How much does solar cost?

The sticker price didn't change. What you pay did.

A typical residential solar system still runs about $2.50 to $3.00 per watt installed, which puts most homes somewhere in the $25,000 to $31,000 range. That number is roughly flat compared to a year ago.

What changed is who pays it. The 30% federal tax credit that homeowners claimed when they bought a system ended for installations completed after December 31, 2025. So the panels didn't get more expensive. The government just stopped covering 30% of them.

The difference is not small. A $30,000 system netted about $21,000 for a buyer in 2025. That same system costs $30,000 today. For anyone paying cash or financing, out-of-pocket went up roughly 43% overnight, without a single component changing price.

And a battery is no longer really optional

Here's the part that changes the total more than most people expect. Utilities across the country keep cutting what they pay for the solar you export, so the value increasingly comes from storing your own production rather than selling it back. In the first quarter of 2026, storage was attached to 45% of new residential solar, a record, up from 38% a year earlier. In California, where export credits were cut by roughly 75%, it's closer to 69%.

The catch is that a battery big enough to matter isn't a small add-on:

• A single entry-level unit, around 13.5 kWh, runs about $13,000 to $16,000 installed. That covers essentials for a while. It will not carry a house with central air through a long outage.
• A bank actually sized for whole-home backup, roughly 25 to 40 kWh, runs about $22,000 to $40,000.

Which means the battery is often as expensive as the solar. A properly equipped purchased system in 2026 is realistically a $50,000 or moredecision, with no federal credit against it. If you're weighing whether to skip the battery, we get into that in is solar worth it without a battery.

Option 1: Paying cash

Cash is the cheapest way to own, because you skip interest and dealer fees entirely. It's also a very large check now that nothing comes back at tax time.

And ownership means owning the whole lifecycle. Panels are close to maintenance free, but the system around them isn't. Plan on an inverter replacement around year 10 to 15 (commonly $1,500 to $3,000), and a battery replacement on a similar horizon that is a five-figure line item. Add the risk that the company that installed it isn't around to honor the workmanship warranty, which has become a real problem as solar installers have gone under.

Option 2: A solar loan

This is where most buyers land, and it's worth understanding what happened to loan pricing.

The 2.99% solar loan is gone. Well-qualified borrowers are generally looking at 6% to 10% APR in 2026, and mid-tier credit runs higher. On a 25-year term, interest at those rates adds a lot to what the system ultimately costs you.

Then there's the part the industry rarely volunteers. Lenders charge the installer a dealer fee to offer a lower rate, typically 15% to 30% of the system price. The installer doesn't absorb it, it gets added to the amount you finance. A $26,000 system with a 25% dealer fee means you're financing about $32,500 and paying interest on the larger number. The lower the advertised rate, the bigger that fee usually is.

Also worth asking any lender directly: does the monthly payment change at any point? Many solar loans were built around a lump-sum payment funded by the tax credit, and the payment steps up if that money never arrives. With the credit gone for purchases, that structure deserves a hard look.

Where that leaves buying in 2026

Put it together and the picture is honest but not encouraging: solar plus a battery sized for real backup, no federal credit, and financing at 6% to 10% with a dealer fee baked into the price. Buying a system today is a substantially bigger commitment than it was eighteen months ago, and it puts every future repair and replacement on you.

That doesn't make solar a bad idea. Energy costs aren't going down, and the reasons to want your own generation and storage are stronger than ever. It just means the ownership path is a much heavier lift than the one most people were sold on a few years ago.

The other option: don't buy it at all

There's a third path. A company installs, owns, and maintains the equipment, and you simply pay for the energy it produces. No upfront cost, no loan, no interest, no dealer fee, and the replacement and maintenance risk stays with them rather than landing on you in year twelve.

That's what SOLRITE does, solar and a properly sized battery together at $0 upfront. You can see how it works on our Solar VPA page, or just talk to us about your home and we'll tell you honestly whether it makes sense for you.