As the 30% federal Investment Tax Credit (ITC) on solar begins its phase-out at the end of 2025, new survey data reveals a striking truth: while interest in solar is growing, confusion about costs, incentives, and savings could leave thousands of homeowners and installers on the sidelines.
We surveyed 1,000 U.S. homeowners to understand what they know — and don’t know — about going solar. The findings uncover widespread enthusiasm, major misconceptions, and an opportunity to make solar “policy-proof.”
Solar Awareness Is Up But Understanding Still Lags
Nearly half of Americans (49%) either installed, considered installing, or know someone who installed solar panels — a sign that solar entered the mainstream conversation. Interest is strongest in the West, where 28% of respondents are actively considering or already have solar, roughly double that of the Midwest (12%)
Despite this visibility, over one-third (37%) admit they’ve heard of solar but don’t know anything about the installation process. This knowledge gap presents a crucial opportunity for installers to step in as trusted educators and guides.
Americans Underestimate the Cost and the Savings
One of the biggest myths holding homeowners back is cost. Over one-third of respondents (34%) believe solar is cheaper to install than it really is, while nearly 1 in 10 think it costs less than $5,000. In reality, the average residential solar system runs around $18,000 to $43,000 on average, before incentives, according to Consumer Affairs.
And when it comes to savings, 78% of Americans underestimate how much solar can reduce their monthly energy bills. Over one-third think they’d only save as little as $50 per month, but SEIA estimates it’s much closer to $125 per month.
The ITC Knowledge Gap: Education Around Solar Remains an Issue
Despite being one of the most impactful incentives in clean energy history, many homeowners didn’t even know about the Investment Tax Credit: 43% reported hearing of the ITC but don’t understand how it works. One in three Americans have never heard of it at all. Awareness is lowest in the Midwest, where 43% are unfamiliar with it entirely.
Even among those who are aware, 82% underestimated its value, believing it was less than a 20% tax credit when it was actually 30%.
For whose who are aware of the ITC:
- 45% said they couldn’t afford solar without the incentive.
- 33% said it would be a financial stretch.
- Only 23% indicated they’d feel confident in affording solar even without incentives.
Even though these credits are set to expire at the end of 2025, it’s hard to ignore the core theme of this data: Homeowners need more education on the costs and benefits of going solar. This means installers will need to sharpen up on state-level incentives in addition to redesigning their pitch around solar ROI.
There is a silver lining, as well. With so many homeowners unaware of the credits or their value, those credits expiring isn’t a deal-breaker for many people planning to go solar. Installers that can offer payment options that work for each unique case can still get the sale.
Younger Generations Are Ready — If Financing Improves
The survey also revealed a generational shift that could define the next decade of solar adoption. Lower interest rates would make 67% of Millennials and Gen Z more likely to purchase or finance solar, compared to 47% overall. These younger buyers — often first-time homeowners — are eager but financially constrained, highlighting the importance of flexible financing options and transparent cost education.
Income Inequality in Solar Adoption Persists
The data underscores how financial inequality continues to shape solar adoption: 39% of low-income households say they wouldn’t even consider solar. Among higher-income households ($100K+), that number drops to 13%. Of those open to solar, 35% say they’d rely on government incentives, while just 22% could pay upfront in full.
With the ITC phase-out looming, the industry faces a pivotal moment. The appetite for solar is strong, but misconceptions and financial barriers remain. Solar installers and advocates can bridge this gap by leading with transparency — showing homeowners what solar really costs, how much it truly saves, and why timing matters now more than ever.
Want to see more about what homeowners and installers are thinking? Check out our 2025 Solar Snapshot.
