Is solar worth it in 2026?
The federal tax credit is gone, electricity rates keep climbing, and every installer has an opinion. Here's the honest payback math for the U.S. — when solar pays off, when it doesn't, and the two levers that matter most.
For many homeowners, yes — but the margin is thinner than it was. With the 30% federal credit expired, a typical the U.S. system pays for itself in about 10–18 years, then delivers near-free power for another decade-plus. The two biggest levers are your net-metering plan and your electricity usage: a high-usage home on a strong net-metering plan sees the strongest returns, while a low-usage home on a weak plan may not break even fast enough to bother.
The 2026 verdict
Solar in the U.S. used to be an easy yes. The 30% federal tax credit knocked roughly $7,000–$10,000 off a typical system, and net-metering-style net-metering plans were common. In 2026, two things have changed: the federal credit has expired, and net-metering plans vary far more than most homeowners realize.
That doesn't make solar a bad deal — it makes it a decision that rewards homework. still has three things going for it: abundant sun (about generous sun in much of the country), some of the fastest-rising electricity demand in the country, and a competitive retail market where you can choose a plan that pays you fairly for exports. Get the big choices right and solar still pencils out for most owner-occupied homes.
What solar costs now
For an average the U.S. home, expect $2.50–$3.50 per watt installed before incentives. That puts a typical system in this range:
6 kW
Smaller home- Output~8,700 kWh/yr
- Battery?Optional
9 kW
Most common- Output~13,000 kWh/yr
- Battery?Recommended
12 kW
Larger home- Output~17,400 kWh/yr
- Battery?Recommended
Adding a home battery raises the price to roughly $3.50–$4.50 per watt, but it can unlock local storage rebates and protect you during grid outages. See the full cost breakdown →
The payback math, step by step
Payback is just your net cost divided by your annual savings. Here's a representative 9 kW example on a strong net-metering plan:
- Net system cost: ~$27,000 installed (no federal credit in 2026).
- Annual production: ~13,000 kWh, offsetting power you'd otherwise buy at ~15¢/kWh.
- Self-consumed value: ~55% used on-site = ~$1,070/yr avoided.
- Export value: ~45% exported at a near-1:1 credit = ~$880/yr.
- Total annual benefit: ~$1,950/yr in year one, rising as rates climb.
- Payback: ~$27,000 ÷ ~$1,950 ≈ ~12–14 years, faster with local storage rebates or a battery.
Swap in a weak net-metering plan and payback jumps to 16–18 years
Same panels, same roof. This is why we tell every homeowner to lock the net-metering plan before they obsess over panel brands. Compare net-metering plans →
Incentives that still apply
The headline change for 2026: the 30% federal Residential Clean Energy Credit expired on December 31, 2025. Systems installed this year no longer qualify. But U.S. homeowners still have meaningful incentives:
Local utility rebates
For qualifying solar-plus-battery systems installed by a participating contractor. The battery requirement is what unlocks the larger incentive, so it often makes storage pay for a big chunk of itself.
Your net-metering plan = an ongoing incentive
A strong net-metering plan credits exported power at near-1:1 every single month. Over 25 years that's worth more than any one-time rebate — and it's the lever most homeowners overlook.
Property-tax exemption
Many states exempt the added home value from solar from your property taxes — so the resale bump doesn't raise your tax bill.
City & co-op rebates
Some municipalities and electric co-ops offer their own small rebates that stack on top of local utility programs. A local installer will know which apply to your address.
The federal credit lapse, in plain terms
If you signed and installed before the end of 2025, you may still claim the 30% credit on your 2025 taxes — confirm with a tax professional. For 2026 installs, budget as if the credit doesn't exist, because it doesn't.
Why rising rates tilt the math toward solar
Here's the part installers undersell: your payback estimate usually assumes today's electricity rate. But North demand is surging — data centers, population growth, and electrification are all pulling on the same grid. your utility's delivery charges and grid energy prices have trended steadily upward.
When the rate you'd otherwise pay rises, every kWh your panels make is worth more, and your payback accelerates. A system that looks like a 14-year payback at flat rates can land closer to 11–12 years if rates rise even 3–4% a year — which is roughly the recent trend.
Solar is a hedge, not just a purchase
Locking in your own generation protects you from rate volatility. For homeowners worried about where electricity prices are heading, that predictability is part of the value — even beyond the raw payback number.
When solar is — and isn't — worth it
Likely worth it if…
- You own your home and plan to stay 7+ years
- Your monthly electric bill is $150+
- You have a sunny, south- or west-facing roof in good condition
- You'll choose a strong net-metering plan
- You want a battery for backup and local storage rebates
Think twice if…
- You may move within a few years
- Your roof needs replacing soon (do that first)
- Heavy shade covers your roof most of the day
- Your usage is very low (small bill = small savings)
- You'd be stuck on a weak net-billing net-metering plan
If you're on the "worth it" side, the next step is simple: get quotes from independently reviewed local installers and have them model your real usage and net-metering plan. See our ranked installers →
solar FAQ
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