Post-ITC 2026 math: what a 7kW system actually costs after credit + utility rebates

The federal Investment Tax Credit (ITC) stepped down from 30% to 26% for residential systems entering service in 2026. Combined with the state's $1.20/W rebate and the utility's net-metering structure, a typical 7kW system in our service area still hits a 7-year simple payback.

Line-item math for a 7kW system: gross install $24,500 (panels, inverter, racking, labor, permit); federal ITC 26% = -$6,370; state rebate $1.20/W = -$8,400; net cost $9,730. Annual production ~9,800 kWh; annual electric offset at our blended rate ~$1,380. Simple payback: 7.05 years. 25-year IRR over the panel warranty: 11.4%.

What this doesn't include: home battery stacking, EV charger pairing, or the new TOU credit overlay that came online in March. Those move the needle in either direction. Run your own numbers with the calculator on the residential page.