![\"Solar](\"https:\/\/assets.solar.com\/wp-content\/uploads\/2020\/06\/Solar-Panel-Cost-Solar.com_.png\")
\r\n\r\nWith utility rates rising at a rapid pace, going solar is a way to take control of your electricity costs and hedge against energy inflation.\r\n\r\nSo, what\u2019s standing in the way of American homeowners and solar panels? The biggest hurdle is often the perceived \"upfront cost\" of installing solar panels.\r\n\r\nThe cost of installing solar is far less intimidating when you understand the various components, how savings are generated, and different ways to lower your cash outlay through financing.\r\n\r\nIn this article, we\u2019ll explore:\r\n<\/a>How much do solar panels cost on average?<\/h2>\r\nAs of 2026, the average cost of residential solar panels in the U.S. is between $15,000 and $25,000 before incentives. This typically translates to about $2.50 to $3.50 per watt of installed capacity (more on price per watt below<\/a>). The total price depends on your system size, location, roof type, and installer.<\/p>\r\nThere are a number of factors influencing solar panel pricing in 2026<\/a>\u2014our industry analysts break down whether prices are going up or down.<\/p>\r\nIn previous years, homeowners could claim a federal tax credit worth 30% of their solar and\/or battery expenses. While this consumer-claimed credit expired at the end of 2025, homeowners can still benefit from a business-claimed federal tax credit through third-party owned solar arrangements.<\/p>\r\nThese include:\r\n
\r\n \t- Leasing Solar Panels<\/a><\/li>\r\n \t
- Power Purchase Agreements (PPAs)<\/a><\/li>\r\n \t
- Prepaid Solar Products<\/a><\/li>\r\n<\/ul>\r\n
Key factors that affect solar costs include:<\/p>\r\n\r\n
\r\n \t- System size:\u00a0<\/strong>Larger systems require more equipment, but typically come at a lower cost per watt than smaller systems.<\/li>\r\n \t
- Local market conditions:<\/strong> Wages, permitting costs, and competition between installers impact residential solar pricing.<\/li>\r\n \t
- Sunlight:\u00a0<\/strong>Sunnier roofs require fewer panels to generate the electricity required to offset your bill.<\/li>\r\n \t
- Panel type:<\/strong> Premium panels, inverters, and batteries cost more but may be more efficient and provide a greater return on investment.<\/li>\r\n \t
- Roof condition:<\/strong> Complex rooflines or older roofs can increase installation costs.<\/li>\r\n \t
- Incentives:<\/strong> Tax credits, rebates, and utility incentives can cut costs by 30\u201350%.<\/li>\r\n \t
- Cash vs Financing: <\/strong>$0 financing can provide instant and consistent savings, but comes at the expense of interest payments on the loan.<\/li>\r\n<\/ul>\r\n
Quick Solar Cost Examples<\/h2>\r\nSolar systems are sized in kilowatts (kW) and are typically designed to offset 100% of your average annual electricity usage.\r\n\r\n \t- Small system (4kW):<\/strong> ~$12,000 before incentives<\/li>\r\n \t
- Medium system (7.5kW):<\/strong> ~$22,500 before incentives<\/li>\r\n \t
- Large system (10kW):<\/strong> ~$30,000 before incentives<\/li>\r\n<\/ul>\r\nFor reference, the average U.S. household consumes 10,000 kWh of electricity per year and, with average sunshine, would need a 7.5 kW solar system to offset its electricity charges.\r\n
Is the price of solar panels falling?<\/h3>\r\nThe price of solar panels has declined substantially over the last decade as the industry has matured and reached production at the largest global scale. <\/span>\r\n\r\nSince 2010, the cost to install solar panels on a home has fallen by roughly 50%. Costs rose slightly from 2020-2023 largely due to supply chain tangles from the pandemic, and then fell again in 2024.\u00a0<\/span>\r\n\r\nPrices have ticked upward slightly in 2025 due to tariffs and a rush for solar before the 30% consumer solar tax credit expires on December 31, 2025.\r\n\r\n![\"Graph](\"https:\/\/assets.solar.com\/wp-content\/uploads\/2025\/08\/seia-solar-pricing-trends-2025.png\")
\r\n\r\nAs a general trend, we expect U.S. solar prices to continue falling as local manufacturing plants come online.\r\n\r\nHowever, with the threat of new tariffs carrying into 2026, we might currently be in the lowest price environment for solar for several years. Even domestically made solar panels will likely see price changes as many sub-components are imported and also subjected to tariffs.\r\n\r\n*<\/span>\r\n\r\n[pnpZip background=true border=true primary_color=\"#8b72d3\" content_texts=true utm_campaign=\"solar_panel_cost\" utm_medium=\"banner\" upper_text= \"Compare binding quotes from multiple\" upper_text_span = \"trusted installers\" lower_text= \"To see how exactly how much\" lower_text_span = \"solar panels cost for your home\" get_started_text = \"Get started\"]\r\n\r\n*<\/span>\r\nHow much does a solar panel cost?<\/h2>\r\nToday's premium monocrystalline solar panels typically cost between 30 and 50 cents per Watt, putting the price of a single 400-watt solar panel between $120 to $200, depending on how you buy it.\r\n\r\nLess efficient polycrystalline panels are typically cheaper at $0.25 per Watt.\r\n\r\nThe cost of a solar panel also depends on\u00a0how\u00a0<\/em>you buy it. If you purchase through a full-service installer, you will likely get a lower price for each panel than buying them individually from a retail store.\r\n\r\nIt's worth noting (as we'll explore further below<\/a>) that solar modules typically make up less than 20% of the overall cost of a home installation. So, opting for less expensive (and lower quality) panels isn't a very efficient way to reduce the overall cost of a project, \u00a0and in most cases, can lower the return on investment for going solar.\r\n<\/a>Solar Power Cost: Price per Watt vs cost per kWh<\/h2>\r\nThere are two main ways to calculate the cost of putting solar panels on your home:\r\n\r\n \t- Price per watt<\/strong> ($\/W) is useful for comparing multiple solar offers<\/li>\r\n \t
- Cost per kilowatt-hour<\/strong> (cents\/kWh) is useful for comparing the cost of solar versus grid energy<\/li>\r\n<\/ul>\r\nLet's dive a little further into each measurement.<\/span>\r\n
What is solar price per watt?<\/h3>\r\nA fully installed solar system typically costs $2.50 to $3.50 per watt before factoring in incentives like the 30% tax credit. Using this measurement, a 6,000-watt solar system (6 kW) would have a gross cost between $15,000 and $21,000.<\/span>\r\n\r\nThe price per watt for larger and relatively straightforward projects are often within the $2.50 to $3 range. Claiming incentives like tax credits and rebates can bring the PPW even lower.\r\n\r\nHowever, the following factors may push your solar price per watt into the $3 to $4.50 range.\r\n\r\n \t- Smaller system size<\/li>\r\n \t
- Unusual roof material or layout<\/li>\r\n \t
- Premium panel and inverter models<\/li>\r\n \t
- Multiple arrays versus a single array<\/li>\r\n \t
- Additional work like panel box upgrades, trenching, or roof repair<\/li>\r\n<\/ul>\r\n
How to calculate solar price per watt<\/h3>\r\nCalculating the price per watt for a solar system<\/a> is very straightforward -- it\u2019s simply the system cost divided by the number of watts in the system.\u00a0<\/span>\r\n\r\n![\"Solar_PPW_Guide_Solar.com\"](\"https:\/\/assets.solar.com\/wp-content\/uploads\/2020\/05\/Solar_PPW_Guide.jpg\")
\r\n\r\nPrice per watt ($\/W) allows for an apples-to-apples comparison of different solar quotes that may vary in total wattage, solar panel brands, etc. <\/span>\r\n\r\nPro tip: It can be helpful to know your solar price per watt before and\u00a0after claiming the 30% tax credit.<\/span><\/em>\r\n\r\nUltimately, many factors figure into the price per watt of a solar system, but the average cost is typically as low as $2.75 per watt. This price will vary if a project requires special adders like ground mounting, a main panel upgrade, an EV charger, etc.\u00a0<\/span>\r\n\r\n\r\n\r\nSolar Price Per Watt<\/td>\r\n Solar Price Per Kilowatt-Hour<\/td>\r\n<\/tr>\r\n \r\nGROSS system cost \/ Total system wattage<\/span><\/td>\r\n NET system cost \/ Total lifetime system production<\/span><\/td>\r\n<\/tr>\r\n\r\nUseful for comparing solar quotes against one another<\/span><\/td>\r\n Useful for comparing solar versus utility bill<\/span><\/td>\r\n<\/tr>\r\n\r\nPertains to the POWER of a system<\/span><\/td>\r\n Pertains to the PRODUCTION of a system<\/span><\/td>\r\n<\/tr>\r\n\r\nTypically $3.00-4.00\/watt<\/span><\/td>\r\n Typically $0.06-0.08\/kWh<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nCost Per Kilowatt-Hour (kWh)<\/b><\/h3>\r\nAnother measure of the relative cost of solar energy is its price per kilowatt-hour (kWh). Whereas the price per watt considers the solar system\u2019s size, the price per kWh shows the price of the solar system per unit of energy it produces over a given period of time.<\/span>\r\nNet cost of the system \/ lifetime output = cost per kilowatt hour<\/strong><\/p>\r\nYou may also see this referred to as levelized cost of energy (LCOE).\r\nWhat is a kWh?<\/h3>\r\nA kilowatt-hour is a unit of energy and is equivalent to consuming 1,000 watts - or 1 kilowatt - of power over one hour.<\/strong> For reference, an energy-efficient clothes dryer uses around 2 kWh of electricity per load, while central air conditioning uses around 3 kWh per hour.\r\n\r\nWhile price per watt is most helpful in comparing the relative costs of solar bids, solar power cost per kWh is best used to illustrate the value of solar relative to buying your power from the electric utility.<\/span>\r\n\r\nFor example, the average cost of a solar system purchased through solar.com is 6-8 cents per kWh<\/strong>, depending on the size of the system, type of equipment, and local incentives.\r\n\r\nLet's compare that to the average cost of utility electricity in each state.\r\n\r\n
There are a number of factors influencing solar panel pricing in 2026<\/a>\u2014our industry analysts break down whether prices are going up or down.<\/p>\r\n In previous years, homeowners could claim a federal tax credit worth 30% of their solar and\/or battery expenses. While this consumer-claimed credit expired at the end of 2025, homeowners can still benefit from a business-claimed federal tax credit through third-party owned solar arrangements.<\/p>\r\nThese include:\r\n Key factors that affect solar costs include:<\/p>\r\n\r\n Net cost of the system \/ lifetime output = cost per kilowatt hour<\/strong><\/p>\r\nYou may also see this referred to as levelized cost of energy (LCOE).\r\n\r\n \t
\r\n \t
Quick Solar Cost Examples<\/h2>\r\nSolar systems are sized in kilowatts (kW) and are typically designed to offset 100% of your average annual electricity usage.\r\n
\r\n \t
Is the price of solar panels falling?<\/h3>\r\nThe price of solar panels has declined substantially over the last decade as the industry has matured and reached production at the largest global scale. <\/span>\r\n\r\nSince 2010, the cost to install solar panels on a home has fallen by roughly 50%. Costs rose slightly from 2020-2023 largely due to supply chain tangles from the pandemic, and then fell again in 2024.\u00a0<\/span>\r\n\r\nPrices have ticked upward slightly in 2025 due to tariffs and a rush for solar before the 30% consumer solar tax credit expires on December 31, 2025.\r\n\r\n
\r\n\r\nAs a general trend, we expect U.S. solar prices to continue falling as local manufacturing plants come online.\r\n\r\nHowever, with the threat of new tariffs carrying into 2026, we might currently be in the lowest price environment for solar for several years. Even domestically made solar panels will likely see price changes as many sub-components are imported and also subjected to tariffs.\r\n\r\n*<\/span>\r\n\r\n[pnpZip background=true border=true primary_color=\"#8b72d3\" content_texts=true utm_campaign=\"solar_panel_cost\" utm_medium=\"banner\" upper_text= \"Compare binding quotes from multiple\" upper_text_span = \"trusted installers\" lower_text= \"To see how exactly how much\" lower_text_span = \"solar panels cost for your home\" get_started_text = \"Get started\"]\r\n\r\n*<\/span>\r\nHow much does a solar panel cost?<\/h2>\r\nToday's premium monocrystalline solar panels typically cost between 30 and 50 cents per Watt, putting the price of a single 400-watt solar panel between $120 to $200, depending on how you buy it.\r\n\r\nLess efficient polycrystalline panels are typically cheaper at $0.25 per Watt.\r\n\r\nThe cost of a solar panel also depends on\u00a0how\u00a0<\/em>you buy it. If you purchase through a full-service installer, you will likely get a lower price for each panel than buying them individually from a retail store.\r\n\r\nIt's worth noting (as we'll explore further below<\/a>) that solar modules typically make up less than 20% of the overall cost of a home installation. So, opting for less expensive (and lower quality) panels isn't a very efficient way to reduce the overall cost of a project, \u00a0and in most cases, can lower the return on investment for going solar.\r\n
<\/a>Solar Power Cost: Price per Watt vs cost per kWh<\/h2>\r\nThere are two main ways to calculate the cost of putting solar panels on your home:\r\n
\r\n \t
What is solar price per watt?<\/h3>\r\nA fully installed solar system typically costs $2.50 to $3.50 per watt before factoring in incentives like the 30% tax credit. Using this measurement, a 6,000-watt solar system (6 kW) would have a gross cost between $15,000 and $21,000.<\/span>\r\n\r\nThe price per watt for larger and relatively straightforward projects are often within the $2.50 to $3 range. Claiming incentives like tax credits and rebates can bring the PPW even lower.\r\n\r\nHowever, the following factors may push your solar price per watt into the $3 to $4.50 range.\r\n
\r\n \t
How to calculate solar price per watt<\/h3>\r\nCalculating the price per watt for a solar system<\/a> is very straightforward -- it\u2019s simply the system cost divided by the number of watts in the system.\u00a0<\/span>\r\n\r\n
\r\n\r\nPrice per watt ($\/W) allows for an apples-to-apples comparison of different solar quotes that may vary in total wattage, solar panel brands, etc. <\/span>\r\n\r\nPro tip: It can be helpful to know your solar price per watt before and\u00a0after claiming the 30% tax credit.<\/span><\/em>\r\n\r\nUltimately, many factors figure into the price per watt of a solar system, but the average cost is typically as low as $2.75 per watt. This price will vary if a project requires special adders like ground mounting, a main panel upgrade, an EV charger, etc.\u00a0<\/span>\r\n\r\n\r\n
\r\n Solar Price Per Watt<\/td>\r\n Solar Price Per Kilowatt-Hour<\/td>\r\n<\/tr>\r\n \r\n GROSS system cost \/ Total system wattage<\/span><\/td>\r\n NET system cost \/ Total lifetime system production<\/span><\/td>\r\n<\/tr>\r\n \r\n Useful for comparing solar quotes against one another<\/span><\/td>\r\n Useful for comparing solar versus utility bill<\/span><\/td>\r\n<\/tr>\r\n \r\n Pertains to the POWER of a system<\/span><\/td>\r\n Pertains to the PRODUCTION of a system<\/span><\/td>\r\n<\/tr>\r\n \r\n Typically $3.00-4.00\/watt<\/span><\/td>\r\n Typically $0.06-0.08\/kWh<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n Cost Per Kilowatt-Hour (kWh)<\/b><\/h3>\r\nAnother measure of the relative cost of solar energy is its price per kilowatt-hour (kWh). Whereas the price per watt considers the solar system\u2019s size, the price per kWh shows the price of the solar system per unit of energy it produces over a given period of time.<\/span>\r\n
What is a kWh?<\/h3>\r\nA kilowatt-hour is a unit of energy and is equivalent to consuming 1,000 watts - or 1 kilowatt - of power over one hour.<\/strong> For reference, an energy-efficient clothes dryer uses around 2 kWh of electricity per load, while central air conditioning uses around 3 kWh per hour.\r\n\r\nWhile price per watt is most helpful in comparing the relative costs of solar bids, solar power cost per kWh is best used to illustrate the value of solar relative to buying your power from the electric utility.<\/span>\r\n\r\nFor example, the average cost of a solar system purchased through solar.com is 6-8 cents per kWh<\/strong>, depending on the size of the system, type of equipment, and local incentives.\r\n\r\nLet's compare that to the average cost of utility electricity in each state.\r\n\r\n