How much do solar panels cost in 2025?

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 solar system costs.

Average cost of solar panels by system size

How much does it cost to get solar panels in different states?

The price of solar panels changes depending on where you live, but the average for installation is just under $29,000 or $2.75 per watt. 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

Solar panel installation cost breakdown

Expect the cost per watt to be between $2 and $3. As of publishing, the average cost per watt is $2.84. 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.

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. However, battery storage typically costs between $7,000 and $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 12,000 kWh last year, you would need a 10-kW system.

» MORE: Why are solar panels so expensive?

The condition 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 necessary roof repair or replacement before going solar. It’s more cost-effective than removing the panels and reinstalling them later.

For example, 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.

» MORE: Solar energy pros and cons

The angle of your roof

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.”

Labor and permits

• 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 50 cents 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).

Annual maintenance expenses

Solar panels require very little upkeep. If you’re able to clean the solar panels 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.

Warranty coverage and repair costs

Occasional repairs (depending on the warranty) can add to your overall cost. For example, inverter warranties typically last  10 to 15 years. If your system’s inverter fails after that, a replacement could cost anywhere from $1,000 to $3,000, depending on the type and installation complexity.

Solar panel warranties typically last 25 to 30 years.

Other possible repair expenses include fixing wiring issues, replacing damaged panels (rare, but possible from hail or falling debris) or upgrading monitoring hardware.

To help catch issues early, most solar energy companies offer system monitoring apps. These tools let you track your system’s energy production in real time and can alert you to performance drops (a sign that something may need maintenance).

How much can solar panels save you?

On average, homeowners with a complete solar system save $41,000 to $62,000 on total avoided energy costs over 25 years. 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 rates, like Connecticut, California and Hawaii.

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

Anecdotally, Diane in Pennsylvania said their electric bills are between $0 and $10, even in the summer, and Tina 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. 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.

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.

How to save money on solar panels

The first thing is to make sure your electrical loads are as small as can be, according to Flores. (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.)

“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.

It’s also worth it to compare a few solar 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 solar incentives

Until the end of the year, 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.

The federal solar tax credit expires at the end of 2025.

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.

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 solar panel 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. But if I paid cash, it was $15,000 and they gave me a $1,000 debit card. It only cost me $14,000.”
• Get a loan: Financing through a solar loan makes sense as long as your loan payment is cheaper than your current electricity bill. For example, 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.

» EXPLORE: Solar financing options

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 in solar 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.