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It’s a bright Saturday in July. The air conditioner is running, the kids are home, the dishwasher is going, and the electric meter on the side of the house is turning backward. Up on the roof, a few rows of dark glass are making more power than the family is using, and the extra flows out to the neighbors. That’s what solar panels for home look like on a good day. The harder questions come before you sign: Will it fit my roof? What will it cost now that the federal tax credit is gone? And will it actually pay off?
In short: a home solar system turns sunlight into electricity for your house and sends any extra to the grid for a bill credit. A typical system costs about $2.60 per watt before incentives on EnergySage’s marketplace in 2026, or about $31,000 for the average 12 kW quote. There’s no federal tax credit for buying one in 2026, so payback depends mostly on your sun, your electricity rates and your utility’s net metering rules.
This page opens our Solar for Home section: how rooftop solar works, whether your home is a good fit, how big a system you need, what it costs, buying vs leasing, net metering, adding a battery, smaller options for renters and sheds, and where to read more.
Solar panels for home at a glance
- What you get: panels on the roof (or the ground), an inverter that turns their DC power into the AC your home uses, a disconnect and a meter that counts what goes in and out.
- Typical size: the median home system installed in 2024 was 7.2 kW, with most between about 4 and 11 kW (Berkeley Lab). EnergySage’s average 2026 quote is larger, about 12 kW.
- Cost: about $2.60 per watt on EnergySage in 2026; Berkeley Lab’s median for completed 2024 installs was $4.00 per watt. The gap is explained below.
- Payback: EnergySage puts the average at about 10 years; our own estimates range from about 5 to 16 years depending on the state.
- No federal credit for buyers in 2026: the 30% residential clean energy credit (25D) isn’t available for systems placed in service after December 31, 2025. Leased systems can still carry a business credit that the leasing company claims.
- Outages: a grid-tied system without a battery shuts off when the grid goes down. You need a battery for backup.
- Lifespan: panels typically last 25 to 30 years (EnergySage), losing about 0.5% of their output a year (median from a review of nearly 2,000 measurements by NREL researchers).
How home solar works
Each panel is a sheet of silicon cells that releases electrons when sunlight hits it, producing direct current (DC). The median panel installed on US homes in 2024 converted about 21% of the sunlight that hit it into electricity, up from 13% in 2003 (Berkeley Lab). An inverter turns that DC into the 120/240 V alternating current (AC) your outlets use. Some systems use one central “string” inverter; most US home systems now use module-level electronics, either microinverters on each panel or DC optimizers (87% of residential systems in 2024, per Berkeley Lab).
During the day, your home uses solar power first. If the panels make more than you need, the extra flows out through your meter to the grid. At night, or on a cloudy afternoon, you buy power from the grid as usual. How you’re paid for the power you send out depends on your state and utility, and that one rule can make or break the math (see net metering below).
One thing surprises many new owners: solar alone doesn’t keep the lights on in a blackout. The US Department of Energy explains that inverters are designed to disconnect and shut down during grid disruptions, so they don’t send power onto lines that crews are repairing. To keep running in an outage, you need a battery and the right switching equipment. Our home battery backup guide covers that.
Is your home a good fit for solar?
Before you call installers, check these five things. They decide more than the brand of panel ever will.
- Roof direction and slope. The Department of Energy says panels typically perform best on south-facing roofs with a slope between 15 and 40 degrees. East and west roofs work too, with somewhat less output.
- Shade. Trees, chimneys and neighboring buildings cut output. A good installer runs a shade analysis for each roof face.
- Roof age. The DOE suggests thinking about your roof’s age before installing. Panels last decades; if the roof needs replacing in a few years, do it first, because removing and reinstalling panels costs extra.
- Your electricity rates. Solar saves what you would otherwise pay the utility. In 2026 the average US home pays about 18.2 cents per kWh (EIA, year to date through July), but rates range from about 14 cents in Washington to over 33 cents in California.
- Your utility’s export rules. Full retail net metering, a lower “net billing” rate or something in between. Call your utility or check its website before you trust any savings estimate.
Renting, living in a condo or shaded by tall trees? You still have options, from community solar to plug-in panels. See the section on smaller options below and our guide to solar panels for renters.
How many solar panels does a home need?
System size comes from three numbers: how much electricity you use in a year, how much each watt of panels produces where you live, and the wattage of each panel. EnergySage uses this formula:
Number of panels = yearly kWh ÷ production ratio ÷ panel watts
The production ratio is how many kWh each watt of panels makes in a year. EnergySage says it usually runs from 1.1 to 1.6 in the US: about 1.6 in Arizona, about 1.5 in California and about 1.1 in Massachusetts, New York, New Jersey and Washington. The EIA says the average US home used 10,791 kWh in 2022. Here is our math for that home with 440 W panels, the size EnergySage assumes:
| Where (production ratio) | System size needed | 440 W panels |
|---|---|---|
| Sunny Southwest, e.g. Arizona (1.6) | ≈6.7 kW | ≈16 |
| California (1.5) | ≈7.2 kW | ≈17 |
| Middle of the US range (1.3, our assumption) | ≈8.3 kW | ≈19 |
| Northeast or Pacific Northwest (1.1) | ≈9.8 kW | ≈23 |
That lines up with EnergySage’s own range of 16 to 23 panels for most homes. Use your own 12 months of bills, not the national average, and plan ahead: an electric car, a heat pump or an induction range can add thousands of kWh a year. For a free production estimate for your exact address, roof angle and direction, try NREL’s PVWatts calculator. Our guide on how many solar panels you need walks through it step by step.
How much do solar panels cost in 2026?
Two respected sources give two different answers, and both are useful:
- EnergySage (2026 quotes): about $2.60 per watt before incentives, and about $31,135 for the average 12 kW system (page updated June 30, 2026; state data refreshed September 25, 2026). These are quotes from installers competing for the same customer on its marketplace.
- Berkeley Lab, Tracking the Sun (2024 installs, published October 2025): a median of $4.00 per watt for host-owned home systems, with most between $3.00 and $5.20 per watt. Cash buyers paid a median of $3.50 per watt; loan-financed systems $4.70, partly because loan fees are rolled into the price.
Shopping around matters. Berkeley Lab found that the median prices of the 100 largest residential installers ranged from $2.70 to $6.50 per watt in 2024. On a 7.2 kW system, that’s the difference between about $19,400 and about $46,800 (our arithmetic). Get at least three quotes and compare them per watt. Our full guide on how much solar panels cost has prices by system size and state, what drives the price and how to read a quote.
Are solar panels worth it?
For many homes, yes, but less clearly than before 2026. The rough test: divide the system price by what it saves you each year. EnergySage says its shoppers see an average payback of about 10 years and average savings of about $60,500 over 25 years. Our own estimates for a 7.2 kW system at $2.60 per watt, assuming every kWh offsets a kWh you’d have bought at your state’s average rate:
| Example (our estimate) | Yearly output | Rate (EIA, 2026 YTD) | Yearly value | Simple payback |
|---|---|---|---|---|
| Massachusetts | ≈7,920 kWh | 30.1¢ | ≈$2,390 | ≈7.8 years |
| US average sun and rate | ≈9,360 kWh | 18.2¢ | ≈$1,700 | ≈11 years |
| Arizona | ≈11,520 kWh | 15.4¢ | ≈$1,780 | ≈10.5 years |
| Washington | ≈7,920 kWh | 14.4¢ | ≈$1,140 | ≈16.4 years |
These are estimates, not promises. Real savings fall if your utility credits exported power below the retail rate, and rise if rates keep climbing (EIA expects the national average to go from 18.2 cents in 2026 to 18.6 cents in 2027). Our guide are solar panels worth it? shows the full math, the pros and cons, and who should wait.
Buy, loan, lease or PPA?
| Option | Who owns it | Upfront | What to know in 2026 |
|---|---|---|---|
| Cash purchase | You | Full price | Usually the lowest total cost; no federal credit for systems placed in service after 2025 |
| Solar loan | You | Often $0 down | Berkeley Lab’s 2024 data: loan-financed systems priced $1.20/W higher than cash at the median; read the fees |
| Lease | A solar company | Often $0 | Fixed monthly payment; the company can still claim a business tax credit and may pass some of it on |
| Power purchase agreement (PPA) | A solar company | Often $0 | You pay per kWh the panels make, usually below the utility rate; check the yearly price escalator |
Leasing has surged: third-party ownership jumped from 26% of new home systems in 2023 to 43% in 2024 (Berkeley Lab), and EnergySage notes that lease and PPA providers can still use federal tax credits. Under the July 2025 tax law, those business credits for solar end unless a project began construction by July 4, 2026, or is placed in service by the end of 2027, so lease offers may change after that. Our buy vs lease solar panels guide compares the long-term cost.
Net metering in plain words
Net metering decides what you get for the power you send to the grid. Under classic net metering, each exported kWh earns a credit worth about what you pay for a kWh, so the grid acts like a free battery. Many states and utilities have moved to “net billing” or similar rules that pay less for exports. California is the best-known example: customers who applied to connect on or after April 15, 2023, take service on the state’s Net Billing Tariff, which credits exports based on their value to the grid rather than the retail rate (California Public Utilities Commission).
Under rules like that, the best plan is to use as much of your solar power yourself as you can: run the dishwasher and laundry at midday, pre-cool the house in the afternoon, or add a battery. It’s no accident that Berkeley Lab found 57% of new home solar systems in California came with a battery in 2024, compared with 8% in the rest of the country combined. Read net metering explained for the main rule types.
Solar with a battery
A battery stores midday solar power for the evening and keeps chosen circuits running when the grid goes down. The median home battery paired with solar in 2024 was 13.5 kWh, the size of one Tesla Powerwall, with most between 10 and 20 kWh (Berkeley Lab). It’s not cheap: Berkeley Lab found paired solar-plus-battery systems cost a median of $1.70 per watt of solar more than solar alone, and EnergySage’s 2026 average for an installed battery is about $1,159 per kWh. A battery makes the most sense where exports are poorly paid, where time-of-use rates make evening power expensive, or where outages are common. Our home battery backup hub and home battery backup cost guide go deeper.
How to go solar, step by step
- Gather 12 months of electric bills and note your yearly kWh and your rate plan.
- Check your utility’s rules for exports, interconnection and any fees for solar customers.
- Look for local money. Search your ZIP code on DSIRE and ask your utility and state energy office. Some states and utilities still offer rebates, performance payments or tax exemptions; don’t count on any until you’ve confirmed it.
- Get at least three quotes from licensed, local installers. Compare price per watt, the expected yearly kWh, the panel, inverter and workmanship warranties, and who handles permits.
- Read the contract. For loans: interest, fees and term. For leases and PPAs: the escalator, what happens if you sell the house, and who repairs the system.
- Permits and inspection. Rooftop solar is installed by a licensed installer and electrician, with the building and electrical permits your town requires.
- Interconnection. Your utility must approve the system (and may swap your meter) before you turn it on. Don’t switch it on until you have that “permission to operate.”
No good roof? Smaller ways to use solar
- Community solar: you subscribe to a share of a local solar farm and get credits on your bill. The DOE notes that nearly half of US households and businesses can’t host rooftop solar, which is who community solar is for. Availability depends on your state.
- Plug-in (balcony) solar: small systems that plug into an outlet. They are legal only where state law or your utility allows them. Utah’s 2025 law allows devices up to 1,200 W through a standard 120 V outlet, and a few other states passed similar laws in 2026. Never plug a panel into an outlet against your utility’s rules. See balcony solar and is balcony solar legal?
- Portable panels and a power station: no permits and no wiring; good for camping, outages and an apartment balcony. See the best portable solar panels and best solar generators.
- DIY 12 V kits for sheds, cabins and RVs: panels, a charge controller and a battery that run off-grid, separate from your home’s wiring. See the best DIY solar panel kits.
- Solar lights: the easiest start of all, for paths and driveways. See the best solar lights for outside.
Solar gear worth a look
Prices change often. The prices below are what we saw at the maker in October 2026; check the current price before you buy. Rooftop panels and installer batteries are priced by quote, not online.
Tesla Powerwall 3
- 13.5 kWh usable, 11.5 kW continuous
- Built-in solar inverter (up to 20 kW DC)
- Sold and installed by Tesla and certified installers
Enphase IQ Battery 10C
- 10 kWh usable, 7.08 kVA, LFP
- Modular: add more units
- 15 years or 6,000 cycles
EcoFlow DELTA Pro 3 + 400W Portable Solar Panel
- 4,096 Wh, 4,000 W, 120/240 V
- Up to 2,600 W solar input
- Station alone about $2,799 (maker's price, October 2026)
Jackery Solar Generator 1000 v2
- 1,070 Wh, 1,500 W AC
- Includes a 200 W SolarSaga panel
- About 7.5 hours to charge from solar (Jackery)
ECO-WORTHY 400W 12V Premium Solar Kit
- 4 × 100 W N-type panels
- 40A MPPT controller with Bluetooth
- About $419.99 (maker's sale price, October 2026)
EcoFlow STREAM Microinverter
- 1,200 W at 120 V, UL 1741
- EcoFlow: permitted in Utah, Maryland and Colorado
- About $369 (maker's price, October 2026)
- Tesla Powerwall 3: one wall unit with 13.5 kWh, up to 11.5 kW and a solar inverter built in, so a new rooftop system may not need a separate inverter. Only through Tesla and certified installers.
- Enphase IQ Battery 10C: 10 kWh per unit with LFP cells and built-in microinverters; the natural pairing if your installer quotes Enphase microinverters. Installer only.
- EcoFlow DELTA Pro 3 with a 400 W panel: a 4 kWh, 120/240 V power station that takes up to 2,600 W of solar. It runs a fridge and essentials in an outage with no roof work; a home connection needs EcoFlow’s Smart Home Panel 2, installed by a licensed electrician. EcoFlow showed its 400 W panel as sold out on its own store in early October 2026, so check the bundle’s availability.
- Jackery Solar Generator 1000 v2: a 1 kWh station plus a 200 W folding panel. Enough to keep phones, lights and a router going for days, or a fridge for part of a day.
- ECO-WORTHY 400 W kit: four 100 W panels and an MPPT controller for a 12 V battery (sold separately). ECO-WORTHY’s listing says about 1.6 kWh a day on average. Off-grid use only; it doesn’t connect to your house wiring.
- EcoFlow STREAM Microinverter: plug-in solar for 120 V homes, panels sold separately. EcoFlow’s own page says installation is currently permitted in Utah, Maryland and Colorado; check your state and utility first.
We researched and compared these from the makers’ spec sheets and listings; we didn’t test them. The rooftop panels themselves are chosen and quoted by your installer, so compare the panel and inverter warranties on each quote.
Which solar guide do you need?
| If you want to… | Read |
|---|---|
| Decide whether solar pays off for you | Are solar panels worth it? |
| Know what a system costs in 2026 | How much do solar panels cost? |
| Size a system for your home | How many solar panels do I need? |
| Choose between owning and leasing | Buy vs lease solar panels |
| Understand export credits | Net metering explained |
| Go solar without owning a roof | Solar panels for renters |
| Try plug-in solar | Balcony solar |
| Charge a power station from the sun | Best portable solar panels |
| Power a shed, cabin or RV | Best DIY solar panel kits |
| Light up the yard | Best solar lights for outside |
| Check what’s left of the tax credit | Solar tax credit 2026 |
For the science behind it, read solar energy explained and radiant energy; for the bigger picture, green energy, clean energy and living off the grid. Backup power lives in home battery backup and portable power stations, and state and utility money in home energy rebates. Browse every article in our solar energy category.
Solar panels for home: questions
How much do solar panels cost for an average house?
EnergySage’s 2026 average is about $2.60 per watt, or about $31,135 for a 12 kW system before incentives. Berkeley Lab’s median for systems installed in 2024 was higher, $4.00 per watt. A smaller 7.2 kW system works out to roughly $18,700 to $28,800 on those two figures. Prices vary a lot by installer and state, so get several quotes.
Is there still a solar tax credit in 2026?
Not for homeowners who buy. The IRS says the 30% residential clean energy credit isn’t available for property placed in service after December 31, 2025. Solar companies that lease systems can still claim a business credit for a while and may pass part of it on. Some states and utilities offer their own incentives; check DSIRE and your utility.
Do solar panels work during a power outage?
Not on their own. Grid-tied inverters shut down when the grid fails so they don’t send power onto lines that crews are repairing. To keep power during an outage, you need a battery (such as a Tesla Powerwall or an Enphase IQ Battery) with backup switching equipment, or a portable power station charged by its own panels.
How long do solar panels last?
EnergySage says panels typically last 25 to 30 years. They don’t stop suddenly; they slowly make less power. A review of nearly 2,000 measurements by NREL researchers found a median loss of about 0.5% a year, so a 20-year-old panel makes roughly 90% of what it did when new. Inverters may need replacing sooner; check their warranty.
Do solar panels raise home value?
Often, for owned systems. The Department of Energy cites research finding buyers have been willing to pay a premium of about $15,000 for a home with an average-sized solar array. Leased systems are different: the buyer must take over the lease or you must buy it out, which can complicate a sale.
Can I install solar panels myself?
Small off-grid kits for a shed or RV, yes. A rooftop system tied to your home and the grid needs permits, an inspection and your utility’s approval before it’s switched on, and most homeowners hire a licensed installer and electrician. Plug-in solar is a separate category that’s legal only where your state or utility allows it.