Illustration of solar panels in green fields under a bright sky, with a central Solar Savings Opportunity Index sign and a jar of coins representing household solar savings.

Where rooftop solar delivers the biggest household savings in Australia and the US

Ellen Cutler

May 11, 2026

Rising electricity costs are continuing to put pressure on household budgets, driving more consumers to explore renewable energy alternatives. Among the available options, rooftop solar stands out as one of the most accessible solutions. By generating electricity at home, homeowners can reduce their reliance on the grid and unlock meaningful rooftop solar savings over time.

To find out more, our energy comparison experts created the solar opportunity index, ranking cities in Australia and the United States based on the estimated annual value generated by a typical 6.6 kW system. Each city was scored with a maximum of 100.

Crucially, the index isn’t based on sunshine alone. It also factors in electricity prices, solar output stability, solar capacity factors and average daily solar radiation. Together, these elements shape the overall solar electricity value that households could generate, providing a more complete picture of potential solar panel savings.

Queensland leads the way for rooftop solar savings in Australia

Australia’s highest-ranking cities show how strong solar conditions, combined with favourable electricity pricing and consistent output, can drive significant household savings.

Overall, Queensland dominates the rankings, taking four of the top five spots and 10 of the top 15 overall. This highlights how strong consistent sunshine and stable solar output can significantly enhance household returns.

1. Mackay, Queensland: 86.72

Mackay ranks first in Australia, supported by the highest estimated annual generation at 11,329.9 kWh. This strong output contributes to an estimated annual solar electricity value of AU$3,816, highlighting the city’s excellent conditions for rooftop solar savings.

2. Gladstone, Queensland: 79.87

Gladstone follows closely, generating 11,056.3 kWh annually and delivering an estimated value of AU$3,724. Its high ranking reflects a strong balance of generation levels and solar reliability.

3. Toowoomba, Queensland: 76.06

Toowoomba produces an estimated 10,793.9 kWh annually, translating into AU$3,635.39 in value. Its strong position reflects consistent solar performance and favourable generation levels.

4. Rockhampton, Queensland: 74.76

Rockhampton combines annual generation of 10,652.2 kWh with an estimated value of AU$3,587, demonstrating the importance of consistent year-round performance.

5. Adelaide, South Australia: 68.91

Adelaide stands out with the highest estimated annual solar electricity value in Australia at AU$4,486. Despite generating slightly less electricity at 10,044.9 kWh, higher electricity prices significantly boost potential solar panel savings.

Australia’s lowest-ranking cities in the solar opportunity index

While Australia is known for strong solar potential, not every location offers the same level of rooftop solar savings, with lower-ranked cities seeing reduced solar electricity value due to less favourable conditions.

1. Hobart, Tasmania: 2.93

Hobart ranks lowest in Australia by a significant margin. Comparatively weaker solar conditions and lower generation potential clearly limit overall solar electricity value.

2. Geelong, Victoria: 12.75

Geelong’s lower score reflects reduced generation and less favourable solar conditions, resulting in more modest rooftop solar savings.

3. Ballarat, Victoria: 16.07

Ballarat also sits in the lower tier due to reduced solar radiation and consistency impacting overall savings potential.

4. Bendigo, Victoria: 16.30

Bendigo faces limitations due to lower solar output and stability compared to higher-ranking cities.

5. Melbourne, Victoria: 19.66

Melbourne’s climate and solar conditions contribute to lower overall solar panel savings potential in comparison to other cities on the list.

Hawaii and California dominate solar rankings in the US

The US results show a similar trend, with certain regions benefiting from a strong combination of sunlight, electricity prices and consistent solar output.

1. Honolulu, Hawaii: 84.19

Honolulu ranks first overall in the US, combining strong solar conditions with an estimated annual solar electricity value of US$4,064. With generation reaching 10,694.6 kWh, the city offers some of the strongest rooftop solar savings.

2. Riverside, California: 78.07

Riverside produces an estimated 11,372.5 kWh annually, delivering US$3,075 in value. Its high generation levels contribute to strong overall performance in the solar opportunity index.

3. Santa Ana, California: 76.62

Santa Ana generates 11,331.1 kWh per year, resulting in an estimated value of US$3,064. Its ranking reflects a consistent combination of solar output and favourable conditions.

4. Los Angeles, California: 74.90

Los Angeles produces 11,247.4 kWh annually, equating to US$3,041 in value. Strong solar exposure and stable output underpin its position in the top five.

5. Long Beach, California: 74.35

Long Beach delivers similar results to Los Angeles, with 11,245.4 kWh of generation and US$3,041 in estimated annual value, reinforcing California’s dominance in the rankings.

California leads US rankings, but sunshine isn’t everything

California accounts for four of the top five cities and 13 of the top 20 overall, demonstrating how strong sunlight and electricity-value dynamics combine to drive higher solar panel savings.

Importantly, the data also shows that sunshine alone isn’t enough. El Paso in Texas records the highest annual generation in the US at 12,298.5 kWh, alongside the highest solar capacity factor (21.27%) and average daily solar radiation (6.76 kWh/m²/day). However, it doesn’t top the overall rankings due to the importance of electricity prices and output stability in determining overall solar electricity value.

Arizona also performs strongly, with Tucson, Phoenix and Mesa all appearing in the top 20. These cities benefit from consistently high solar radiation and generation potential.

Where solar panel savings are more limited in the US

Across the US, variations in climate and energy costs mean some cities deliver far lower solar panel savings, with the solar opportunity index highlighting where rooftop solar may be less financially beneficial.

1. Seattle, Washington: 0.20

Seattle ranks lowest by some distance. Very limited solar radiation and lower generation levels significantly reduce protentional rooftop solar savings.

2. Portland, Oregon: 2.82

Portland records a particularly low score, with weaker solar conditions limiting overall performance in the solar opportunity index.

3. Cleveland, Ohio: 16.38

Cleveland’s ranking reflects moderate solar output but lower overall value compared to leading cities.

4. Detroit, Michigan: 23.40

Detroit ranks low in the index due to the city facing less favourable solar conditions.

5. Columbus, Ohio: 23.50

Columbus marks the start of the bottom five, where reduced solar radiation and output consistency impact potential solar panel savings.

What the solar opportunity index means for households

Meredith O’Brien, Head of Energy at Compare the Market, said rooftop solar can be an effective way for households to cut electricity costs, but the benefits can vary by location.

“While sunshine plays a role, it’s only part of the equation,” she said. “Electricity prices, household usage, and how reliably a system generates power throughout the year can have a big impact on the overall value solar delivers to a household.”

“For those looking to secure better value from their energy provider, comparing plans can offer useful insights and expert guidance to help households make more informed decisions.”

Methodology

This dataset ranks locations across the United States and Australia based on the potential electricity value households could generate from installing rooftop solar panels.

The index combines indicators of solar generation potential, electricity prices, and solar reliability to estimate where households could generate the greatest electricity savings from renewable energy.

Solar was used as the primary renewable metric because it is the most widely accessible renewable technology for households, with reliable public datasets available to estimate generation and savings at a consistent scale.

Index structure

Each metric was converted into a normalised score between 0 and 1.

Scores were then combined using weighted contributions to produce a final Index Score out of 100, with cities ranked from highest renewable savings potential to lowest.

Factors used

1) Estimated Annual Solar Generation

This estimates how much electricity a typical rooftop solar system could generate in each city.

Solar generation was modelled using the NREL PVWatts API, which estimates photovoltaic electricity output using local weather station data and solar radiation levels.

Generation modelling assumed a 6.6 kW residential rooftop solar system, a typical household installation size.

Higher annual generation increases the index score.

2) Estimated Annual Solar Electricity Value

This metric estimates the annual financial value of electricity produced by rooftop solar panels.

It was calculated as: Annual solar generation (kWh) × electricity price ($/kWh)

This represents the approximate annual electricity cost households could offset by generating their own solar power.

Higher electricity prices increase the value of solar generation and contribute to a higher index score.

3) Solar Output Stability

Solar output stability measures how consistent solar electricity generation is throughout the year.

Using the monthly generation estimates returned by the PVWatts model, a stability score was calculated by comparing the lowest and highest monthly generation values.

Cities with more consistent solar output receive higher scores.

4) Solar Capacity Factor

Capacity factor measures the efficiency of solar power generation relative to the system’s maximum potential output.

Higher capacity factors indicate more efficient solar electricity production and therefore higher index scores.

5) Average Daily Solar Radiation

Solar radiation measures the average amount of solar energy available per square metre each day.

Higher solar radiation levels increase solar electricity production and contribute to higher scores.

Weighting

The Index Score was calculated using the following weights:

  • Estimated annual solar electricity value: 40%
  • Estimated annual solar generation: 30%
  • Solar output stability: 15%
  • Solar capacity factor: 10%
  • Average daily solar radiation: 5%

Sources

Electricity price data: Electricity prices were used to estimate the financial value of solar electricity generation.

United States: Average residential electricity prices by state were sourced from the U.S. Energy Information Administration (EIA) in US dollars.

Australia: The power prices are based on the cheapest residential market offer usage rate from the top retailers with the largest market share in each state (NT and WA use the maximum rates for residential customers by state regulators). The prices are based on residential properties with medium-level usage from single rates plans with no controlled load, no demand charges and with no conditions, discounts or offers. Prices are correct as of February 2026.

Solar modelling: Solar electricity generation estimates were calculated using NREL PVWatts Solar Calculator API

Notes

Solar modelling assumes a 6.6 kW rooftop solar system and uses latitude and longitude coordinates to represent each city.

The Renewable Energy Index is designed as a comparative ranking of solar savings potential rather than a prediction of exact household electricity bills.

Actual solar generation and savings will vary depending on roof orientation, shading, installation size, and electricity tariffs.