Throughout the first six months after the expiration of the residential ITC, homeowners still found a clear path to savings through solar and storage, according to the “23rd EnergySage Intel: Home Electrification Marketplace Report,” released today. The report analyzed millions of transaction-level data points from homeowners shopping on EnergySage between January 1 and June 30, 2026, alongside results from EnergySage’s 2026 Electrification Contractor Survey.
The data shows an industry adapting quickly. Shifting utility rate structures are pushing shopper interest in battery storage to a high, and expanding financing options are helping keep solar and storage within reach even after the loss of the federal tax credit.
Utility rate changes add urgency, even as solar-plus-storage prices increase
Despite median solar and storage prices increasing by 3% and 5%, respectively, alongside the absence of the 30% tax credit, utility bill savings remained the primary driver of customer demand: 70% of contractors said customers purchase solar to save money, while time-of-use rates, fixed charges and net-metering rollbacks boost the ROI of battery storage.
“Rate structures are changing faster than they used to, and that’s part of what’s keeping solar’s value proposition strong and driving homeowners’ urgency,” said Sam Thompson, head of solar at EnergySage. “We’re seeing it show up most clearly in states where rates are skyrocketing.”
Financing closes some of the gap left by the loss of the tax credit
For homeowners weighing the upfront cost of solar, the math still works in their favor. The average cost of a PPA came in below utility electricity rates in every qualifying state this half-year, with the largest discounts in high-cost markets like California (59% below) and Illinois (55% below). More installers are offering third-party ownership (TPO) options to help homeowners get there. The share quoting TPO on EnergySage climbed from about 14% to roughly 41% in just six months, though that growth varies by market and is partly due to TPO’s recent availability on the marketplace. Pre-paid “lease-to-own” options delivered the biggest savings of any financing type. Compared with a cash purchase, pre-paid PPAs and leases were 57% and 39% cheaper, respectively.
“TPO isn’t replacing solar ownership as the goal,” Thompson said. “It’s giving the industry, including homeowners, an affordability bridge while everyone adjusts to a very different set of economics than we had a year ago.”
Storage interest hits all-time high, and affordability is next hurdle
Self-reported homeowner interest in battery storage climbed to 76% in H1 2026, the highest level EnergySage has recorded. Attachment lags at 31%, likely due to upfront costs.
“As utility rates keep climbing, storage could go from a nice-to-have to a must-have for more homeowners,” Thompson said. “We’re already seeing that show up in high customer consideration — the industry’s job now is turning that interest into actual attachment.”
Pricing reflects rising labor costs, not a step back for solar
While the loss of the ITC increased homeowners’ effective costs relative to one year ago, installer pricing remained notably resilient against the backdrop of policy headwinds. The median price of solar rose about 3% between H2 2025 and H1 2026, though the highest average quoted price actually fell, from $3.07/W to $2.94/W, as installers who held outsized pricing power during last year’s tax-credit rush gave some of it back. Solar-only pricing held flat, while solar-plus-storage pricing rose 5%, a gap that can likely be attributed to labor rather than equipment.
“Solar-plus-storage installs are simply more complex and time-intensive than solar-only,” Thompson said. “With contractors telling us broadly that their labor costs are up this year, that’s the most likely explanation for why the more complicated installs are seeing the pricing pressure and the simpler ones aren’t.”
With the ITC gone for purchased systems, installers are focused on keeping solar and storage within reach by reducing costs, testing new financing models and helping homeowners navigate a shifting utility rate landscape.
“The incentive landscape changed overnight, but the reasons homeowners want solar and storage haven’t,” Thompson said. “Our job is to make sure the financing keeps pace with that demand.”
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