Solar Panel ROI for Homeowners: Is It Worth It in 2026?

Updated

Solar panel costs have dropped 70% since 2010. The federal tax credit still covers 30% of installed costs. Utility rates rose 6–8% nationally in 2025 alone. And battery storage has matured from luxury add-on to practical necessity in many markets.

The question isn't whether solar panels save money — they do, in most of the US. The real question is how much they save, how long the payback takes, and whether the numbers work for your specific situation.

Solar ROI varies dramatically by state because of three factors: sun hours, electricity rates, and state incentives. Here's the current landscape:

Related on HomeScore