If you’ve been considering making the switch to solar energy, now might be the perfect time to do so. Recent data from EnergySage’s Solar & Storage Marketplace Report reveals that prices for both home solar systems and solar + storage solutions have reached record lows in the latter half of 2024.
EnergySage, an online solar shopping marketplace, analyzed millions of quotes from installers across the US for its 20th semiannual report. The data, spanning from January to December 2024, provides valuable insights into the costs associated with solar panels, batteries, inverters, and more.
Home solar systems saw a significant price drop, with the median cost falling to $2.65 per watt in the second half of 2024, down from $2.80 per watt in the first half of the year. This marks the lowest price point recorded by EnergySage. Additionally, the prices for solar + storage systems also decreased, dropping from $2.59 per watt in H1 2024 to $2.40 per watt in H2 2024. The introduction of Tesla’s Powerwall 3, which features an integrated inverter, has contributed to the decline in storage prices.
Several factors have driven these falling prices, including a decrease in equipment costs – residential solar panel prices were reported to be down 30% year-over-year. The combination of high interest rates and stable electricity prices has softened demand, prompting installers to offer more competitive pricing. Changes to California’s Net Billing Tariff have also put pressure on installers to reduce prices.
Emily Walker, director of content and insights at EnergySage, remarked, “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.”
In addition to lower prices, advancements in solar panel technology have led to the emergence of high-wattage panels. In H2 2023, 81% of quotes included panels rated under 400 watts, but by H2 2024, that number had dropped to just 14%. This shift is attributed to improvements in panel efficiency and design, resulting in panels that are either larger or more powerful.
While high-wattage panels offer benefits such as reduced installation time and space requirements, the industry faces uncertainty in 2025 due to potential tariffs. The US currently has a surplus of solar panels, which could mitigate price increases but may also impact innovation and the supply chain.
As the solar industry continues to evolve, homeowners are presented with more efficient and cost-effective options for generating clean energy. To explore solar and battery storage solutions for your home, consider consulting EnergySage for competitive pricing and trusted installers. Their platform connects you with pre-vetted professionals, ensuring high-quality installations and potential cost savings. Embrace the power of solar energy and take a step towards a more sustainable future.
