The Cheapest Way to Go Solar in 2026: Cash, Prepaid Leases, Community Solar and Smart Shopping

The cheapest way to go solar is usually to buy a right-sized system with cash from a competitively priced installer, after comparing several quotes on price per watt. In EnergySage's first-half 2026 data, the median quoted price was $2.57 per watt before incentives, and paying cash was about 33% cheaper per kWh than a standard PPA, while prepaid leases and PPAs came in cheaper per kWh than cash for homeowners who can pay upfront but cannot use tax benefits.

If you cannot put solar on your roof, community solar may be the lowest-cost way to get solar credits on your bill. Prices below are dated so you can judge how current they are.

Key takeaways

• Typical 2026 quotes run about $2.57 to $2.62 per watt before incentives, according to EnergySage.
• Installer choice matters: Berkeley Lab found 2025 median prices across the top 100 residential installers ranged from $2.4 to $6.3 per watt.
• Loans tend to cost the most. Berkeley Lab found loan-financed systems priced considerably higher than cash systems.
• The federal 30% residential credit is gone for buyers: it is not allowed for expenditures made after December 31, 2025, and a solar expenditure counts as made when installation is complete.
• Bigger systems usually cost less per watt, but only buy the size you can use.

What going solar costs in 2026

Start with real price data so you can tell a good quote from a bad one.

Measure	Figure	Source and date
Median quoted price, all solar	$2.57 per watt	EnergySage, H1 2026
Solar-only quoted price	$2.62 per watt	EnergySage, H1 2026
Average quote (typical home needs about 12 kW)	$31,135 before incentives	EnergySage cost data, 2026
Lowest state average	Florida, $2.12 per watt	EnergySage state data, updated Oct 30, 2026
Highest state average	Alabama, $3.75 per watt	EnergySage state data, updated Oct 30, 2026
Modeled market price, 8 kW system	$2.95 per watt (2024 dollars)	NLR benchmark via DOE, Q1 2025

EnergySage's figures come from quotes on its own marketplace, which it says run below national medians, so a typical quote elsewhere may be higher. Use our solar panels by state pages to see figures for your area.

Cash, loan, lease or PPA: which is the cheapest way to go solar?

How you pay changes your total cost as much as the equipment does. EnergySage's 23rd marketplace report, released September 30, 2026, compared the cost per kWh of each option for the first half of 2026:

• Cash vs standard PPA: cash was 33% cheaper.
• Standard PPA vs loan: the PPA was 32% cheaper. EnergySage's chart showed loans with the highest price per kWh.
• Prepaid lease vs cash: the prepaid lease was 39% cheaper.
• Prepaid PPA vs cash: the prepaid PPA was 57% cheaper.

Why can a prepaid lease beat cash? With third-party ownership, the leasing company owns the system and can still claim federal business incentives. EnergySage says third-party-owned projects can qualify through 2027. Homeowners who buy can no longer claim the residential credit; EnergySage estimated that losing it made a purchase about $9,000 more expensive for most homeowners. The FTC notes that with a lease you do not own the system, and payments may rise over time, so read the escalator and buyout terms.

Loans cost more for a reason you can check. Berkeley Lab said loan-financed systems were priced considerably higher than cash systems, possibly because loan origination fees are rolled into the upfront price. Read dealer fees in solar loans explained before you sign a loan.

Get more quotes: the easiest way to cut solar costs

Price differences between companies are large. Among the 100 biggest residential installers in Berkeley Lab's August 2026 update, roughly one in four had a 2025 median under $3 per watt, while about one in ten topped $5. Even one company's own jobs usually varied by $1 to $2 per watt.

EnergySage says two homes on the same street with identical roofs can get quotes that differ by thousands of dollars, and estimates its shoppers save about $6,100 upfront by comparing. A 2017 study from the lab now called NLR also found that large installers quoted higher prices on average for customer-owned systems than smaller ones.

Ask each company for a cash price, the system size in kW and the full equipment list. Then compare them on the same terms.

Price per watt math: how to compare quotes fairly

Price per watt is the simplest way to compare offers of different sizes.

1. Take the cash price before incentives and subtract any battery cost.
2. Convert system size to watts (8 kW is 8,000 watts).
3. Divide price by watts.

Example: a $20,800 quote for an 8 kW system is $20,800 divided by 8,000, or $2.60 per watt. A $26,400 quote for the same size is $3.30 per watt. Over 8,000 watts, that 70-cent gap is $5,600.

Size affects the per-watt price too. EnergySage's 2026 cost data shows about $2.89 per watt for a 4 kW system, $2.62 for 8 kW, $2.56 for 12 kW and $2.47 for 15 kW. But a bigger system only saves money if you use or are paid fairly for the power. Size it to your usage with our solar panel calculator.

Other ways to lower the cost of solar

• Cut usage first. A smaller system costs less, so trim waste before you size your system.
• Skip extras you do not need. EnergySage found solar-plus-storage prices rose 5% from late 2025 to early 2026, a figure that leaves out the battery itself. Add a battery only if you need backup or your rates reward it.
• Look for state and local incentives. Check your state energy office and utility for current programs.
• Watch timing. EnergySage noted Section 232 tariffs on imported polysilicon take effect December 4, 2026, which could add cost pressure in 2027.
• Check soft costs. Berkeley Lab says soft costs and other balance-of-system costs made up roughly 80% of the median installed price in 2025, so ask each installer to itemize labor, permitting and other non-panel costs.

"Free" and no-cost solar offers: cheap is not the same as low cost

A $0-down offer can look like the cheapest way to go solar, but the real cost is in the monthly payments over 20 to 25 years. The FTC says leases often run about 20 years, payments may rise over time, and ending early can be difficult and costly. With a PPA, you pay per kWh at a rate the provider sets.

Before you sign any no-upfront-cost deal, the FTC suggests checking:

• The total cost over the full term, including monthly fees and escalators.
• Any early termination fees and what happens if you sell the home.
• Who gets the tax credits, incentives and renewable energy certificates.
• Whether the contract guarantees a minimum amount of power.

The FTC also lists red flags: pressure to decide quickly, a contract with no time to review it, and a request to pay in cash. Our guide to free solar panel offers explains the catch.

Community solar: a low-cost option without panels

If your roof is shaded, you rent, or you cannot afford an upfront cost, community solar may be the cheapest way to get solar savings. NLR explains that subscribers get a monthly bill credit for their share of an off-site project's output. As of June 2025, community solar projects were located in 43 states and DC, and as of February 2025, 24 states and DC had community solar policies. Availability depends on your state and utility. Learn more in what is community solar.

Next steps

Collect at least three quotes, convert each to price per watt, and run them through our solar quote checker to spot overpricing before you sign.