Over the last several decades, solar has evolved from a far-fetched and extremely pricey novelty power source, to a familiar, trusted, and affordable source of daily energy for homeowners around the globe. As technology has advanced, the solar energy industry has evolved with it, causing the market to explode with numerous brands and products. And of course, that competition has helped drive prices down even more for buyers. But will this trend of advancing technology and declining costs continue? What does the future of solar power costs look like? Keep reading to get an idea of what current projections are predicting.
Declining Costs of Solar Power
Recent analyses from solar experts predict a continued decrease in the cost of solar power, particularly for utility-scale solar projects. According to the National Renewable Energy Laboratory, the average cost of residential solar power systems was about $2.65 per watt at the beginning of 2025 (or about $16,000 for your average 6 kilowatt system, before incentives). This is almost 50% less than what systems cost a decade ago. Those prices are expected to continue to decline, though at a much slower rate, as solar panel efficiency continues to improve.
Rising Popularity in Solar Storage
While the drop in the cost of solar power systems might be slowing somewhat, the cost of adding a solar battery bank to your system has dropped far more significantly in recent years, and will likely continue to decline at an even more rapid rate. According to BloombergNEF, battery storage costs declined 11% between 2024 and 2025—and by 2035, they predict those costs to be half what they were last year. This is thanks in large part to drastic improvements in battery efficiency, as well as increased competition in the solar storage niche of the solar energy industry.
Is Now the Time to Invest?
With all this talk about the cost of solar power dropping in the coming years, you might be thinking, “Should I wait until the costs come down even more?” But while you might be able to get a system for less upfront than you can get one right now, this approach overlooks one very important thing: the continued costs of paying for grid-supplied power.
Every year that you put off buying a solar power system is another year you’re paying the power company for energy you could be producing yourself. And, while the cost of solar might be coming down, the cost of traditional energy sources just keeps going up. Ultimately, now is still the best time to invest in a solar power system and Pytes solar energy storage, so you can start saving on energy costs immediately.
