Going Solar in 2026 and 2027: New Rules on Costs, Tax Credits, Financing, and Savings

Depending on what you spend on electricity, the answer may be a clear yes. The increasing cost of electricity in the U.S. has outpaced inflation over the last year, and it’s clear that people are struggling with these rising prices. About half of Americans report that higher electricity costs have strained household finances, according to a nationally representative 2026 Consumer Reports survey of 2,003 U.S. adults. The same survey showed that a majority of Americans have made or considered significant trade-offs to pay their electric bills, such as cutting back on other spending, lowering heat or air conditioning to uncomfortable levels, or seeking financial help from family members or organizations. Given the real-life effects of higher electricity prices, it’s understandable that people are looking for ways to cover or offset these costs. 

Going solar, while costly, can significantly reduce your electric bills for decades (or possibly bring them to zero), saving you money over the long term. Solar panels typically function at a high level for 25 to 30 years, so you are playing the long game of managing your electricity costs when buying a system or leasing one.

According to EnergySage, while purchasing a solar array may cost more than $30,000, the average homeowner will save more than $60,000 on electricity over the lifetime of their system (depending on how much energy they use and how large their solar system is). 

You can calculate your average monthly electricity expenses and plug that figure, along with your address, into a solar calculator such as Google Project Sunroof, EnergySage, or SolarReviews. Those tools will combine that information with aerial views of your roof from mapping programs such as Google Earth to estimate how large a PV system your home could handle, how much you could save over, say, 20 years, and your investment’s break-even point: that is, when a purchase would begin to pay off. Homeowners who buy a solar panel system could break even in about 10 years, on average, EnergySage says. 

Savings and break-even estimates for the same property can be wildly different among the calculators, so consider them a starting point in your decision-making. And of course, not all panels are created equal. Consumer Reports tested 10 different panels and found 3 clear winners.

With the end of the residential solar tax credit, which benefited homeowners who purchased a solar system, leasing may now be a more accessible option–and in many cases, a good deal. That’s especially true now, since federal tax credits still exist for solar companies that offer leases and power purchase agreements (PPA). PPAs are another kind of third-party ownership model, similar to a lease, but you pay for the energy you generate rather than a standard monthly fee.

Getting back-up battery storage, in locations where it’s permitted, is another option for maximizing the electricity you generate with your solar system. Many companies now offer both batteries and solar as a package, whether you lease a system or purchase one. 

“It’s one of the opening questions we ask when we’re chatting with someone: ‘Are you interested in battery backup as well?’” says Clary Franko, chief operating officer of Sugar Hollow Solar, based in Asheville, North Carolina. “Most people come in at this point saying yes.” 

That’s because being able to store the energy you produce during daytime hours would allow you to use that stored electricity during evening hours of peak demand, when your utility may charge a higher rate. Plus, a backup battery can keep you resilient during power outages.

Franko says her customers experienced firsthand how crucial home energy storage could be when Hurricane Helene devastated Asheville and the surrounding area in 2024. 

“One of the things that came out of that was the people who had solar and battery backup systems at their home or business got to see it really work,” she says. “We heard story after story of households becoming these little hubs of resilience in their neighborhoods, being able to take care of people.” 

These lithium-ion devices are made by companies such as Franklin WH, SolarEdge, and Tesla and connect to your solar array via an inverter.  EnergySage estimates that a backup battery could power your home’s essentials for a full day on a single charge, depending on the electrical load. But when those batteries are connected to solar, they can provide power longer, as long as the sun is shining.

If your roof is old, the answer is no–at least not until you replace it. Many solar panels are warrantied to last 25 years or longer, while most roofs are warrantied for 30 years or less. 

With newer roofs, you’ll still only know for sure if a solar installation is feasible after a solar company rep checks out your roof and surrounding foliage in person. They’ll determine whether there’s too much shade or other obstacles, or whether the roof has problems that don’t make an installation worthwhile. 

“A good installer will help guide the process, catering to their customers’ needs and answering all their questions with honesty,” says Ruby Carbajal, president and CEO of Amicus Solar Cooperative, which includes more than 90 community-based solar businesses around the country, like Sugar Hollow Solar. “They won’t focus on getting the biggest system on a roof, whether it makes sense or not.”

Check, too, with your municipality–and homeowners’ association, if you have one–to find out about any restrictions on the type and placement of solar panel arrays.

As we’ve mentioned, working with an experienced installer is central to having a positive solar experience. Roger Horowitz, vice president of Go Solar programs at Solar United Neighbors, a solar advocacy and policy group, offers these best practices for vetting companies:

Go local. Solar is a local enterprise, given varying permitting requirements and arrangements with utilities. So make sure your installer has the experience to navigate the specifics of your location.

Get at least three bids. Start by looking at companies recommended by neighbors or others in your area who have had good experiences.

Compare the price per watt or kilowatt. That’s the up-front cost divided by the system’s size. The lower the cost per watt (the unit price), the better the system’s value. You can use each company’s estimated cost per watt to compare proposals. 

Avoid door-to-door sales. Horowitz says he has heard of roving teams of solar salespeople looking to expand in certain jurisdictions who don’t yet have an established local business. “First of all, we don’t recommend buying stuff door-to-door,” he says. If anything, “tell them, ‘Hey, give me your proposal. I always want to get three proposals.’”

Read online reviews. Make sure they’re good and plentiful. You’re looking for a contractor with hundreds of good reviews, not just a handful.

Ask about warranties. There should be warranties for the actual product (the panels and the inverter) as well as for the amount of electricity those panels are expected to produce. Both of those warranties are typically offered by the manufacturer. Additionally, the installer may offer a warranty for workmanship. 

Check to see whether the company has signed an ethics pledge. Certain states and even counties have solar associations with ethics pledges that companies can sign. For example, Solar United Neighbors helped create an ethics pledge in Ohio. 

Solar United Neighbors also runs a help desk for questions about solar, whether you’re starting research or need to troubleshoot an issue. 

There are a few different ways that you may be able to save on getting solar systems or benefit from solar energy without leasing or owning your own panels. Here’s how:

Most states have community solar projects, which are essentially another type of solar subscription service but with the panels located at an off-site solar farm within your utility area. You pay a solar provider for a share of solar energy and then receive a credit on your electric bill. This can be an option for people whose homes are not good candidates for solar panels–including condo owners or renters–or for those where paying for an individual solar system just isn’t in the cards. New York State, for example, has more than 1,000 community solar projects and offers a guide on how to choose one. As with solar leases and loans, you’ll want to review contract terms closely.

A solar co-op consists of a group of people, all seeking solar systems for their homes, who band together to negotiate bids from installers. Essentially, you’re purchasing in bulk to get a better deal for each household. 

Solar United Neighbors, for example, has organized bulk purchase groups for about two decades. First, they will begin building a group of solar-curious homeowners–about 50 to 100 households–and gather bids from installers without any strings attached, says Ben Delman, the organization’s editorial director.  

“A committee of the participants reviews the bids, chooses one, and then that installer develops a proposal for each co-op participant,” Delman says. “[Homeowners] decide individually if they want to go solar or not.” 

Delman says that, in addition to the possible financial benefits, grouping together for a solar installation can help navigate solar permitting and installation, which is sometimes a lengthy process.