Solar Panel Cost Calculator (2026): See Your Exact Savings, Tax Credits & Rebates

The federal solar tax credit (Investment Tax Credit or ITC) lets homeowners deduct 30% of their solar installation cost from federal taxes. This incentive, extended through 2032 under the Inflation Reduction Act, is the single largest solar incentive available. For a typical $15,000 system, that is $4,500 back on your taxes. Read our complete federal solar tax credit guide for step-by-step claiming instructions.

Beyond the federal credit, many states offer additional solar rebates, tax credits, and performance-based incentives. Some states like New York, California, and Massachusetts offer state tax credits worth thousands of dollars on top of the federal ITC. Others, like New Jersey and Maryland, have valuable SREC (Solar Renewable Energy Certificate) programs that provide ongoing income for solar production.

Utility companies also play a role through net metering policies, which credit you for excess solar energy sent back to the grid. The value of net metering varies significantly — check your state to see current rates. Combined, these solar incentives can reduce the cost of going solar by 40-70% depending on where you live.

How Much Can You Save with Solar in 2026?

The average homeowner saves between $20,000 and $60,000 over 20 years after accounting for all available incentives. Your actual savings depend on local electricity rates, sun exposure, system size, and available state and utility programs. States with high electricity rates like Connecticut, Rhode Island, and New Hampshire often see the fastest payback periods. Use our free solar savings calculator above to get a personalized estimate based on your ZIP code.

How Much Does Solar Cost After Incentives?

The average residential solar installation cost ranges from $13,500 to $18,000 before incentives. After applying the 30% federal solar tax credit (worth $4,050–$5,400), the net cost drops to roughly $9,450–$12,600. Many states offer additional incentives that reduce costs further — in some cases to under $8,000. See our detailed solar cost breakdown for exact pricing by state.

Solar Cost After Incentives by State

Solar savings vary dramatically by location. Homeowners in Texas and Florida benefit from high sun exposure, while those in New York and Massachusetts benefit from generous state incentives and high electricity rates. Select your state above to see your specific incentive package.

Solar Energy Savings Over Time

After the initial payback period (typically 6–10 years), your solar panels produce essentially free electricity for the remaining 15–20+ years of their lifespan. With electricity rates historically rising 2–3% annually, the value of your solar investment grows over time. Most homeowners see total solar energy savings of $20,000–$60,000 over a 20-year period. Learn more about real solar ROI numbers from actual installations.