Emily Walker, director of content and insights at EnergySage, stated: “Heading into 2025, solar and battery prices had never been lower on the EnergySage Marketplace, and for homeowners, that means more affordable and accessible clean energy solutions.” For an 11.5 kW system, the average cost of $28,750 before incentives is reduced to $20,125 after the U.S. Investment Tax Credit, which covers 30% of installation costs. Additional state incentives, tracked by the NC Clean Energy Technology Center, further lower costs.
EnergySage attributed the price decline to reduced equipment costs, with Wood Mackenzie noting a 30% year-on-year drop in solar panel prices in 2024. Softer demand also contributed, with residential solar installations falling 31% in 2024 due to high interest rates, stable electricity prices, and California’s Net Billing Tariff.
The report highlighted a significant increase in battery energy storage included in solar quotes, reaching a record 45% nationwide in the second half of 2024. Leading markets showed high battery attachment rates: California at 79%, Texas at 68%, and Florida at 45%. The Tesla Powerwall 3 was the most-quoted battery, with Enphase, Tesla, and SolarEdge as the top inverter brands.
EnergySage noted: “The biggest marketplace disruption came from Tesla, which grew its inverter share by 1100% year-over-year due to the popularity of the Powerwall 3.” Tesla’s integrated system, priced at $926/kWh, undercuts the national median of $999/kWh, offering a cost-effective solution with hybrid inverters. However, some homeowners in 2025 requested non-Tesla equipment due to concerns unrelated to performance, and potential Tesla battery supply shortages may affect future market share.
Financing trends shifted, with Wood Mackenzie reporting that third-party-owned (TPO) solar projects, including leases and power purchase agreements, rose to 52% in the second half of 2024, surpassing loans at 39%, down from 57% in 2023. EnergySage observed increased use of low-fee, higher-interest-rate loans, with fees around 3% or less, allowing early repayment or refinancing to minimize interest costs.
These trends reflect growing affordability and adoption of solar and storage systems, driven by lower prices and innovative financing options. EnergySage’s data underscores the evolving residential solar market, with battery integration becoming a standard feature in major regions, supporting broader clean energy access for homeowners.
