As of 2026, homeowners in the US can expect solar panels and heat pumps to become more expensive due to a combination of factors. The expiration of the federal tax credit for residential heat pumps, solar panels, and batteries at the end of 2025 will no longer provide significant incentives for homeowners to make the switch to renewable energy.
While the equipment itself won't be more costly to purchase, the absence of tax credits will eliminate the ability for homeowners with a tax liability to reduce or erase their tax bill. In fact, a typical solar and battery system could have generated around $10,000 in tax credits for homeowners who would now lose that benefit.
However, some installers are introducing new financing models that may help keep costs in check. Emily Walker, director of insights at online solar marketplace EnergySage, notes that a "lease-to-own" or prepaid lease model is emerging. In this setup, the homeowner pays upfront for the system, while the installer retains ownership and passes on tax credit benefits as a discount.
Industry experts anticipate that this new model will become increasingly popular in 2026, with some installers estimating that nearly all of their business will be generated through these prepaid leases. While initial demand may soften due to increased costs, experts expect demand to recover later in the year as soaring electricity rates and temperatures force homeowners to rely on air conditioning.
To receive tax credits, leased systems must comply with new domestic manufacturing requirements that took effect in January 2026. However, the federal government has yet to issue final guidance on what percentage of components from China and other countries are prohibited under the Trump tax bill. This lack of clarity is likely to add costs to solar panels and batteries.
Tariffs will also play a role in raising prices for these renewable energy systems. The US imports most of its solar panels from China, Vietnam, and other countries subject to tariffs. Furthermore, nearly all batteries for residential energy storage are made in China, which may lead to increased prices due to the imposition of tariffs.
Despite these challenges, experts argue that the long-term benefits of solar energy make it an attractive option for homeowners. When factoring in the 25-year lifespan of a typical solar system, the initial costs can be offset by significant energy savings. As Francis Dietz, a spokesperson for industry group AHRI notes, basic or "basic-plus" heat pumps are still eligible for tax credits, and while prices may rise modestly due to tariffs, they won't significantly impact most consumers.
While the equipment itself won't be more costly to purchase, the absence of tax credits will eliminate the ability for homeowners with a tax liability to reduce or erase their tax bill. In fact, a typical solar and battery system could have generated around $10,000 in tax credits for homeowners who would now lose that benefit.
However, some installers are introducing new financing models that may help keep costs in check. Emily Walker, director of insights at online solar marketplace EnergySage, notes that a "lease-to-own" or prepaid lease model is emerging. In this setup, the homeowner pays upfront for the system, while the installer retains ownership and passes on tax credit benefits as a discount.
Industry experts anticipate that this new model will become increasingly popular in 2026, with some installers estimating that nearly all of their business will be generated through these prepaid leases. While initial demand may soften due to increased costs, experts expect demand to recover later in the year as soaring electricity rates and temperatures force homeowners to rely on air conditioning.
To receive tax credits, leased systems must comply with new domestic manufacturing requirements that took effect in January 2026. However, the federal government has yet to issue final guidance on what percentage of components from China and other countries are prohibited under the Trump tax bill. This lack of clarity is likely to add costs to solar panels and batteries.
Tariffs will also play a role in raising prices for these renewable energy systems. The US imports most of its solar panels from China, Vietnam, and other countries subject to tariffs. Furthermore, nearly all batteries for residential energy storage are made in China, which may lead to increased prices due to the imposition of tariffs.
Despite these challenges, experts argue that the long-term benefits of solar energy make it an attractive option for homeowners. When factoring in the 25-year lifespan of a typical solar system, the initial costs can be offset by significant energy savings. As Francis Dietz, a spokesperson for industry group AHRI notes, basic or "basic-plus" heat pumps are still eligible for tax credits, and while prices may rise modestly due to tariffs, they won't significantly impact most consumers.
... I'm kinda surprised, but also kinda not surprised. People always say renewable energy is the future, but it's never easy to make a switch. I think it's cool that some installers are coming up with new financing models tho... like, lease-to-own thingy 
. It might make solar panels more accessible for people who can't afford upfront costs. The tariffs thing is a bummer tho... China imports most of our solar panels 
. But like, Francis says, the benefits of solar energy still outweigh the costs in the long run 
.
. I mean, it makes sense I guess, but what about people who can't afford the upfront costs? These new leasing models might be a good thing, I suppose... 
The industry's all "oh no, we'll adapt" but let's see how long that takes 
but like new financing models are a game changer - lease-to-own is the future! its gonna be super convenient for ppl who cant afford the full cost upfront 
and plus, tax credits will still be available for heat pumps... lets not forget those are already eligible for credits 
. However, I'm not sure about the tariffs thing - if China is making most of these systems and batteries, how can we know they won't be too expensive? 
... anyways, i still think solar energy is a solid choice for homeowners tho 
... dont get me wrong, its pricey now, but think about all the $$$ you'll save in the long run on electricity bills! 
like lease-to-own... it's just another way for installers to make more money off homeowners who are already getting a bad deal due to tax credits expiring. I mean, who wants to pay upfront for a system and then have to deal with rising costs because of tariffs? It's just setting up homeowners for failure 
. And don't even get me started on the lack of clarity on domestic manufacturing requirements... that's just gonna add more uncertainty and costs to an already sketchy industry 
.
still, some installers are trying out new financing models which is cool 
but I hope it gets sorted out soon 
gotta believe the long-term benefits of solar energy outweigh the costs 
. First, they're making solar panels and heat pumps more expensive because of some stupid tax credit expiration deal in 2025... and now installers are like "hey, we got a new financing model that's gonna save you money"... but it just means I'm still paying more for the system upfront 
And don't even get me started on those tariffs... it's like, what's up with China being the only place to import solar panels from? 
but honestly 25 year lifespan of solar systems means long-term energy savings so its def worth it... plus heat pumps r still eligible for tax credits so we'll see how that plays out in 2026
. And don't even get me started on the leasing model - it's like they're just trying to make a quick buck off people's desperation 
.
I'm not sure if saving a few bucks on our electricity bill is worth losing our autonomy over our own homes. Not convinced 
. All those people who were already thinking of switching to renewable energy are gonna have to pay more now that the tax credits are expiring 
️. But what's with the tariffs though? 
Anyway, it's all good, right? We'll just have to adapt and save some cash on energy bills 
️