Photo voltaic market platform EnergySage launched its twenty first “Solar & Storage Marketplace Report” displaying knowledge and traits for the primary half of 2025. The report analyzes knowledge factors from householders purchasing on EnergySage.com. Moreover, this 12 months’s report contains EnergySage’s annual “Electrification Contractor Survey,” fielded in January to March 2025.
After a robust 2024 that drove residential photo voltaic and storage costs to all-time lows, the report discovered that the primary six months of 2025 introduced each momentum and uncertainty to the photo voltaic business. House owner curiosity stays robust on the EnergySage platform, however shifting federal insurance policies, tariffs and tightening commerce restrictions are creating headwinds that contractors and installers are already feeling.
Three key insights from the intel report:
Residential photo voltaic costs remained at historic lows; storage prices rose modestly: Photo voltaic installations maintained their record-low median worth of $2.48 per watt in H1 2025 on the EnergySage web site, unchanged from H2 2024. In the meantime, storage costs elevated by 4%, as tariffs on Chinese language battery parts took impact, marking the primary improve after two years of declining costs.
“Though we count on modifications to federal tariffs and commerce insurance policies to have an effect on costs within the second half of 2025, the snapshot from the primary half of the 12 months exhibits us that, with the correct public coverage, photo voltaic is accessible to many owners now — and can proceed to be sooner or later,” stated Emily Walker, director of insights at EnergySage.
Financing panorama shifts as third-party possession features strategic benefit: Median mortgage charges climbed to 7.5% in H1 2025 on the EnergySage web site, with 38% of contractors reporting decreased mortgage demand as clients sought alternate options to high-rate financing, whereas 94% of installers reported that money patrons elevated or remained steady. As a result of HR1 protects tax credit for third-party possession (TPO) longer than for bought techniques, it’s positioned for important progress in 2026.
“At the same time as larger rates of interest have made conventional mortgage financing much less engaging, we’re seeing that demand for photo voltaic hasn’t gone away, it’s merely shifting,” Walker stated. “We count on engaging new financing fashions to emerge subsequent 12 months, which can maintain residential photo voltaic adoption transferring ahead.”
Contractors expressed widespread concern about business headwinds: 92% of contractors surveyed by EnergySage anticipated the lack of the federal photo voltaic tax credit score to hurt their enterprise, whereas 70% anticipated damaging impacts from potential gear tariffs. With 36% already reporting decreased profitability from larger rates of interest, 84% citing larger labor charges up to now 12 months, and 79% closely depending on solar-related income, many installers should adapt their enterprise fashions to organize for the post-tax credit score surroundings.
“Photo voltaic contractors throughout the nation have voiced deep concern about what lies forward for the business,” Walker stated. “With key incentives set to vary, many are already rethinking their enterprise fashions with a view to adapt and stay aggressive. The businesses that discover new methods to succeed in householders and provide worth can be greatest positioned to climate this transition.”
“The photo voltaic business is approaching a watershed second, with householders keen to put in photo voltaic and contractors bracing for the affect of the One Large Lovely Invoice Act,” stated Josh Levine, EnergySage chief advertising officer. “Throughout this transition, EnergySage stays dedicated to serving as a trusted useful resource for each householders and installers, providing knowledgeable recommendation, analysis, and perspective to assist the business navigate what comes subsequent.”
Information merchandise from EnergySage
