Solar Panels vs Staying on the Grid (2026)
Should you install solar or just keep buying electricity from your utility? In 2026 the math changed: the 30% federal solar tax credit expired December 31, 2025, so payback periods are longer than older calculators show.
Solar Panels
Generate your own power
What you enter
- System size (kW)
- Daily sun hours
- Electricity rate
- Install cost
What you get
- Annual savings
- Payback period
- 20-year savings
Grid Electricity
Buy from your utility
What you enter
- Monthly usage (kWh)
- Electricity rate
What you get
- Monthly bill
- Annual electricity cost
Calculator coming soon
Key differences
| Feature | Solar Panels | Grid Electricity |
|---|---|---|
| Upfront cost | $15,000–$30,000 before incentives | $0 |
| 2026 federal tax credit | None (25D expired Dec 31, 2025) | — |
| Ongoing cost | Near $0 after payback | Your full electric bill, forever |
| Typical payback | ~9–15 yrs in 2026 (longer without the credit) | — |
| Best when | High electricity rates, good sun, long-term home | Low rates, renting, or short stay |
Which should you choose?
Choose Solar Panels if:
- Your electricity rate is high (over ~18¢/kWh)
- You get strong sun and own your roof
- You'll stay in the home 10+ years
Choose Grid Electricity if:
- Your electricity is cheap
- You rent or may move soon
- You can't pay or finance upfront cost
Frequently asked questions
Is solar still worth it in 2026 without the tax credit?
Often yes in high-rate, sunny states, but payback is 1.5–3 years longer than before the 30% federal credit expired on December 31, 2025. Leased/PPA solar can still pass through value via the surviving commercial credit. State incentives and net metering now drive most of the savings.
How long do solar panels take to pay for themselves?
In 2026, roughly 9–15 years for an owned system depending on your electricity rate, sun, and state incentives — longer than the 7–10 years often quoted before the federal credit ended. Panels typically last 25–30 years.
Do I get paid to send solar power to the grid?
Usually as net-metering credits capped at your own usage, not cash at retail rates. Treat grid export as bill offset, not income.
Related comparisons
Figures reflect 2026 post–One Big Beautiful Bill Act rules and are general estimates; your results will vary. Not financial advice.