This home solar and battery guide is for homeowners deciding on solar in 2026. A lot changed this year. The 30% federal credit for homeowner-owned systems is gone, several states have cut what they pay for exported power, and home batteries have become the main way to get value from solar in those states. Here’s what still matters and where to go deeper.
What Changed in 2026
The Residential Clean Energy Credit (IRC 25D) paid 30% of the cost of solar and batteries installed from 2022 through Dec 31, 2025. The IRS says the credit “is not available for any property placed in service after December 31, 2025.” It counts when installation is finished, not when you sign. So a system you own outright and install in 2026 gets no federal credit. Any unused 2025 credit can still carry forward.
Leases and power purchase agreements (PPAs) are different. The company that owns the panels may still claim the business credit (IRC 48E). Under the July 2025 law, solar projects that start construction after July 4, 2026 must be in service by Dec 31, 2027 to qualify. Whether that savings reaches you depends on the contract.
Home Solar and Battery Guide: The Money
Lawrence Berkeley National Laboratory’s 2025 data update put the median installed price of residential solar at $4.0 per watt for systems installed in 2024, before incentives. Cash purchases had a median of $3.5/W and loan-financed systems $4.7/W. For a 7kW system, that works out to roughly $24,500 to $33,000 (example math from 2024 medians, not a quote). Your payback depends mostly on your electricity rate and on how your utility credits exported power.
Utility Rules
- Net metering credits exports at or near the retail rate.
- Net billing (such as California’s tariff for new customers since April 2023) credits exports at lower values that change by hour, which favors using your solar yourself or storing it.
Sizing a System
Start with 12 months of kWh from your bills. NREL’s free PVWatts calculator estimates how much a 1kW system produces at your address. Divide your yearly use by that number to get a starting system size.
Batteries and Backup
A battery stores midday solar for the evening and keeps chosen circuits running in an outage. For example, a Tesla Powerwall 3 stores 13.5kWh and supplies up to 11.5kW continuous, per Tesla’s datasheet. Whole-home backup usually takes more than one battery, or load management.
| Goal | What usually fits |
|---|---|
| Lower bills under net metering | Solar alone |
| Lower bills under net billing | Solar + battery |
| Outage backup | Battery + critical-loads or whole-home setup |
| Rare outages, low budget | Generator with a transfer switch |
Choosing an Installer
Get at least three quotes priced in $/W. Check the license and NABCEP certification, and read the FTC’s consumer guidance on solar contracts. Be careful with loan “dealer fees” and with any quote that still promises a 30% federal credit on a system you’d own.
Step-by-Step: How to Plan Home Solar in 2026
- Collect 12 months of usage. Your bill lists kWh used each month. Add them up. For scale, the U.S. Energy Information Administration (EIA) says the average U.S. home used about 10,500 kWh in 2023, or about 875 kWh a month. Yours may be far higher or lower. See how to read kWh on your electric bill.
- Find your rate and your export rules. Note your price per kWh, any time-of-use periods, and whether your utility offers net metering or net billing. Our net metering vs net billing guide explains the difference.
- Estimate production at your address. Enter your address in NREL’s PVWatts calculator, keep the default 1 kW system, and note the yearly AC kWh it gives you.
- Size the array. Divide yearly use by PVWatts’ kWh per kW. That is a first-pass system size in kW.
- Decide on a battery. Do this based on your export rules and how much outage backup you want, not on a sales pitch.
- Get three or more quotes priced in $/W, with equipment model numbers listed.
- Compare cash, loan and lease using the real total cost, then sign, permit, install and wait for permission to operate.
Worked Example: Sizing a System From a Bill
Here is the math for a home that uses 10,500 kWh a year, the EIA national average. The production figure below is an example input. Your PVWatts result will differ by location, roof angle and shading.
| Step | Math | Result |
|---|---|---|
| Yearly use | From 12 bills | 10,500 kWh |
| Production per kW (example) | PVWatts output for your address | 1,400 kWh per kW per year |
| System size | 10,500 ÷ 1,400 | 7.5 kW |
| Panel count (400 W panels) | 7,500 W ÷ 400 W | about 19 panels |
| Rough price at LBNL 2024 median | 7,500 W × $4.0/ | about $30,000 before any local incentives |
With no federal credit for owned systems after 2025, that last line is close to what a cash buyer would pay at the national median. Cash buyers had a lower median of $3.5/W in LBNL’s data, which works out to about $26,250 for the same system. Full detail is in how many solar panels do I need and how much solar panels cost.
Worked Example: Simple Payback
Payback is the system price divided by what it saves each year. EIA reports the average U.S. residential price at about 16.5 cents per kWh in 2024. Under full retail net metering, the 10,500 kWh home above would avoid roughly 10,500 × $0.165 = $1,733 a year.
- At $30,000: 30,000 ÷ 1,733 = about 17 years.
- At $26,250: 26,250 ÷ 1,733 = about 15 years.
- At double the rate (33 cents/kWh, common in parts of California and New England): savings of about $3,465 a year cut payback roughly in half.
Under net billing, exports earn less, so the same panels save less unless you use or store the power at home. That is why batteries matter more in those states. Our solar payback period guide walks through a full spreadsheet.
Battery Sizing in Plain Numbers
A battery is sized two ways: energy (kWh, how long it lasts) and power (kW, how much it can run at once). Using each maker’s spec sheet:
| Battery | Usable energy | Continuous power |
|---|---|---|
| Tesla Powerwall 3 | 13.5 kWh | 11.5 kW |
| Enphase IQ Battery 5P | 5.0 kWh | 3.84 kW |
| FranklinWH aPower 2 | 15 kWh | 10 kW |
Example: if your essential loads (fridge, lights, internet, furnace fan) average 600 W overnight, a 13.5 kWh battery covers about 13,500 ÷ 600 = 22 hours before any solar recharge. Add a 3.5 kW central air conditioner and that same battery runs out in about 3 hours. To size for your own loads, see how many batteries to power a house and our Powerwall 3 vs Enphase vs FranklinWH comparison.
Top Home Battery Brands Compared
Here are the main home battery brands sold in the US, with figures from each maker’s own datasheet or warranty. Energy is usable capacity unless marked rated or nominal. Power is continuous output. Ratings depend on configuration, so check the full guide and the maker’s spec sheet before you buy.
| Brand and model | Energy (kWh) | Continuous power (kW) | Chemistry | Warranty | Our guide |
|---|---|---|---|---|---|
| Tesla Powerwall 3 | 13.5 | 11.5 | LFP | 10 yr, 70% (US) | Powerwall 3 review |
| Enphase IQ Battery 5P | 5.0 | 3.84 kVA | LFP | 15 yr or 6,000 cycles | Enphase 5P review |
| FranklinWH aPower 2 | 15 | 10 | LFP | 15 yr or 60 MWh | FranklinWH review |
| Generac PWRcell 2 | 9–18 per cabinet | 5.2–10.5 | Not stated in our sources | Modules: 10 yr or 7.56 MWh | Generac vs Powerwall 3 |
| Anker SOLIX X1 | 5–30 | 6.6 (backup) | LFP | 10 yr | Anker SOLIX X1 review |
| EcoFlow DELTA Pro Ultra | 6–90 | 7.2 per inverter | LFP | 5 yr | EcoFlow DPU review |
| EG4 18kPV + WallMount Indoor 280Ah | 14.3 per battery | 12 (inverter) | LiFePO4 | 10 yr (battery prorated) | EG4 18kPV review |
| Victron ESS (MultiPlus-II 48/ | Depends on battery | 3,000 VA (inverter) | Depends on battery | Depends on components | Victron ESS explained |
| SolarEdge Home Battery 400V | 9.7 | 5 | Lithium-ion NMC | 10 yr, 70% | SolarEdge review |
| LG Energy Solution RESU Prime / | 9.6 / | 5 / | Lithium-ion | 10 yr, 70% | LG home battery guide |
| Qcells Q.HOME CORE G3 | 13.12 (12.46 usable); 26.24 with two | 7.6 (15.2 with two) | LFP | 15 yr or 68 MWh | Qcells Q.HOME CORE G3 review |
| sonnen sonnenCore+ / | 10 or 20 per unit | 4.8 kVA (Core+); 6 (Home Battery 11) | LFP | 10 yr or 10,000 cycles | sonnen battery guide |
| Canadian Solar EP Cube 2.0 | 5–40 per unit (total) | Up to 11.5 | LFP | Up to 10 yr or 6,000 cycles, >80% | EP Cube 2.0 review |
| Fortress Power eVault Max 18.5 | 18.43 rated per unit; up to 370 | 9.2 (battery); 12 with Envy True 12kW | LFP | 10 yr or 8,000 cycles at 80% DoD | Fortress eVault Max review |
| Sol-Ark L3 HV-40 / | 36.86 / | 30 (per ESS, three-phase) | LFP | 10 yr or 130 / | Sol-Ark L3 guide |
| Duracell Power Center (Max Hybrid 15 + DURA 5) | 4.864 usable per module; 15–65 systems | 15 with PV; 12 from battery | LFP | 10 yr materials and workmanship | Duracell Power Center review |
| Bluetti EP900 / | 9.92–19.84 (EP900); 9.6–19.2 (EP13K) | 9 (EP900); 13.2 (EP13K, 4 packs) | LFP | 10 yr | Bluetti EP900 review |
A few notes on the table. Sol-Ark files its L3 batteries under commercial products, and most Sol-Ark homes pair a 48 V residential inverter with a partner battery. Victron and EG4 are component systems, so capacity depends on the batteries you choose. For warranty fine print, see home battery warranties compared.
Does Sunrun Make Its Own Battery?
No. Sunrun is a solar installer and financing company, not a battery maker. On sunrun.com, it says it partners with Tesla and Lunar Energy for home batteries and offers the Tesla Powerwall 3 (13.5 kWh), with up to four batteries as add-ons.
- Battery add-ons for existing customers: available in parts of California (PG&E, SCE, SDG&E, LADWP), Maryland, Massachusetts, Florida, Nevada, New York (PSEG Long Island), Texas (Oncor, CenterPoint), Hawaii and Illinois (ComEd), per Sunrun. Payment options include cash, a 10-year loan, or $0-down monthly payments in California, and Sunrun says add-on equipment is covered for at least 10 years.
- Shift: a battery setup without backup power that Sunrun launched in April 2023 for California’s net billing rules. It stores solar to use later instead of keeping power on during outages.
- Ways to pay for a new system: Sunrun offers a subscription lease (little or nothing down, with Sunrun owning and maintaining the system under 25-year coverage), a prepaid lease, loans and cash purchase.
Because Sunrun owns leased systems, the homeowner doesn’t own the battery. Compare the options in our lease vs loan vs cash guide.
Owning, Leasing or Going Without Solar
| Option | Who gets any federal credit | What you pay |
|---|---|---|
| Cash purchase | No one (25D ended after 2025) | Full price up front |
| Solar loan | No one (25D ended after 2025) | Monthly payment plus interest and any dealer fee |
| Lease or PPA | The company that owns the system may claim 48E | Monthly lease or per-kWh price |
| Battery only, no solar | No one for homeowner-owned systems | Battery and install cost |
Lease and PPA savings depend entirely on the contract terms, including escalators and what happens when you sell the house. Read our lease vs loan vs cash guide before signing.
Where to Check State and Local Incentives
With the federal homeowner credit gone, local programs matter more. The DSIRE database, run by the N.C. Clean Energy Technology Center, lists state, utility and local incentives by ZIP code, including rebates, property tax exemptions and battery programs. Our solar incentives by state post covers the main types.
Read Next in This Series
- Is the solar tax credit gone in 2026?
- Are solar panels worth it in 2026?
- Grid-tie vs hybrid vs off-grid solar
- The home solar installation process step by step
- How to choose a solar installer
- Electricity basics for solar and batteries
FAQ
Is there still a federal solar tax credit in 2026?
Not for systems homeowners own that are installed after Dec 31, 2025. Lease and PPA providers may still claim a business credit.
How long does home solar take to pay off?
It varies widely with your electricity rate, your utility’s export credits and the price you pay. Run your own numbers with PVWatts and your bills.
How many solar panels does an average house need?
Using EIA’s 10,500 kWh average and an example 1,400 kWh per kW from PVWatts, about 7.5 kW, or roughly 19 panels at 400 W each. Your own bills and PVWatts result decide the real number.
Do I need a battery with solar?
Not always. Under retail net metering, solar alone usually saves the most per dollar. Under net billing, or if you want outage backup, a battery adds value.
Will solar panels work during a power outage?
A standard grid-tied system shuts off when the grid goes down, as required for line-worker safety. You need a battery or a backup-capable inverter to keep power on.
Can I still get a 30% credit by leasing?
You can’t claim it yourself. The leasing company may claim the business credit, and some may pass part of it on through lower pricing.
Sources: IRS, Residential Clean Energy Credit (irs.gov); IRS Notice 2025-42; LBNL, U.S. Distributed Solar and Storage, 2025 Data Update (Oct 2025); NREL PVWatts; Tesla Powerwall 3 Datasheet; CPUC Net Billing Tariff; DOE Homeowner’s Guide to Going Solar; FTC, “Solar Power for Your Home.”; EIA, “How much electricity does an American home use?” (FAQ); EIA Electric Power Monthly, average residential price 2024; Enphase IQ Battery 5P datasheet; FranklinWH aPower 2 datasheet; DSIRE (dsireusa.org); manufacturer datasheets and warranties from SolarEdge, LG Electronics, LG Energy Solution, Qcells, sonnen, CSI Solar (EP Cube), Fortress Power, Sol-Ark, Duracell Power Center, Bluetti, Generac, Anker, EcoFlow, EG4 and Victron Energy; Sunrun, home battery, battery add-on and Shift pages (sunrun.com) and Sunrun investor release, April 12, 2023. Accessed Oct 2026.
Related: Jackery HomePower 3600 Plus: 20 Things It Can Power, EcoFlow Delta 3 Max for Home Backup, EcoFlow Delta 3 Max vs Generator
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