U.S. residential solar prices increased in the first half of 2026 as installers navigated the expiration of the 30% federal residential solar tax credit, rising labor costs, and continued trade pressures, according to the latest Home Electrification Marketplace Report from EnergySage.

The report, which analyzed solar and storage quotes submitted through the EnergySage marketplace between January and June 2026, found that the median quoted residential solar price reached $2.57 per watt, a 3.2% increase from $2.49/W in the second half of 2025.

For a system at the median size of approximately 12 kW, that translates to an upfront cost of $30,712 before incentives. The average estimated payback period increased from 10.1 years to 10.9 years, although EnergySage noted that a methodology change contributed to the increase.

Median quoted residential solar prices rose 3.2% in the first half of 2026 to $2.57/W, while solar-only pricing remained flat from the previous six-month period.

The pricing trends differed between solar-only and solar-plus-storage installations. Solar-only pricing remained flat at $2.62/W compared with the previous six-month period and decreased 1% year-over-year. Meanwhile, the solar portion of solar-plus-storage quotes increased nearly 5% to $2.55/W, excluding the battery cost.

EnergySage attributed the narrowing price gap between solar-only and solar-plus-storage systems partly to increasing labor costs, as combined installations typically require additional installation time and complexity.

One of the most significant developments in the report was the rapid expansion of third-party ownership (TPO) financing, as installers sought alternatives to traditional solar loans and cash purchases following the expiration of the Section 25D residential tax credit at the end of 2025.

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