Solar panel installation cost.
Solar is priced per watt by panel tier and system size, before any state or utility incentives.
Solar panel installation cost by panel tier
| Standard-efficiency panels | $16,800 – $21,000 |
| Premium high-efficiency panels | $21,000 – $26,600 |
Typical installed range for a 7,000 watts project. Adjust the estimator for your own size.
Priced per watt, and 2026 changed the math
Residential solar is quoted per watt of system capacity, running about $2.50–$3.50 per watt installed. A 6 kW system lands near $18,000 and an 8 kW near $24,000. The important change: the 30% federal Residential Clean Energy Credit expired 31 December 2025 under the One Big Beautiful Bill Act. Systems placed in service in 2026 get no federal credit at all, which moved simple payback on a cash purchase from roughly 6–10 years to 9–14.
What actually moves the price
The expired federal credit, and what replaced it
With the 30% federal credit gone, state and utility incentives are now the primary lever on net cost. New York offers a 25% state credit up to $5,000, Massachusetts 15% up to $1,000 plus the SMART program, Arizona 25% up to $1,000 with no sales tax on solar, and Texas a property tax exemption on the added home value. Check dsireusa.org for your specific jurisdiction before signing anything.
Installer markup, which is larger than you expect
The same system quoted by two installers in the same market commonly differs by $3,000–$7,000. Since the equipment is largely commodity, that spread is overhead and margin. Three quotes is not a formality in this trade; it is where the money is.
Where the money actually goes
At roughly $3 per watt: panels 30–40%, inverter 10–15%, racking and hardware about 10%, installation labor 20–25%, and permitting, inspection, and interconnection 10–15%. Panels being only a third of the cost is why 'premium panel' upsells move the total less than people assume.
Your electricity rate, which decides whether any of it works
Solar pays back fastest where rates exceed roughly 15 cents per kWh and sun is adequate. It is strongest in California, Hawaii, Massachusetts, Connecticut, New York, New Jersey, and Illinois, and weakest in low-rate states like Louisiana, North Dakota, and West Virginia regardless of sunshine.
What a complete quote names out loud
- System size in kW and the resulting price per watt, so bids are comparable
- Panel and inverter make and model, including whether microinverters or a string inverter
- Production estimate in kWh per year, with the assumptions behind it
- Which state, local, and utility incentives are being claimed, and by whom
- Ownership structure: cash, loan, lease, or PPA, since leases and PPAs mean you do not own the system
- Roof condition and whether the roof needs replacing first (removing and reinstalling panels later is expensive)
The one to watch: Any 2026 quote that still shows a 30% federal tax credit in its savings math. The credit terminated for systems placed in service after 31 December 2025. A proposal built on it is either out of date or deliberately overstating your return.
Solar panel installation cost: FAQ
How much do solar panels cost in 2026?
Roughly $2.50–$3.50 per watt installed, putting a typical 6–8 kW home system at $15,000–$25,000. Because the 30% federal credit expired at the end of 2025, most 2026 buyers pay that full amount minus any state or utility incentives.
Is there a federal solar tax credit in 2026?
No. The Section 25D Residential Clean Energy Credit was terminated by the One Big Beautiful Bill Act for systems placed in service after 31 December 2025. Only systems fully installed by that date could claim it. State, local, and utility incentives may still apply.
Are solar panels still worth it without the credit?
In high-rate states, often yes, but the math is clearly worse than in 2025. Simple payback on a cash purchase moved from about 6–10 years to 9–14. Panels carry 25-year performance warranties and frequently produce for 30 or more, so a payoff window remains. It is just longer.
Should I replace my roof before installing solar?
If the roof has under about 10 years of life left, yes. Removing and reinstalling an array to reroof later is a significant cost that no one prices at signing. Sequencing the roof first is almost always cheaper than doing it twice.