How Much Do Solar Panels Cost in 2026?

Average cost of solar panels in 2026

The typical home needs a 5-kilowatt (kW) to 10 kW solar system, depending on your electricity usage. To estimate your ideal system size, check last year’s electricity bill for total kilowatt-hours (kWh) used, then divide by 1,200. For example, if you used 12,000 kWh, you’d need about a 10 kW system.

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

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.”

If you just need a few panels for a small do-it-yourself project, expect to pay around $200 to $350 per panel (between $0.80 and $1.40 per watt).

Author’s note

These prices don’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. We explain more hidden costs of going solar in the next section.

Average solar panel installation cost by system size

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

Solar installation costs vary significantly by location due to differences in labor rates, local incentives, permitting fees and electricity prices. The national average is around $20,000.

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 matters more than upfront cost is your payback period

How quickly you'll recoup your investment through electricity savings. States with high electricity rates (like California, Hawaii and Massachusetts) offer faster payback periods despite higher installation costs, while states with cheap electricity take longer to break even.

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

Solar incentives

Since the federal solar investment tax credit (ITC) expired last year, focus on maximizing state and local incentives.

Many states offer rebates, performance-based incentives or property tax exemptions that can significantly reduce your costs even without the federal credit.

What affects your solar installation cost?

Several factors determine your final solar panel price. Understanding these can help you estimate costs and find savings opportunities.

Your electricity usage

The more electricity you use, the larger your system needs to be. A home using 12,000 kWh per year needs roughly a 10 kW system, while a home using 6,000 kWh only needs 5 kW—nearly half the cost.

Your location

Installation costs vary by state due to labor rates, permitting fees and local regulations. But high electricity rates in states like California and Massachusetts mean faster payback periods despite higher upfront costs.

Your roof’s angle

Homes with unshaded, south-facing roofs produce more electricity per panel, meaning you can use fewer panels to meet your energy needs — lowering overall costs.

“The worst place would be to install on north-facing roofs, especially if those roofs have a high pitch,” Flores said.

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.”

Solar panel installation cost breakdown

Here's what you’re actually paying for when you install solar panels. These costs are for a typical 7 kW residential system ($19,873 average).

Solar panels

Monocrystalline or polycrystalline panels are the most common types of solar panels. Most residential installations use monocrystalline photovoltaics (PV) panels, which offer up to 24% efficiency and perform better in limited space and extreme temperatures. Polycrystalline panels are cheaper but less efficient (15% to 20%), making them better for homes with ample roof space.

» COMPARE: Best cheap solar panels

Other solar equipment

Aside from the panels, additional solar equipment factors into your 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 add-ons

• Storage batteries 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.
• Electric vehicle chargers: If you have an electric vehicle, you probably want an EV charger, which can cost a few thousand dollars.
• Critter guards: 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.

» MORE: Why are solar panels so expensive?

Labor costs 

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.

Pro tip

It’s always worth it to compare a few solar quotes. 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.

» MORE: How to get the best solar quotes

Hidden costs of going solar

The sticker price for solar panels doesn’t tell the whole story. Here are the additional expenses homeowners often discover after committing to solar.

Electrical panel upgrades: $1,500 to $4,000

Many older homes need electrical panel upgrades to handle solar power systems. Your installer should assess this during the site evaluation, but it’s one of the most commonly overlooked costs.

For instance, if your home has a 100-amp panel and you're adding an 8 kW system, you’ll likely need to upgrade to 200 amps.

Roof repair and replacement: $5,000 to $15,000

Solar panels 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, when 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

Permits and inspections: $300 to $1,000

Inspections ensure your solar panel installation follows local regulations. 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 home solar system fees at $450.

Interconnection fees: $75 to $500

Expect to pay a one-time fee to connect your solar system to the local grid, usually $75 to $300 for homes under 10 kilowatts (kW). If your area needs grid infrastructure upgrades (more common in rural locations), fees can exceed $500.

Ongoing maintenance: $100 to $350

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.

Future equipment replacement

Occasional repairs or replacements (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.

Other potential repairs:

• Damaged panels from hail or debris: $200 to $500 per panel
• Wiring issues or connection problems: $200 to $800
• Monitoring system upgrades: $100 to $500

To help catch issues early, most solar energy companies offer monitoring apps for solar energy systems. 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).

Pro tip

When comparing quotes, ask explicitly: “What's NOT included in this price?” Make installers list potential additional costs like panel upgrades, roof work or permit fees. Hidden costs are easier to manage when you know about them upfront.

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.

Solar savings go the furthest in places with high electricity rates, like Connecticut, California and Hawaii.

Switching to solar could reduce utility bills 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 energy bills are 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.

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 explained, “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.

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 generate “free” electricity, but installing a system still costs money. 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.

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.