clarity (VNEM rules, tenant billing legality, utility cooperation)
Rental density (BTR, multifamily, HOA market size)

The 10

1. California

Despite NEM 3.0, virtual net metering aggregation (VNEM-A) for multifamily is the cleanest in the country. High utility rates mean fat tenant margins.

2. Texas

ERCOT deregulation = direct retail competition. Sunbelt generation. Permits are landlord-friendly. BTR boom = thousands of new rooftops every year.

3. Florida

Tampa, Orlando, Jacksonville: dense multifamily, hot tenant bills, strong sun. Net metering is intact. Cap rates are tightening, making solar NOI even more valuable.

4. Arizona

Phoenix metro alone justifies a whole portfolio strategy. APS and SRP both have functioning solar tariffs. 1,800+ kWh / kW / year.

5. New York

Community solar and VDER tariff make multifamily revenue strong despite lower irradiance. NYC building emissions law (LL97) creates non-revenue value too.

6. Massachusetts

SMART program incentives stack on top of tenant billing revenue. High utility rates make ~20%-off-utility solar a tenant no-brainer.

7. Illinois

Illinois Shines and community solar law are landlord-friendly. Cook County multifamily density is significant.

8. New Jersey

Successor SREC program (SuSI) + high utility rates. Strong renter occupancy in urban corridors.

9. Colorado

Xcel's solar*rewards and virtual net metering for multifamily make this a quiet winner. Denver BTR pipeline is large.

10. Nevada

Las Vegas multifamily + 1,900 kWh / kW / year + NV Energy's rooftop solar tariff = clean revenue.

Honorable mentions

Maryland (community solar + VNEM), Connecticut, Oregon (good rules, mid generation), New Mexico.

Markets to wait on

States where third-party tenant billing has open regulatory questions — currently Alabama, Georgia (changing fast), and Kentucky. We track this monthly; if your property is in one of these states, you'll get an honest "not yet" rather than a bad install.

What changes the ranking

Two things will reshuffle this list in 2027: federal VNEM standardization (under discussion) and continued ITC phase-down rules. We update this ranking quarterly — subscribe to get the next one.

Want to see what your roof could earn? Estimate your NOI lift or talk to our team.