Is solar worth it in 2026 now that the tax credit is gone?

Q: Is solar worth it in 2026 now that the tax credit is gone?

It can still pay for itself, just more slowly. The 30% federal credit for homeowners is not available for systems installed after December 31, 2025, so you now pay the full price, which EnergySage puts at about $2.60 a watt on average before incentives. At each state's own average price, and if every kWh your panels make replaces one you would have bought, a system pays back in about 8 years in Massachusetts and about 15 years in Washington. A high electricity price and good sun shorten payback; a low price, less sun on your roof or a low credit for power you export lengthen it.

Updated October 25, 2026. Every answer lists the sources we read it from. If we couldn't back an answer, we left the question out.

Payback here is the installed price divided by one year of bill savings. It uses EnergySage's average price per watt in each state, our PVWatts estimate of what 1 kW of south-facing panels makes there, and EIA's average home electricity price. It assumes every kWh the panels make is worth the full retail rate, which is only true if you use it all yourself or your utility credits exports at full price.

Years for 1 kW of rooftop solar to pay for itself, before any state incentive
State	Installed price per watt	kWh a year from 1 kW	Electricity price	Payback
Massachusetts	$2.90	1,270	30.1 cents	about 7.6 years
Arizona	$2.26	1,794	15.4 cents	about 8.2 years
New Jersey	$2.59	1,280	24.0 cents	about 8.4 years
Florida	$2.12	1,441	15.3 cents	about 9.6 years
Texas	$2.25	1,373	16.1 cents	about 10.2 years
Ohio	$2.58	1,261	18.7 cents	about 10.9 years
Michigan	$2.88	1,205	21.5 cents	about 11.1 years
Washington	$2.49	1,158	14.4 cents	about 14.9 years

The Department of Energy lists what drives your own number: how much electricity you use, the size of the system, whether you buy or lease, how much sun your roof gets, your utility's rates and how much it pays for the extra power you send back. State and utility rebates, where they exist, shorten payback; DSIRE lists them.

Panels also lose a little output each year (see how long panels last, below), which stretches payback slightly.

Run your own numbers: Solar calculator for your state · Your state's energy data

Sources

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Solar panel calculatorSize a system and see payback for your state.

Estimates only. Your actual costs depend on your utility's rate plan, how and when you charge or use power, and local prices. This is general information, not financial, tax or legal advice. See our disclaimer.

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