Despite market uncertainties and persistently high interest rates, U.S. residential solar prices remained at historically low levels in the first half of this year.
This conclusion is based on the latest market report from U.S. clean energy comparison platform EnergySage. The report found that the median price for residential solar installations in the U.S. in the first half of 2025 was $2.48 per watt, unchanged from the second half of 2024.
The report noted that prices remained stable for both standalone solar systems and solar-plus-storage systems. Prices for pure solar installation systems saw a slight increase of 0.4%, while prices for systems with storage remained unchanged.
According to EnergySage, at $2.58 per watt, the pre-tax incentive price for an average 11.7 kW system was $29,016 (approximately RMB 207,200).
Declining Confidence
EnergySage stated that these policy changes will begin to take effect in the second half of this year and into 2026. The most notable change is in the provisions of the “Big Beautiful Act,” which will eliminate the 30% tax credit for customer-owned residential solar systems after the end of the year but retain the tax credit for third-party-owned (TPO) systems for a longer duration.
EnergySage’s report gathered insights from U.S. solar contractors through surveys, revealing that their confidence in the industry’s future is waning. Fifty-five percent of respondents said they are less confident than a year ago, 45% reported reduced consumer demand, and 54% believe the industry outlook is unfavorable under the Trump administration.
At the policy level, tariffs on solar equipment drew negative reactions from 70% of solar contractors, who anticipated “negative business impacts,” with 19.4% believing the tariffs would “severely harm” their businesses.
Ninety-two percent of contractors stated that eliminating the 30% federal tax credit would harm their operations, with 64% expecting “severe” damage. This is because the primary motivation for U.S. consumers to purchase solar systems (73%) is to save money, and the changes in the “Big Beautiful Act” make this more difficult.
These findings are largely consistent with research released last month by market analysis firm Wood Mackenzie, which predicted that without tax credit incentives, the U.S. residential solar market would slow over the next four years. However, in the long term, this market will remain a critical component of the U.S. energy landscape.
