The disappearance of the 30% federal tax credit for home solar systems looked like it might sharply weaken the rooftop market. New marketplace figures, however, indicate that plenty of homeowners are still finding a way to make solar pencil out.
EnergySage says the market has stayed appealing for several reasons, including rising electricity prices, wider financing options, and growing interest in battery storage even after the tax break ended.
Here's what to know
EnergySage's 23rd EnergySage Intel: Home Electrification Marketplace Report used millions of homeowner transaction data points from EnergySage.com collected between Jan. 1 and June 30, 2026, along with results from EnergySage's 2026 Electrification Contractor Survey.
Contractors in the report said bill reduction is still the main reason customers choose solar. Even with prices edging higher, 70% said homeowners buy systems to save money, a calculation made more compelling by electricity rates that already exceed 29 cents per kilowatt-hour in states such as Massachusetts and New York and reach 35 cents in California.
According to Sam Thompson, Head of Solar at EnergySage, fast-moving utility pricing changes are making the decision feel more urgent.
"Rate structures are changing faster than they used to, and that's part of what's keeping solar's value proposition strong and driving homeowners' urgency," he said. "We're seeing it show up most clearly in states where rates are skyrocketing."
Going solar remains one of the best ways to save money on home energy over time. Homeowners who want to compare options can try EnergySage to get free solar installation estimates and compare quotes.
Alternative ownership models are also taking on a larger role after the credit's expiration. In every qualifying state, average power purchase agreement pricing came in below local utility rates, with the biggest savings reported in California at 59% and Illinois at 55%. Through the first half of the year, the share of installers on EnergySage quoting third-party ownership options climbed from about 14% to around 41%.
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More background
Battery storage was one of the strongest areas of growth in the report. In the first half of 2026, self-reported homeowner interest in batteries reached 76% — the highest level EnergySage has recorded — while actual attachment rates stayed lower at 31%, which the report suggests is likely due to upfront costs.
Rather than showing a market in retreat after the credit ended, the pricing figures pointed to resilience. The report said median solar pricing rose by about 3% from the second half of 2025 to the first half of 2026, solar-plus-storage pricing increased 5%, and solar-only pricing held steady. Meanwhile, the highest average quoted price dropped from $3.07 per watt to $2.94 per watt.
Thompson said the rise in storage pricing most likely comes down to how much more involved those projects are.
"Solar-plus-storage installs are simply more complex and time-intensive than solar-only," he said. "With contractors telling us broadly that their labor costs are up this year, that's the most likely explanation for why the more complicated installs are seeing the pricing pressure and the simpler ones aren't."
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What's being done?
To keep projects affordable, installers are cutting expenses, trying different financing strategies, and helping homeowners understand changing utility pricing rules. Those shifts include time-of-use pricing, fixed charges, and net metering rollbacks, all of which can improve the return on battery storage.
For shoppers, EnergySage can help streamline the process by letting homeowners curate competitive bids from local installers without companies getting their contact information unless they decide to move forward. That gives people more control as they compare prices, financing structures, and equipment choices.
There is also a clear financial case for shopping around: with EnergySage's help, the average person can save up to $10,000 on solar purchases and installations. Alongside quote comparisons, EnergySage's solar map shows the average cost of a home solar panel system by state and details solar panel incentives for each state, which together can help homeowners get the best price for rooftop solar panels and access available incentives.
Adding battery storage to a solar setup is one of the best ways to protect your home during outages, save money on energy, and go off-grid. Homeowners interested in backup power can explore EnergySage for information about home battery storage options, including competitive installation estimates.
Thompson said the challenge is matching affordability and access with demand that never really went away. "The incentive landscape changed overnight, but the reasons homeowners want solar and storage haven't. Our job is to make sure affordability and accessibility keep pace with that demand."
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