In short: In 2026, residential solar in the United States typically costs about $2.50 to $3.50 per watt installed before incentives. That’s roughly $18,000 to $31,000 for a typical 7–10 kW system. Marketplace data puts the average near $2.60–$2.80 per watt, while some independent datasets put the median closer to $3.10. Your price depends on system size, equipment, roof, location and installer.
Solar prices have fallen over the past decade, but the numbers you see online vary a lot depending on who’s reporting them and whether they include incentives. This guide explains what solar panels really cost in 2026, how price per watt works, how cost varies by system size and region, and what you can do to pay a fair price. For other countries, see our UK solar panel cost guide.
Average solar panel cost in 2026
| Measure | Typical range (before incentives) |
|---|---|
| Installed cost per watt | $2.50–$3.50 |
| Marketplace average (competitive bids) | about $2.60–$2.80 per watt |
| Median in some independent datasets | about $3.10 per watt |
| Typical system size | 7–10 kW (larger homes can be 12 kW or more) |
| Typical total system cost | about $18,000–$31,000 |
Why the numbers differ: averages from competitive online marketplaces, where installers bid against each other, tend to be lower than medians drawn from all installations, including those sold by door-to-door or direct-sales channels. Treat any single “national average” as a benchmark, not a quote.
How solar pricing works: cost per watt
Cost per watt = total installed price ÷ system size in watts.
Example: a $21,000 system with a size of 7,500 W costs $2.80 per watt. It’s the standard way to compare quotes of different sizes. See How to Compare Solar Quotes and Spot Red Flags for how to use it properly, along with production and warranties.
Solar panel cost by system size
Using the typical range of $2.50–$3.50 per watt (before incentives):
| System size | Approx. panels (400 W) | Estimated installed cost |
|---|---|---|
| 4 kW | 10 | $10,000–$14,000 |
| 6 kW | 15 | $15,000–$21,000 |
| 8 kW | 20 | $20,000–$28,000 |
| 10 kW | 25 | $25,000–$35,000 |
| 12 kW | 30 | $30,000–$42,000 |
Smaller systems usually cost more per watt because fixed costs (permits, design, mobilization, sales) are spread over fewer panels. Not sure which size you need? Read How Many Solar Panels Do I Need?
Solar panel cost by region
Prices vary by state and region because of labor rates, permitting, competition among installers, and local rules. Sources differ on exact state figures, so here are approximate tiers:
| Market type | Approx. cost per watt | Examples |
|---|---|---|
| Lower-cost markets | about $2.35–$2.90 | Texas, parts of the Southeast and Southwest |
| Mid-range markets | about $2.70–$3.10 | Many Midwest, Mid-Atlantic and West Coast states |
| Higher-cost markets | about $3.00–$3.50 or more | Parts of the Northeast such as New Hampshire and Massachusetts; some sources also report high prices in California |
See detailed guides for Texas, Florida, Arizona, California and more in our state-by-state solar guides.
What you’re paying for
The installed price covers much more than the panels themselves:
- Hardware: panels, inverter or microinverters, racking, wiring and monitoring. Panel hardware alone typically runs about $0.60–$1.40 per watt depending on quality and brand. See Best Solar Panels for Homes and String vs Microinverters.
- Labor and installation: crews, roof work, electrical work and commissioning.
- Design, permits and interconnection: engineering, permit fees, inspection and the utility application.
- Sales and overhead: customer acquisition, financing, warranty reserves and company overhead, which can be a large share of the price, especially with door-to-door and heavily marketed sales models.
- Installer margin.
Breakdown percentages vary widely between sources and between installers, so don’t rely on a single “where your money goes” chart. Ask your installer to itemize.
What makes solar cost more or less?
Factors that raise the price
- Premium equipment: higher-efficiency panels, microinverters or optimizers.
- Complex roofs: steep pitches, multiple faces, tile or slate roofing. See Solar Panels on Flat, Metal, Tile and Slate Roofs.
- Electrical upgrades: service panel or meter upgrades.
- Battery storage: adds several thousand dollars or more. See Solar + Battery Cost After US Incentives.
- Ground mounts or long cable runs.
- Small system size, because of higher per-watt fixed costs.
- High-cost labor and permitting markets.
- Heavily marketed sales channels with big customer acquisition costs.
Factors that lower the price
- Competitive quotes: comparing several bids often reveals big price gaps.
- Straightforward roofs with good orientation and little shading.
- Mid-range, widely available equipment.
- Larger systems, which spread fixed costs.
- Local incentives and streamlined permitting.
- Paying in cash or securing a good loan, avoiding high dealer fees.
Incentives in 2026: what changed
The federal residential solar tax credit, which covered 30% of the cost for homeowner-purchased systems, has ended for expenditures after 2025, according to industry sources. That means most prices you see are now pre-incentive prices with no federal credit to subtract. Confirm current federal rules with the IRS and a tax professional, because some types of arrangements and business situations may still have different treatment.
Other savings may still exist:
- State and local incentives: rebates, tax credits and grants, which vary widely. See State Solar Incentives and Rebates Directory.
- Utility rebates and programs. See Utility Solar Rebates: How to Find Yours.
- Property tax exemptions: a number of states exempt the added home value from solar from property tax. See Property Tax Exemptions for Solar Panels by State.
- Net metering or export credits that determine what you earn from excess power. See Net Metering vs Export Tariffs.
Read what these changes mean for your return in Is Solar Worth It Without the Federal Tax Credit? and Federal Solar Tax Credit Changes: What Homeowners Can Still Claim.
Cash, loan or lease: how you pay changes the total
- Cash: usually the lowest total cost.
- Solar loan: spreads the cost, but interest and dealer or origination fees can raise the total significantly. See Solar Loans vs Cash vs Lease.
- Lease or PPA: low or no upfront cost, but you don’t own the system, and payments may increase yearly. Check what applies after recent rule changes: see Solar Leases and PPAs After the Tax Credit Ended.
Cost is not the same as value: check your payback
A lower price per watt doesn’t automatically mean a better deal, and a higher one isn’t automatically bad. What matters is what you pay compared with what the system saves you. Learn to calculate it in How to Calculate Your Solar Payback Period.
How to pay a fair price
- Get at least three itemized quotes from verified installers. See How to Choose a Solar Installer.
- Compare price per watt, expected production and warranties together.
- Ask for the cash price as well as any financed price.
- Check which incentives actually apply to you rather than accepting assumptions.
- Size the system to your usage and export rules, not to the maximum roof space.
- Beware of pressure tactics and “limited-time” offers, especially from door-to-door sales.
- Consider timing, but don’t rush a decision for the sake of a deadline you haven’t verified.
Common mistakes
- Believing a single national average as if it were your price.
- Comparing quotes only by total price or monthly payment.
- Assuming a federal credit still applies without checking.
- Ignoring electrical upgrades, roof work and permit fees that aren’t in the quote.
- Choosing the cheapest installer with no track record or warranty backing.
- Financing at a high cost without comparing to cash.
Next steps
- Estimate your system size: How Many Solar Panels Do I Need?
- Check your state’s incentives: State Solar Incentives and Rebates Directory.
- Get quotes and compare them: How to Compare Solar Quotes and Spot Red Flags.
- Calculate your payback: How to Calculate Your Solar Payback Period.
Where to next:
- 🇺🇸 Solar payback period by state
- 🇬🇧 Solar panel cost in the UK
Frequently asked questions
How much do solar panels cost for a house in 2026?
Most US homes pay roughly $18,000–$31,000 before incentives for a typical 7–10 kW system, or about $2.50–$3.50 per watt installed. Your price depends on system size, equipment, roof and location.
What is the average cost per watt for solar panels?
About $2.50–$3.50 per watt installed in the US before incentives. Marketplace averages are around $2.60–$2.80 per watt, and some independent datasets put the median closer to $3.10.
How much does a 6 kW solar system cost?
Roughly $15,000–$21,000 before incentives at $2.50–$3.50 per watt, or about 15 panels of 400 W. Prices vary by region and equipment.
Is there still a federal tax credit for solar panels?
According to industry sources, the 30% federal residential credit ended for expenditures after 2025. Check the current rules with the IRS or a tax professional, and look for state and local incentives that may still apply.
Why do solar quotes vary so much?
Differences in system size, equipment quality, what’s included, roof complexity, installer overhead and sales channel can all change the price. That’s why comparing several itemized quotes is important.
Are solar panels cheaper than they used to be?
Yes. Installed prices have fallen substantially over the past decade, driven by lower equipment costs and more mature supply chains, although prices vary by region and change with market conditions.