Yes – but not in the way most people think!
It’s easy to assume that solar is only viable in places like Arizona or California where the sun shines constantly. But while sunshine helps, it’s not the only factor that determines solar performance or savings. In fact, many regions with moderate or even cloudy climates – like the Midwest or Northeast – still see excellent solar returns, especially when utility rates are high or net metering policies are favorable.
Think of solar like growing crops. Sure, a lot of sun helps – but so does rich soil (net metering), good market prices(utility rates), and the right planting strategy (system design). A smart farmer in Ohio can often outperform a lazy one in the desert. The same goes for solar.
More Than Just Sunshine: What Really Impacts Solar ROI
| Factor | Why It Matters |
| Solar Irradiance | More sunlight = more potential energy production |
| Net Metering | The ability to receive credit for excess energy makes solar more valuable, especially in states with full 1:1 credit |
| Utility Rates | Higher electricity rates = higher avoided costs when you generate your own power |
| Demand Charges | Areas with steep demand charges benefit more from solar-plus-storage setups |
| Incentives | Local or state tax credits, grants, and SRECs can dramatically affect ROI |
| System Design & Usage Patterns | A well-matched system – designed for your roof, usage, and business hours – can outperform a larger but poorly placed one |
Don’t Let Cloudy Skies Fool You
Take Germany, for example – it’s one of the global leaders in solar adoption, despite having less sun than many parts of the U.S. The key lies in strong policy, smart design, and committed investment.
Melink Solar designs systems that work for your region, your rates, and your goals. We use local weather station data – not just averages – to build accurate production models so you know exactly what to expect.
Need to understand net metering policies mentioned as key factors? Revisit Section 2.5: What is Net Metering?.
Want to learn more about how utility rates and demand charges influence solar savings? See Section 2.7.5: How Does Utility Rate Structure Affect Solar Savings? and Section 2.6.1: Reading Your Electric Bill