How Much Do Solar Panels Cost in 2026?

When homeowners search “how much do solar panels cost,” they usually mean the total price of a fully installed rooftop system — not the cost of a single panel off a shelf. That distinction matters because hardware is only part of the bill. A complete residential solar installation includes panels, an inverter, racking hardware, wiring, labor, permits, and inspections. All of those line items roll into the “cost per watt” figure that the industry uses as its standard pricing metric.

As of early 2026, most U.S. homeowners pay roughly $2.50 to $3.00 per watt installed before any incentives. For a typical residential system, the total sticker price lands somewhere between $18,000 and $40,000, with the majority of projects falling in the $25,000–$32,000 range for a medium-sized system. The single biggest cost reducer is the federal Investment Tax Credit (ITC), which knocks 30 percent off the total — bringing the net out-of-pocket cost down significantly.

All figures in this guide are for U.S. residential rooftop systems. Prices exclude off-grid, RV, and commercial installations unless noted.

Quick Answers to Common “How Much Are Solar Panels?” Questions#

Before diving into the details, here are short answers to the most-searched cost questions. Each links to a deeper section below.

• “How much do solar panels cost for a house?” A fully installed residential system typically runs $18,000–$40,000 before incentives, depending on home size and energy use. Most homeowners install a 6–12 kW system. See detailed costs →

• “How much does one solar panel cost?” A single residential-grade panel (350–450 watts) retails for roughly $200–$350, or about $0.80–$1.40 per watt for hardware only. That price does not include installation labor, inverters, or permits. See per-panel breakdown →

• “How much do home solar panels cost per watt?” The national average for a fully installed system is approximately $2.50–$3.00 per watt. That per-watt figure includes all equipment, labor, and soft costs. See national averages →

• “How much is it to get solar panels installed?” “Installed cost” means the full turnkey price — panels, inverter, racking, wiring, labor, permits, and inspection. For most homes, that’s $20,000–$35,000 before incentives, dropping 30% after the federal tax credit. See factors that affect price →

Average Cost of Residential Solar Panels in 2026#

National Average Cost per Watt and per System#

The solar industry prices residential systems in dollars per watt ($/W). This metric makes it easy to compare quotes across different system sizes, geographies, and installers.

In 2026, the national average installed cost sits at roughly $2.58–$2.84 per watt, based on marketplace data from platforms like EnergySage and federal benchmarks published by DOE and NREL. The exact average you see depends on the source: EnergySage reflects actual marketplace quotes from participating installers, while NREL benchmarks model costs based on component pricing, labor surveys, and overhead analysis. Both are useful — marketplace data tells you what homeowners are actually paying, and NREL data shows how the cost breaks down.

Typical residential systems range from 6 kW for smaller homes to 10–12+ kW for higher-usage households. Here is what those system sizes cost at current pricing levels:

Larger systems generally have a slightly lower cost per watt because certain fixed costs (permitting, design, truck roll) are spread across more panels.

What Is the Average Cost of Solar Panels for a House?#

The answer depends almost entirely on how much electricity your household uses. A “typical” American home consuming around 900 kWh per month needs roughly 8–10 kW of solar capacity, depending on roof orientation, local sunlight hours, and panel efficiency.

Worked example: A mid-size home using 900 kWh per month in a state with 5 average peak sun hours per day would need approximately an 8 kW system. At $2.77 per watt, the installed cost would be about $22,160 before incentives and roughly $15,512 after the 30% federal tax credit.

Here is a simple comparison across home sizes:

Keep in mind that “small” and “large” refer to energy consumption, not just square footage. A well-insulated 2,500-square-foot home might need less solar than a drafty 1,800-square-foot house with an old HVAC system.

Solar Panel Cost Breakdown: What Are You Actually Paying For?#

Equipment vs. Labor vs. Soft Costs#

When you see a total installed price, it helps to understand where the money actually goes. Residential solar costs split roughly into four buckets:

• Solar panels (modules): About 25–35% of total cost. These are the photovoltaic panels themselves — typically 350–450 watts each in 2026 models.
• Inverter and balance of system (BOS): About 15–25% of total cost. This includes the inverter (string or micro), wiring, disconnects, monitoring equipment, and racking/mounting hardware.
• Labor: About 10–20% of total cost. Rooftop installation crews, electricians, and project management.
• Soft costs and overhead: About 30–40% of total cost. This is the biggest surprise for many homeowners. Soft costs include system design and engineering, permitting and inspection fees, customer acquisition and sales, company overhead and profit margin, and insurance and warranty reserves.

NREL benchmark studies consistently show that soft costs are the largest single category in residential solar pricing. This is one reason why the U.S. residential market is more expensive per watt than commercial or utility-scale installations — the per-project overhead of designing, permitting, and selling a one-off residential system is proportionally higher.

Cost per Panel vs. Cost per System#

If you search “how much does a solar panel cost,” you might find individual panel prices in the $200–$350 range. That’s accurate for retail hardware — a modern 350–450 W residential panel costs roughly $0.80–$1.40 per watt when purchased individually in small quantities.

But that number is misleading if you’re budgeting for a home solar project. Here’s why:

Example: A 10 kW system might use around 24–28 panels (depending on per-panel wattage). At $300 per panel, the panels alone total about $7,200–$8,400. But the fully installed system costs around $25,000–$28,000. The remaining $17,000–$20,000 covers the inverter, racking, wiring, labor, design, permits, and overhead.

Professional installers buy panels at bulk-discounted prices and rarely quote per-panel pricing to homeowners. Instead, they quote a total system price or a per-watt installed price. When comparing quotes, always compare the all-in cost per watt — not just the panel hardware cost.

Factors That Affect How Much Solar Panels Cost for Your Home#

System Size and Energy Use#

The biggest single driver of your solar cost is how many kilowatts you need, which is directly tied to your electricity consumption.

A rough rule of thumb: take your annual kWh usage, divide by your region’s annual peak sun hours (typically 1,200–1,800 for most of the U.S.), and apply a system efficiency derating of about 80%. That gives you a ballpark system size in kW. Multiply by the local cost per watt, and you have a preliminary budget estimate.

Higher usage means more panels and a higher up-front cost — but also more bill savings each month. For high-usage homes, solar often delivers the fastest payback.

Location and Local Pricing#

Where you live significantly affects what you’ll pay. Key regional variables include:

• Labor costs — installers in high-cost-of-living metros charge more per hour
• Permitting and inspection fees — some cities charge hundreds of dollars; others are minimal
• Market competition — areas with many installers tend to have lower prices
• State incentives — some states layer additional credits and rebates on top of the federal ITC

Here are sample averages from a few states to illustrate the range:

These are averages — actual quotes in your city or county may be higher or lower. Always get multiple local quotes for accurate pricing. Check our state-by-state solar guides for specific information about incentives and costs in your area.

Roof Type, Shading, and Complexity#

Your roof’s physical characteristics can push costs up or down:

Tends to increase cost per watt:

• Tile or slate roof (requires specialized mounting hardware)
• Steep pitch or multiple roof planes (more labor time)
• Significant shading from trees or neighboring structures (may require microinverters or optimizers)
• Older roof that needs replacement before installation
• Ground-mount systems (requires foundation and additional racking)

Tends to keep cost average or lower:

• Standard asphalt shingle roof in good condition
• Simple south-facing roofline with moderate pitch
• Minimal shading
• Large unobstructed roof area (allows efficient panel layout)

If your roof needs replacement in the next 5–10 years, it’s usually smarter to reroof first or bundle it with the solar installation. Removing and reinstalling panels later adds $1,500–$3,000+ to your costs.

Equipment Choices (Panel Efficiency, Inverters, Add-Ons)#

Not all solar equipment is priced equally. Key decisions that affect your total cost:

• Panel brand and efficiency — Premium manufacturers (SunPower, REC, LG) with 21–23% efficiency typically add $0.10–$0.30 per watt over standard-tier brands. The trade-off: more power per square foot, which matters if your roof space is limited.
• Inverter type — Microinverters (one per panel) cost more than string inverters (one central unit) but offer panel-level optimization and better shade handling. Expect microinverters to add roughly $0.10–$0.20 per watt to system cost.
• Optional add-ons — Consumption monitoring systems, critter guards, aesthetic upgrades (all-black panels, hidden racking), and extended warranties can each add a few hundred dollars.

For most homeowners, mid-tier panels paired with microinverters offer the best balance of performance, warranty coverage, and price.

Cost of Solar Panels With Batteries and Add-Ons#

How Much Does a Solar Battery Add to the Cost?#

Home battery storage has become increasingly popular alongside solar installations. As of 2026, battery attachment rates have been climbing steadily — more homeowners want backup power and the ability to store excess solar energy for evening use.

Typical home battery costs:

The 30% federal ITC applies to batteries as long as they are installed as part of a solar energy system and charged primarily from solar. Some states offer additional battery incentives — California’s SGIP program and certain utility programs in Massachusetts, Connecticut, and New York can further reduce battery costs.

A solar-plus-battery system costs more upfront but provides backup power during outages, better time-of-use rate optimization, and greater energy independence. Whether the extra cost is justified depends on your local grid reliability, utility rate structure, and how much you value backup power.

For a deeper look, see our solar battery guide .

EV Chargers and Other Extras#

If you’re planning ahead, bundling extras with your solar installation can save on labor costs:

• Level 2 EV charger installation — Adding a 240V EV charging circuit during solar install typically costs $500–$1,500 (vs. $1,000–$2,500 as a standalone project later)
• Smart electrical panel — Upgrading to a smart panel (Span, Lumin) runs $3,000–$5,000+ but simplifies battery integration and load management
• Critical-load subpanel — If adding a battery, a subpanel to isolate essential circuits costs $500–$1,000

Each add-on is optional. The main takeaway: if you know you’ll want EV charging or battery backup eventually, it’s cheaper to wire for them during the initial solar installation.

Incentives, Tax Credits, and How They Reduce the Cost of Solar Panels#

Federal Solar Tax Credit (ITC)#

The federal Investment Tax Credit is the single most impactful incentive for residential solar. Here’s how it works:

• You can deduct 30% of the total eligible cost of your solar installation from your federal income taxes
• “Eligible cost” includes panels, inverters, batteries (if charged primarily by solar), racking, wiring, labor, permitting, and related fees
• The credit is nonrefundable — it reduces your tax liability dollar-for-dollar, but you can’t get a refund beyond what you owe. Unused credits can roll forward to future tax years.

The 30% rate is locked in through 2032 under the Inflation Reduction Act. After that, it steps down: 26% in 2033, 22% in 2034, and 0% for residential systems after 2034. Commercial systems retain a 10% permanent credit.

State and Local Incentives, Rebates, and Net Metering#

Beyond the federal ITC, many states and utilities offer additional incentives:

• State tax credits — New York, for example, offers a state income tax credit of up to 25% (capped at $5,000) on top of the federal 30%.
• Utility rebates — Some utilities offer per-watt or flat-rate rebates. Austin Energy offers a $2,500 rebate for residential systems.
• Property tax exemptions — Many states exempt the added home value from solar from your property tax assessment. Texas and Florida both offer this.
• Sales tax exemptions — Several states exempt solar equipment purchases from state sales tax.
• Net metering / net billing — While not a direct cost reduction, net metering lets you earn credits for excess energy sent to the grid, accelerating your payback period.

Incentive programs change frequently. Check the Database of State Incentives for Renewables & Efficiency (DSIRE) for current programs in your area, or use our state-by-state guides .

Are Solar Panels Worth the Cost? Payback, Savings, and ROI#

Monthly Savings vs. Monthly Loan/Lease Payments#

For homeowners who finance their system (the most common approach), the key question is: does the monthly solar payment cost less than the monthly electric bill it replaces?

In many cases, yes — especially in states with above-average electricity rates. Here’s a simplified comparison:

In this scenario, the homeowner saves $30 per month from day one — even while paying off the solar loan. Once the loan is paid off (typically in 12–20 years), the savings jump to $175+ per month because the panels continue producing power for free.

Cash purchases offer even faster payback since there’s no interest, but they require $15,000–$30,000 upfront.

Payback Period and Lifetime Savings#

Payback period is the number of years until your cumulative energy savings equal your net system cost. After that point, your solar energy is essentially free.

Example scenario:

• Net system cost (after ITC): $21,000
• Annual electricity savings: $1,800
• Simple payback: $21,000 ÷ $1,800 = ~11.7 years
• Remaining system life after payback: ~13 years of free electricity
• Estimated 25-year savings: $24,000+ (after subtracting net system cost)

Payback times vary widely — from as short as 6–8 years in states with high electricity rates and strong incentives (California, New York, Massachusetts) to 12–16 years in states with low rates and fewer incentives. Even a 15-year payback still leaves a decade of essentially free power from a system warrantied for 25 years.

Solar is most likely worth it for you if:

• Your electricity rate is above $0.12/kWh (and especially above $0.15/kWh)
• You live in a region with at least 4 peak sun hours per day
• You plan to stay in your home for 7+ years
• Your roof is in good condition with southern, southwestern, or southeastern exposure
• You have sufficient federal tax liability to use the 30% ITC

Even if you move before the payback period ends, solar panels typically increase your home’s resale value — studies suggest an increase of roughly $15,000–$20,000 for a typical system.

How to Estimate How Much Solar Panels Will Cost for Your House#

Step-by-Step Cost Estimation#

You can get a reasonable ballpark estimate in five steps:

1. Find your annual electricity usage. Check your utility bills for the past 12 months and add up your total kWh. If you only know your monthly average, multiply by 12. Example: 900 kWh/month × 12 = 10,800 kWh/year.

2. Estimate your system size. Divide annual kWh by your region’s annual production factor. A reasonable production factor for most of the U.S. is 1,200–1,500 kWh per installed kW per year. Example: 10,800 kWh ÷ 1,400 kWh/kW ≈ 7.7 kW → round to 8 kW.

3. Multiply by local cost per watt. Use the state averages in this guide or check a solar marketplace for your ZIP code. Example: 8 kW × 1,000 W/kW × $2.77/W = $22,160.

4. Subtract the federal tax credit (30%). Example: $22,160 × 0.70 = $15,512 net cost.

5. Check for state/local incentives. Some states offer additional credits, rebates, or exemptions that further reduce your out-of-pocket cost.

This gives you a rough budget number. For a firm quote, you’ll want to get bids from 2–3 local installers.

Tools and Data Sources to Use#

For a more refined estimate:

• Solar quote marketplaces — Platforms like EnergySage let you enter your address and receive quotes from multiple pre-screened installers, making it easy to compare cost per watt, equipment, and warranties side by side.
• Our solar calculator — Use our free solar calculator to estimate system size, costs, and savings based on your specific inputs.
• NREL and DOE benchmarks — The National Renewable Energy Laboratory publishes annual cost benchmark reports that track residential solar pricing trends at a granular level. These are useful for understanding industry-wide pricing context.
• Local installer quotes — Nothing replaces 2–3 site-specific quotes from licensed installers in your area. They’ll assess your actual roof, shading, electrical panel, and permitting requirements.

DIY vs. Professional Installation: How Much Can You Save (and Risk)?#

Hardware-Only Costs for DIY Solar Panels#

For hands-on homeowners considering a DIY approach, the upfront hardware cost is significantly lower:

• Panels — Roughly $0.80–$1.40/W for individual panels, or $0.60–$1.00/W in pallet quantities
• String inverter — $1,000–$2,500 for a residential-grade unit
• Racking and mounting — $500–$1,500 depending on roof type
• Wiring, disconnects, and BOS — $300–$800
• Permits and inspections — $200–$1,000 depending on jurisdiction

Rough DIY cost for a 5 kW system: $5,000–$8,000 in hardware and materials, plus permits. Compare that to a typical turnkey professional quote of $13,000–$15,000 for the same system size.

That’s a potential savings of $5,000–$8,000 — but it comes with significant caveats. You still need a licensed electrician for grid interconnection in most jurisdictions, and mistakes can void equipment warranties, create safety hazards, or result in a system that doesn’t pass inspection.

For more details, see our DIY solar panels guide .

Pros and Cons of DIY vs. Hiring an Installer#

Our recommendation: Unless you have genuine electrical experience and your local jurisdiction allows owner-installed solar, professional installation is the safer and usually smarter choice. The warranty coverage, code compliance, and design optimization more than justify the cost difference for most homeowners.

FAQs: Answering Every “How Much Are Solar Panels?” Question#

Key Takeaways: What to Remember About Solar Panel Costs#

• Typical installed cost: Residential solar panels run about $2.50–$3.00 per watt, or $18,000–$40,000 before incentives for most U.S. homes.
• Federal tax credit: The 30% ITC reduces your out-of-pocket cost by nearly a third. A $28,000 system becomes ~$19,600 after the credit.
• What drives your price: System size (tied to your electricity usage), location, roof characteristics, and equipment choices are the main variables.
• Batteries add significant cost: Home battery systems add $7,000–$18,000+ but provide backup power and may improve your energy economics depending on your utility’s rate structure.
• Best way to know your cost: Get 2–3 quotes from local installers and compare on a cost-per-watt basis, factoring in equipment quality, warranties, and included services.