How much do solar panels cost?
How much do solar panels cost?
$0.08 – $0.10 cost per kWh
$2.53 – $3.15 cost per watt installed (residential)
$10,600 – $26,500 6 to 12 kW system cost installed
Average cost of solar panels
The average cost to install solar panels is $10,600 to $26,500Â (after 30% tax credit) for a 6kW to 12kW system to power an entire house. Solar panels cost $2.53 to $3.15 per watt installed for residential systems. Solar energy costs $0.08 to $0.10 per kWh to produce on average.
The average solar panel payback period is 7 to 12 years. Solar energy saves $600 to $2,000 per year on electricity costs.
National Average Cost | $16,100 |
Minimum Cost | $3,500 |
Maximum Cost | $35,000 |
Average Range | $10,600 to $26,500 |
Most solar panels last up to 50 years, have a 25-year warranty, and start generating a return on investment after 8 years.
Solar panels generate electricity approximately 30% cheaper than utility electricity over their lifetime.
Solar panel savings are $10,000 to $30,000 over 20 years depending on your location and the cost of electricity.
Use our solar calculators below to assess your total costs, or get free estimates from solar installers near you.
Solar panel cost calculator
The average residential solar installation is 3 kW to 10 kW, depending on your home's size, location, and energy needs.
The federal solar tax credit reduces your overall costs by 30%. Many states and solar manufacturers offer additional incentives and rebates to further reduce your costs.
System Size | Before Tax Credit | After 30% Tax Credit |
---|---|---|
2 kW | $5,060 – $6,300 | $3,542 – $4,410 |
3 kW | $7,590 – $9,540 | $5,313 – $6,615 |
4 kW | $10,120 – $12,600 | $7,084 – $8,820 |
5 kW | $12,650 – $15,750 | $8,855 – $11,025 |
6 kW | $15,180 – $18,900 | $10,626 – $13,230 |
7 kW | $17,710 – $22,050 | $12,397 – $15,435 |
8 kW | $20,240 – $25,200 | $14,168 – $17,640 |
10 kW | $25,300 – $31,500 | $17,710 – $22,050 |
12 kW | $30,360 – $37,800 | $21,252 – $26,460 |
15 kW | $37,950 – $47,250 | $26,565 – $33,075 |
20 kW | $50,600 – $63,000 | $35,420 – $44,100 |
25 kW | $63,250 – $78,750 | $44,275 – $55,125 |
How Many Solar Panels Do I Need?
The average family uses 11,000 kWh per year and needs 26 to 33 solar panels to power the whole house. One solar thermal panel generates enough energy to power a hot water heater for a family of four.
The total number of panels needed depends on your location, roof size, and energy needs. To calculate how many solar panels you need, look at your annual kWh (kilowatt-hours) usage on your utility bills and referenced the table and map below.
System Size | Panels Needed | Average kWh Produced Annually |
---|---|---|
2 kW | 6 – 8 | 2,652 |
3 kW | 10 – 12 | 3,978 |
5 kW | 16 – 21 | 6,630 |
6 kW | 20 – 25 | 7,956 |
8 kW | 26 – 33 | 10,608 |
10 kW | 33 – 41 | 13,260 |
12 kW | 40 – 49 | 15,912 |
15 kW | 50 – 61 | 19,890 |
18 kW | 59 – 73 | 23,868 |
*Table based on 250 watt panels at average solar production ratios of 1.3 to 1.6.
Your home's location is a significant factor when estimating how many solar panels you need to power your house. Regions with less sunlight require larger systems to handle 100% of their energy needs.
Using the map below:
Multiply the number in your shaded region by the estimated size of your system in kW.
Then, multiply the result by 0.78 to account for inefficiencies and energy conversion losses.
For example, if you live in Texas with a score of 1700 and install an 8 kW system, your system will produce approximately 10,608 kWh annually:
The table below shows the approximate system size needed in each region to produce 11,000 kWh for the average home.
Region | System Size (kW) |
---|---|
1200 | 11.75 kW |
1300 | 10.85 kW |
1400 | 10.07 kW |
1500 | 9.40 kW |
1600 | 8.81 kW |
1700 | 8.30 kW |
1800 | 7.84 kW |
1900 | 7.42 kW |
2000 | 7.05 kW |
2100 | 6.71 kW |
Solar Panel Cost Per Watt
Residential solar panels cost $2.53 to $3.15 per watt with installation, before any tax credits or incentives. Commercial solar costs $1.06 to $1.83 per watt. Solar systems have ratings based on the electricity produced annually in average conditions.
Solar Energy Cost Per kWh
Residential solar energy costs $0.08 to $0.10 per kWh on average, and commercial or utility-scale solar power costs $0.06 to $0.08 per kWh. Prices include the federal solar tax credit and vary drastically based on the amount of sunlight and type of solar panels installed.
Unit | Residential | Commercial |
---|---|---|
Per kWh | $0.08 – $0.10 | $0.06 – $0.08 |
Per Watt | $2.53 – $3.15 | $1.06 – $1.83 |
These figures represent the Levelized Cost of Electricity (LCOE), which is the average revenue per unit of electricity generated that would be required to recover the costs of the solar panels over their life expectancy.
Cost of Solar Panels Per Square Foot
The cost of solar panels to power your house are $4 to $10 per square foot with installation. However, most installers estimate solar costs by the amount of energy needed, or $2.53 to $3.15 per watt before any tax credits or incentives.
Below are cost estimates based on home size. Overall costs depend on the solar panel type, the roof's size and design, and your energy needs.
Home Size (SF) | Average Cost |
---|---|
1,000 | $4,760 – $5,950 |
1,500 | $7,140 – $8,925 |
2,000 | $9,520 – $11,900 |
2,500 | $11,900 – $14,875 |
3,000 | $14,280 – $17,850 |
Residential Cost of Solar Panels By State
The average cost of solar varies significantly per state, depending on the local cost of electricity. Below are the average prices per watt and by system size across the United States after subtracting the 30% federal solar tax credit.
State | Per Watt* | 6 kW System* | 10 kW System* |
---|---|---|---|
Alabama | $2.02 – $2.85 | $12,120 – $17,100 | $20,200 – $28,500 |
Alaska | $2.23 – $3.13 | $13,380 – $18,780 | $22,300 – $31,300 |
Arizona | $1.88 – $2.35 | $11,286 – $14,118 | $18,810 – $23,530 |
Arkansas | $2.42 – $2.74 | $14,520 – $16,440 | $24,200 – $27,400 |
California | $1.82 – $2.29 | $10,926 – $13,758 | $18,210 – $22,930 |
Colorado | $1.96 – $2.39 | $11,730 – $14,310 | $19,550 – $23,850 |
Connecticut | $1.99 – $2.49 | $11,994 – $14,994 | $19,990 – $24,990 |
Washington D.C. | $1.75 – $2.57 | $10,518 – $15,450 | $17,530 – $25,750 |
Delaware | $1.95 – $2.13 | $11,742 – $12,810 | $19,570 – $21,350 |
Florida | $1.48 – $2.09 | $8,880 – $12,552 | $14,800 – $20,920 |
Georgia | $1.91 – $2.14 | $11,448 – $12,852 | $19,080 – $21,420 |
Idaho | $2.03 – $2.22 | $12,162 – $13,314 | $20,270 – $22,190 |
Illinois | $2.01 – $2.52 | $12,078 – $15,162 | $20,130 – $25,270 |
Indiana | $2.07 – $2.49 | $12,444 – $14,940 | $20,740 – $24,900 |
Iowa | $2.20 – $2.38 | $13,200 – $14,268 | $22,000 – $23,780 |
Kansas | $1.49 – $2.06 | $8,940 – $12,360 | $14,900 – $20,600 |
Kentucky | $2.35 – $3.04 | $14,100 – $18,240 | $23,500 – $30,400 |
Louisiana | $1.77 – $2.33 | $10,644 – $13,980 | $17,740 – $23,300 |
Maine | $1.85 – $2.35 | $11,100 – $14,100 | $18,500 – $23,500 |
Maryland | $1.67 – $2.16 | $10,026 – $12,942 | $16,710 – $21,570 |
Massachusetts | $1.94 – $2.37 | $11,628 – $14,376 | $19,380 – $23,960 |
Michigan | $1.99 – $2.50 | $11,976 – $14,976 | $19,960 – $24,960 |
Minnesota | $2.01 – $2.37 | $12,000 – $14,244 | $20,000 – $23,740 |
Mississippi | $1.98 – $2.75 | $11,880 – $16,500 | $19,800 – $27,500 |
Missouri | $1.71 – $2.42 | $10,260 – $14,520 | $17,100 – $24,200 |
Montana | $1.86 – $2.34 | $11,148 – $14,064 | $18,580 – $23,440 |
Nebraska | $1.74 – $2.88 | $10,440 – $17,280 | $17,400 – $28,800 |
Nevada | $1.92 – $2.13 | $11,526 – $12,762 | $19,210 – $21,270 |
New Hampshire | $1.97 – $2.55 | $11,796 – $15,300 | $19,660 – $25,500 |
New Jersey | $1.76 – $2.35 | $10,530 – $14,118 | $17,550 – $23,530 |
New Mexico | $2.02 – $2.73 | $12,102 – $16,362 | $20,170 – $27,270 |
New York | $1.80 – $2.64 | $10,824 – $15,840 | $18,040 – $26,400 |
North Carolina | $1.73 – $2.27 | $10,380 – $13,632 | $17,300 – $22,720 |
North Dakota | $1.39 – $1.97 | $8,340 – $11,820 | $13,900 – $19,700 |
Ohio | $1.79 – $2.29 | $10,740 – $13,740 | $17,900 – $22,900 |
Oklahoma | $1.88 – $3.34 | $11,280 – $20,040 | $18,800 – $33,400 |
Oregon | $1.63 – $2.20 | $9,804 – $13,224 | $16,340 – $22,040 |
Pennsylvania | $1.80 – $2.60 | $10,782 – $15,630 | $17,970 – $26,050 |
Rhode Island | $2.08 – $2.44 | $12,492 – $14,652 | $20,820 – $24,420 |
South Carolina | $1.92 – $2.38 | $11,544 – $14,292 | $19,240 – $23,820 |
South Dakota | $1.88 – $2.93 | $11,280 – $17,580 | $18,800 – $29,300 |
Tennessee | $1.30 – $1.97 | $7,800 – $11,820 | $13,000 – $19,700 |
Texas | $1.75 – $2.15 | $10,494 – $12,906 | $17,490 – $21,510 |
Utah | $1.83 – $2.41 | $10,950 – $14,454 | $18,250 – $24,090 |
Vermont | $1.79 – $2.58 | $10,716 – $15,480 | $17,860 – $25,800 |
Virginia | $1.69 – $2.11 | $10,134 – $12,630 | $16,890 – $21,050 |
Washington | $1.71 – $2.19 | $10,278 – $13,110 | $17,130 – $21,850 |
West Virginia | $2.17 – $3.38 | $13,020 – $20,280 | $21,700 – $33,800 |
Wisconson | $2.11 – $2.42 | $12,666 – $14,490 | $21,110 – $24,150 |
Wyoming | $2.39 – $2.78 | $14,340 – $16,680 | $23,900 – $27,800 |
*Cost after subtracting the 30% federal tax credit.
Average Solar Panel Installation Costs By Brand
Below are total installation costs for 6kW and 10kW residential solar systems by brand after subtracting the 30% tax credit. Most solar manufacturers offer similar pricing. However, the price is typically reflective of panel quality.
Manufacturer | Per Watt* | 6 kW System* | 10 kW System* |
---|---|---|---|
Axitec | $1.57 – $2.10 | $9,450 – $12,642 | $15,750 – $21,070 |
Astronergy | $1.85 – $2.35 | $11,130 – $14,154 | $18,550 – $23,590 |
Canadian Solar Inc. | $1.65 – $2.26 | $9,954 – $13,566 | $16,590 – $22,610 |
CertainTeed Solar | $2.06 – $2.48 | $12,390 – $14,910 | $20,650 – $24,850 |
Hanwha Q CELLS | $1.73 – $2.31 | $10,416 – $13,860 | $17,360 – $23,100 |
Heliene | $1.71 – $2.28 | $10,290 – $13,692 | $17,150 – $22,820 |
Hyundai | $1.87 – $2.14 | $11,256 – $12,894 | $18,760 – $21,490 |
JA Solar | $1.72 – $2.29 | $10,374 – $13,776 | $17,290 – $22,960 |
JinkoSolar | $1.98 – $2.58 | $11,928 – $15,498 | $19,880 – $25,830 |
LG Solar | $1.89 – $2.47 | $11,340 – $14,868 | $18,900 – $24,780 |
LONGi Solar | $1.69 – $2.07 | $10,164 – $12,474 | $16,940 – $20,790 |
Mission Solar Energy | $1.52 – $2.06 | $9,156 – $12,390 | $15,260 – $20,650 |
Panasonic | $1.89 – $2.45 | $11,340 – $14,700 | $18,900 – $24,500 |
Peimar Group | $1.86 – $2.24 | $11,172 – $13,440 | $18,620 – $22,400 |
Phono Solar | $2.10 – $2.49 | $12,642 – $14,952 | $21,070 – $24,920 |
REC Group | $1.92 – $2.32 | $11,550 – $13,944 | $19,250 – $23,240 |
RGS Energy | $2.31 – $3.47 | $13,860 – $20,874 | $23,100 – $34,790 |
Renogy Solar | $2.10 – $2.39 | $12,642 – $14,364 | $21,070 – $23,940 |
S-Energy | $1.77 – $2.35 | $10,668 – $14,112 | $17,780 – $23,520 |
Seraphim Solar | $1.85 – $2.24 | $11,130 – $13,482 | $18,550 – $22,470 |
Silfab Solar | $1.70 – $2.45 | $10,206 – $14,700 | $17,010 – $24,500 |
SolarTech Universal | $1.72 – $2.21 | $10,374 – $13,272 | $17,290 – $22,120 |
SolarWorld | $1.73 – $2.15 | $10,416 – $12,936 | $17,360 – $21,560 |
Solaria | $2.06 – $2.35 | $12,390 – $14,154 | $20,650 – $23,590 |
SunPower Corporation | $2.01 – $2.77 | $12,096 – $16,674 | $20,160 – $27,790 |
Trina Solar | $1.72 – $2.22 | $10,374 – $13,356 | $17,290 – $22,260 |
Tesla | $2.33 – $3.10 | $13,986 – $18,606 | $23,310 – $31,010 |
Winaico | $1.92 – $2.21 | $11,550 – $13,314 | $19,250 – $22,190 |
Yingli Solar | $1.70 – $2.21 | $10,206 – $13,272 | $17,010 – $22,120 |
*Prices include 30% tax credit and reflect installation costs from solar contractors. Total costs depend on the location, installers experience, inverter, and other equipment.
How Much Does One Solar Panel Cost?
One 150 to 300-watt solar panel costs $112 to $450 on average or between $0.75 to $1.50 per watt, depending on the panel type, size, and energy-efficiency rating. Solar companies that purchase in bulk typically spend $0.75 per watt, while homeowners spend $1 per watt.
Most distributors only sell solar panels to local contractors at bulk wholesale prices. Hiring a solar installer will drastically reduce your equipment costs.
The following table shows prices for the panels only. Additional installation costs include inverters, batteries, mounting hardware, wiring, and more.
System Size | Average Cost |
---|---|
14 Panel System (4.2 kW) | $2,600 – $4,200 |
16 Panel System (4.8 kW) | $3,000 – $4,800 |
18 Panel System (5.4 kW) | $3,350 – $5,400 |
20 Panel System (6.0 kW) | $3,750 – $6,000 |
24 Panel System (7.2 kW) | $4,450 – $7,200 |
28 Panel System (8.4 kW) | $5,236 – $8,400 |
32 Panel System (9.6 kW) | $5,984 – $9,600 |
36 Panel System (10.8 kW) | $6,732 – $10,800 |
Solar Panel Lease Cost
A solar panel lease costs $50 and $250 per month, depending on your location and energy needs. Leasing solar panels is cost-effective and typically saves $50 to $100 per month on your electricity bills with little to no down payment.
Solar leasing companies are responsible for the installation and maintenance fees for the duration of your contract. If you move, expect to pay additional fees to end your leasing agreement because transferring the lease to another buyer can be difficult.
If you own a solar system outright that generates 100% of your power, the monthly cost is less than $10 per month for minor grid-tied connection fees. An off-grid system has no monthly costs other than general maintenance.
Tesla Solar Roof Cost
A Tesla solar roof costs $22 to $45 per square foot, which includes the solar roof tiles, a Powerwall, roof and site repairs, and complete system installation. A 9.45 kW solar system installed on a 1,800 square foot roof costs between $39,600 and $81,000.
On average, solar shingles cost up to $8,000 more than installing a new roof with traditional PV solar panels. Glass-faced solar shingles mimic the appearance of a tiled roof and cover more surface area than mounted PV panels to catch more sunlight.
Solar tiles have a lower efficiency rating than solar panels. They may not last as long as PV panels because their design doesn’t allow much room for ventilation, which can lead to overheating.
Commercial Solar Panel Cost
A 10 kW to 2 MW commercial solar panel system costs $1.83 per watt before any tax rebates or incentives. Larger fixed-tilt or one-axis tracking utility-scale systems greater than 2 MW cost $1.06 per watt on average.
Commercial solar installation costs for small and mid-sized businesses range from $43,000 for a 25 kW system to $175,000 for a 100 kW system. Businesses recover about 45 percent of solar panel costs within the first year through tax credits and rebate programs.
System Size | Average Cost Before Tax Credits |
---|---|
25 kW | $43,500 to $56,000 |
50 kW | $87,500 to $113,000 |
100 kW | $175,000 to $225,500 |
250 kW | $437,000 to $563,500 |
Solar Savings Estimator
The solar payback information below covers the average break-even period, which is when your power supply becomes free, and the projected savings over 20 years.
Solar Panel Return On Investment (ROI)
The average solar panel payback period is 7 to 12 years, depending on where you live and the cost of electricity. Upfront costs are $11,000 on average, with savings of $1,400 per year on foregone energy bills. You'll break even after 8 years and start generating a return on your investment.
How Much Do Solar Panels Save?
Over 20 years, solar panel savings range from $10,000Â to $30,000+, depending on your location and the cost of electricity.
Solar energy saves $600 to $2,000 per year by reducing your electricity bills and selling your solar renewable energy credits (SRECs).
Location | Savings Over 20 Years | Payback Period (Years) |
---|---|---|
Albuquerque, NM | $17,576 – $25,109 | 15.06 |
Austin, TX | $14,627 – $20,896 | 7.04 |
Baltimore, MD | $16,349 – $23,356 | 6.90 |
Boston, MA | $17,449 – $24,928 | 9.66 |
Charlotte, NC | $15,035 – $21,479 | 8.20 |
Chicago, IL | $14,591 – $20,844 | 11.85 |
Denver, CO | $15,035 – $21,479 | 13.30 |
Honolulu, HI | $34,104 – $48,720 | 6.55 |
Houston, TX | $14,627 – $20,896 | 7.57 |
Indianapolis, IN | $11,637 – $16,625 | 14.60 |
Jersey City, NJ | $18,349 – $26,214 | 9.95 |
Las Vegas, NV | $13,918 – $19,883 | 9.05 |
Los Angeles, CA | $25,414 – $36,306 | 11.99 |
New York, NY | $17,247 – $24,639 | 10.58 |
Philadelphia, PA | $13,689 – $19,556 | 9.35 |
Phoenix, AZ | $18,325 – $26,179 | 7.50 |
Portland, OR | $11,351 – $16,216 | 11.66 |
San Francisco, CA | $14,700 – $21,000 | 11.34 |
Seattle, WA | $6,863 – $12,805 | 11.26 |
Washington, DC | $21,840 – $31,200 | 6.78 |
*6kW system powering 70% to 100% of your energy needs.
Here's a more granular look at solar savings on power bills per year by location.
Location | Average Savings Per Year |
---|---|
Albuquerque, NM | $1,349 |
Austin, TX | $782 |
Boston, MA | $2,196 |
Charlotte, NC | $805 |
Chicago, IL | $1,059 |
Jersey City, NJ | $1,762 |
Los Angeles, CA | $2,477 |
New York, NY | $1,404 |
Philadelphia, PA | $1,006 |
Portland, OR | $864 |
San Francisco, CA | $1,822 |
Seattle, WA | $633 |
Washington, DC | $1,127 |
Are Solar Panels Worth It?
Solar panels generate electricity approximately 30% cheaper than utility electricity in most locations, making them worth it over their lifetime. The 30% federal solar tax credit and state incentives make solar energy more affordable.
The average residential electricity rate from utility companies is 16.4 cents per kWh, depending on the location. An 8 kW solar system costs $15,000 and generates 11,000 kWh annually or $880 to $1,100 worth of energy. Over the lifetime of the solar panels, this equates to 8 to 10 cents per kWh, which makes solar panels worth it after the hefty upfront cost.
Solar Panel Installation Cost Factors
The cost to convert a house to solar power depends on your location, energy needs, type of solar panels, inverter and equipment options, permits, inspection, tax credits, and labor costs.
Use the national averages in the following table to calculate a cost-benefit analysis for solar PV installation.
Item | Percent | Average Cost |
---|---|---|
Solar Panels, Inverter & Parts | 30% | $3,188 – $3,969 |
Balance of System | 20% | $2,125 – $2,646 |
Labor | 15% | $1,594 – $1,985 |
Permits and Inspection | 15% | $1,594 – $1,985 |
Operational | 20% | $2,125 – $2,646 |
Total for 6 kW System After 30% Tax Credit |
100% | $10,626 – $13,230 |
Cost of Solar Panels Over Time
The average cost of solar panels fell 65%Â from $7.34 per watt in 2010, to $2.53 per watt in 2019 and continues to drop. A standard 6 kW residential solar system has dropped from $44,000 down to $15,200 over the past decade (not including the federal solar tax credit).
Year | Cost Per Watt |
---|---|
2010 | $7.34 |
2011 | $6.44 |
2012 | $4.55 |
2013 | $3.97 |
2014 | $3.49 |
2015 | $3.23 |
2016 | $3.02 |
2017 | $2.84 |
2018 | $2.70 |
2019 | $2.53 |
2020* | $2.34 |
2021* | $2.22 |
*Estimates are based on the average rate of decline.
Labor Costs To Install Solar Panels
The average labor cost to install solar panels is $0.27 per watt, or around 15% of the total system cost. A standard 6 kW system with 20 to 25 panels costs about $1,600 for installation labor before applying the 30% federal solar tax credit.
Labor costs increase if your home has multiple stories, skylights, dormers, or a problematic 45° roof pitch. Contractors may need to design a unique system to make sure the panels receive enough sunlight to be efficient.
Solar Equipment Options
When installing your new solar system, you can choose between options such as on-grid vs. off-grid backup power, three different panel material types, and three different mounting types.
On-grid vs. Off-grid Solar Power Systems
Storing energy off-grid requires spending 30% to 40% more or around $15,000 on backup power supplies, a charge controller, a generator, batteries, and installation costs.
A solar battery costs $5,600 to $11,200 installed after the tax credit.
Types of Solar Panels
Solar panels are constructed from three different types of materials: monocrystalline, polycrystalline, and thin film.
Type | Efficiency | Description |
---|---|---|
Monocrystalline | 15% – 22.5% | Monocrystalline panels are made from high-grade silicon and are the most efficient, meaning you'll need fewer panels to support your energy needs. Monocrystalline panels convert up to an industry record of 22.5% of sunlight into energy and typically come with a 20 to 25-year limited warranty. |
Polycrystalline | 13% – 16% | Polycrystalline panels are more affordable than monocrystalline because they're made from fragments of silicon, which have lower energy efficiency. |
Thin-film | 11% – 14% | Thin-film panels are the least expensive and typically last 15 years. The panels are layered with photovoltaic materials that take up more space and provide a lower efficiency. |
Solar Panel Mounts
The solar panels' mounting system also affects the cost:
Type | Average Cost | Description |
---|---|---|
Fix-mount | $15 | Fixed mounts are the least expensive and less efficient than other mounts because they are stationary and can't be moved to capture more sunlight. These mounts are best in states with consistent sunlight. |
Adjustable-mount | $50 | Adjustable mounts generate greater energy efficiency because they can be tilted towards the sun to maximize energy production. They can also be tilted flat during storms to avoid wind damage. Adjustable mounts are more expensive but are optimal in regions with seasonal climates. |
Tracking-mount | $500 – $3,000 | Tracking mounts automatically follow the position of the sun to produce up to 30% more solar energy in climates with little to no snow. Solar trackers are more expensive, and there is more maintenance and on-site preparation involved. Most professionals recommended buying additional panels instead. |
It may be cheaper to install solar panels on rails in your backyard if your roof is too steep, your roof is mostly in the shade, or you do not have a south-facing roof to catch the most sunshine.
Solar Inverter Cost
A 5 kW solar inverter for a home system costs $1,000 to $2,000 for a single-phase model and $1,500 to $3,000 for a premium 3-phase model. Inverter prices depend on the size, quality, and features. An inverter converts the current from the panels into an electric voltage that’s compatible with your home.
Solar Panel Cost Analysis
Below is a solar panel cost analysis for a complete residential installation based on a 6.2 kW system at an average cost of $2.70 per watt. Compare this date to quotes provided by solar installers.
Item | Cost Per Watt |
---|---|
Panels | $0.47 |
Inverter | $0.21 |
Structural BOS | $0.10 |
Electrical BOS | $0.21 |
Supply Chain Costs | $0.30 |
Sales Tax | $0.09 |
Installation Labor | $0.27 |
Permitting, Inspection, Interconnection | $0.06 |
Sales & Marketing (Customer Acquisition) | $0.34 |
Overhead (General & Admin.) | $0.32 |
Net Profit | $0.33 |
Total | $2.70 |
*Analysis provided by the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL).
Larger companies tend to spend extra on advertising to attract more business. However, that cost is baked into their installation services, and you’ll find better prices from smaller, more localized solar contractors.
Solar Panel Permits & Inspection Fees
According to the National Renewable Energy Laboratory (NREL), solar panel permits and inspections cost $0.06 per watt or $360 for a 6 kW system and $600 for a 10 kW system.
Solar Panel Maintenance & Repairs
Solar panel maintenance and repairs cost $11.50 per kW per year without including the inverter, and $23 per kW per year including inverter repairs. Solar panel cleaning costs $3 to $10 per panel, and panels produce 3.5% more electricity than if left uncleaned. An annual inspection costs $100 to $150.
Repair | Average Cost |
---|---|
Panel Cleaning | $150 – $250 |
Broken Glass Panels | $20 – $350 + labor |
Cracked Panel | $100 – $400 |
Loose Connection | $100+ |
Panel Replacement | $2,000+ |
Micro Inverter Replacement | $100 – $250 |
String Inverter Replacement | $1,200 – $2,500 |
Panel Removal | $400 to $600 |
Annual Inspection | $100 to $150 |
Federal Solar Tax Credits & Incentives
The federal government, local governments, states, and utility companies offer various tax incentives. Also, low-interest solar loans and $0 down installations make it easier to buy a solar panel system.
How Does The Federal Solar Tax Credit Work?
The federal solar tax credit allows you to deduct 30% of the total cost of installing a solar energy system from your federal taxes.
The Residential Clean Energy Credit, formerly known as the investment tax credit (ITC), applies to both residential and commercial solar systems without a limit. Leased solar panels are not eligible for federal tax credits.
Year | Residential | Commercial |
---|---|---|
2022 – 2032 | 30% | 30% |
2033 | 26% | 26% |
2034 | 22% | 22% |
2035 | 0% | 10% |
Solar Incentives
In addition to the federal tax credit, homeowners are also eligible to receive solar incentives and rebates from local governments, utility companies, and solar-incentive programs.
State | Incentive |
---|---|
Alabama | Loans from $2,500 to $15,000 with a 1 percent interest rate. |
Alaska | Building materials loan up to $100,000. Net-metering programs to buy-back surplus power generated. |
Arizona | 25% Credit up to $1,000. Sales Tax Exemption. Incentives of $0.05 per watt, up to 50 kW, capping at $2,500. |
Arkansas | State utility company buys back surplus energy in a net-metering program. |
California | Property Tax Exclusion. Home Energy Renovation Opportunity (HERO) Financing Program. |
Colorado | City of Boulder Solar Grant Program. Financial incentive between $200 and $750 per kilowatt. Energy Smart Rebate Program up to $1,000 in Eagle County. |
Connecticut | Solar Investment Program of $0.51 per watt. Up to 10 kW. Property Tax Exemption. |
Delaware | Delmarva Power Green Energy Program Incentives of $0.50 per watt up to 50 kW, with a limit of $3,000. Upfront Purchase Program of $450 per kilowatt (up to 50 kW) in exchange for the first 20 years of solar renewable energy credits created by the solar panel system. |
Florida | Rebate of $500 per year. |
Georgia | Rebate of up to $4,500, plus a rebate of $450 per kW with a limit of 10 kW. An incentive program will purchase 100% of the output at the retail electricity rate. |
Hawaii | State Income tax credit of 35 percent of the equipment and installation cost. Limit of $5,000. City and County of Honolulu 0% Solar Loan Program. |
Idaho | Income tax deduction of 40% of the cost when installed and 20% deduction yearly for three years after. Maximum deduction of $5,000 a year. State Energy Loan Program at 4 percent interest for amounts between $1,000 and $15,000. |
Illinois | Buy-back program with advance payments of up to 15 years of solar renewable energy credits. |
Indiana | Value of the solar panel system is exempt from property taxes. State Sales and Use Tax Exemption. |
Iowa | Tax credit equal to 50% of the federal credit, up to $5,000. Five-year property tax exemption for the market value added to a property by a solar panel system. 100% sales tax exemption for solar equipment. |
Kansas | Tax Exemption of the value of the solar panel system from property taxes for ten years. |
Kentucky | Sell electricity to participating energy companies. |
Louisiana | A 50 percent refundable tax credit. Tax Exemption from Ad Valorem taxes for solar energy arrays. |
Maine | Loans at 4.99%. |
Maryland | A $1,000 incentive per solar panel system ranging from 1 kW to 20 kW systems. A one-time tax credit of 50% of the total cost up to $2,500. Also, a 100% sales and use tax exemption. |
Massachusetts | Rebate of $0.50 per watt, up to $2,500 per solar installation. Rebate of $625 per kilowatt, up to $3,125. Rebate of $1.50 per watt, up to $4,500. |
Michigan | Loans up to $30,000 at 4.25% interest rates. |
Minnesota | Rebate of $0.50 per watt, up to $5,000. Rebate of $0.94 per kilowatt-hour up to 20 kW. Cap is either $20,000 or 60% of installation costs. One-time rebate of $0.50 per watt for a 5 to 10 kW system. |
Mississippi | Incentive of general retail electric rate for power generated by a solar array. |
Missouri | Rebate of $0.50 per watt. Solar Property Tax Exemption. |
Montana | $500 tax credit. Exemption from property taxes for solar arrays, up to $20,000. Loans up to $40,000 with a 3.25% interest rate. |
Nebraska | Generation rebate starting at $375 per kW. Loans up to $125,000 with interest 2.50% to 5%. |
Nevada | Upfront incentives of $0.15 per watt. |
New Hampshire | Rebate of $0.50 per watt, up to $2,500 or 30% of the total cost. Property tax exemption of the total cost of the solar panel system. |
New Jersey | 100% exemption from state sales tax. Incentive rebates up to $24,250. |
New Mexico | PNM Performance-Based Solar Energy Program—A per-kWh payment for systems up to 100 kW for renewable energy credits. Property Tax Exemption for Residential Solar Systems. |
New York | Incentives up to $0.40 per watt for up to 25 kW. Tax credit of 25% of total cost up to $5,000. 100% of local sales tax exemption in select areas. |
North Carolina | TVA Green Power Providers—Payment of the general retail rate for every kWh generated by a renewable energy system. (May expire by the end of 2019). Property tax exemption equal to the cost of the total system. 100% exemption of the total solar system cost. |
North Dakota | Property Tax Exemption for the first five years. |
Ohio | Loans up to $50,000 at 3% below market rate. Exemption from personal property taxes for arrays up to 250 kW. |
Oklahoma | Varying amounts of state tax credits, plus net-metering program to sell back surplus power. |
Oregon | Incentive of $0.40 per watt, up to $2,500. Rebate of $0.50 per watt, up to $7,500 per solar system. Tax credit of $1,500 or up to 50% of total costs per year for up to 4 years for a maximum of $6,000. Rebate of $600 for the first 3 kW and $300 per kW for any additional capacity, up to 50% of total system costs or $8,400. |
Pennsylvania | Earn a solar credit for every 1 MWh, which can be sold for market price. |
Rhode Island | 100% property tax exemption. |
South Carolina | Tax Credit up to 25% of the total cost. An incentive of $1.60 per watt up to $9,600. |
South Dakota | Property Tax Exemption up to $50,000 or 70% of the property value. |
Tennessee | TVA Green Power Providers program (expires end of 2019) buys the energy generated by your renewable energy system. Bristol Tennessee Essential Services Energy Savings Loan Program—Financing of up to $10,000 for a 10-year term, with varying interest rates. |
Texas | Incentive of $1.00 per watt, with a cap of $4,000. Buy-back program for surplus energy. Rebate of $0.80 per watt up to $25,000 or 50% of project expenses. |
Utah | Tax credit of 25% of the system costs, up to $2,000. |
Vermont | Net metering program with a premium of more than $0.05 per kilowatt-hour for systems up to 15 kW. 100% sales tax exemption. |
Virginia | TVA Green Power Providers program (expires end of 2019) buys the energy generated by your renewable energy system. Partial or Full Tax Exemption for costs of the system. |
Washington | A 100% sales and use tax exemption. |
West Virginia | $2,000 tax credit for the installation of a solar energy system. |
Wisconsin | Rebate of up to 12 percent of solar costs, not exceeding $2,000. A 100% sales and use tax exemption. |
Wyoming | Net metering benefits of monthly roll-over power credits, plus annual rebate for surplus power. |
Solar panel FAQs
How Much Does A Utility-Scale Photovoltaic Array Cost?
A utility-scale photovoltaic array greater than 2 MW costs $1.06 to $1.36 per watt before applying for the federal solar tax credit. This equates to $0.04 to $0.06 per kWh after using the tax credit.
How Much Does DIY Solar Cost?
Installing solar as a DIY project is difficult and will cost more because solar companies buy wholesale directly from the manufacturers. Also, each solar installation needs to pass an inspection, according to state and federal laws.
How Much Does Solar Energy Cost Per Year?
Purchasing a 6 kW system ($12,600) on a 5-year payment plan costs about $2,500 per year or $210 per month. Once you own the system outright, solar energy costs $100 to $150 per year for maintenance and inspections. Another option to convert to solar is a lease at $600 to $3,000 annually.
How Much Does A Small Solar Panel Cost?
A small solar panel typically costs $2 to $4 per watt for residential use. A small 25-watt panel costs $40, while a 200-watt portable solar panel with a power station and outlets costs $250 to $300. A 45-watt solar battery bank can charge laptops, phones, tablets, and other smart devices.
How Much Does A Solar Heating System Cost?
A solar water heater costs $3,000 to $9,000 with installation, depending on the type and size. Solar heating panels, or solar thermal collectors, are different from photovoltaic (PV) solar panels because they only capture heat. Solar heating systems can heat your water supply, your air, or both.
Tips For Hiring A Solar Panel Installer
When searching for reputable solar companies, always get at least three quotes in writing from both big and small contractors, ask plenty of questions, check their credentials, and don’t sign any agreements until after an on-site consultation.
Get Multiple Solar Quotes
Homeowners who shop around often pay 10% to 20% less with savings up to $5,000 by getting at least three solar quotes from competing companies.
Look for contractors who are members of the Solar Energy Industries Association (SEIA) or certified by the North American Board of Certified Energy Practitioners (NABCEP).
Ask for an on-site evaluation and request a detailed price quote in writing.
Check the online reviews from HomeGuide and Google.
Compare bids from national brands and local installers to ensure you get the best deal. It's not uncommon to save thousands of dollars from smaller solar companies. The largest solar installers typically quote inflated prices based on their brand and reputation.
Experienced installers will always ask the age of your roof. The roof's condition is critical to address before installation, as most solar panels last for up to 50 years.
Not every electrician is licensed to install solar, and they may not fully understand the legal requirements. Hire a company whose sole focus is solar installations.
Questions To Ask Solar Energy Companies
When you get a solar panel estimate, ask the contractor these questions:
What certifications or licensing do you have?
Do you offer any financing options?
Do you have any references I can contact?
What warranties do you provide?
Is there a performance guarantee?
Will you assist me in claiming rebates and incentives?
How do you calculate, size, and design a system for me?
Is there be room to expand my system if my energy needs increase?
How many solar installations have you done before?
How much am I expected to save each year?
What will be my monthly electric bill costs?