E7 Solar

Rooftop solar can lower your long-term electricity costs and reduce your reliance on utilities. But in 2026, incentives and grid policies are changing fast, so it’s important to look at both the upside and the tradeoffs.

This article is focused on the United States, because most of the policy and pricing signals referenced below are U.S.-specific.

Pros of going solar in 2026

1) Solar helps you hedge against rising electricity prices

Utility rates don’t stay still. For example, the U.S. city average electricity price rose from $0.136/kWh (Nov 2020) to $0.189/kWh (Nov 2025)—about +39% based on the BLS series published on FRED’s electricity price dataset.

If a household uses 1,000 kWh/month, that ~$0.053/kWh increase is roughly $53/month or ~$636/year more for the same usage (before any additional future increases).

And prices are not expected to suddenly fall: the U.S. Energy Information Administration has noted retail electricity prices have been rising faster than inflation since 2022 and forecast continued increases through 2026 in its short-term outlook commentary.

What solar does in practice

Locks in part of your electricity cost via self-generation
Reduces exposure to future rate hikes
Can be even more valuable if you expect higher electricity use (EV charging, heat pumps, etc.)

2) Some third-party options may still price in business tax credits (depending on the contract)

In 2026, the homeowner purchase credit is no longer available (details in the Cons section). However, lease / PPA / third-party ownership structures are often priced using business credits claimed by the system owner under 26 U.S.C. §48E (Clean Electricity Investment Credit).

Important nuance:

The timeline and eligibility rules for wind/solar credits were tightened under P.L. 119–21, and IRS guidance discusses how the termination timing and “beginning of construction” rules work (see IRS Internal Revenue Bulletin coverage).
Practically, this means third-party pricing may still benefit from credits, but homeowners should ask providers what assumptions they used.

What to ask before signing

“Which incentive assumptions are included in my price, and what happens if rules change?”
“Do you guarantee the price, or can it be revised later?”

3) Solar can increase home value (in many markets)

Multiple large datasets have found solar homes can sell for more than comparable non-solar homes. For example:

Zillow reported homes with solar sold for an average premium in its solar premium analysis.
Lawrence Berkeley National Laboratory analyzed multi-state sales data in Selling the Sun: PV home price premium analysis.

Reality check

The premium depends on local electricity rates, system ownership (owned vs leased), and buyer preferences.
Transfers are usually simpler with owned systems than with leases/PPAs.

Cons of going solar in 2026

1) The tax credit for purchasing solar ended after 2025

The Residential Clean Energy Credit (Section 25D) only applies to qualifying property placed in service through December 31, 2025, and is not available after that per the official Internal Revenue Service guidance on the Residential Clean Energy Credit.

This termination is also reflected in the statutory language for 26 U.S.C. §25D (Cornell Law) and a Congressional Research Service summary explaining the 2025 law change (CRS Insight).

What this means

If you buy solar in 2026, don’t assume a federal residential tax credit is available.
Your economics will depend more on electricity rates, local incentives, and system price.

2) Net metering is getting less generous in many areas

Many utilities are moving from “full retail credit” net metering toward net billing / avoided-cost credit structures.

A clear example is California, where the regulator’s official Net Energy Metering and Net Billing overview explains the shift and shows older NEM tariffs are closed to new enrollments.

The regulator also announced the modernized solar tariff decision in its NEM update news release.

Why it matters

Exported solar energy may be worth less than it used to be.
The system may “pay back” faster if you can use more of your solar on-site (daytime loads, smart scheduling, batteries).

3) Solar scams and bad contracts are still a real risk

Solar can be a great product, but the sales process can be messy. The Federal Trade Commission has published consumer guidance on spotting and avoiding solar scams, including warning signs like “free solar” claims and high-pressure tactics (see FTC consumer alert).

The U.S. Department of the Treasury also provides a checklist for comparing quotes and reviewing contracts on its Consumer Solar Awareness page.

If you operate in California, use the official California Solar Consumer Protection Guide overview.

Simple anti-scam checklist

Get at least 3 quotes (same system size, same assumptions)
Demand the exact equipment list (panel model, inverter [blocked], battery [blocked] model)
Read the warranty and workmanship terms
Understand financing: APR, dealer fees, escalators, early payoff rules
Don’t sign under time pressure

4) Battery storage can help—but it may not be worth it for everyone

Batteries can:

Provide backup power
Increase self-consumption (use more of your own solar)
Improve economics in net billing areas

But they add cost, and the “right” answer depends on your outage risk, export rates, and usage profile. The fact that solar tariffs are being redesigned to encourage reliability and storage is part of why storage is increasingly discussed alongside solar (see the regulator’s framing in the California tariff update).

A quick decision checklist for 2026

Solar tends to make more sense when:

Your utility rate is high (or rising fast)
You plan to stay in the home long enough to benefit
Your roof has good sun exposure and is in good condition
You can use a lot of solar power directly (daytime loads, EV charging, smart appliances)
You’re choosing a reputable installer and contract terms are clean

Solar may be less attractive when: