Solar, Storage Cost Down as Rates Rise

BOSTON, Sept. 30, 2026 /CourierPR/ -- The 23rd edition of the EnergySage Marketplace Report finds that as utilities raise rates, homeowners are turning to expanding financing options, including a near tripling of third-party ownership, to help keep solar and storage savings accessible after the loss of the federal tax credit. Throughout the first six months after the expiration of the 30% federal tax credit for purchased residential solar systems, homeowners still found a clear path to savings through solar and storage, according to the report released today.

The report, which analyzed millions of transaction-level data points from homeowners shopping on EnergySage.com between January 1 and June 30, 2026, alongside results from EnergySage's 2026 Electrification Contractor Survey, shows an industry adapting quickly to shifting utility rate structures. Despite median solar and storage prices increasing by 3% and 5%, respectively, alongside the absence of the 30% tax credit, utility bill savings remained the primary driver of customer demand. Seventy percent of contractors said customers purchase solar to save money, while time-of-use rates, fixed charges, and net metering rollbacks boost the ROI of battery storage.

Financing is closing some of the gap left by the loss of the tax credit. For homeowners weighing the upfront cost of solar, the math still works in their favor: the average cost of a power purchase agreement (PPA) came in below utility electricity rates in every qualifying state this half-year, with the largest discounts in high-cost markets like California (59% below) and Illinois (55% below). More installers are offering third-party ownership (TPO) options to help homeowners get there: the share quoting TPO on EnergySage climbed from about 14% to roughly 41% in just six months, though that growth varies by market and is partly due to TPO's recent availability on the marketplace. Pre-paid "lease-to-own" options delivered the biggest savings of any financing type: compared with a cash purchase, pre-paid PPAs and leases were 57% and 39% cheaper, respectively.

Storage interest hit an all-time high, and affordability is the next hurdle. Self-reported homeowner interest in battery storage climbed to 76% in the first half of 2026, the highest level EnergySage has recorded. Attachment lags at 31%, likely due to upfront costs.

Pricing reflects rising labor costs, not a step back for solar. While the loss of the 30% federal tax credit increased homeowners' effective costs relative to a year ago, installer pricing remained notably resilient against the backdrop of policy headwinds. The median price of solar rose about 3% between the second half of 2025 and the first half of 2026, though the highest average quoted price actually fell, from $3.07/W to $2.94/W, as installers who held outsized pricing power during last year's tax-credit rush gave some of it back. Solar-only pricing held flat, while solar-plus-storage pricing rose 5%, a gap that can likely be attributed to labor rather than equipment.

With the 30% tax credit gone for purchased systems, installers are focused on keeping solar and storage within reach: reducing costs, testing new financing models, and helping homeowners navigate a shifting utility rate landscape.