Aurora Solar has released its fourth annual “Aurora Solar Snapshot,” a look at the policy, financing, consumer and operational trends reshaping the U.S. residential solar market. This year’s findings show the industry entering a new phase defined less by incentives alone and more by affordability, resilience, trust and execution.
“The past year tested the solar industry in new ways,” said Chris Hopper, co-founder and executive chairman of Aurora Solar. “As policy incentives shifted and interest rates remained high, installers expanded financing options, leaned into solar-plus-storage offerings, and focused on delivering more transparent customer experiences. This year’s Aurora Solar Snapshot shows demand for solar remains strong, but the path to adoption is changing. The companies that win in this next chapter will be the ones that make solar simpler to buy and easier to understand, while building businesses that remain resilient even with policy changes.”
The 2026 Aurora Solar Snapshot draws on more than four years of year-over-year trend data, Aurora Solar’s 20 million+ projects and surveys of 1,112 homeowners and more than 600 solar professionals conducted in early 2026.
Key findings from this year’s report include:
Pivot to new financing models
- 55% of installers say third-party ownership (TPO) is now their most popular financing option, ahead of loans and cash, and 65% expect TPO to account for more than half of their 2026 sales volume.
- At the same time, 82% of installers say homeowners prioritize monthly payment amount above all other financing considerations, underscoring how affordability is reshaping the sales conversation.
Expiration of the homeowner investment tax credit accelerated demand
- Among homeowners who installed solar in the past year, 68% say they moved their timeline forward to take advantage of Inflation Reduction Act (IRA) tax credits before expiration, and 49% of those interested in solar think they won’t be able to afford solar without the tax credits.
- Installers felt that effect in real time: 62% reported increased homeowner interest due to the IRA, while 63% believe the passage of the OBBB and repeal of homeowner solar tax credits will negatively impact their business.
“Energy resilience” is driving solar and storage demand
- 53% of homeowners agree the power grid is becoming less reliable, and storage is increasingly moving into the core offer: 31% of installers expect more than 75% of their 2026 projects to include battery storage.
- Among sales professionals, 56% say backup power and outage protection is the primary reason homeowners purchase batteries.
- 71% of installers now offer EV charging equipment and installation alongside solar, and storage is expanding across solar-plus-storage, retrofit, and even battery-only sales motions. This suggests the next phase of market growth will come from companies that can guide homeowners through a broader home electrification journey over time.
Warnings of generational attitudes toward homeownership and solar
- Among homeowners who own their homes, 27% of Gen Z and 18% of Millennials installed solar in the past year — the highest adoption rates of any generation. Yet Baby Boomers, who now represent 42% of all home buyers according to the National Association of Realtors, show the lowest interest in solar adoption, concentrating homeownership in the demographic least likely to go solar.
- Aurora Solar’s research identifies this as “The Real Estate Trap” — a structural mismatch between solar demand and homeownership that the industry must address through community solar, subscriptions and alternative models.
