Solar installs increased 205% before taxes were cut – and they fixed the market

The U.S. market for residential clean energy recently experienced one of its weakest six months, according to EnergySage’s latest Home Electrification Marketplace Report.

For the first time, EnergySage’s flagship analysis report looks at the entire home’s electrical installation, including EV chargers and heat pumps, using millions of homeowner purchasing data points collected between July and December 2025.

The timing was not by chance. After the One Big Beautiful Bill Act was passed in July 2025 and eliminated the 30 percent federal tax credit for home purchases of solar systems installed after December 31, homeowners rushed to foreclose on properties ahead of schedule. EnergySage reports a 205% year-over-year surge in homeowners actively working with installers, as well as a record spike in inquiries. Many contractors say they reached their capacity for the year in October, forcing contractors and clients alike to make unusual decisions to complete projects on time.

Prices remained stable despite high demand

Despite the rush, prices have remained remarkably stable. Solar prices rose only 0.4% to $2.49 per watt in the second half of 2025, while battery prices increased 3.6% to $1,074 per hour. Most of this increase took place at the end of the year, after putting energy into practice. EnergySage says clear market prices have helped keep prices from rising, as they often do when demand suddenly rises.

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Equipment choices changed as inventory ran tight

Trade barriers didn’t just change the times – they changed what people put in place. High-wattage solar panels are increasingly difficult to find, so installers rely on whatever inventory is available. Quotations for 450–460-watt panels decreased from 33% to 26%, while the 430–440-watt range jumped from 8% to 30%. REC, which used to be the most talked about platform, has dropped from 43% market share to 20%.

In other words, homeowners were prioritizing installing solar before the final tax credit over choosing their proper hardware.

The extra battery has been dipped, but not because interest has fallen

Battery attachment rates have slipped across the country from 41% to 38%, although interest rates have not changed, falling from 74% to 73%. The trend was strongest in the largest savings markets: California fell from 79% to 71%, Texas from 61% to 53%, and Hawaii from 100% to 85%.

The takeaway is that many homeowners have chosen to install solar early and delay adding storage so they don’t miss the federal incentive cutoff. This meant that a large wave of new solar homes could add batteries later.

Solar installers are now providing electricity

The report also shows how contractors’ business models are changing. Among EV charger installations surveyed, 55 percent said chargers make up less than a quarter of their income. This shows that many companies are increasingly making multiple electronic products rather than focusing on just one offering.

Homeowners seem to think the same way. Instead of purchasing solar, storage, or EV charging alone, they are increasingly planning integrated home energy systems designed to control costs and improve sustainability.

What happens now when the incentives are gone?

With the tax credit gone for purchased systems, the market is moving to third-party ownership models such as leases and power purchase agreements, which remain eligible for incentives until 2028 and are already getting a share on the EnergySage platform. The company says future reports will track how this change occurs.

The main feature, though, is the style. Rising electricity demand, high utility costs, extreme weather, and grid reliability concerns are pushing homeowners to become energy independent. The combination – cost savings as well as durability and control – is becoming a new driver for the adoption of home electronics.

Electrek’s Take

The post-2025 solar rush is a story of how the upcoming tax write off credit deadline could boost the adoption of clean energy overnight. Kill the tax credit, and you don’t have to kill demand – you just move it forward in time. (This isn’t to say that killing the tax on tax day wasn’t a funny decision, though; it was.)

As for what will happen next, the report shows that the market is not going down as much as changing. Instead of buying single products, homeowners are starting to think in systems: solar paired with storage, EV charging tied into scale-adjusted power schedules, and HVAC power bundled into a single system. Also, if the landlord still needs an incentive, it’s still on the table when they rent.

Successful companies don’t just sell solar panels or batteries; they are the ones who will be able to design and manage all aspects of home energy. And if the past six months have proven anything, it’s that homeowners are ready for the design-and-build regulatory phase.

Read more: EIA: 62% more renewable energy coming in 2026

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