Home solar prices decreased in 2023, and more insights from EnergySage Marketplace Report

solar prices per watt

Home solar installations slowed in 2023, but per Watt prices decreased for the first time since 2021, according to the 18th EnergySage Intel Solar & Storage Marketplace Report. This semiannual report analyzes millions of homeowner shopping transactions on EnergySage.com from January 2023 through December 2023 for solar panels, inverters, batteries, and more from solar companies in 41 states and Washington, D.C.

“The home electrification industry faced a challenging year in 2023 amidst a changing net metering landscape and persistent inflation. However, EnergySage Marketplace data shows a turning point could be just around the corner, with consumer demand holding strong and diversifying, while solar and storage prices have decreased,” said EnergySage COO Charlie Hadlow.

Below are some of the key takeaways. Access the full report right here.

Solar prices decreased for the first time since 2021 | For the first time since mid-2021, solar prices decreased on the EnergySage Marketplace, dropping by 3.5% to $2.80 per watt. Quoted storage prices also fell by 6.4% on EnergySage in the second half of the year, decreasing for the first time since EnergySage began tracking prices in 2020.

EnergySage charts
Charts via 18th EnergySage Intel Solar & Storage Marketplace Report

Storage prices also decreased for the first time in three years. EnergySage began tracking storage pricing in July 2020, and the story has been the same: The median price for batteries quoted on EnergySage
increased during every six-month period.

“Similar to solar pricing, the trend of increasing storage pricing reversed over the second half of 2023, with the median price dropping 6.4% compared to the first six months of the year. This drop in prices is driven by a 19% decrease in quoted storage prices in California,” the report states.

Speaking of California…

Storage interest increased sharply in California following the NBT | In the first six months of 2023, California had the lowest level of storage interest of any state on EnergySage. That dynamic shifted after the implementation of the Net Billing Tariff in April: In the second half of 2023, California saw the fifth-highest level of consumer interest in storage interest rate in the country.

“We’ve seen a nearly 45% storage attachment rate since the Net Billing Tariff went into effect,” the report states.

Lower interest rate loans come with large fees | The median interest rate for quotes that included financing increased to 5.5% in the second half of the year, but the most frequently quoted solar loan was a 25-year loan with a 3.99% interest rate. Loans with lower rates come at a cost: the average fee on the most quoted loan product reached 47% of the cash project cost in the second half of the year.

This latest report furthers the company’s mission to make clean energy and energy-saving solutions like rooftop solar, energy storage, community solar, EV chargers, and heat pumps more accessible and affordable through unbiased information, transparency, and choice.

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