Homeowners shopping for solar are seeing higher quotes in 2026 after the 30% federal tax credit expired, with the typical 12-kilowatt system reaching $30,712 upfront in the first half of the year, according to EnergySage's Home Electrification Marketplace Report.

At the same time, financing options are changing quickly, and battery storage remains a tough sell even as more homeowners show interest.

Here's what to know

EnergySage's latest Home Electrification Marketplace Report showed a longer estimated payback timeline for homeowners, up to 10.9 years from 10.1 years, according to PV Magazine. 

From January to June, the months analyzed in the report, median quoted home-solar pricing increased to $2.57 per watt from $2.49 per watt in the second half of 2025.

Stand-alone solar remained mostly unaffected and even dipped 1% year-over-year, while combined system quotes climbed nearly 5% to $2.55 per watt before battery cost, a change tied to the extra labor and complexity of installing both together. 

For homeowners seeking to avoid upfront costs, solar leases in particular can deliver hundreds of dollars in monthly savings. That aligns with EnergySage's findings that prepaid leases were modeled at 39% below cash purchases on an effective cost-per-kilowatt-hour basis.

EasyHome's free explorer tool can help you discover potential savings from vetted installers in your area.

More background

Price dispersion shrank over the study period. As pv magazine noted, the average top quote eased to $2.94 per watt, while the average bottom quote rose to $2.38, reducing the gap to $0.56 per watt from $0.72 per watt in the second half of 2025.

Labor pressures were widespread as well. Nearly 74% of surveyed contractors said hourly labor rates were up, and labor made up 22% of total installed system costs, compared with 36% for equipment. When contractors were asked what drives demand, about 70% pointed to lower electric bills. However, 63% named cost or pricing as the biggest obstacle to securing a sale. 

State-level quotes varied significantly. Illinois had the highest median price among the 10 largest residential solar states at $3.07 per watt, compared with $2.00 per watt in Texas, a 53% spread.

Customer curiosity about batteries remained strong, but fewer proposals included them. While 76% of shoppers said they were interested in storage, just 31% of solar quotes included it, down from 39% in the second half of 2025. In this case, price was also a factor, according to 64% of surveyed contractors.

What can be done?

The financing mix moved notably toward third-party ownership. Pre-paid power purchase agreements were modeled at an effective cost per kilowatt-hour 57% below cash purchases, and the share of installers offering those products through EnergySage rose from about 14% in January to 41% by the end of June.

Installers are also looking for growth elsewhere: 58% of contractors said adjacent services such as EV charging, HVAC work, and electrical upgrades are a top strategy. 

Meanwhile, median quoted solar loan rates stayed at 7.5% for the third straight reporting period, even as median loan terms shortened from 25 years to 20 years.

If you're considering solar, EasyHome's free explorer tool can help you compare vetted local installers and narrow down whether a lease, loan, or cash purchase makes the most sense for your roof and budget. It can also help you explore your options for a backup battery so you can maximize your long-term savings and power your home when the grid goes down. 

Where can I learn more?

Solar buyers around the country are comparing competing bids, leases, and payback timelines.

• Across the U.S., homeowners found financing kept solar viable after the 30% tax credit disappeared.

• In western Iowa, a homeowner weighed a $30,362 solar bid before net metering rules tightened.

• One DIY buyer learned a $24,000 setup could still return costs in 6.5 years.

• In Arizona, a homeowner got a $35,000 quote and heard $2.59 per watt was cheap.

• A shopper was told to run very far away from a $44,000 9.88-kW quote.

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