Unsurprisingly, the EnergySage photo voltaic market skilled considerably elevated site visitors in the course of the second half of 2025, as a result of July’s One Huge Stunning Invoice Act (OBBBA) phasing out residential tax credit on Dec. 31, 2025. EnergySage noticed 205% year-over-year enhance in owners actively working with installers and an all-time excessive in buyer inquiries over the prior 30-day document. Most installers reported reaching annual capability by October 2025, introducing provide constraints and forcing each installers and owners to make atypical selections.
These particulars and extra have been revealed within the twenty second “EnergySage Intel: Home Electrification Marketplace Report,” launched at this time. The semiannual report analyzed thousands and thousands of transaction-level knowledge factors from owners purchasing on energysage.com between July and December 2025 throughout photo voltaic panels, inverters, batteries, warmth pumps and different electrification upgrades from firms working in all 50 states and Washington, D.C.
Different insights from the most recent report embrace:
Photo voltaic and storage costs rose modestly amid overwhelming demand
Photo voltaic costs elevated simply 0.4% to $2.49/W in H2 2025, whereas storage costs rose 3.6% to $1,074/kWh, with will increase concentrated late within the yr after installers reached capability. Even in the course of the year-end rush, aggressive pricing persevered, suggesting that market transparency restricted value inflation.
“When demand outweighs provide, that always ends in panic pricing inside any business,” mentioned Emily Walker, Director of Insights at EnergySage. “However market transparency acted as a verify on inflation: When patrons can see what aggressive pricing seems like, it’s laborious for prices to spiral, even below historic demand.”
Provide constraints drove gear diversification as availability outweighed choice
Panel wattages shifted decrease for the primary time in years as installers prioritized out there stock over preferrred specs. The just lately dominant 450- to 460-W vary dropped from 33% to 26% of quotes, whereas the 430- to 440-W vary jumped from 8% to 30%. REC, the constant photo voltaic panel chief on EnergySage, fell from 43% to twenty% market share. The fragmentation displays a market prioritizing set up timelines over gear optimization.
“Installers and owners grew to become much more versatile about gear to hit the tax credit score deadline,” Walker mentioned. “Getting put in earlier than the cut-off mattered greater than system choice, opening up alternatives for various photo voltaic panel manufacturers and fashions to realize share.”
Battery attachment charges declined as owners prioritized securing photo voltaic incentives
Nationwide battery attachment fell from 41% to 38% at the same time as curiosity held almost regular, dipping solely from 74% to 73%. The sample was much more pronounced in high-value storage markets: California dropped from 79% to 71% attachment, Texas from 61% to 53%, and Hawaii from 100% to 85%. The hole between curiosity and buy suggests many householders deferred storage investments to seize expiring photo voltaic incentives, creating a big retrofit alternative shifting ahead.
“The dip in battery attachment wasn’t lowered curiosity — it was deferred adoption,” Walker mentioned. “1000’s of latest photo voltaic households are actually prime candidates for storage retrofits, and that wave is simply starting.”
Contractors positioned for built-in electrification progress
A survey of EV charger installers revealed that 55% derive lower than 25% of income from chargers alone, demonstrating enterprise diversification throughout a number of electrification merchandise. The findings point out owners more and more method photo voltaic, storage, EV charging and HVAC upgrades as a coordinated technique moderately than remoted purchases.
“We’re watching the market evolve from shopping for a degree resolution clear vitality product to designing a house vitality system,” Walker mentioned. “The query owners are asking installers has essentially modified: It’s not simply ‘Ought to I get an EV charger or photo voltaic panels?’ — it’s ‘How do I design a house vitality system that offers me management over my prices and my energy?’ And installers are responding to that change by diversifying their choices.”
The business now enters a post-incentive part for bought residential photo voltaic methods, by which financing flexibility, product diversification and operational adaptability will decide long-term competitiveness. With the tax credit score eradicated for bought methods, third-party possession (TPO) choices like leases and energy buy agreements (PPAs) — which stay eligible for the tax credit score till 2028 — are already gaining share on EnergySage. EnergySage can be monitoring that knowledge within the subsequent Market Report.
“Federal incentives spent a long time kickstarting the house electrification market, they usually succeeded,” mentioned Naman Trivedi, Group CEO of EnergySage and VP of Residence Vitality at Schneider Electrical. “However the forces shaping the subsequent chapter are greater and extra sturdy — unprecedented electrical energy demand, rising utility charges, excessive climate and grid pressure are all ensuing within the want for vitality independence. Householders are more and more motivated by financial savings, resilience, and management, and that mixture is extra highly effective than any single incentive.
“We’re shifting from an incentive-driven point-solution market to an built-in house vitality market,” Trivedi added. “The businesses that succeed would be the ones that assist households handle vitality, not simply set up gear.”
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