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The federal tax credit is gone for homeowners. Here's why solar still makes financial sense — with real pricing data for every state we serve.
Last updated: February 2026
Note: All calculations reflect $0 federal tax credit for homeowner purchases. Only state incentives are included where available.
Solar electricity costs roughly $0.06–0.08/kWh over 25 years. Your utility charges $0.15–0.30/kWh and raises rates 3–5% every year. Even without the federal credit, solar locks in your electricity cost at a fraction of what you're paying now — and the gap widens every year as utility rates climb.
Based on a typical 8kW system (20 panels at 400W each). All costs are pre-financing. State incentives applied where available.
| State | Utility Rate | System Cost | State Rebate | Net Cost | Year 1 Savings | Payback | 25-Year Savings |
|---|---|---|---|---|---|---|---|
| Rhode Island | $0.29/kWh | $24,240 | -$5,000 | $19,240 | $2,784 | 7 yrs | $143,245 |
| Massachusetts | $0.28/kWh | $24,720 | -$1,000 | $23,720 | $2,688 | 8 yrs | $138,306 |
| Connecticut | $0.30/kWh | $23,280 | $0 | $23,280 | $2,820 | 8 yrs | $145,098 |
| New Jersey | $0.26/kWh | $23,440 | $0 | $23,440 | $2,600 | 8 yrs | $133,778 |
| New Hampshire | $0.27/kWh | $24,880 | $0 | $24,880 | $2,538 | 9 yrs | $130,588 |
| Maine | $0.27/kWh | $24,400 | $0 | $24,400 | $2,484 | 9 yrs | $127,810 |
| Vermont | $0.21/kWh | $24,640 | $0 | $24,640 | $1,890 | 11 yrs | $97,246 |
| Texas | $0.15/kWh | $22,640 | $0 | $22,640 | $1,800 | 11 yrs | $92,616 |
| Pennsylvania | $0.17/kWh | $22,240 | $0 | $22,240 | $1,666 | 12 yrs | $85,721 |
Utility Rate
$0.29/kWh
Net Cost
$19,240
Year 1 Savings
$2,784
25-Year Savings
$143,245
Includes $5,000 state rebate
Utility Rate
$0.28/kWh
Net Cost
$23,720
Year 1 Savings
$2,688
25-Year Savings
$138,306
Includes $1,000 state rebate
Utility Rate
$0.30/kWh
Net Cost
$23,280
Year 1 Savings
$2,820
25-Year Savings
$145,098
Utility Rate
$0.26/kWh
Net Cost
$23,440
Year 1 Savings
$2,600
25-Year Savings
$133,778
Utility Rate
$0.27/kWh
Net Cost
$24,880
Year 1 Savings
$2,538
25-Year Savings
$130,588
Utility Rate
$0.27/kWh
Net Cost
$24,400
Year 1 Savings
$2,484
25-Year Savings
$127,810
Utility Rate
$0.21/kWh
Net Cost
$24,640
Year 1 Savings
$1,890
25-Year Savings
$97,246
Utility Rate
$0.15/kWh
Net Cost
$22,640
Year 1 Savings
$1,800
25-Year Savings
$92,616
Utility Rate
$0.17/kWh
Net Cost
$22,240
Year 1 Savings
$1,666
25-Year Savings
$85,721
Here's what solar looks like for homeowners in three very different markets — with year-by-year savings projections based on actual NuWatt pricing and state-specific incentives.
High utility rates + SMART 3.0 production income
System Cost
$24,720
State Rebate
-$1,000
Net Cost
$23,720
Utility Rate
$0.28/kWh
Payback: 8 years
Excellent return — well within panel warranty period
ADI production income ($85.90/MWh for 15 years)
System Cost
$23,440
State Rebate
$0
Net Cost
$23,440
Utility Rate
$0.26/kWh
Payback: 9 years
Solid return — consider a lease/PPA for faster savings
No state incentive, but high solar production
System Cost
$22,640
State Rebate
$0
Net Cost
$22,640
Utility Rate
$0.14/kWh
Payback: 12 years
Solid return — consider a lease/PPA for faster savings
Calculations assume 3% annual utility rate increase, 8kW system, and no federal tax credit. Actual results vary by roof orientation, shading, and local rate structures.
Enter your state and monthly electric bill to see a personalized estimate. All calculations reflect $0 federal tax credit.
See your estimated solar payback — with $0 federal credit
Net Cost
$25,160
after incentives
Payback
8.5 yrs
to break even
Monthly Savings
$224
year 1
25-Year Savings
$93,262
projected
Estimates based on average utility rates, 3% annual rate increase, and typical solar production for Massachusetts. Actual results vary by roof, shading, and utility.
Many homeowners see the upfront price of solar and hesitate. But doing nothing has a cost too — and it compounds every single year. Adjust the slider to see what waiting looks like for your bill.
Historical average: 3-5% annually
At $200/mo with 4% annual rate increases
$2,400
Year 1
$12,999
Year 5
$28,815
Year 10
$48,057
Year 15
$99,950
Year 25
Total utility cost over 25 years: $99,950
Solar system cost: ~$20,000
You save $79,950 by going solar
5-Year Utility Cost
$12,999
10-Year Utility Cost
$28,815
Money Lost vs Solar
$79,950
Every year you wait, you pay the full utility rate — which increases 3–5% annually. Over 5 years at 5% annual increases, a $200/month bill becomes a $255/month bill. That's an extra $660/year just from rate hikes, and it keeps compounding.
State incentive programs have fixed budgets. New Jersey's ADI rates decline each energy year, Rhode Island's Renewable Energy Fund has a capped budget, and Massachusetts' SMART program has capacity limits. The incentives available today may not exist next year. The federal ITC already proved that programs can end entirely.
A typical homeowner paying $200/month spends over $13,000 on electricity in just 5 years. An 8kW solar system typically costs $20,000–$27,000 after state incentives. The system pays for itself — the utility bills do not. Every year you wait is a year of savings you never get back.
Electricity rates have increased 3–5% annually on average. A $200/month bill today becomes $325/month in 10 years and $530/month in 20 years at 5% annual increases.
Once installed, your solar electricity costs $0.06–0.08/kWh for 25+ years. That rate never increases. The longer you own the system, the more you save compared to rising utility rates.
Rhode Island's REF rebate ($0.65/W), Massachusetts' SMART 3.0 production payments ($0.03/kWh for 20 years), and New Jersey's ADI income ($85.90/MWh for 15 years) each shorten payback by 1–4 years through upfront rebates or ongoing production income.
If paying $20,000+ upfront doesn't work for your budget, a solar lease or PPA (Power Purchase Agreement) provides a path to solar savings with $0 down — and still benefits from the 30% ITC.
They pay for everything — equipment, permits, installation. You put $0 down. The solar company owns the system and claims the 30% ITC under Section 48/48E (which is still available for third-party owned systems).
Your lease or PPA payment is set below your current utility bill. If you pay $200/month to the utility, your solar payment might be $120–$160/month. You save from day one, every month.
Most leases have a small annual escalator (1–3%), but utility rates rise 3–5%. The gap between your lease payment and what you would have paid the utility grows every year, increasing your net savings over time.
You pay a fixed monthly amount regardless of how much electricity the panels produce. Predictable budgeting, but you pay the same in cloudy months as sunny ones.
You pay per kilowatt-hour for the electricity the panels actually produce. You only pay for what you use — lower production months mean lower bills. The per-kWh rate is locked in below your utility rate.
Key takeaway: The 30% federal ITC is gone for homeowner purchases (Section 25D expired), but it's still available to solar companies through Section 48/48E. A lease or PPA is the only way for homeowners to benefit from that credit in 2026. For more details, see our Solar Lease vs. Buy guide.
Solar panels don't just save money on electricity — they increase the value of your home. Multiple national studies confirm that buyers pay a premium for solar-equipped homes.
~4% Average Home Value Increase
National studies from Zillow, Lawrence Berkeley National Laboratory, and the Appraisal Journal consistently find that solar panels add approximately 4% to a home's sale price. On a $400,000 home, that's roughly $16,000 in added value.
$4–$6 Per Watt Installed
Research indicates home value increases of approximately $4–$6 per watt of solar installed. An 8kW system could add $32,000–$48,000 in value — often exceeding the net cost of the system.
Faster Sales
Homes with solar panels sell faster on average. Buyers increasingly seek energy-efficient homes, and solar is a visible, quantifiable upgrade that lowers their anticipated utility costs immediately.
Owned Systems Only
The 4% home value increase applies to owned solar systems. Leased systems have minimal impact on appraisal value because the lease obligation transfers to the buyer. Some buyers view a transferred lease as a complication.
Appraisal Challenges
Not all appraisers account for solar properly. Ask your appraiser if they use the PV Value tool or have solar appraisal experience. In some markets, solar value may not fully reflect in the appraised price without comparable sales data.
System Age and Condition
Newer systems add more value. A 5-year-old system with 20+ years of warranty remaining is more attractive to buyers than a 15-year-old system nearing the end of its performance guarantee. Panels degrade about 0.5% per year.
Consider a homeowner in Massachusetts who installs an 8kW system for a net cost of approximately $23,720. Over 10 years, the system saves them thousands in electricity costs. When they sell, the home appraises for roughly $16,000–$32,000 more than comparable homes without solar. The combination of electricity savings plus added home value means solar delivers a positive return even if you sell well before the full 25-year payback period. For homeowners planning to stay 5+ years, a purchased solar system functions as both an energy cost hedge and a home improvement investment.
We believe in honest advice. Here are situations where solar may not be the best investment:
If you pay less than $0.10/kWh, the savings from solar are smaller and payback takes 15+ years. Consider a lease/PPA for immediate savings with no upfront cost.
Significant shading reduces production by 20–50%. If most of your roof is shaded year-round, the system may not produce enough to justify the investment.
Solar increases home value by ~4%, but you need 3–4 years minimum to recoup the difference between system cost and home value increase.
These are averages. Your savings depend on your roof, usage, and utility rate. Use our calculator for a precise estimate.