Solar Prices Drop 3.5% in 2023; Energy Storage Costs Fall 6%, Boosting Market Growth and Adoption.

EnergySage, a leading marketplace for residential solar and energy storage, has released its 18th annual Solar & Storage Marketplace Report. For the first time since 2021, quoted solar prices decreased by 3.5% to $2.80 per watt for quotes in the second half of 2023, with the median system size at 11.3 kW leading to an average quoted system price of $31,640. Energy storage prices also decreased by about 6% to a median $1,265 per watt. The drop in prices was partly due to a 19% decrease in quoted storage prices in California, where energy storage attachment rates for solar projects reached 45% in 2023. For inverters, Enphase Energy gained market share, reaching nearly 70% of quoted systems, followed by SolarEdge, Hoymiles, and Tesla. The top quote solar panel brands were a diverse mix led by REC Group, Qcells, Silfab Solar, Panasonic, and others. The lowest quoted median per watt price was in Arizona, while Tennessee median prices were the highest at $3.65 per watt, with California having the smallest system size. The median payback period remained flat throughout the year. Nationwide, median loan rates for residential projects rose from 4.99% to 5.5%.