Buying costs more
The 30% credit ended for homeowner-owned systems placed in service after December 31, 2025. On a $20,000 system, that's $6,000 you no longer get back.
Updated for 2026 prices
The tax credit is gone. Does solar still pay off for your home?
Most calculators are built to sell you panels. This one will also tell you when the numbers don't work.
- $2.57/W median quoted price, first half of 2026
- 0% federal credit on systems homeowners buy
Our read
- Payback
- Cash price
- Year-one savings
- 25-year net
- System size
What to do with this number
Get at least three quotes and compare them on price per watt, not monthly payment. Anything far above $2.57/W needs a good reason, such as a difficult roof or premium equipment.
If rooftop solar doesn't add up, or you rent, you still have options.
What changed in 2026
Leases kept a tax benefit
Leases and power purchase agreements fall under a separate commercial credit, so they're being pushed harder. Read the yearly price increase and the home-sale terms before signing.
Batteries are more common
Around 45% of new home solar systems were reported paired with storage in early 2026. They rarely shorten payback, but they can make sense where export credits are low or outages are frequent.
How we estimate
This is a planning estimate, not a quote. It can't see your roof, your utility's rate plan or local permit costs.
| Electricity price | Your state's average residential price, EIA, January–August 2026 |
|---|---|
| Solar output | Modeled for your state's largest city with NREL PVWatts or PVGIS. Your location may differ. |
| System price | $2.57 per watt, EnergySage median quote for the first half of 2026, with a $12,000 minimum because small systems cost more per watt. The minimum is our assumption. |
| Battery price | $1,000 per kWh installed, near the middle of commonly quoted ranges |
| Federal credit | None. State and utility incentives aren't included and could improve your result. |
| Export value | We count solar output at 80% of retail price, or 60% in California and Hawaii, where export credits are weaker. A battery adds 15 points. These are our assumptions, and your utility's rules could move them a lot. |
| Over time | Electric rates rise 3% a year, panels lose 0.5% of output a year, and $15 of your monthly bill is treated as a fixed charge. Maintenance and inverter replacement aren't included. |
Common questions
Is the federal solar tax credit still available in 2026?
Not for systems homeowners buy. The 30% residential credit ended for systems placed in service after December 31, 2025. Leased systems and power purchase agreements fall under a separate commercial credit, so those offers can still reflect a tax benefit.
Should I buy or lease solar now?
Buying usually wins over the system's life if you can pay cash or get a low rate, because you keep all the savings. A lease can make sense if you want no upfront cost, but compare the starting payment, the yearly increase and what happens if you sell your home.
Is a home battery worth it?
On savings alone, a battery usually lengthens payback. It pays best where utilities credit exported solar poorly or where outages are common enough that backup power has real value to you.