Solar Resources · Cost & Savings · Updated for 2026
Solar Cost & Savings Guide
What home solar really costs in 2026, how long it takes to pay back, and how the savings add up. Plain numbers, honest math, sourced.
The short answer
Home solar in 2026 averages about $2.60 per watt before incentives, roughly $31,135 for a 12 kW system, with payback commonly landing near 9 to 15 years. There is no 30% federal tax credit in 2026: the Residential Clean Energy Credit (Section 25D) ended December 31, 2025. What cuts your cost now is your electric rate, your local sun, and state or utility incentives. These are illustrative national figures, not a quote for your home.
What this guide covers
This is the MySolarFY hub for the money side of going solar: the real 2026 price of a system, the payback period, the long-run return, and how financing options like a loan, a lease, or a PPA change the math. We lead with the numbers and cite where they come from, so you can weigh the cost against the savings before you talk to anyone. Cost is local in the end: a sunny market like Phoenix, Arizona lifts production per panel, while Maryland pairs its production with SRECs that pay you for the energy your system makes, and the two example guides below show that contrast. For the bill side of that math, see our full comparison of home solar vs traditional electricity cost over 25 years. In the Northeast, where power runs expensive, our dated Northeast electricity rates by utility tracker breaks those rates down utility by utility across all nine states.
As a national reference point, marketplace data put the 2026 average residential system near $2.60 per watt before incentives, about $31,135 for a 12 kW system, with payback commonly landing around 9 to 15 years depending on your utility rate and local incentives. Those are illustrative national ranges, not a quote for your home; your real number depends on your roof, your usage, and your electric rate.
Source: EnergySage marketplace cost data, as of June 2026 (energysage.com). Payback ranges are modeled on NREL’s PVWatts production tool and typical 2026 utility rates; individual results vary.
Start with these cost and savings guides
Work through the core cost math first, then see what solar costs in a real market. We are adding more cost guides to this hub, and new ones link in here as they go live.
How much solar panels cost in 2026
The real 2026 price per watt and total system cost, with price tables, a worked payback example, and honest 2026 tax-credit facts.
How long is the solar payback period?
How long until solar pays for itself in 2026: the simple formula, a computed rate-by-sun payback matrix, and why the range runs from about 6 to 16 years.
How much can solar save over 20 years?
A year-by-year cumulative-savings table for an owned 8 kW system: roughly $8,000 to $55,000 net over 20 years, with every assumption shown.
Solar battery cost: what homeowners really pay
What a home battery really costs in 2026, cost per usable kWh, and the honest payback math on when storage pays off and when it does not.
Solar cost by home size, 1,500 to 3,500 sq ft
Cost, system size, and panel-count tables by home size, plus why your electricity use, not square footage, drives the real price.
The hidden costs of going solar in 2026
The 12 extras a quote can miss, from roof work and panel upgrades to inverter swaps and loan dealer fees, plus how to get each one itemized before you sign.
Solar panel maintenance cost
What upkeep actually costs: close to $0 a year for routine care, one inverter replacement over a 25-year system life, plus a computed lifetime total and cost per kWh.
The financial case for whether solar panels are worth it
Payback period, return on investment, and how to weigh the up-front cost against decades of savings.
How solar lowers your electricity bill
Where the savings come from: offsetting the power you buy, net-metering credits, and rising utility rates over time.
Can solar eliminate your electric bill?
What actually decides it: solar erases the energy charge, but a fixed utility fee keeps most bills near zero, not at $0. See when a true zero is possible.
What the federal solar tax credit change means in 2026
The federal solar tax credit (Section 25D), which ended December 31, 2025, and what still cuts your cost now.
Solar loan vs lease vs cash: how to pay for solar
The three ways to pay for solar compared on ownership, incentives, and lifetime cost, plus the hidden dealer fee and the 2026 tax-credit change that shift the buy-versus-lease math.
How to read a solar quote, line by line
The six lines that decide a solar quote: price per watt, system size, the production estimate, the four warranties, and the financing traps to catch before you sign.
Does Solar Increase Home Value?
Owned solar adds about 4% to a home’s price on average (Zillow), while leased or PPA systems can complicate a sale. See what the data shows.
What solar costs in Phoenix, Arizona
A real local example: system prices, sun-hours, utility rates, and payback for a high-production desert market.
What solar costs in Columbia, Maryland
An East-Coast example: local pricing, Maryland incentives and SRECs, and how the payback math works there.
The four ways to pay for solar, side by side
How you pay changes the up-front cost, who owns the system, and how much you save. This is a general comparison, not a quote; the right fit depends on your budget, your tax situation, and how long you plan to stay in the home.
| Way to pay | Up-front cost | Who owns the system | Long-run savings |
|---|---|---|---|
| Cash | Highest | You | Highest; no interest, you keep every dollar saved |
| Solar loan | Low to none, then monthly payments | You | High; you keep the savings, minus loan interest |
| Lease | Little or none, where available | A third party | Smaller; a fixed monthly payment that can include an annual escalator |
| PPA | Little or none, where available | A third party | Smaller; you pay a per-kWh rate that can rise each year |
General comparison for 2026, not a quote or an offer. A lease or PPA can include an annual price escalator and may save less over time than owning with cash or a loan. The federal residential tax credit (Section 25D) ended December 31, 2025, so it does not offset any of these paths in 2026.
What moves your price up or down
| What it is | How it changes your cost or payback |
|---|---|
| System size | A bigger system costs more in total but often lowers the price per watt. |
| Roof shape and access | Steep, shaded, or complex roofs raise labor and equipment cost. |
| Equipment and battery | Premium panels or adding storage raise the up-front price. |
| Local sun and production | More sun-hours means more output, which shortens payback. |
| Your electric rate | Higher utility rates mean bigger savings and faster payback. |
| State and local incentives | Rebates, state credits, and SRECs lower your net cost where offered. |
A worked payback example (our estimate)
Here is how the payback math works when you put the national reference numbers together. This is our own illustrative calculation with the assumptions shown, not a quote or a guarantee.
| Input | Value used | Source |
|---|---|---|
| System cost, 12 kW | about $31,135 before incentives | EnergySage, June 2026 |
| Average electricity rate | about 16.4 cents per kWh | EIA, 2025 U.S. residential average |
| Annual production | about 16,800 kWh per year | NREL PVWatts, ~1,400 kWh per kW reference |
| Estimated annual savings | about $2,750 per year | Rate times production, our calculation |
| Estimated payback | about 11 years | System cost divided by annual savings, our calculation |
Illustrative worked example for 2026, not a quote or a guarantee. It assumes full self-consumption or full net-metering credit, no financing cost, and no federal tax credit, since the federal residential credit (Section 25D) ended December 31, 2025. Your real payback depends on your electric rate, your production, and any state or local incentives. Sources: EnergySage (system cost, June 2026), EIA (U.S. residential electricity price, 2025), and NREL PVWatts (production).
More MySolarFY guides
This cost hub sits under our main resource library. Head back up for the full set of solar guides, or jump to the guides that pair closely with the cost math.
Go up to all MySolarFY solar resources. New to solar? Our sibling hub Solar Basics explains how panels work before you dig into the numbers. See how net metering credits your solar exports, and read how MySolarFY works and our data and methodology to see how we source these numbers.
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Solar cost and savings, common questions
How much do solar panels cost in 2026?
For an illustrative national reference, marketplace data from EnergySage put the 2026 average residential system near $2.60 per watt before incentives, or about $31,135 for a 12 kW system. Broader ranges run roughly $2.40 to $3.30 per watt depending on your state, roof, and equipment. These are illustrative national figures, not a quote for your home. Your real price depends on system size, roof complexity, and your installer. Enter your ZIP on MySolarFY to get matched with licensed local installers for an actual quote. (Source: EnergySage marketplace cost data, as of June 2026.)
What is the payback period for home solar?
Payback is how long the savings take to cover the up-front cost. For 2026, typical grid-tied systems model out to roughly 9 to 15 years, based on NREL’s PVWatts production tool and typical utility rates. Higher electric rates and stronger local incentives shorten it; low rates lengthen it. This is an illustrative range, not a promise for your home. Your payback depends on your utility rate, your usage, how much of your production you use, and any state or local incentives you qualify for.
Is the 30% federal solar tax credit gone?
Yes. The federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, so a homeowner who installs solar in 2026 cannot claim that 30% federal credit. Some state and local incentives, net-metering credits, SRECs, and lease or PPA financing options may still be available depending on your state and utility. MySolarFY does not provide tax advice; confirm your situation with a tax professional. (Source: IRS Residential Clean Energy Credit, irs.gov.)
Can solar eliminate my electricity bill?
Sometimes, but not always. Solar offsets the power you would otherwise buy, and net metering can credit the extra you send to the grid. Most homes still pay a fixed monthly connection charge and any usage the panels do not cover, so the bill usually shrinks a lot rather than hitting zero. How close you get depends on your system size, your usage, and your utility’s net-metering rules. See our guide on how solar lowers your electricity bill for the full breakdown.
Is it cheaper to buy solar with cash, a loan, a lease, or a PPA?
Each path trades up-front cost for long-run savings differently. Paying cash costs the most now and saves the most over time. A solar loan spreads the cost so you own the system and keep the savings, minus interest. A lease or power purchase agreement (PPA) can mean little or no up-front cost, where available, but the savings are smaller because a third party owns the system and the payment can include an annual escalator. The right choice depends on your budget, your tax situation, and how long you plan to stay. Some homeowners may qualify for $0-up-front lease or PPA options where available.
Cost, payback, and savings figures on this page are illustrative national references with their sources noted, not a quote or a guarantee for your home. A lease or PPA can carry an annual price escalator and may save less over time than owning the system with cash or a loan. The federal residential tax credit (Section 25D) ended December 31, 2025. MySolarFY is a free matching service, not an installer, and does not provide tax advice; confirm any tax question with a qualified professional. Written and reviewed by the SolarFY Editor. Last reviewed July 2026.