What solar costs now the federal tax credit is gone

The numbers

Lawrence Berkeley National Laboratory found the median price paid for a home solar system in its latest national data was $3.60 per watt: $3.00 for cash buyers and $4.50 for systems bought with a loan. On EnergySage’s competitive marketplace the median quote was $2.49 per watt. The median system was 7.7 kW.

So a 7 kW system costs roughly $17,500 to $26,000 before incentives, depending mostly on how you buy it and how many quotes you get.

The federal credit is over for buyers

The 30% federal Residential Clean Energy Credit (§25D) ended for systems whose installation was completed after December 31, 2025. A deposit paid before then did not count: installation had to be finished. Any quote for a system you will own that still subtracts 30% for a federal credit is wrong, and you should ask the installer to show you the rule.

Leases and power-purchase agreements are different. The company that owns the system can still claim a business credit if construction started by July 4, 2026 or the system is in service by the end of 2027, and may pass part of that on in a lower price.

What is still available

Some states still offer income-tax credits: New York (25%, up to $5,000), South Carolina (25%), Arizona (25%, up to $1,000) and Massachusetts (15%, up to $1,000). Illinois pays a rebate of $300 per kW. Many states exempt solar from property tax. Utilities and cities sometimes offer rebates.

The one number to compare

Divide each quote’s price before incentives by its size in watts. A $21,000 quote for 7,000 watts is $3.00 a watt. Then divide the price by the kWh the system will make over 25 years: that is your cost per kWh, which you can compare with your utility’s price. The planner does both for you.