How Much Do Solar Panels Cost in 2026?

Average cost of solar panels in 2026

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).

For a full-service solar panel installation, the national average is around $20,000 before considering any solar incentives. Large systems with multiple batteries or whole-home backup power can cost far more than the national average.

On the high end, we talked to a solar customer in Hawaii who spent $100,000 going solar. This unusually high price was likely due to factors like battery storage, a large home with high energy usage and Hawaii’s higher installation costs.

Average solar panel prices by system size

Solar panel costs by state

Solar installation costs vary significantly by location due to differences in labor rates, local incentives, permitting fees and electricity prices. But high electricity rates in states like California and Massachusetts mean faster payback periods despite higher upfront costs.

Average solar panel costs by state

These national averages provide a benchmark, but your specific costs are determined by a combination of energy load, local labor and equipment choices.

Cost per watt

Like price per square foot for homes, this “cost per watt” helps you compare solar companies fairly, regardless of system size.

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. Most residential solar systems cost between about $2 and $3 per watt. As of publishing, the average cost per watt is $2.82.

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.”

What’s considered a good solar price?

Under $2.50 per watt is generally considered a good price for solar panels.

Real-world example

In 2022, Brad in California told us he realized his solar quote was overpriced after comparing the system’s “cost per watt” to national averages.

Compare 3 to 5 quotes before choosing a company.

He was quoted $26,000 for a 4.97 kW system — more than $5 per watt. At the time, most home solar systems were averaging closer to $2.75 per watt, which would put a system that size around $14,000 before incentives.

Brad said the quote seemed especially high because a much larger system installed on the same property years earlier had cost about the same amount.

His review highlights why comparing solar quotes by cost per watt — not just total price — can help you spot overpriced systems.

How much do solar panels cost per month?

Solar panels don’t have a monthly cost unless you finance or lease them. Most homeowners pay about $100 to $300 per month with a loan or $150 to $250 per month with a lease.

In many cases, energy savings help offset that cost. Many homeowners still pay small utility fees or connection charges, even with solar. Lynn in Texas told us that her home has “never had a zero electric bill,” even with strong summer production.

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.

What affects your solar installation cost?

How much it costs to install solar panels depends on several factors. Understanding these can help you estimate costs and find savings opportunities.

Your electricity usage

A typical American household needs a 7-kW system.

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.

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.

Estimated solar costs by current electric bill

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.”

Type of 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.

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 ($19,547 average).

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.

Tree removal: $400 to $2,000

You might need to remove or trim trees before installing solar panels, especially if shade blocks sunlight from reaching the roof. Tree work can add anywhere from a few hundred to several thousand dollars to the total project cost, depending on the size and location of the trees. Even partial shade can reduce solar production, so installers may recommend trimming or removal to improve efficiency.

Roof repair or 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.

Get a thorough inspection of your roof now, and take pictures.

It’s very expensive to remove the panels, fix your roof and reinstall the panels. Devin in California found this out the hard way. They 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.

Bundling these massive home improvement projects together often streamlines the process and lowers the overall price tag. Lori in Massachusetts secured a package deal where her provider “replaced my roof and took down a tree” before installing the actual panels.

» 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.

Routine upkeep can quickly drain any anticipated energy savings if those requirements are buried in the paperwork. Discovering she had to pay a crew up to $800 twice a year just to wash her new panels came as a “total surprise” to Julie in Texas.

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).

Watch out for solar loan fees

Financing can make solar panels easier to afford upfront, but it can also make the system much more expensive overall. Some solar loans include large “dealer fees” hidden in the total price.

For example, a system that costs $18,000 with cash might cost $25,000 or more when financed.

Low interest rates can also be misleading. Some loans advertise rates like 1.99%, but make up for it with higher upfront fees built into the contract.

Before signing, ask:

• What’s the cash price?
• What’s the financed price?
• How much will I pay over the full loan term?

Solar incentives

Since the federal solar investment tax credit (ITC) expired last year, you should focus on maximizing state and local incentives. A typical homeowner saved $5,962 with this credit on an average-sized system.

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

For example, Oregon has rebates up to $5,000 for solar panels and up to $2,500 for battery storage. There is also a property tax exemption on solar equipment. In California, what solar incentives you’re eligible for largely depends on your utility provider.

Pro tip

Read the fine print carefully. Some solar providers quietly claim local incentives for themselves. For instance, when Mr. Valdez in California tried to use a $4,000 state battery rebate to offset his costs, he discovered his contract stipulated that “all state and local rebates” went directly to his installer instead.

Payback period and ROI

Solar panels typically pay for themselves within five to 15 years, depending on how quickly you 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.

Anecdotally, Diane in Pennsylvania said their electric bills are between $0 and $10, and Tina in New Jersey told us their monthly energy bills are only $4.95 since going solar.

For some, it’s less about saving money right away and more about shifting expenses. As Bobby in California put it, “the money I would spend on my electric bill, I’m paying for solar panels.”

How much can solar panels save you?

On average, homeowners with a solar panel system save around $45,000 on total avoided energy costs over 25 years. Solar savings go the furthest in places with high electricity rates, like Connecticut, California and Hawaii.

Solar panels can lower your electricity bill by 75% or more.

Escaping skyrocketing utility costs is the primary driver for adoption in high-rate regions. Dan in California locked in a fixed lease to avoid his local provider's annual rate hikes, securing power that was “almost 50% less than PG&E” from the very first day.

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.

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.

• 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.
• 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.”

» EXPLORE: Solar financing options

FAQ

Bottom line: Are solar panels worth it?

Solar panels can significantly reduce electricity costs over time. 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 money by going solar.