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How much do solar panels cost in 2025?

$18,000 to $43,000 on average, depending on system size, location and available incentives

Take control of your energy costs with solar power.

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    By: Kathryn Parkman
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    Edited by: Justin Martino

    Take control of your energy costs with solar power.

      EnergySage
      solar panels on houseroof in front of blue sky with sun

      Solar panels generate “free” electricity, but installing a system still costs money. A typical American household needs a 10-kilowatt (kW) system to adequately power their home, which costs $28,241 in 2025. That price effectively drops to $19,873 after considering the full federal solar tax credit.

      Key Insights

      People with solar panels can save around $62,219 on utility bills over 25 years.

      Jump to insight

      The federal solar tax credit is the best financial incentive for most homeowners going solar.

      Jump to insight

      Financing solar panels might be a good idea if your loan payments are less than your power bill.

      Jump to insight

      Average solar panel cost in 2025

      A small residential solar panel system costs around $14,210 before considering any financial incentives. On the bright side, that price effectively drops to $9,937 after considering the full federal solar tax credit. Depending on your household energy needs, you might need a larger or smaller system.

      If you just need a few panels for a small do-it-yourself solar project, expect to pay around $200 to $350 per panel (between $0.80 and $1.40 per watt). Note: The table below doesn’t include the cost of a solar storage battery, which can add anywhere from $7,000 to $18,000 to your total system costs.

      Average solar panel system cost by system size

      How much do solar panels cost in different states?

      The price of solar panels changes depending on where you live. On the high end, we talked to a solar customer in Hawaii who spent $100,000 going solar. Dion in Nevada said their 10-kW system cost about $20,000, which is about the national average price for a 7-kW system.

      What else affects solar installation costs? 

      • How much electricity you use
      • How much sunlight your home gets
      • Tax credits and local rebates
      • The condition of your roof
      • Whether you want a battery for storing power

      Average solar panel costs by state

      *Before the 30% federal tax credit (ITC) or other financial incentives; **How long it takes to break even on solar panel installation costs with cash purchase; ***Total utility power costs avoided over 25 years
      Explore solar panel cost by state

      Solar panel installation cost breakdown

      Most solar companies set the price according to the solar system's wattage. A solar installation's “cost per watt” is a little like the “price per square foot” when you buy a house. It helps compare the value of solar energy systems in different sizes. Expect the cost per watt to be between $2 to $3. As of publishing, the average cost per watt is $2.84.

      Solar panels typically pay for themselves within 5 to 15 years.

      It all boils down to how much you’re paying for each unit of power, according to Robert Flores, a solar expert at The University of California, Irvine’s Clean Energy Institute. The key thing, according to Flores: “If you’re closer to $2 per watt, it’s almost always going to make sense financially. When you get to mid-twos or threes, you’re competing with just buying electricity from the utility to where it doesn’t make sense.”

      Type and quality of the panels

      Monocrystalline or polycrystalline panels are the most common types of solar panels used on homes and businesses. The difference between the two comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

      • Monocrystalline panels are considered the best bang for your buck. With up to 24% efficiency, they work well in limited roof space and handle extreme temperatures better.
      • Polycrystalline panels are cheaper but less efficient. With 15% to 20% efficiency, they are good for large installations with more space but lose efficiency in extreme temperatures.

      » COMPARE: Best cheap solar panels

      Storage batteries and other equipment

      Solar batteries let you keep your lights on even when your local power grid is down. They are also expensive — usually $7,000 to $18,000. If you live in an area with frequent power outages, a solar energy storage battery is worth considering. Other equipment also factors into the overall price:

      • Inverter: A solar inverter converts the generated DC electricity into AC electricity that can be used to power your home. The cost of an inverter depends on its size and efficiency, but these devices typically cost between $1,000 and $3,000.
      • Mounting system: This is what holds rooftop solar panels in place. Costs vary depending on the type of solar installation, but it generally costs between 7 and 20 cents per watt.
      • Electrical wiring and hardware: This includes the wiring, switches and circuit breakers required to connect the solar panel system to your home's electrical system. Electrical wiring and hardware costs typically range from 10 to 20 cents per watt.
      • Optional equipment: If you have an electric vehicle, you probably want an EV charger, which can cost a few thousand dollars. Critter guards are worth considering if you live in an area with lots of birds or squirrels. That’s another $400, as Matt in Idaho found out.
      Size of your system

      To estimate what size system you need, first look up how many kilowatt-hours (kWh) you used last year on your electricity bill. Divide that number by 1,200. This is roughly what system size you need. For example, if your home used 30,000 kWh last year, you would need a 25-kW system.

      » MORE: Why are solar panels so expensive?

      Additional soft costs

      Soft costs include labor, permits, deposits and administrative expenses.

      • Labor: Solar installation costs include hiring an electrician to handle wiring, connect the system to your house and set up various electronics to convert the power from the panels to the same AC voltage you have in your home. Labor costs usually range from $0.50 to $1 per watt but can vary greatly depending on where you live and the complexity of the installation.
      • Permits: Permits ensure the solar panel installation follows local regulations. Permitting fees vary based on location, but residential solar permits typically cost a few hundred dollars. Some state regulations cap permitting fees (for example, Colorado caps them at $500 for residential projects and $1,000 for commercial solar panel projects; California caps residential fees at $450).
      • Maintenance: Occasional panel cleaning and repairs (depending on the warranty) can add to your overall cost. Most solar energy companies offer monitoring apps that help you see how much energy your solar system produces and when it may require maintenance.
      The condition and angle of your roof

      Solar panels are designed to last 25 to 30 years, and your roof needs to last just as long. We recommend taking care of any roof repairs before installing solar panels. It’s more cost-effective than removing the panels and reinstalling them later.

      One solar customer, Devin in California, discovered leaks in their roof a year after installing panels. It cost $5,000 to remove and reinstall the panels after the roof was replaced. “If I had known the roof was in such bad shape, I would've replaced the roof before installing the panels,” Devin told us. Get a thorough inspection of your roof now and take pictures.

      It also depends on where the panels are installed on your roof. “The worst place would be to install on north-facing roofs, especially if those roofs have a high pitch,” Flores said. For example, if the only place you can install is on a north-facing roof with a 30-degree pitch, you’re going to increase the cost of solar by 30% to 40%. “You’ll be investing more for the same amount of production,” Flores said. “Dollar per unit of electricity gets a lot more expensive.”

      » MORE: Solar energy pros and cons

      If you’re closer to $2 per watt, it’s almost always going to make sense financially.”
      —Robert Flores, solar expert at The University of California, Irvine’s Clean Energy Institute

      How much can solar panels save you?

      It all depends on what your local utility charges for electricity, according to Robert Flores, a solar expert at The University of California, Irvine’s Clean Energy Institute. Solar savings go the furthest in places with high electricity costs, like Connecticut, California and Hawaii.

      Switching to solar could reduce your energy bill by 75% or more.

      On average, homeowners with a complete solar system save $41,000 to $62,000 on total avoided utility costs over 25 years. Anecdotally, Diane in Pennsylvania said their electric bills are between $0 and $10, even in the summer, and Trina in New Jersey told us their monthly electric bill is only $4.95 since going solar.

      But your solar panels have to actually work to see any savings. In the worst-case scenario, you end up paying thousands for midtier solar equipment from a company with no follow-up or support. For example, Rob in Indiana paid $62,000 for a system that underperforms their expectations. “Now I have an electric bill that has not dropped in any significance and a monthly payment on this system for the next 15 years,” Rob told us.

      Jennifer in Colorado had a similar issue. Maria in California had a similar issue with her system not meeting her household’s energy needs. With the right solar company, though, you could be well on your way to long-term savings.

      How to calculate potential savings

      We suggest using NREL's PVWatts Calculator to estimate your solar installation costs. Project Sunroof is a free online tool to figure out when you’ll start saving more money than you spent.

      » MORE: Common solar misconceptions

      How you can save money on solar panels

      The first thing is to make sure your electrical loads are as small as can be, according to Robert Flores, a solar expert at The University of California, Irvine’s Clean Energy Institute.

      “If you have a 20-year-old refrigerator, aging air conditioning or electric baseboard heating,” he said, “it might make sense to replace some of your appliances first.” Reducing your electrical load now means you’ll need fewer solar panels to power your house.

      Considering the difference between a 7-kW system and an 8-kW system is almost $3,000, it's smart to get your electrical loads as low as possible before going solar.

      It’s also worth it to compare a few quotes, no matter the size. Some solar companies have a lot more overhead due to marketing efforts. You might get a better deal working with a smaller, local company instead of one of the big national players.

      Government incentives for solar panels

      The federal solar investment tax credit (ITC) lets you take 30% of your total solar panel cost off your taxes. For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $5,000 in taxes, the $3,000 credit reduces what you owe to $2,000.

      Leasing a system is cheaper upfront, but you won’t get the federal tax credit.

      Any unused portion rolls over to the next tax year. However, it’s possible to get a refund check if the ITC credit reduces your taxes to the point where you overpaid during the year. If you lease your system or enter a purchase agreement, you won’t qualify for this tax break.

      You might be able to combine the ITC with local solar incentives. Some places have sales and property tax exemptions to encourage solar energy adoption. Others, not so much. Find more information in the dropdown below. The Database of State Incentives for Renewables & Efficiency (DSIRE) is another helpful source for finding new local solar initiatives.

      Explore solar incentives by state

      How to pay for solar panels

      There are a few ways you can lease or buy solar panels with no or minimal upfront costs. You still need to be aware of what the long-term costs are, who actually owns the system and who is responsible for maintenance if something goes wrong.

      • Pay upfront: If you can afford it, paying upfront is usually the better long-term deal. For example, consider this review from David in California: “Financing it was $18,000,” he said. “But if I paid cash, it was $15,000 and they gave me a $1,000 debit card. It only cost me $14,000.” Assuming an upfront purchase, it typically takes five to 15 years to break even on solar installation costs
      • Get a loan: Financing through a solar loan makes sense as long as your loan payment is cheaper than your current electricity bill. Christian in California “did the math” on their solar loan, and everything worked out: “Instead of paying $100 or $200 for the electric bill, if I use the same amount of energy or less, I will end up paying just the financing, which is $150,” he said. “But only for six years, and then after that, the panels will be mine and I don't have to pay anymore.”
      • Lease the system: With a solar lease, you make monthly payments to use a solar power system installed on your property. At the end of the term, you typically have the option to renew the lease, purchase the system at fair market value or have the leasing company remove the system from your property.
      • Enter a power purchase agreement: Like solar leases, a power purchase agreement (PPA) is another way to go solar without an upfront investment. An energy service company (ESCO) installs solar panels on your house, owns them and maintains them. You then buy the electricity generated by the panels at a fixed rate.

      Take control of your energy costs with solar power.

        FAQ

        How many solar panels are needed for an average household?

        How many solar panels you need varies based on your energy usage, the efficiency of the panels and other factors.

        The average household uses 886 kWh per month in electrical power, according to the Energy Information Administration.

        A solar panel typically produces about 1.5 kilowatt-hours (kWh) per day, so if your daily kWh usage is 30, you would need 20 solar panels to generate all of your energy needs.

        • Energy usage: To estimate the amount of energy you’ll need, you need to know your average kWh. This number should be on your utility bill as “kWh used.” To get your monthly average, look at bills for the past year, add up the stated kWh used and divide by 12.
        • Panel output: Next, you need to find the solar panel output, which is the amount of energy the panel can produce per hour of sunlight it receives.

        » WHAT’S THE DIFFERENCE? kW vs. kWh

        Do solar panels increase the value of your home?

        Yes. Studies show that homes with solar panels sell for more than homes without them, and that increase in value can be significant. How much value the solar panels add depends on your system's quality, location and other factors.

        • A study by the Department of Energy’s Lawrence Berkeley Laboratory found homes with solar panels sold for an average cost of around $15,000 more than comparable homes without solar panels.
        • A National Bureau of Economic Research study found that solar panels added an average of $20,194 to the sale price of homes in the San Diego and Sacramento areas.
        • Zillow found that homes with solar panels sold for an average of 4.1% more than comparable homes without solar panels.

        » MORE: What is solar panel ROI?

        How long do solar panels last?

        Most solar panels last about 25 to 30 years. As with most technology, solar panels degrade over time. With proper upkeep, maintenance and monitoring you can ensure your solar panels function at maximum efficiency.

        How does net metering work?

        Net metering is a system that lets you send the extra power your panels produce back into the power grid (the big network of wires that carries electricity to everyone’s houses). In exchange, you get a credit on your electricity bill.

        This also means that if your solar panels don’t generate enough electricity (like on cloudy days), you can still use electricity from the grid without paying for it because you’ve already earned credits through net metering.

        A reviewer in Texas explains how it worked for them: “When I first signed up, my contract was a net metering, so I paid a certain cost of kilowatt-hours used, and the utility company purchased back from me at that same price. If I generated 200 and consumed 200, my net usage was zero, and my bill was essentially zero."

        » MORE: Greenest states in the U.S.

        How are solar panels installed?

        The technicians install wiring connecting the panels to an inverter, which converts the DC power generated by the panels into AC power for use in your home. Installing solar panels typically takes only a few days.

        “The process of buying and installing solar panels is relatively straightforward, and many companies offer turnkey solutions that take care of everything from the design to the installation of the system,” said Alan Duncan, founder of Solar Panels Network USA.

        Once the solar installation is complete, an inspector checks the system to ensure it meets local safety and building codes. The system is then connected to your utility's power grid. If you’re not grid-connected, you’ll need to get a battery to store solar energy.

        Once that’s done, your solar panel system is activated and ready to generate electricity. You can monitor the system's performance and energy production using a monitoring system provided by the installer.

        » LEARN: What is a solar home?

        How much does solar panel maintenance cost annually?

        Solar panels require very little upkeep. If you’re able to clean them yourself, the only maintenance cost will be the water used to hose them down. If you hire a professional to clean your solar panels, it will cost around $100 to $350, on average.

        Every few years, you’ll also want someone to come out to inspect your system to make sure everything is working properly. That will cost you about the same as a professional cleaning.

        How long does it take for solar panels to pay for themselves?

        Solar panels typically pay for themselves within 5 to 15 years. Factors that influence the payback period include electrical costs, the size and efficiency of your solar system, incentives and tax credits, sun exposure, net metering, energy consumption and maintenance costs.

        Bottom line: Are solar panels worth it?

        Solar panels can help you save money on electricity, but they do cost money to install — about $18,000 to $43,000 in 2025. Financially, whether or not the investment is worth it for you depends on how much you can save on your electricity bill. In the best-case scenario, it’s easy to make the switch, and you’re happy with the system’s performance.

        Is solar worth it in your state?
        Article sources

        ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:

        1. EcoWatch, “Solar Panel Cost In 2025 (Homeowner's Installation Savings Guide).” Accessed March 3, 2025.
        2. EnergySage, “Solar panel cost in 2025: It may be lower than you think.” Accessed March 3, 2025.
        3. National Renewable Energy Laboratory, “Solar Installed System Cost Analysis.” Accessed March 3, 2025.
        4. SolarReviews, “Solar Panel Costs in 2025: It's Usually Worth It." Accessed March 3, 2025.
        5. U.S. Department of Energy, “Federal Solar Tax Credit Resources.” Accessed March 3, 2025.
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