What Is the Average Solar Panels Cost in 2026?
Understanding solar panels is the first step to going solar. In 2026, the average solar panels cost for residential homes ranges from $15,000 to $30,000 before incentives, but your actual cost of solar panels depends on several key factors.
Here’s what you need to know about solar panel costs right now:
The typical home solar panel cost breaks down to $2.50-$3.50 per watt. For a standard 6 kW system, the solar panel installation cost averages $18,000. After the 30% federal tax credit, your net solar panel cost drops to approximately $12,600.
But the real solar panel cost varies dramatically based on where you live, your energy usage, roof condition, and equipment choices. Some homeowners pay as little as $8,400 after incentives, while others invest $24,500 or more for larger systems with battery storage.
Quick Solar Panels Cost Summary (2026):
- Small home solar panels cost (3-4 kW): $12,000 – $16,000
- Medium home solar panels cost (6-8 kW): $18,000 – $24,000
- Large home solar panels cost (10+ kW): $25,000 – $35,000
After applying the federal tax credit, your actual solar panels cost decreases by 30%, making solar more affordable than ever.
This guide reveals the true solar panels cost, including hidden fees most installers don’t mention upfront. You’ll learn exactly what solar panels cost for homes like yours, how to calculate your solar panel cost per watt, and which payment options minimize your total solar energy cost over 25 years.
Table of Contents
Solar Panels Cost by System Size: What You’ll Actually Pay
The cost of solar panels directly correlates with system size, measured in kilowatts (kW). Here’s a detailed breakdown of solar panel installation cost by system capacity:
Solar Panels Cost Comparison Table
| System Size | Average Solar Panels Cost | Cost After 30% Tax Credit | Ideal For | Monthly Savings |
|---|---|---|---|---|
| 3 kW | $9,000 – $12,000 | $6,300 – $8,400 | Small homes, low usage | $45 – $70 |
| 4 kW | $12,000 – $16,000 | $8,400 – $11,200 | 1-2 bedroom homes | $65 – $95 |
| 6 kW | $18,000 – $21,000 | $12,600 – $14,700 | Average 3 bedroom home | $100 – $140 |
| 8 kW | $20,000 – $24,000 | $14,000 – $16,800 | Larger homes, high AC use | $145 – $190 |
| 10 kW | $25,000 – $30,000 | $17,500 – $21,000 | Large homes, EV charging | $180 – $240 |
| 12 kW | $30,000 – $36,000 | $21,000 – $25,200 | Very large homes, pool | $220 – $300 |
How to determine your solar panels’ cost by usage:
The average American home uses 877 kWh per month. To calculate what solar panels cost for your specific needs:
- Check your annual electricity usage (find on utility bills)
- Divide by 12 to get the monthly average
- Multiply monthly kWh by 0.013 to estimate system size needed
- Multiply system size by $3.00 (average cost per watt)
Example solar panels cost calculation:
- Monthly usage: 1,000 kWh
- System size needed: 1,000 × 0.013 = 13 kW
- Total solar panels cost: 13,000 watts × $3.00 = $39,000
- After tax credit: $39,000 × 0.70 = $27,300
Solar Panels Cost Per Watt: Understanding the Pricing Model
The solar panel cost per watt is the industry standard for calculating total solar system cost. In 2026, understanding cost per watt helps you compare quotes accurately.
National average solar panels cost per watt: $2.50 – $3.50
The solar panel price per watt includes panels, inverters, mounting equipment, wiring, and installation labor. Premium systems with high-efficiency panels cost $3.20-$3.50 per watt, while budget options start at $2.50 per watt.
Solar panels cost per watt by equipment quality:
| Equipment Tier | Cost Per Watt | Total Cost (7 kW) | What You Get |
|---|---|---|---|
| Budget | $2.50 – $2.75 | $17,500 – $19,250 | Standard panels, string inverter, 10-yr warranty |
| Mid-Range | $2.75 – $3.15 | $19,250 – $22,050 | Quality panels, microinverters, 25-yr warranty |
| Premium | $3.15 – $3.50 | $22,050 – $24,500 | Top-tier panels, optimizers, extended warranty |
| Premium + Battery | $4.50 – $5.25 | $31,500 – $36,750 | Complete system with 13.5 kWh battery storage |
Real example of solar panels cost per watt:
A homeowner in Arizona received three quotes for a 7.5 kW system:
- Company A: $2.65/watt = $19,875 total solar panels cost
- Company B: $3.10/watt = $23,250 total solar panels cost
- Company C: $3.45/watt = $25,875 total solar panels cost
Company B offered the best value with microinverters and 25-year warranties, making their higher solar panel installation cost worthwhile for long-term production.
Solar Panels Cost by State: Regional Price Differences
The cost of solar panels varies significantly by location due to labor costs, permitting fees, local incentives, and market competition. Here’s the complete state-by-state solar panels cost breakdown:
State-by-State Solar Panels Cost Table (2026)
| State | Avg Cost Per Watt | 6 kW System Cost | After Federal Credit | Additional State Incentives | Payback Period |
|---|---|---|---|---|---|
| California | $2.75 | $16,500 | $11,550 | SGIP battery rebate: $3,500 | 6-7 years |
| Texas | $2.55 | $15,300 | $10,710 | Property tax exemption | 7-9 years |
| Florida | $2.65 | $15,900 | $11,130 | Property tax exemption | 7-8 years |
| New York | $3.15 | $18,900 | $13,230 | NY-Sun: $3,000-$5,000 | 8-10 years |
| Arizona | $2.45 | $14,700 | $10,290 | Sales tax exemption | 6-7 years |
| Nevada | $2.58 | $15,480 | $10,836 | Net metering credits | 7-8 years |
| North Carolina | $2.68 | $16,080 | $11,256 | 35% state tax credit (cap $10,500) | 6-7 years |
| New Jersey | $2.85 | $17,100 | $11,970 | SREC market income | 7-9 years |
| Massachusetts | $3.05 | $18,300 | $12,810 | SMART program: $21,000 over 10 yrs | 5-6 years |
| Colorado | $2.72 | $16,320 | $11,424 | Xcel rebates available | 8-10 years |
| Georgia | $2.48 | $14,880 | $10,416 | No state incentives | 9-11 years |
| Maryland | $2.88 | $17,280 | $12,096 | $1,000 state grant | 8-9 years |
| Washington | $2.95 | $17,700 | $12,390 | Sales tax exemption | 9-11 years |
| Oregon | $2.78 | $16,680 | $11,676 | Tax credit up to $6,000 | 8-10 years |
| Pennsylvania | $2.82 | $16,920 | $11,844 | SREC income available | 8-10 years |
Why do solar panel costs vary by state?
The residential solar cost differences come from:
- Labor rates (higher in the Northeast, lower in the Southeast)
- Permitting fees ($200-$2,000 depending on city)
- Local installer competition (more competition = lower solar panel cost)
- State-specific regulations and interconnection requirements
- Regional equipment preferences and availability
Solar Panel Installation Cost: What’s Included in the Price
When you get a quote for solar panel installation cost, it should include everything needed for a complete, working system. Here’s the detailed solar panels cost breakdown:
Complete Solar Panels Cost Breakdown Table
| Cost Component | Percentage of Total | Cost for 7 kW System | What It Covers |
|---|---|---|---|
| Solar Panels | 25-30% | $5,250 – $6,300 | Photovoltaic modules (20-25 panels) |
| Inverter(s) | 10-15% | $2,100 – $3,150 | String inverter or microinverters |
| Mounting Hardware | 8-12% | $1,680 – $2,520 | Racking, rails, flashings, bolts |
| Wiring & Electrical | 5-8% | $1,050 – $1,680 | Conduit, wiring, junction boxes, disconnect |
| Labor & Installation | 30-35% | $6,300 – $7,350 | Crew time, project management |
| Permits & Inspections | 3-5% | $630 – $1,050 | Building permits, utility fees |
| Sales & Marketing | 8-12% | $1,680 – $2,520 | Company overhead, commission |
| Profit Margin | 5-10% | $1,050 – $2,100 | Installer profit |
| Total Solar Panels Cost | 100% | $21,000 | Complete turnkey system |
Hidden costs that increase solar panels
Many homeowners discover additional solar installation prices during the process:
Electrical panel upgrade: $1,500-$3,500
- Required if your home has an outdated 100-150 amp service
- Adds to the total solar panel installation price
- Not always included in the initial quote
Roof repairs or replacement: $8,000-$15,000
- If the roof is over 15 years old, replace it before solar
- Removing and reinstalling panels later costs $4,000-$6,000
- Smart to bundle with solar panels, cost upfront
Tree trimming/removal: $500-$5,000
- Necessary to eliminate shading
- Increases the total cost of solar panels initially, but improves production
Trenching for ground-mount systems: $1,500-$4,000
- Required for detached garage or ground installations
- Adds significantly tothe solar energy cost significantly
Structural reinforcement: $1,000-$5,000
- Older homes may need roof support upgrades
- Engineering inspection adds $300-$600 to solar system cost
Solar Panel Equipment Cost: Panels, Inverters, and Batteries
The solar equipment cost represents about 45-55% of your total solar panel cost. Choosing the right components balances upfront solar panel price with long-term performance.
Solar Panel Brand Cost Comparison
Premium Tier Solar Panels Cost:
- SunPower Maxeon: $0.95-$1.10 per watt
- Panasonic EverVolt: $0.90-$1.05 per watt
- REC Alpha Pure: $0.88-$1.03 per watt
Features: 22-24% efficiency, 25-40 year warranties, best degradation rates (0.25%/year)
Mid-Tier Solar Panels Cost:
- Q CELLS Q.PEAK: $0.72-$0.85 per watt
- Canadian Solar HiKu: $0.68-$0.82 per watt
- LONGi Hi-MO: $0.70-$0.83 per watt
- Trina Vertex S: $0.69-$0.81 per watt
Features: 20-22% efficiency, 25-year warranties, good degradation rates (0.45%/year)
Budget Solar Panels Cost:
- Various brands: $0.50-$0.68 per watt
Features: 17-20% efficiency, 10-15 year warranties, higher degradation (0.7%/year)
Real-world solar panel price impact:
For a 7 kW system, panel choice affects the total solar panel cost:
- Premium panels: Add $3,150-$4,200 to solar system cost
- Mid-tier panels: Standard pricing baseline
- Budget panels: Save $1,400-$2,450 on solar panel costs
Over 25 years, premium panels produce 5-8% more electricity, potentially offsetting their higher solar panel installation cost.
Inverter Cost Breakdown
String Inverter Cost:
- Single inverter for system: $1,200-$2,500
- Brands: SMA, SolarEdge, Fronius
- Lifespan: 10-15 years
- Replacement cost adds to the long-term solar panels cost
Microinverter Cost:
- Per-panel inverters: $150-$250 each
- Total for 20-panel system: $3,000-$5,000
- Brands: Enphase IQ8, APsystems
- Lifespan: 20-25 years
- Higher upfront solar installation price but better long-term value
Power Optimizer Cost:
- Module-level optimization: $80-$120 per panel
- Requires SolarEdge inverter: $1,500-$2,000
- Total system cost: $3,000-$4,500
- Lifespan: Optimizers 25 years, inverter 12-15 years
Solar Battery Storage Cost
Adding battery storage significantly increases solar panels’ cost but provides backup power and energy independence.
Popular Battery Systems and Costs:
| Battery Model | Capacity | Installed Cost | Cost Per kWh | Warranty |
|---|---|---|---|---|
| Tesla Powerwall 3 | 13.5 kWh | $11,500-$13,000 | $852-$963 | 10 years |
| LG Chem RESU 16H | 16 kWh | $12,500-$14,500 | $781-$906 | 10 years |
| Enphase IQ 5P | 5 kWh | $7,000-$8,500 | $1,400-$1,700 | 15 years |
| Generac PWRcell | 18 kWh | $14,000-$17,000 | $778-$944 | 10 years |
| sonnen Eco 16 | 16 kWh | $18,000-$21,000 | $1,125-$1,313 | 10 years |
Total solar panels cost with battery:
- 7 kW system alone: $21,000
- 7 kW + 13.5 kWh battery: $32,500-$34,000
- Final cost after tax credit: $22,750-$23,800
Is battery storage worth the extra solar panels?
Batteries make sense if you:
- Experience frequent power outages
- Have time-of-use electricity rates (3x higher peak rates)
- Want complete energy independence
- Live in areas with poor net metering policies
- Face wildfire risks or extreme weather
How to Calculate Solar Panels Cost for Your Home
Use this solar panel cost calculator method to estimate your personalized solar panel cost:
Step 1: Determine Your Energy Usage
Review 12 months of electric bills and calculate athe verage monthly kWh. Most homes use 700-1,200 kWh/month.
Step 2: Calculate Required System Size
System size (kW) = (Monthly kWh ÷ 30 days) ÷ 5 sun hours ÷ 0.75 efficiency
Example: 900 kWh/month ÷ 30 ÷ 5 ÷ 0.75 = 8 kW system needed
Step 3: Estimate Base Solar Panels Cost
Base cost = System size × Cost per watt in your state
Example: 8 kW × $3.00/watt = $24,000 total solar panels cost
Step 4: Add Equipment Upgrades
- Microinverters instead of string: +$2,500
- Premium panels: +$3,200
- Battery storage: +$11,500
- Electrical panel upgrade: +$2,000
Example total: $24,000 + $2,500 + $11,500 = $38,000 solar system cost
Step 5: Apply Incentives
- Federal tax credit (30%): -$11,400
- State incentive (varies): -$3,000
- Utility rebate (if available): -$1,000
Final solar panels cost: $38,000 – $15,400 = $22,600 out of pocket
Solar Panel Financing Options and Total Cost
How you pay dramatically affects your total solar panel cost over time. Here’s every financing option with real solar installation prices:
Solar Financing Cost Comparison Table
| Payment Method | Upfront Cost | Monthly Payment | Total Paid Over 25 Years | You Own System | Get Tax Credit |
|---|---|---|---|---|---|
| Cash Purchase | $21,000 (after credit) | $0 | $21,000 + $2,500 maintenance = $23,500 | Yes | Yes |
| Solar Loan (10 yr, 5.99%) | $0-$1,000 | $233 | $28,000 + $2,500 = $30,500 | Yes | Yes |
| Solar Loan (20 yr, 6.99%) | $0-$1,000 | $163 | $39,100 + $2,500 = $41,600 | Yes | Yes |
| Solar Lease | $0 | $89-$150 | $26,700-$45,000 | No | No |
| Power Purchase Agreement (PPA) | $0 | Varies (per kWh) | $28,000-$42,000 | No | No |
Cash Purchase: Lowest Total Solar Panels Cost
Pay upfront after receiving the 30% tax credit.
Pros:
- Lowest total solar panel cost
- No interest payments
- Immediate return on investment
- Adds home value instantly
Cons:
- Requires $15,000-$25,000 available capital
- Longer payback period (7-10 years)
Real example: $30,000 system – $9,000 tax credit = $21,000 out of pocket.t Electricity savings: $2,500/year Payback: 8.4 yeyears5-year profit: $41,000
Solar Loan: Most Popular Financing
Finance the system with little to no money down.
Typical solar loan terms:
- 10-25 year repayment
- 3.99%-8.99% APR (based on credit score)
- $0-$2,000 down payment options
- Monthly paymeis nt often lower than old electric bill
Pros:
- Own the system from day one
- Claim 30% federal tax credit
- Positive cash flow is possible immediately
- Build home equity
Cons:
- Interest increases total solar panels cost
- Credit check required
- Some loans have prepayment penalties
Real example: $30,000 system financed
- 20-year loan at 6.49% APR
- Monthly payment: $224
- Previous electric bill: $185
- New electric bill: $25
- Total monthly cost: $224 + $25 = $249
- Net increase: $64/month for 20 years
- After loan paid off: Save $210/month for 5+ years
Solar Lease: No Money Down Option
The company owns panels, and you paya fixed monthly fee.
Typical solar lease terms:
- $0 down payment
- Fixed $75-$150 monthly payment
- 20-25 year contract
- Company maintains the system
- 1-3% annual payment escalator
Pros:
- No upfront solar panels cost
- Immediate savings versus utility
- No maintenance responsibility
- No performance risk
Cons:
- Don’t own system (no tax credit)
- Total paid over time is the highest
- Escalating payments reduce savings
- Can complicate home sales
- Locked into a long contract
Real example: 7 kW system, $0 down
- Monthly lease: $119
- Old electric bill: $175
- New electric bill: $40
- Total: $159/month
- Monthly savings: $16 first year
- By year 20 (with 2.5% escalator): Paying $195 lease + $40 utility = $235 (only $-60 savings)
Power Purchase Agreement (PPA): Pay for Production
The company owns panels; you pay per kWh produced.
Typical PPA terms:
- $0 down payment
- Pay $0.10-$0.16 per kWh solar produces
- 2-3% annual rate escalation
- 20-25 year contract
- Company maintains the system
Pros:
- No upfront solar energy cost
- Only pay for actual production
- Performance guarantee built in
- No maintenance costs
Cons:
- Don’t own system (no tax credit)
- Escalating rates reduce savings over time
- The total cost is often higher than the loan
- May complicate refinancing
Real example: 8 kW system producing 12,000 kWh/year
- PPA rate: $0.12/kWh year 1
- Annual PPA cost: $1,440
- Utility cost would have been: $2,760
- Year 1 savings: $1,320
- Year 20 (with 2.9% escalator): PPA rate $0.21/kWh
- Year 20 PPA cost: $2,520
- Utility cost (projected $0.28/kWh): $3,360
- Year 20 savings: Only $840
State and Federal Solar Incentives That Lower Solar Panels’ Cost
Incentives can reduce your solar panels cost by 40-60%. Here’s every available program in 2026:
Federal Solar Tax Credit (ITC)
The Investment Tax Credit reduces solar panel costs by 30% through 2032.
How the 30% solar tax credit works:
You pay $25,000 for solar. When filing taxes, you receive a $7,500 credit that directly reduces tax owed dollar-for-dollar.
Critical details about the federal solar tax credit:
- It’s a CREDIT, not a deduction (saves full 30%, not based on tax bracket)
- Applies to the total solar system cost, including installation, equipment, and batteries
- You must havea tax liability to use it
- Unused credit rolls over to next year
- Covers systems installed through December 31, 2032
- Drops to 26% in 2033, 22% in 2034
What’s included in the tax credit calculation:
- Solar panels and mounting equipment
- Inverters and electrical components
- Battery storage systems
- Installation labor
- Permits and inspection fees
- Sales tax on equipment (in some states)
- Electrical panel upgrades are required for solar
What’s NOT included:
- Roof replacement (unless solar-specific roof tiles)
- Tree removal
- Landscaping
- Extended warranties purchased separately
State-by-State Incentive Programs
California Solar Incentives:
SGIP (Self-Generation Incentive Program) Battery Rebate:
- $200-$350 per kWh battery capacity
- 13.5 kWh battery receives $2,700-$4,725
- Low-income: $850-$1,000 per kWh
- Reduces the total solar panel cost with a battery
Net Energy Metering 3.0:
- Credit for excess solar production
- Export rate: $0.05-$0.09 per kWh (varies by time)
- Makes battery storage more valuable
New York Solar Incentives:
NY-Sun Megawatt Block Program:
- $400-$1,000 per kW installed
- 7 kW system: $2,800-$7,000 incentive
- Significantly lowers residential solar cost
- Funds decrease as program fills
NYC Solar Property Tax Abatement:
- 20% of the solar installation cost
- Capped at $62,500
- Four-year abatement period
- Reduces the effective solar panels for NYC residents
Massachusetts Solar Incentives:
SMART Program:
- $0.28-$0.34 per kWh for 10 years
- 7 kW system producing 8,750 kWh/year
- Annual payment: $2,450-$2,975
- 10-year total: $24,500-$29,750
- Makes solar panels cost highly attractive
Solar Renewable Energy Certificates (SRECs):
- Additional income on top of SMART
- $20-$40 per certificate
- Creates excellent ROI despite higher initial solar installation prices
Arizona Solar Incentives:
Equipment Sales Tax Exemption:
- Solar equipment is exempt from 5.6% state sales tax
- $25,000 system saves $1,400
- Reduces upfront solar panels cost
Property Tax Exemption:
- Solar doesn’t increase property tax
- Saves $800-$1,500 annually, depending on home value
- Improves long-term solar system cost economics
New Jersey Solar Incentives:
Successor Solar Incentive (SuSI) Program:
- $70-$100 per MWh produced
- 15-year payment term
- 7 kW system produces ~8.5 MWh/year
- Annual income: $595-$850
- 15-year total: $8,925-$12,750 additional value
SRECs (older systems):
- Trade Solar Renewable Energy Credits
- Current price: $85-$95 each
- 7 kW generates ~8 SRECs/year
- Annual income: $680-$760
North Carolina Solar Incentives:
State Tax Credit:
- 35% of installation costs
- Maximum credit: $10,500
- Combined with 30% federal = 65% total reduction in solar panel cost
- One of the best incentive states
Duke Energy Rebates:
- Residential: $500 for systems up to 10 kW
- Additional incentives through utility programs
- Check with local Duke Energy office
Maryland Solar Incentives:
Residential Clean Energy Grant:
- $1,000 per installation
- Available statewide
- Simple application process
- Funds are limited; apply early
- Lowers solar panel installation cost
Property Tax Exemption:
- Solar equipment doesn’t increase assessment
- Permanent exemption
- Saves ongoing costs
Colorado Solar Incentives:
Xcel Energy Solar*Rewards:
- Varies by service territory
- $300-$500 per kW in some areas
- 7 kW system: $2,100-$3,500
- Reduces residential solar cost
State Sales Tax Exemption:
- Solar equipment is exempt from 2.9% state sales tax
- $25,000 system saves $725
Texas Solar Incentives:
Property Tax Exemption:
- 100% exemption for solar equipment
- Added home value doesn’t increase taxes
- Permanent benefit
- Significantly impacts long-term solar panels’ cost ROI
Austin Energy Solar Rebate:
- $2,500 for residential systems
- An additional $1,5000 for battery storage
- Available to Austin Energy customers only
United Kingdom Solar Incentives:
Smart Export Guarantee (SEG):
- Payment for exported electricity
- Octopus Energy: 15p/kWh (best rate 2026)
- British Gas: 4p/kWh
- E.ON: 5.5p/kWh
- 4 kW system exports ~1,200 kWh/year
- Income: £48-£180/year depending on supplier
0% VAT on Solar Installations:
- All residential solar installations 0% VAT (was 5%)
- Effective April 2022, permanent policy
- £6,500 system saves £1,300
- Substantially reduces the number of solar panels in the UK
ECO4 Scheme:
- Free or heavily subsidized solar for low-income households
- Must meet eligibility criteria
- Covers up to 100% of solar installation cost
- Available England, Scotland, Wales
Solar Panels Cost vs Electricity Savings: Real ROI Analysis
Understanding the relationship between solar panel cost and long-term savings helps you evaluate whether solar makes financial sense.
25-Year Solar Panels Cost vs Savings Analysis
Scenario 1: California Homeowner (Cash Purchase)
Initial solar panels cost breakdown:
- System size: 7.5 kW
- Base cost: $20,625 ($2.75/watt)
- After 30% federal tax credit: $14,438
- SGIP battery rebate: -$3,200
- Net solar panels cost: $11,238
25-year financial analysis:
- Electricity rate (2026): $0.35/kWh
- Average annual escalation: 4%
- System production: 11,250 kWh/year
- Year 1 savings: $3,938
- 25-year total savings: $148,720
- Maintenance costs: $3,500
- Net profit: $134,000
- ROI: 1,192%
- Payback period: 2.9 years
Scenario 2: Texas Homeowner (20-Year Solar Loan)
Initial solar panels cost breakdown:
- System size: 8 kW
- Base cost: $20,400 ($2.55/watt)
- After 30% federal tax credit: $14,280
- 20-year loan at 6.49% APR
- Monthly payment: $106
- Total paid over 20 years: $25,440
25-year financial analysis:
- Electricity rate (2026): $0.13/kWh
- Average annual escalation: 3%
- System production: 12,400 kWh/year
- Year 1 savings: $1,612
- Old electric bill: $170/month
- New bill: $36/month + $106 loan = $142/month
- Net savings during loan: $28/month
- After loan paid (years 21-25): $210/month savings
- 25-year total savings: $60,280
- Total loan + maintenance: $28,940
- Net profit: $31,340
- ROI: 219%
- Payback period: 9.1 years
Scenario 3: New York Homeowner (Solar Loan with State Incentives)
Initial solar panels cost breakdown:
- System size: 6.5 kW
- Base cost: $20,475 ($3.15/watt)
- After 30% federal tax credit: $14,333
- NY-Sun incentive: -$4,500
- 15-year loan at 5.99% APR
- Net financed amount: $9,833
- Monthly payment: $83
25-year financial analysis:
- Electricity rate (2026): $0.24/kWh
- Average annual escalation: 3.5%
- System production: 7,800 kWh/year
- Year 1 savings: $1,872
- Old electric bill: $156/month
- New bill: $24/month + $83 loan = $107/month
- Net savings during loan: $49/month
- After loan paid: $180/month savings
- 25-year total savings: $73,450
- Total paid (loan + maintenance): $18,780
- Net profit: $54,670
- ROI: 577%
- Payback period: 5.2 years
Average Solar Panels Cost Payback Periods by State
| State | Average Solar Panels Cost (6kW) | Annual Savings | Payback Period | 25-Year ROI |
|---|---|---|---|---|
| California | $11,550 (after incentives) | $2,340 | 4.9 years | 812% |
| Hawaii | $12,960 | $3,120 | 4.2 years | 1,004% |
| Massachusetts | $12,810 | $2,280 | 5.6 years | 743% |
| New York | $10,230 | $1,680 | 6.1 years | 609% |
| Arizona | $10,290 | $1,560 | 6.6 years | 578% |
| New Jersey | $11,970 | $1,800 | 6.7 years | 572% |
| Texas | $10,710 | $1,440 | 7.4 years | 487% |
| Florida | $11,130 | $1,500 | 7.4 years | 486% |
| Nevada | $10,836 | $1,440 | 7.5 years | 477% |
| Colorado | $11,424 | $1,380 | 8.3 years | 425% |
| North Carolina | $6,756 (after 65% total credits) | $1,320 | 5.1 years | 688% |
| Georgia | $10,416 | $1,200 | 8.7 years | 388% |
| Maryland | $11,096 | $1,260 | 8.8 years | 384% |
| Washington | $12,390 | $1,320 | 9.4 years | 366% |
How Much Are Solar Panels? Equipment Cost Breakdown
When people ask “how much are solar panels” or “how much do solar panels cost“, they’re usually asking about the panels themselves, not the complete system. Let’s break down individual component costs.
Individual Solar Panel Cost (Per Panel)
Premium residential solar panels:
- SunPower Maxeon 6 AC (430W): $425-$475 per panel
- Panasonic EverVolt 400W: $385-$420 per panel
- REC Alpha Pure-R 430W: $380-$415 per panel
Mid-tier residential solar panels:
- Q CELLS Q.PEAK DUO-G10+ 405W: $285-$320 per panel
- Canadian Solar HiKu6 410W: $270-$305 per panel
- LONGi Hi-MO 5 410W: $275-$310 per panel
- Trina Vertex S 405W: $265-$300 per panel
Budget residential solar panels:
- Generic/newer brands 360-380W: $185-$240 per panel
How many panels do you need?
The average home needs 17-25 panels, depending on:
- System size (typically 6-10 kW)
- Panel wattage (360-430W per panel)
- Roof space available
- Energy consumption
Example solar panel cost calculation:
- Need a 7 kW system
- Using 350W panels
- 7,000W ÷ 350W = 20 panels needed
- Mid-tier panels at $290 each
- Panel cost alone: 20 × $290 = $5,800
- Total solar panels cost with installation: $21,000
Solar Inverter Cost Breakdown
String inverters (whole-system):
- SMA Sunny Boy 7.7 kW: $1,600-$1,900
- SolarEdge HD-Wave 7.6 kW: $1,800-$2,200
- Fronius Primo 8.2 kW: $1,700-$2,100
- Installed cost: $2,200-$3,000
Microinverters (per panel):
- Enphase IQ8+ (320W): $145-$180 per unit
- Enphase IQ8M (384W): $155-$190 per unit
- APsystems DS3-H (2 panels): $220-$270 per unit
- For a 20-panel system: $3,200-$4,500 installed
Power optimizers:
- SolarEdge P370 optimizer: $68-$85 per panel
- Plus SolarEdge inverter: $1,800-$2,200
- Total for 20-panel system: $3,160-$3,900 installed
Solar Racking and Mounting Cost
Roof-mounted racking systems:
- Standard rail system: $800-$1,400 (materials only)
- Premium low-profile: $1,200-$1,800
- Installed racking cost: $1,800-$2,800
Ground-mounted systems:
- Fixed-tilt ground mount: $3,500-$5,500
- Pole-mounted tracker: $6,000-$9,000
- Ballasted flat roof: $2,200-$3,800
Balance of System Cost
Electrical components:
- Wiring and conduit: $400-$800
- Junction boxes and combiners: $200-$400
- AC/DC disconnects: $150-$300
- Monitoring equipment: $200-$500
- Total electrical: $950-$2,000
Solar Panels Cost for Different Home Sizes
The average cost of solar panels for a home varies dramatically based on square footage and energy usage.
Solar Panels Cost by Home Size Table
| Home Size | Typical Usage | System Size | Solar Panels Cost | After Tax Credit | Monthly Savings |
|---|---|---|---|---|---|
| 1,000 sq ft | 500-700 kWh/month | 4-5 kW | $12,000-$15,000 | $8,400-$10,500 | $65-$95 |
| 1,500 sq ft | 700-900 kWh/month | 5-7 kW | $15,000-$21,000 | $10,500-$14,700 | $95-$130 |
| 2,000 sq ft | 900-1,100 kWh/month | 7-8 kW | $21,000-$24,000 | $14,700-$16,800 | $130-$165 |
| 2,500 sq ft | 1,100-1,400 kWh/month | 8-10 kW | $24,000-$30,000 | $16,800-$21,000 | $165-$210 |
| 3,000 sq ft | 1,400-1,700 kWh/month | 10-12 kW | $30,000-$36,000 | $21,000-$25,200 | $210-$260 |
| 3,500+ sq ft | 1,700-2,200 kWh/month | 12-15 kW | $36,000-$45,000 | $25,200-$31,500 | $260-$340 |
Important note about home size and solar panels cost:
Square footage alone doesn’t determine solar system cost. Two identical 2,000 sq ft homes can have vastly different solar energy costs based on:
- Number of occupants (family of 2 vs family of 6)
- Climate (Arizona AC usage vs Oregon)
- Home efficiency (new build vs 1970s home)
- Electric appliances (gas vs electric heat, cooking)
- Pool or hot tub
- Electric vehicle charging
- Home office equipment
Real example of usage variation:
Two 2,200 sq ft homes in North Carolina:
House A (Energy efficient):
- Occupants: Retired couple
- Usage: 720 kWh/month
- System needed: 5.5 kW
- Solar panels cost: $14,960 ($10,472 after credit)
House B (High usage):
- Occupants: Family of 5, home office, pool
- Usage: 1,680 kWh/month
- System needed: 12 kW
- Solar panels cost: $32,160 ($22,512 after credit)
Is Solar Worth the Cost? Decision Framework
Many homeowners ask, “Are solar panels worth the cost?t” – here’s an honest framework to help you decide.
When Solar Panels Cost Makes Excellent Financial Sense
Your electric bill exceeds $100/month. Higher bills mean faster payback on solar panels. If spending $1,200+/year on electricity, solar typically pays for itself in 6-9 years.
You plan to stay in your home 8+ years The typical payback period is 6-10 years. Living there longer maximizes ROI on solar installation cost.
Your roof is in good condition (under 10 years old). Avoid the cost of removing/reinstalling panelswhether then roof needs replacement. Factor roof age into solar panels cost analysis.
You get 4+ hours of direct sunlight daily. Shaded roofs produce less, making solar panels cost harder to justify. South-facing roofs with minimal shade offer the best return.
Local electricity rates are $0.12/kWh or higher. Higher rates = bigger savings = faster payback on solar system cost. California ($0.35/kWh) homeowners see 5a -year payback, while Louisiana ($0.09/kWh) seeing 12+ years.
Strong state/local incentives available States like California, Massachusetts, and North Carolina offer incentives that reduce effective solar panels by 50-65%.
Your credit score is 680+ (if financing). Better rates and lower totasolar costsst significantly. A 4.99% loan vs 8.99% loan saves $8,000+ on a typical system.
When Solar Panels Cost May Not Make Sense
Your electric bill is under $60/month. Low usage means small systems ($8,000-$12,000) with 12-15 year payback. Solarpanels’s cost ROI is marginal.
You plan to move within 3-5 years. While solar adds home value, finding buyers who appreciate it takes time. A short timeline doesn’t justify the solar installation cost.
Your roof is heavily shaded all day. Production drops 40-70% in heavy shade. Solar panels’ cost can’t be justified by poor production.
Your roof needs replacement within 5 years.s Add $4,500-$6,500 for panel removal/reinstall to your total solar system cost. Replace the roof first, then install solar.
Electricity costs under $0.09/kWh in your area. ea Very cheap electricity extends payback to 12-15+ years, making solar panels cost questionable financially.
HOA prohibits solar installations. Some communities ban or severely restrict solar. Check the rules before getting quotes on solar panel costs.
Your roof faces primarily north (Northern Hemisphere). North-facing roofs produce 30-40% less. May need a ground-mount system, increasing solar installation prices substantially.
Special Situations Worth Considering
Electric vehicle owners: Adding EV charging increases electricity usage 300-500 kWh/month. This dramatically improves solar panels’ cost ROI. Many EV owners install 8-12 kW systems specifically to offset charging costs.
Future-proofing: Planning to add EV, heat pump, or pool? Size your system now for future usage. Slightly higher solar panels cost upfront beats adding panels later (second install costs 40% more per watt).
Rising electricity rates: Historical trends show 3-5% annual increases. Solar panels cost locks in your rate for 25+ years. In high-escalation states, this becomes increasingly valuable.
Home value boost: Studies show solar adds $15,000-$30,000 to home value. Even if payback is 10 years, the equity gain offsets the solar system cost if selling sooner.
Common Mistakes That Increase Solar Panels’ Cost
Avoid these costly errors when evaluating solar panels’ cost:
Mistake 1: Choosing the Cheapest Quote Automatically
A Colorado family got five quotes for solar panel installation cost:
- Quote 1: $16,800
- Quote 2: $18,900
- Quote 3: $21,500
- Quote 4: $22,100
- Quote 5: $23,400
They chose Quote 1 to minimize the solar panels’ cost. Within 18 months:
- 4 panels failed (cheap Chinese brand)
- Microinverters malfunctioning
- The company went out of business
- No warranty support
- Repair cost: $4,200
- Total spent: $21,000 (more than Quote 3!)
Lesson: The lowest solar installation price often uses inferior equipment or inexperienced installers. Choose based on value: quality equipment + solid warranty + established company.
Mistake 2: Oversizing Your System
An Illinois homeowner installed a 14 kW system when analysis showed he needed 8 kW.
- Spent $42,000 ($29,400 after credit)
- Should have spent $24,000 ($16,800 after credit)
- Wasted: $12,600 in solar panels cost
- Excess production sold tothe utility at $0.03/kWh
- Value of overproduction: ~$180/year
- Will take 70 years to recover the excess cost
Lesson: Size your system for actual usage plus a 10-15% buffer. Don’t let salespeople inflate system size to boost their commission.
Mistake 3: Ignoring Roof Replacement Timing
A Texas homeowner had a 16-year-old roof with 5-7 years remaining life.
- Installed solar: $22,500 solar panels cost
- 5 years later: Roof needs replacement
- Remove panels: $2,800
- Roof replacement: $12,000
- Reinstall panels: $2,200
- Total additional cost: $17,000
If he’d replaced the roof before solar:
- Roof: $12,000
- Solar on new roof: $22,500
- Total: $34,500 vs $39,500 actual
- Saved: $5,000
Lesson: If the roof is 12+ years old, replace it before adding solar panel installation cost to your budget.
Mistake 4: Not Shopping Around for Financing
An Arizona homeowner accepted the installer’s offered loan:
- Solar panels cost: $25,000
- Loan: 20 years at 7.99% APR
- Total paid: $40,620
His credit union offered solar loans at 4.99% APR:
- Same solar system cost: $25,000
- Loan: 20 years at 4.99% APR
- Total paid: $33,000
- Savings: $7,620
Lesson: Never accept the first financing offer. Shop your credit union, local banks, and specialized solar lenders. A 3% rate difference = thousands in savings on solar panel costs.
Mistake 5: Falling for “Free Solar” Scams
A Nevada couple saw ads for “free solar panels” and signed up.
What they thought:
- Free solar panels installed
- Immediate $200/month savings
What they got:
- 25-year PPA contract
- The company owns panels
- Pay $0.13/kWh for solar (vs $0.11/kWh utility rate in 2026)
- 2.9% annual escalator
- By year 10: Paying MORE than utility rates
- Locked into an expensive contract
Lesson: There’s no such thing as “free solar.” “Free” means lease/PPA where the company keeps tax credits, and you pay long-term. Ownership (cash/loan) always results in a lower total solar panel cost.
Mistake 6: Ignoring Energy Efficiency First
A California family spent $28,000 on solar panels for a 10 kW system due to 1,300 kWh/month usage.
Post-installation energy audit revealed:
- Old HVAC system wis asting 40% energy
- Poor attic insulation
- Inefficient water heater
- Old appliances
If they’d addressed efficiency FIRST:
- HVAC + insulation: $8,000 investment
- Reduced usage to 800 kWh/month
- Needed only a 7 kW system: $19,600 solar panels cost
- Total: $27,600 vs $28,000
- Better comfort + smaller system + same savings
Lesson: Audit and fix energy waste before sizing the solar system. Reduces solar installation cost and improves home comfort.
How to Get Accurate Solar Panels Cost Quotes
Follow this process to get reliable solar panels cost estimates and avoid sales pressure:
Week 1: Preparation Before Getting Quotes
Gather your electricity data:
- Collect 12 months of utility bills
- Calculate total annual kWh usage
- Identify seasonal patterns (high summer/winter usage)
- Note the current rate per kWh
Assess your property:
- Roof age and condition
- Roof material (asphalt, tile, metal)
- Shading from trees or buildings
- Roof orientation (south-facing ideal)
- Available roof space
Research local incentives:
- Visit www.dsireusa.org
- Check state/utility programs
- Note deadlines and caps
- Calculate potential savings on solar panel costs
Week 2-3: Getting Multiple Quotes
Request quotes from 4-6 sources:
- 2 national installers (Sunrun, Tesla, Momentum Solar)
- 2-3 local installers (Google “solar installer [your city]”)
- 1-2 online marketplaces (EnergySage, Solar Reviews)
Provide identical information to each:
- Annual kWh usage
- Roof details
- Desired system ownership (buy vs lease)
- Budget range if comfortable sharing
What each quote should include:
- Exact system size (kW)
- Panel brand, model, and wattage
- Inverter brand and type
- Estimated annual production (kWh)
- Total solar panels cost itemized
- Cost after federal tax credit
- Available financing options
- Warranties (equipment, workmanship, production)
- Installation timeline
- Payment schedule
Week 4: Comparing Solar Panels Cost Quotes
Create a comparison spreadsheet:
| Company | System Size | Panel Brand | Inverter Type | Total Cost | $/Watt | After Tax Credit | Est. Production | Warranty | Timeline |
|---|---|---|---|---|---|---|---|---|---|
| Company A | 7.2 kW | Q CELLS | Enphase IQ8+ | $21,600 | $3.00 | $15,120 | 10,800 kWh | 25 yr | 8-10 weeks |
| Company B | 7.5 kW | Canadian Solar | SolarEdge | $19,875 | $2.65 | $13,913 | 11,250 kWh | 25 yr | 10-12 weeks |
| Company C | 7.0 kW | SunPower | Microinverters | $24,500 | $3.50 | $17,150 | 10,500 kWh | 40 yr | 6-8 weeks |
Red flags in solar panels cost quotes:
Pressure to sign immediately – “This price expires today!” is almost always false. Legitimate companies honor quotes for 30-90 days.
Vague equipment specifications – If the quote doesn’t specify exact panel/inverter models, it’s incomplete. Demand specifics before comparing solar installation prices.
No site visit conducted – Any solar panel cost quote without physically inspecting your roof is worthless. Accurate pricing requires an on-site assessment.
Unrealistic savings claims – “$0 electric bills guaranteed!” is usually misleading. Net metering, seasonal production, and usage patterns affect actual savings.
Lowball pricing – If one quote is 35-40% cheaper than others, there’s a reason (cheap equipment, inexperienced crew, cutting corners).
Unclear warranty terms – Installer should clearly state what’s covered: panels (25 years), inverters (10-25 years), workmanship (5-10 years), production guarantee.
Week 5: Vetting Solar Companies
Before committing to any solar panel cost quote:
Verify credentials:
- NABCEP certification (North American Board of Certified Energy Practitioners)
- State contractor license (active and current)
- Proper insurance (liability and workers’ comp)
- Better Business Bureau rating (A- or better)
Check reviews:
- Google reviews (50+ reviews, 4.0+ rating)
- Solar Reviews website
- Yelp ratings
- NextDoor recommendations
Confirm experience:
- Years in business (5+ years preferred)
- Number of installations completed locally
- Experience with your roof type
- Warranties honored from past work
Request references:
- 3-5 recent customers (within 6 months)
- Similar system size to yours
- Same geographic area
- Ask about communication, timeline, and quality
Questions to ask references:
- Did the final solar panels cost match the quote?
- Were there surprise fees or upgrades?
- Was the installation completed on time?
- How was communication during the process?
- Any issues with system performance?
- Would you use this company again?
Week 6: Negotiation and Final Decision
Solar panel cost is negotiable – here’s how:
Timing leverage:
- End of quarter (March, June, September, December) – Companies push to hit sales targets
- Winter months (November-February) – Slower season, installers are more flexible on solar installation prices
Volume leverage:
- “My neighbor is also getting quotes.” – Some companies offer referral discounts
- Community solar buying groups – Negotiate group rates
Competition leverage:
- “Company B quoted $2,800 less” – See if they’ll match or explain the value difference
- Never lie about competing quotes – Honesty builds trust
Typical negotiation results:
- $500-$2,000 reduction in total solar panels cost
- Upgraded inverter at no extra charge
- Extended workmanship warranty
- Free monitoring system upgrade
Final decision checklist:
Equipment quality matches budget and needs Total solar panels cost is competitive (within 10% of other quality quotes) Company has solid reputation and experience Warranties are comprehensive and clear Financing terms are acceptable (if not paying cash) Installation timeline fits your schedule You feel comfortable with the company Contract clearly states all costs, timelines, and guarantees
Hidden Solar Panels Cost Factors
Beyond the base quote, these additional expenses can add $2,000-$10,000 to your total solar system cost:
Electrical Panel Upgrade Cost
When it’s required:
- Your home has 100-amp or 150-amp service (most solar requires 200-amp)
- Panel is outdated (pre-1990s)
- No available breaker spaces
- Panel condition is poor
Electrical panel upgrade costs:
- 100-amp to 200-amp upgrade: $1,800-$3,500
- Panel replacement (same amperage): $1,200-$2,200
- Subpanel addition: $800-$1,600
A Florida homeowner’s initial solar panels cost quote was $19,500. During inspection, the installer found a 1978 electrical panel requiring an upgrade. Final solar installation cost: $22,700 ($3,200 panel upgrade).
Roof Repair or Replacement Cost
When to replace the roof before solar:
- Asphalt shingles are over 12-15 years old
- Any visible damage (missing shingles, leaks)
- Known roof issues, even if not currently leaking
Cost to remove and reinstall solar (if roof replaced later):
- Removal: $1,500-$2,500
- Storage during roof work: $500-$800
- Reinstallation: $2,000-$3,500
- Total: $4,000-$6,800
Roof replacement costs:
- Asphalt shingle (typical home): $8,000-$15,000
- Metal roof: $14,000-$25,000
- Tile roof: $18,000-$35,000
Smart move: Ifthe roof is 10+ years old, replace it before adding solar panels to your budget. You’ll save thousands vs paying for removal/reinstall later.
Structural Reinforcement Cost
Older homes or those with questionable framing may need structural upgrades.
Structural engineering inspection: $350-$700 Reinforcement if needed: $1,500-$5,000
A 1960s home in Oregon required additional roof bracing for solar load. The engineering report cost $425, and reinforcement added $2,800 to the solar installation price.
Tree Trimming or Removal Cost
Shading reduces solar production by 10-70% depending on severity.
Tree trimming costs:
- Small tree trim: $300-$600
- Large tree trim: $800-$1,500
- Tree removal (small): $400-$1,200
- Tree removal (large): $1,500-$5,000
- Protected/heritage tree removal: $5,000-$15,000+
A homeowner in North Carolina had a large oak shading his south-facing roof for 4 hours daily. Removal cost $3,800 but increased projected solar production by 35%, adding $18,000 in value over 25 years.
Trenching and Wiring Cost (Ground-Mount or Detached Garage)
When extra wiring is needed:
- Panels on detached garage
- Ground-mounted system
- Very long run from panels to the main panel
Trenching costs:
- 50 feet: $800-$1,500
- 100 feet: $1,800-$3,000
- 150+ feet: $3,000-$5,500
- Includes: excavation, conduit, backfill, restoration
HOA Approval and Compliance Cost
Some HOAs require specific aesthetic standards that increase the use ofsolarr panels:
- Black-on-black panels (vs standard): Add $800-$1,500
- Hidden conduit runs: Add $600-$1,200
- Screening/landscaping: Add $500-$2,000
- Expedited review fees: $150-$500
Permit and Interconnection Fees
Typical permit costs by location:
- Rural areas: $200-$500
- Suburban areas: $400-$800
- Urban areas: $600-$1,200
- Major cities (NYC, SF, LA): $1,000-$2,500
Utility interconnection fees:
- Most utilities: $0-$150
- Some utilities: $300-$800
Most installers include permits in the base solar panels cost, but always confirm.
Monitoring System Upgrades
Basic monitoring (usually included):
- Total system production
- Simple web/app interface
- $0 additional cost
Advanced monitoring (optional upgrades):
- Panel-level monitoring: $300-$600
- Weather integration: $200-$400
- Smart home integration: $300-$700
- Cellular monitoring (no WiFi needed): $150-$300
Critter Guard Installation
Prevents squirrels, birds, and rodents from nesting under panels.
Critter guard cost:
- Materials: $250-$450
- Installation labor: $300-$600
- Total: $550-$1,050
Recommended in areas with active wildlife. Damage from nesting animals can cost $800-$2,500 to repair.
Frequently Asked Questions
In the UK, a 10 kW system for your 3000 sq ft home runs £6,000-£12,000 after incentives, while USA hits $18,000-$32,000 post-30% federal tax credit. Roof space? Just 500-800 sq ft south-facing does it, since panels pack 20-22% efficiency now. Shop local installers in London or Texas for custom quotes—prices dropped 20% last year alone.
Start by checking your roof’s sun exposure and past bills (say 500-800 kWh/month); a 10-12 kW setup fits most big homes. Get MCS certification in the UK or NABCEP in the USA, apply for Smart Export
Guarantee or ITC rebates online, then hook up net metering to sell excess power. Pros handle permits—whole process takes 2-3 months, slashing bills by 40-60%.
USA’s Inflation Reduction Act gives 30% off upfront (up to $7,500+ for batteries), stacking with state rebates; UK offers 0% VAT plus SEG payments up to 15p/kWh for surplus energy. Big homes save £800-£1,500 yearly in the UK or $1,500-$3,000 in the USA, going green without pollution. Payback hits 7-9 years, then it’s free power forever.
Top panels crank out power for 25-30+ years at 85-92% output, shrugging off clouds with 60-80% performance. Clean twice yearly with a hose—no fancy tools needed—and inverters swap every 10-12 years under warranty. Real homeowners report zero headaches after a decade, especially with hail-rated glass.
2026 brings bifacial panels grabbing light from both sides (25%+ efficiency boost), TOPCon cells for hotter climates like California, and perovskite hybrids pushing 28% output. Smart apps with AI track your system’s 99% uptime; USA giants like Tesla and UK firms like Octopus lead floating solar on reservoirs. Game-changer for big roofs—more juice, less space.
| Topic | UK Savings/Year | USA Savings/Year | Install Time |
|——-|—————–|——————|————–|
| Cost Breakdown | £800-£1,200 | $1,800-$2,800 | 1-2 weeks |
| Setup Guide | £900-£1,400 | $2,000-$3,200 | 2-3 months |
| Rebates | £700-£1,100 | $1,500-$2,500 | Instant claim |
| Lifespan | £600-£1,000 (long-term) | $1,200-$2,200 | Minimal |
| New Tech | £1,000+ boost | $2,500+ boost | Same day
