Updated 24 October 2026
Solar vs Grid Electricity: 25-Year Cost Comparison
A 7 kW solar system costs $18,200 at the EnergySage US average of $2.60 per watt (October 2026). That equals about 9.7 years of the average US home's grid bill: 865 kWh a month (EIA, 2024 average) at 18.16 cents/kWh (EIA, August 2026), or $1,885 a year.
The Core Comparison (US average)
Upfront cost
Solar: $18,200 (7 kW at $2.60/W)
Grid: $0
Price per kWh
Solar: Set by what you paid and what the panels produce
Grid: 18.16¢ (Aug 2026)
Average yearly bill
Solar: Depends on production and export credit
Grid: $1,885
25 years at today's rate
Solar: $18,200 plus any remaining bill
Grid: $47,100
Federal credit
Solar: Ended 31 Dec 2025
Grid: n/a
| Factor | Solar | Grid |
|---|---|---|
| Upfront cost | $18,200 (7 kW at $2.60/W) | $0 |
| Price per kWh | Set by what you paid and what the panels produce | 18.16¢ (Aug 2026) |
| Average yearly bill | Depends on production and export credit | $1,885 |
| 25 years at today's rate | $18,200 plus any remaining bill | $47,100 |
| Federal credit | Ended 31 Dec 2025 | n/a |
Solar Price vs Years of Grid Bills, by State
Each row uses the same home (865 kWh a month, the 2024 US average from EIA), the state's August 2026 residential rate from EIA, and the state's average installed price per watt on EnergySage (October 2026) for a 7 kW system. The last column is the system price divided by one year of grid bills. It is not a payback period: it assumes nothing about how much the panels produce or how your utility credits exports, and it holds the rate flat.
| State | Rate | Grid / year | Grid, 25 yr | Solar $/W | 7 kW price | Years of bills |
|---|---|---|---|---|---|---|
| Hawaii | 47.18¢ | $4,897 | $122,400 | $3.46 | $24,220 | 4.9 |
| California | 29.75¢ | $3,088 | $77,200 | $2.52 | $17,640 | 5.7 |
| Massachusetts | 30.48¢ | $3,164 | $79,100 | $2.90 | $20,300 | 6.4 |
| New York | 28.65¢ | $2,974 | $74,300 | $2.77 | $19,390 | 6.5 |
| Florida | 14.99¢ | $1,556 | $38,900 | $2.12 | $14,840 | 9.5 |
| Texas | 15.91¢ | $1,651 | $41,300 | $2.25 | $15,750 | 9.5 |
| Idaho | 13.37¢ | $1,388 | $34,700 | $2.99 | $20,930 | 15.1 |
Hawaii
Grid: 47.18¢/kWh, $4,897 a year, $122,400 over 25 years at today's rate. Solar: 7 kW at $3.46/W = $24,220, equal to 4.9 years of bills.
California
Grid: 29.75¢/kWh, $3,088 a year, $77,200 over 25 years at today's rate. Solar: 7 kW at $2.52/W = $17,640, equal to 5.7 years of bills.
Massachusetts
Grid: 30.48¢/kWh, $3,164 a year, $79,100 over 25 years at today's rate. Solar: 7 kW at $2.90/W = $20,300, equal to 6.4 years of bills.
New York
Grid: 28.65¢/kWh, $2,974 a year, $74,300 over 25 years at today's rate. Solar: 7 kW at $2.77/W = $19,390, equal to 6.5 years of bills.
Florida
Grid: 14.99¢/kWh, $1,556 a year, $38,900 over 25 years at today's rate. Solar: 7 kW at $2.12/W = $14,840, equal to 9.5 years of bills.
Texas
Grid: 15.91¢/kWh, $1,651 a year, $41,300 over 25 years at today's rate. Solar: 7 kW at $2.25/W = $15,750, equal to 9.5 years of bills.
Idaho
Grid: 13.37¢/kWh, $1,388 a year, $34,700 over 25 years at today's rate. Solar: 7 kW at $2.99/W = $20,930, equal to 15.1 years of bills.
What the Table Leaves Out
- Production. The same 7 kW system makes more power in Arizona than in Massachusetts. Your installer's proposal should state expected yearly kWh; divide the price by it.
- Export credit. Where the utility credits exported power below the retail rate, daytime surplus is worth less than the grid price in the table.
- Rate changes. The grid columns hold the August 2026 rate flat. If your rate rises, the grid cost grows and the comparison moves toward solar.
- Panel output over time. Panels lose some output each year. The panel datasheet states the guaranteed output at the end of the warranty; check it on any quote.
If You Plan to Sell Soon
If you expect to move within a few years, you may not stay long enough to recover the price through your bills. Whether a buyer pays more for a home with owned panels varies by market, and leased or financed systems have to be transferred or paid off at sale, so check the contract terms before signing.
How we priced this: grid rates are EIA Electric Power Monthly Table 5.6.A, August 2026 residential average price by state. Household use is the 2024 average monthly consumption per US residential customer, 865 kWh, as published by EIA (Today in Energy). Installed prices are the EnergySage marketplace state averages per watt before incentives, read 24 October 2026. Multiplications are ours; the inputs are shown in each row.
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