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The federal residential tax credit is gone. Here is everything you need to know about buying solar in 2026 — costs, financing, state incentives, equipment, and installation. Written by licensed installers with state-specific data for 10 states.
In 2026, solar panels cost $2.35–$3.35/W depending on your state, with NO federal tax credit for homeowner purchases. State incentives and lease/PPA options are now the primary paths to savings.
With no federal credit, lease and PPA now offer faster Day 1 savings than cash in most states. Cash still wins on 25-year total value, but the gap has narrowed significantly.
A solar + battery system costs $30,000–$50,000 depending on storage capacity, with backup runtime of 8–24 hours for essential loads. Here is how to size it right and whether the economics work.
Solar costs vary 10–20% within a single state based on local permitting, utility rates, labor markets, and city-specific incentives. Here is a city-by-city breakdown for your state.
The federal residential tax credit is dead in 2026. State incentive programs — from NJ SuSI ($90/MWh for 15 years) to MA SMART (monthly bill credits) — are now the main way to reduce your solar cost.
Net metering credits you at the full retail rate for excess solar production. But many states are shifting to net billing at lower avoided-cost rates. Here is what your utility actually pays you.
Most homes need 15–30 panels (6–12 kW) based on monthly electric bill and sun hours. A home with a $200/month bill in Massachusetts needs about 24 panels (10 kW).
Panel choice matters less than installer quality, but there are real performance differences. Premium panels (REC Alpha, SunPower) degrade slower and produce more in shade; value panels (Jinko, Trina) cost 15–20% less.
An EV adds 3,000–5,000 kWh/year to your electricity usage, requiring an additional 2–4 kW of solar. Combined with a TOU rate strategy, solar + EV can save $2,000–$4,000 annually on transportation + electricity.
If your roof has less than 10 years of life left, replace it before or during solar installation. Removing and reinstalling panels later costs $2,000–$5,000 and risks warranty issues.
The difference between a good and bad solar install is bigger than the difference between panels. Ask these 15 questions, watch for these red flags, and compare quotes using $/W with identical equipment.
Use our free calculator for an instant estimate with state-specific pricing and incentives.