For the past two decades, the decision to go solar has often been tied to one thing: the 30% federal tax credit. For a long time, that incentive helped homeowners save thousands of dollars on installation costs, making the switch to solar a financial no-brainer.
But here we are, 2026, and that tax credit is winding down. Understandably, a lot of homeowners are wondering:
“Is solar still worth it?”
“Did I miss my chance?”
“Can I still save without the incentives?”
Let’s clear it up: Yes, solar still makes sense. The structure of the savings may have changed, but the value hasn’t gone anywhere. In fact, with electricity rates rising faster than ever, homeowners could be seeing their electricity rates skyrocket beyond a 30% increase in the next few years. Which would mean a similar or even greater ROI and monthly savings for homeowners switching to solar.
While electricity rates are increasing much faster than the rate of inflation, solar still does what it’s always done – protects your wallet from unpredictable energy bills.
Looking Back: Why the Tax Credit Mattered
When the Federal Tax Credit was introduced in 2005, it opened the door for everyday homeowners, not just early adopters or tech enthusiasts, to install solar. In pro-solar states like New York, the impact was even stronger. Homeowners could stack the 30% federal credit on top of state and local incentives, cutting their project costs by more than half, meaning significant upfront savings for qualified homeowners.
This combination made solar affordable for millions of families. If you had a $30,000 system, you might’ve paid closer to $15,000 after incentives. And those savings made solar go from “interesting idea” to “clear investment.”
But starting in 2026, the federal incentives won’t be available in the same way. It’s easy to think the savings won’t be too. But that’s not actually what’s happening. While one program has ended, new ones have emerged to keep solar accessible and affordable for homeowners. Furthermore, these new programs allow even more homeowners to install solar without needing to qualify for complicated tax credits.
Here’s What’s Different in 2026
New Programs
The previous model depended on your ability to claim a tax credit. That meant:
- You had to owe enough in federal taxes to qualify
- You might need to wait a year or more to receive the credit
- Many homeowners had to spread the benefit out over 2-4 years
- If your tax situation didn’t line up, you couldn’t fully take advantage
That structure worked for some but not everyone.
Now, in 2026, that process has been replaced by simpler, more inclusive programs that offer:
- Immediate savings applied up front
- No tax paperwork or filing requirements
- No waiting to benefit
- Equal or better savings, regardless of your tax liability
These newer programs remove the barriers that held some homeowners back in the past, and in many cases, they actually make going solar even easier and more beneficial than before.
Utility Rates Keep Rising
Here’s the part a lot of people overlook: the real cost of doing nothing is getting higher every year.
In New York, and across the country, electricity rates have climbed steadily. Power companies like NYSEG, RG&E and ConEdison have filed multiple delivery and supply rate increases, pushing monthly bills higher even for families using the same amount of power.
Nationally, electricity costs rose nearly 25% over the past five years, well beyond the pace of inflation. In New York, where rates are already among the top ten highest in the country, homeowners are especially vulnerable to future hikes.
Why? Because demand is exploding. The rise of massive AI-driven data centers and electrification (EVs, heat pumps, etc.) are putting a massive strain on our outdated power grid. That means higher demand, higher supply charges, and more costly delivery upgrades passed directly to consumers in the form of bigger bills in your mailbox.
If you’re not locking in your energy costs with solar, you’re gambling on what your next bill might look like.
Inflation-Proofing Your Home
Powering our homes is a necessary expense. But without competition, you’re stuck with whatever power companies decide to charge. That makes your bill vulnerable to constant increases.
Going solar flips that dynamic. Instead of renting your power from a utility company, you invest in your own system. You pay a flat, predictable amount each month, often much lower than what you’re paying now.
Example: A $200 bill in 2025 would rise well over $250 by 2028 if rates continue to climb at the pace we’ve seen recently throughout New York. Even small or incremental increases over time have a huge impact on our budgets.
But by going solar, you replace your unpredictable electricity bill with a much lower fixed payment. So as rates increase, your monthly savings increase – not your monthly budget.
Financing & Zero-Down Options
One of the biggest misconceptions regarding solar is that it will require a large upfront investment. While it’s possible to buy your panels outright, it’s hardly ever necessary. In reality, most homeowners today go solar with zero upfront cost.
Just like earlier ownership models, you don’t need to pay anything upfront with the latest solar programs. With these new $0 down solar options, homeowners can install panels and immediately start saving from day one. This means you’re simply swapping your utility bill for a lower monthly solar payment. That’s it.
In many cases, your solar payment will be 20-50% lower than your current utility bill. The difference is you’re investing in your own home, not a utility that keeps raising prices year after year.
What About Return on Investment?
Without the 30% tax credit, some homeowners worry that solar won’t provide an ROI. But the truth of the matter is that utility bills never stop increasing.
Let’s do the math.
A $30,000 system, installed today under a 2026 program, can still save you $40,000 to $50,000 in avoided utility costs over its 25-year warranty period. Meanwhile, staying with the utility for the same power could cost you $80,000 or more over the same period.
Yes, the structure of the savings looks different, but the outcome is the same. Solar is still cheaper than buying electricity from the grid.
Common Misconceptions in 2026
- “Solar only makes financial sense with the tax credit.”
Not true. The credit helped, but today’s new TPO programs net the same savings and are designed to deliver the same benefits in a simpler way. - “I missed the boat.”
Wrong. The industry already adapted for this moment. The new programs are designed specifically to move forward without the complicated paperwork or tax liability of the old credit. - “My bill isn’t high enough, it’s probably not worth it.”
Think again. A $150 bill today could be $200+ within a few years. The sooner you lock in a fixed rate, the more you protect yourself.
Final Take: Yes, Solar Still Makes Sense in 2026
Solar still does what it’s always done:
- Cuts your electric bill
- Protects you from unpredictable rate hikes
- Adds value to your home
- Gives you control over your energy costs
Utility rates are climbing, inflation isn’t slowing down, and the grid is under more pressure than ever. With new payment programs that remove the need for tax credit eligibility, solar is now more accessible than ever.
The question isn’t whether solar makes sense. The question is whether you want to remain subject to unpredictable rate hikes and power outages or lock in predictable savings for the next 25 years.
Want to Know if Solar Still Makes Sense for Your Home?
Request your free Solar Savings Plan and see exactly which 2026 programs you qualify for. Get My Solar Savings Report →
