Pros & Cons

Solar panels cost

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QUICK FACTS

Tax Credit

30% federal tax credit available through 2032

Payback Period

Most systems pay for themselves in 10-12 years

Home Value

Homes with solar sell faster and at higher prices

Warranty

Most panels come with 25-year warranties

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Solar Panel Cost by System Size

System Size

Total Cost

Cost with Tax Credit

Cost per Watt

4 kW

$14,560

$10,192

$3.64

5 kW

$16,800

$11,760

$3.36

6 kW

$19,140

$13,398

$3.19

7 kW

$21,490

$15,043

$3.07

8 kW

$23,840

$16,688

$2.98

9 kW

$26,280

$18,396

$2.92

10 kW

$28,600

$20,020

$2.86

Solar Panel Cost Calculator: 5-Step Guide

Find Out How Much Solar Power You Need

Most homes need between 15 and 19 panels, or a 7.2 kW system.

Home Size

Est. Monthly Bill

Est. System Size

1,000 sq. ft.

$77

3.2 kW

1,500 sq. ft.

$115

4.8 kW

2,000 sq. ft.

$153

6 kW

2,500 sq. ft.

$191

7.6 kW

3,000 sq. ft.

$230

9.2 kW

Convert kW to Watts

Multiply your system size in kW by 1,000.

Example: 7.2 kW × 1,000 = 7,200 watts

Calculate Total Installation Cost

Multiply total watts by your state’s cost per watt. National average is $3.03/watt.

Example: 7,200 × $3.03 = $21,816

Subtract Any Rebates

Check with your local government and utility for rebates.

Example: $21,816 − $2,000 rebate = $19,816

Apply the Federal Tax Credit

Multiply post-rebate cost by 30%.

Example: $19,816 × 30% = $5,945 tax credit → final cost $13,871

Note: The tax credit is applied when you file your taxes, not upfront.

State

Avg Size (kW)

Before Incentives

After Tax Credit

Cost/Watt

Alabama

5.8

$21,047

$14,733

$3.42

Alaska

5.1

$19,084

$13,359

$3.52

Arizona

7.0

$20,759

$14,531

$2.79

Arkansas

8.1

$22,554

$15,788

$2.63

California

5.9

$20,840

$14,588

$3.33

Colorado

4.9

$17,799

$12,459

$3.41

Connecticut

7.0

$21,826

$15,278

$2.93

Delaware

7.7

$24,065

$16,846

$2.94

District of Columbia

6.0

$22,457

$15,720

$3.53

Florida

8.4

$23,351

$16,346

$2.61

Georgia

6.3

$21,166

$14,816

$3.17

Solar Panel Cost Breakdown: What Are You Paying For?

When you install a solar energy system, you’re getting more than just solar panels. Multiple pieces of equipment must be installed so the panels can power your home.

Item

Percentage of Cost

Average Cost per Watt

Solar Panels

12%

$0.36

Inverter

11%

$0.33

Racking

8.5%

$0.26

Electrical

9.5%

$0.29

Labor

5.5%

$0.17

Permitting & Inspections

$0.09

Customer Acquisition

15%

$0.45

Soft Costs

19.5%

$0.59

Profit

16%

$0.48

Incentives Help Save on Solar Panel Costs

Solar installations are not cheap, but incentives and rebate programs can lower costs by 30% or more. The federal solar tax credit equals 30% of installation costs, saving homeowners an average of $6,545. Local utility and state programs can reduce upfront costs by hundreds to thousands more. Top states for incentives include Massachusetts, New Jersey, and Washington D.C.

Get Your Free Solar Savings Estimate

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How Much Do Solar Panels Cost If…

Going solar in 2026 lets you start saving on energy bills immediately while enjoying clean, long-term power.

A DIY solar installation can save on upfront costs, but it requires technical knowledge, proper permits, and careful setup to ensure safety and efficiency.

If I get multiple quotes

Getting multiple quotes helps you compare prices, equipment, and services to find the best value for your solar installation.