Key takeaways
- Plug-in solar: $600–$1,800, DIY, portable, offsets a small share of your bill.
- Rooftop solar: $15,000–$30,000+, permits and contractor, can offset most of your bill.
- The 30% federal residential tax credit (25D) ended for installations after December 31, 2025.
- Community solar lets renters subscribe to a local solar farm for a bill credit, where available.
- They aren't mutually exclusive — but each fits a different household.
There are now three realistic ways for an American household to use solar power: put panels on your own roof, plug a small kit into an outlet, or subscribe to a solar farm. They differ enormously in cost, commitment and what they can do for your bill.
At a glance
| Plug-in solar | Rooftop solar | Community solar | |
|---|---|---|---|
| Typical size | 0.4–1.2 kW | 5–10 kW | Share of a local farm |
| Upfront cost | $600–$1,800 | $15,000–$30,000+ | Usually $0 |
| Who installs | You, in under an hour | Licensed contractor | Nobody (off-site) |
| Permits / interconnection | Exempt in law states | Required | None for you |
| Bill offset | ~5–15% | ~50–100% | Typically 5–20% discount on part of bill |
| Payback | ~2–6 years | ~7–15 years (varies) | Immediate (no cost) |
| Renters | Yes, where legal | No | Yes |
| Moves with you | Yes | No | Usually transferable within the utility area |
| Availability | 10 states (Oct 2026) | Everywhere | ~half of states have programs |
Plug-in solar
What it is: one to four panels with a microinverter that plugs into a standard outlet. Full explainer.
Best for: renters, condo owners, apartment dwellers, homeowners who want a low-risk start, anyone in a high-rate state.
Pros
- Low cost; fast payback in high-rate states.
- No contractor, no permits, no roof penetrations.
- Portable — take it when you move.
Cons
- Small: offsets only a fraction of a typical bill.
- No net metering — surplus is given away unless you add a battery.
- Legal in only ten states so far, several effective in 2027.
Rooftop solar
What it is: a permanently installed array, typically 5–10 kW, connected under a utility interconnection agreement.
Best for: homeowners with a suitable, unshaded roof who plan to stay for many years.
Pros
- Can cover most or all of a home's electricity.
- Usually net-metered or credited for exports (terms vary widely by state).
- Can be paired with whole-home battery backup.
Cons
- High upfront cost. The 30% federal Residential Clean Energy Credit (Section 25D) ended for installations after December 31, 2025, which lengthened payback periods for homeowners buying their own systems.
- Permits, inspections and utility approval add weeks or months.
- Roof condition matters; removal for a roof replacement costs extra.
- Not an option for renters.
- Net-metering rules have become less generous in several states, notably California.
Leases and power-purchase agreements (where a company owns the system) remain an option in many states, with different economics; read contracts carefully.
Community solar
What it is: you subscribe to a share of a nearby solar farm and receive credits on your utility bill.
Best for: renters and homeowners without a suitable roof or balcony, in states with community solar programs.
Pros
- No equipment, no installation, often no upfront cost.
- Typically a guaranteed discount on the credited portion of your bill.
- Open to renters.
Cons
- Savings are usually modest.
- Contracts can have long terms, cancellation fees or escalators — read them.
- Availability depends on your state and utility; programs fill up.
How to choose
You rent or own a condo → Start with plug-in solar if your state allows it and you have a sunny balcony or patio. Otherwise, look for community solar.
You own a house and plan to stay 10+ years → Get rooftop quotes and run the numbers without the federal credit. If the payback is too long, plug-in solar is an affordable first step.
You're in a low-rate state → All three have longer paybacks. Prioritize efficiency measures first — see how to lower your electric bill.
You're in a high-rate state → Plug-in solar pays back fastest per dollar. Rooftop may still make sense for homeowners despite the lost credit.
Can you combine them?
- Plug-in + community solar: generally fine — they don't interact physically.
- Plug-in + rooftop: possible, but check your rooftop interconnection agreement first; adding generation behind a net-metered meter without approval may violate it.
Ready to explore plug-in solar? Check your state's status and estimate your savings.
Frequently asked questions
Is plug-in solar better than rooftop solar?
Not better — different. Rooftop solar produces far more and can cover most of a home's use, but costs tens of thousands of dollars and requires owning the roof. Plug-in solar is small, cheap, portable and available to renters where legal.
Can I have plug-in solar and rooftop solar at the same time?
Technically yes, but rooftop systems are usually net-metered under an interconnection agreement, and adding unapproved generation behind the same meter may conflict with that agreement. Check with your utility and installer first.
Is there still a federal tax credit for solar in 2026?
Not for homeowners buying their own system. The Residential Clean Energy Credit (Section 25D) was repealed for expenditures after December 31, 2025. Some state and utility incentives remain; check your state.