{"id":12284,"date":"2025-08-06T22:21:32","date_gmt":"2025-08-06T22:21:32","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=12284"},"modified":"2025-08-06T22:21:32","modified_gmt":"2025-08-06T22:21:32","slug":"making-sense-of-solar-project-pricing-in-2025","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/making-sense-of-solar-project-pricing-in-2025\/","title":{"rendered":"Making Sense of Solar Project Pricing in 2025"},"content":{"rendered":"

With the scramble to install solar prior to the tax credit expiration at the end of 2025, homeowners are rushing to get quotes and secure their \u201cplace in line\u201d for their projects. We spoke with the Energy Advisor team at <\/span>solar.com<\/span>, who work with homeowners to find qualified installers in their area, about what they\u2019re seeing in the market.\u00a0<\/span><\/p>\n

Why is one of my solar quotes much lower than the market?<\/h2>\n

It’s common for solar.com customers to get additional quotes outside of our marketplace\u2014and we applaud the due diligence! However, with One Big Beautiful Bill signed into law<\/a> and the tax credit rush in full swing, our Energy Advisors are noticing a trend of customers bringing outside quotes that require a closer look.<\/p>\n

\u201cRight now, the biggest issue is with quotes that are \u2018too good to be true,\u2019\u201d said Dan Huffman, a <\/span>solar.com<\/span> energy advisor based in Southern California. \u201cI certainly can\u2019t speak for any individual company\u2019s pricing strategy at the moment, but the cost to install solar<\/a> is relatively consistent. There have been some near-term component price increases, attributable to tariffs and increased demand, but certainly no one has decreased pricing. When I work with a homeowner who has a quote for a significantly lower price than the market, this tells me one of two things is happening: it\u2019s simply too good to be true or the installer is struggling.\u201d\u00a0<\/span><\/p>\n

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Is my solar quote too good to be true?<\/h3>\n

On the first point, this is where basic due diligence comes into play. Perhaps the company itself is reputable\u2014but maybe they\u2019re trying to install obsolete components before the tax credit goes away. This could represent a great deal for the homeowner, but it could also mean the product is out of warranty<\/a> or no longer supported by the original equipment manufacturer. <\/span><\/p>\n

The other red flag is if the installer is asking for a large deposit to secure the work. There\u2019s a chance that the work is never completed or the installer plans on building out their 2026 pipeline and, since they\u2019re holding a large deposit, they feel the homeowner\u2019s desire to cancel will be lower.\u00a0<\/span><\/p>\n

Is the installer struggling?<\/h3>\n

The other scenario is the installer might be struggling and with the upcoming tax credit elimination they\u2019re simply trying to install what they can before they go out of business. Again, this could represent a great value for homeowners, but it also means they\u2019re on their own if there\u2019s an issue with the installation or components.\u00a0<\/span><\/p>\n

\u201cSolar is an investment,\u201d Huffman said. \u201cAnd rarely do people invest in the lowest cost option. When thinking about a 20-25 year investment, which is what solar represents, savvy homeowners will pay a justifiable premium to work with quality technology and companies.\u201d\u00a0<\/span><\/p>\n

Solar.com<\/span> offers a Tri-Guard warranty, which provides an additional level of protection for homeowners looking to go solar. This means the company vets its installation partners and the technology they select, because ultimately they share in the risk if the system doesn\u2019t work.\u00a0<\/span><\/p>\n

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Why is Solar in the US so much more expensive than the rest of the world?\u00a0<\/b><\/h2>\n

If you\u2019ve done your research on solar, you likely have seen that if you were in Europe or Australia you can install solar on your house for $1 to $1.50\/watt less than in the US. Why is that? Well, there are a few reasons. In the EU and Australia, through a combination of high retail energy rates and historical high subsidies, the economic imperative for homeowners to go solar was such that they \u201cpurchased solar.\u201d In the US, in many locations, solar is sold, which creates significant inefficiencies in the market.\u00a0<\/span><\/p>\n

There\u2019s also a relatively substantial cost differential in component prices. The US has placed tariffs and restrictions on products directly from mainland China, which impacts not only solar panels but also inverters. Chinese solar companies are operating at significant losses due to huge over capacity, which means solar panels and inverters can be purchased at a fraction of the cost in the US. There is also no code requirement for Module Level Rapid Shutdown, which opens up lower cost components and broader competition.\u00a0<\/span><\/p>\n

Many jurisdictions in the US also go through lengthy permitting and approval processes, which creates deal friction and adds cost.\u00a0<\/span><\/p>\n

In other markets, the combination of lower component prices, less regulation, and a higher consumer demand means homeowners simply outright purchase their solar, which removes the significant cost of financing many American consumers opt for.\u00a0<\/span><\/p>\n

So will we ever see $1.50\/w residential installation prices in the US? Maybe. But the more likely scenario is there will be a huge spike in the cost of retail energy post OBBB<\/a>, which means solar contractors can hold a premium if they\u2019re offering a value relative to the grid.\u00a0\u00a0<\/span><\/p>\n

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With the scramble to install solar prior to the tax credit expiration at the end of 2025, homeowners are rushing to get quotes and secure their \u201cplace in line\u201d for…<\/p>\n","protected":false},"author":51,"featured_media":12285,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[80,4],"tags":[],"yoast_head":"\nMaking Sense of Solar Project Pricing in 2025 | Solar.com<\/title>\n<meta name=\"description\" content=\"Real-time solar pricing trends in 2025 as homeowners rush to install solar before the 30% tax credit expires.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solar.com\/learn\/making-sense-of-solar-project-pricing-in-2025\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" 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