How Much Do Solar Panels Cost?
Quick answer: Home solar averages about $2.60 per watt before incentives in 2026, based on EnergySage marketplace data. That works out to roughly $21,000 for an 8 kW system and $31,000 for a 12 kW system. The 30% federal tax credit for homeowners ended after 2025.
Solar is usually priced in dollars per watt of panel capacity. That makes it easy to compare quotes for systems of different sizes, and it’s the number to focus on when you’re shopping.
The average cost of solar panels in 2026
According to EnergySage’s marketplace data, updated in September 2026, homeowners are quoted about $2.60 per watt on average before any incentives. That covers the panels, inverter, racking, wiring, labor and permits. A typical 12 kW system comes to roughly $31,000.
Other sources measure cost differently, so you’ll see higher numbers too. SEIA and Wood Mackenzie put the average residential installed price at $3.36 per watt in their Q3 2026 report. Lawrence Berkeley National Laboratory found that systems bought with cash had a median price of $3.50 per watt in 2024, while loan-financed systems came in at $4.70, largely because loan fees get rolled into the price.
Cost by system size
Bigger systems cost more in total but less per watt. Here are EnergySage’s September 2026 averages, before incentives:
| System size | Cost per watt | Total cost |
|---|---|---|
| 4 kW | $2.89 | $11,560 |
| 6 kW | $2.68 | $16,080 |
| 8 kW | $2.62 | $20,960 |
| 10 kW | $2.58 | $25,800 |
| 12 kW | $2.56 | $30,720 |
| 15 kW | $2.47 | $37,050 |
How big a system you need depends on how much electricity you use and how much sun you get. Our guide on how many solar panels you need walks through the math.
Cost by state
Where you live makes a real difference. In EnergySage’s data, Florida ($2.12 per watt), Texas ($2.25) and Arizona ($2.27) were among the cheapest states, while Alabama ($3.81), Tennessee ($3.51) and Hawaii ($3.43) were among the most expensive. Local labor costs, permit fees and how many installers compete for business all play a part.
Where the money goes
The panels themselves are now a fairly small part of the price. A large share of what you pay covers the inverter, racking and wiring, design and permitting, the installation crew, utility interconnection paperwork, and the installer’s sales and overhead costs. That’s why two quotes for the same size system can be thousands of dollars apart.
How you pay changes what you pay
Cash
Paying cash usually gets the lowest total price, since there are no interest charges or financing fees.
Solar loans
Many solar loans advertise low interest rates, but the Consumer Financial Protection Bureau found that hidden “dealer fees” often add 10% to 30% to the system price. Ask for the cash price and the financed price side by side, and compare the loan against a home equity loan or credit union loan.
Leases and power purchase agreements
With a lease or PPA, a company owns the panels and you pay a monthly amount, usually for 20 to 25 years and often with a yearly increase of 1% to 3%. There’s little or no upfront cost. Because the company owns the system, it may still be able to claim a federal business tax credit and pass some of that value on. Our article on “free” solar panels explains how these contracts work.
What about tax credits?
Until the end of 2025, homeowners could take 30% of the cost off their federal taxes. That credit ended for systems installed after December 31, 2025. For a system you buy today, the prices above are close to what you’ll actually pay unless your state, city or utility offers its own incentive. Our guide to solar rebates and incentives explains where to look.
Other costs to plan for
- A home battery adds about $15,650 for a typical 13.5 kWh unit, based on EnergySage’s July 2026 data.
- Roof work. If your roof has less than 10 or 15 years left, it usually makes sense to replace it first, since removing and reinstalling panels later costs extra.
- Electrical upgrades. Some older homes need a main panel upgrade before solar can be connected.
- Inverter replacement. String inverters often need replacing once during a system’s life, usually for $1,000 to $3,000.
Getting an accurate price
Get at least three quotes and compare them on price per watt, the specific panels and inverters, the estimated yearly production, and the warranties on equipment and workmanship. Make sure each quote uses a similar system size, or the totals won’t be comparable.
Sources
- EnergySage: Solar panel cost data
- SEIA: Solar Market Insight Report Q3 2026
- Lawrence Berkeley National Laboratory: Distributed solar and storage data update
- CFPB: Issue spotlight on solar financing
- EnergySage: Home battery cost data
- IRS: FAQs on changes to energy credits under the One Big Beautiful Bill
