The federal Residential Clean Energy Credit — the 30% credit homeowners claimed when they bought solar — ended on December 31, 2025. In 2026, a $24,000 system costs $24,000, not ~$16,800 after credit. That pushes payback out by roughly 3 years. Solar can still be worth it, but the case now rests on electricity-bill savings, state/local incentives, and net metering rather than a federal discount.
Solar tends to pay off well if most of these are true:
Be honest with yourself if:
A typical 8 kW system costs about $24,000 — and with no federal credit, that's roughly what you pay (before any state/local help). If it saves you ~$1,800–$2,400 a year on electricity, you reach payback in about 10–13 years, then the panels keep producing for 25+ years. The exact math depends heavily on your electric bill and your state's rate, which is why averages only get you so far.
Buying (cash or a solar loan) still delivers the best lifetime savings and full ownership — you just no longer get the federal credit. Leases and PPAs require no money down and let the provider claim a remaining business tax credit (which can keep your payments lower), but your long-term savings are smaller and a lease can complicate a home sale. Compare both carefully.
Yes — the 30% federal residential credit ended December 31, 2025 for purchased systems. A system had to be installed and operational by then to qualify. State and local incentives may still apply.
Most homeowners still save roughly $1,200–$2,800 per year depending on system size, electric rate, and usage — the credit's end affects upfront cost and payback time, not your ongoing bill savings.
You draw from the grid (and net metering credits offset it) or from a battery if you add one. Solar reduces your bill; it doesn't have to eliminate grid use.
Solar Cost Advisor is a free, neutral tool — we don't sell panels. We help homeowners decide if solar is worth it and, if they choose, connect with vetted local installers. Get your free estimate →
