Is there still a solar tax credit in 2026?

Not for a homeowner buying their own system. The Residential Clean Energy Credit under Section 25D ended for property placed in service after December 31, 2025. There is no 30 percent federal credit on a homeowner owned residential system installed in 2026. State and local incentives are separate and many still exist.

How long is the solar payback period without the tax credit?

In many markets a purchased system now pays back in roughly 10 to 13 years, up from the high single digits when the credit applied. In high electricity rate states like California, New York, and Connecticut it can still land around 7 to 9 years. The exact figure depends on your utility rate and export compensation, not on federal policy alone.

How much does a 6 kW solar system cost in 2026?

At roughly $2.50 to $3.50 per watt installed, a 6 kW system is about $15,000 to $21,000 before any state or local incentives. There is no longer a 30 percent federal credit to subtract from that in 2026, so the gross price is closer to what you actually pay than it was in prior years.

Did solar get more expensive in 2026?

The hardware did not necessarily get more expensive, but the effective price to a homeowner did, because the 30 percent federal tax credit that used to reduce it expired at the end of 2025. A system that effectively cost about $14,000 after the credit in 2025 costs its full sticker price, around $20,000 for that example, in 2026.

What still reduces the cost of solar in 2026?

State tax credits, rebates, performance based payments, and property or sales tax exemptions are separate from the federal credit and were not affected by its expiration. Favorable net metering, rising utility rates that raise the value of the power you produce, and right sizing the system to your usage also improve the economics. Check your own state and utility programs before deciding. Compare Top Solar Companies →

How Much Do Solar Panels Cost in 2026 Without the Federal Tax Credit?

Q: How much do solar panels cost in 2026?

A residential system commonly runs about $2.50 to $3.50 per watt installed before any state or local incentives, which puts many home systems in the mid five figures. A 6 kW system is roughly $15,000 to $21,000, an 8 kW system roughly $20,000 to $28,000, and a 10 kW system roughly $25,000 to $35,000. Regional prices, roof complexity, and equipment all move the number.

Updated Jul 31, 2026 • 5 min read

Written by ClearChoiceRadar Editorial

The short version

A home solar system in 2026 commonly runs $2.50 to $3.50 per watt installed before any state or local incentives. For a typical system that lands in the mid five figures, and there is one important change from prior years: you subtract nothing federal from it.

The Residential Clean Energy Credit under Section 25D, the 30 percent credit a homeowner claimed on their own tax return, ended for systems placed in service after December 31, 2025. A system that cost $20,000 on paper effectively cost about $14,000 after that credit in 2025. In 2026 the same system costs $20,000, full stop.

That single change is why every honest 2026 cost conversation is really two questions: what does the hardware cost, and how long does it now take to pay for itself. To put your own rate and system size into the math directly, use our solar payback calculator.

What a system costs in 2026, by size

Solar is priced per watt, then multiplied by system size. Installed prices vary by region, installer, roof complexity, and equipment, but the working range for a residential system is roughly $2.50 to $3.50 per watt before incentives. The table below shows where that lands for three common system sizes, and, for contrast, what the expired 30 percent credit would have removed.

System size	Gross cost at $2.50 to $3.50 per watt	What the old 30% credit would have cut (no longer available in 2026)
6 kW	about $15,000 to $21,000	about $4,500 to $6,300
8 kW	about $20,000 to $28,000	about $6,000 to $8,400
10 kW	about $25,000 to $35,000	about $7,500 to $10,500

The right-hand column is there to show the size of the hole the credit's expiration leaves, not because you can claim it. In 2026 a homeowner who buys the system claims no federal credit at all. If you are not sure which size you actually need, our solar size calculator estimates it from your electricity usage, and our solar costs and ROI guide covers what a reasonable installed price per watt looks like in more detail.

Why the payback number got longer this year

Losing 30 percent of the effective purchase price does not change how much electricity the panels make. It changes how many years of electricity savings you need before the system has paid for itself. Remove the credit and that timeline stretches.

In many markets, a purchased system that penciled out in the high single digits of years with the credit now takes roughly 10 to 13 years to pay back without it. In high electricity rate states such as California, New York, and Connecticut, where every kilowatt hour the panels offset is worth more, payback can still land closer to 7 to 9 years. Industry analyses of the California market put the shift at roughly four years to about six years for a typical purchased system once the credit came out.

The point is not that solar stopped working. It is that the decision moved from a national tax rule you could look up to a set of local numbers you have to run: what your utility charges per kilowatt hour, and what it credits you for the power you export.

What still lowers the price where you live

The federal credit is gone, but several things that move the real cost of solar did not go anywhere. Check these before deciding solar no longer makes sense:

State and local incentives. State tax credits, rebates, performance based payments, and property or sales tax exemptions are separate from the federal credit and were not affected by its expiration. What exists varies widely by state and sometimes by utility. Our incentives guide covers the categories to look for.
Your net metering rules. What your utility pays you for exported power is often the single largest factor in payback, and it varies far more between utilities than national articles admit. Start with our net metering guide and your own solar utility page.
Rising utility rates. The value of the power you produce rises as grid electricity gets more expensive, and rates have been climbing faster than the historical average in many regions per Energy Information Administration data.
Right sizing. An oversized system is money spent on production you export at a low rate. Matching the system to your actual usage protects the payback math.

A caution while you compare quotes: if a 2026 sales pitch still shows a 30 percent tax credit line for a system you would own, slow down and ask what it refers to, because the homeowner credit no longer exists. Short answers to the common questions are on our solar answers hub.