Here's a conversation happening on a lot of driveways right now: someone who paid for solar in 2024 compares notes with a neighbor who just got quoted — and the new number is thousands less. Nobody got scammed. The market genuinely moved. Three things happened.
1. The tariffs came off
For years, imported solar equipment carried emergency tariffs that added anywhere from 20% to 50% to costs before a single panel reached a roof. Those tariffs were repealed, and the effect showed up fast: panel prices for home installations fell more than 20% in a single year, per SEIA's industry tracking. Equipment is the foundation of every quote, and the foundation just got cheaper.
2. Installed prices followed
It's not just hardware. The all-in price of a residential system — equipment, labor, permits, everything — is down about 7% year over year. That may sound modest next to the panel number, but on a typical system it's real money, and it compounds with point three.
3. The gold rush ended, and installers need you more than ever
Late 2025 was the busiest the residential solar industry has ever been — homeowners raced to get systems installed before the federal homeowner tax credit expired in December. Installers had more work than they could handle, which is exactly when prices are least negotiable.
Then January came. The rush was over, and the industry is now bracing for a roughly 21% smaller market in 2026. The companies that staffed up for the boom are competing for a smaller pool of customers.
Translation: you are the scarce resource now. The leverage that belonged to installers eighteen months ago belongs to homeowners today. Good companies are sharpening pencils; the desperate ones are discounting hard (which cuts both ways — more on that below).
How to actually use this
Get three quotes, minimum. In this market the spread between quotes for identical systems can be dramatic, because some companies are still pricing like it's 2025.
Compare price-per-watt, not sticker price. Divide the total price by the system size in watts. It's the one number that makes different-sized proposals comparable, and asking for it tells the salesperson you've done homework.
Cheapest isn't automatically best. A contraction year shakes out weaker companies. You want an installer who'll exist in year 15 of your 25-year warranty — ask how long they've operated, who actually does the installation, and who services the system later. A slightly higher quote from a company with deep local roots routinely beats a rock-bottom quote from a company that won't survive the shakeout.
And if the quote is a lease or PPA, remember the price drop helps you there too — providers buying cheaper equipment can offer better rates. Same rule applies: make them show the year-one rate and the annual escalator side by side with your utility bill.
Your neighbor didn't get lucky. The market shifted in your favor. The only mistake available in 2026 is signing with the first company that knocks — because for the first time in years, they need you more than you need them.
GRID doesn't sell solar to homeowners — GRIDcard connects homeowners with verified local solar pros who show their math.