Solar Panel Costs
How Much Do Solar Panels Cost? [2026]
Solar panels cost about $2.57 per watt installed in 2026, according to EnergySage, and a typical home system costs about $31,000 before incentives.
Your final price depends on system size, panel type, location, and installation. Since the 30% federal tax credit for homeowners ended on December 31, 2025, state incentives, leases, and power purchase agreements (PPAs) now play a bigger role in lowering the cost.
This guide breaks down what solar panels cost, what affects the price, how long they take to pay for themselves, and how to lower what you pay.
In this guide:
- How Much Do Solar Panels Cost in 2026?
- Is There Still a Solar Tax Credit in 2026?
- What Affects the Cost of Solar Panels?
- How Long Do Solar Panels Take to Pay for Themselves?
- How Can You Lower the Cost of Solar Panels?
- Frequently Asked Questions
Get a Free Estimate For Solar Panels!
Get QuotesHow Much Do Solar Panels Cost in 2026?
The median quoted price for residential solar reached $2.57 per watt in the first half of 2026, up 3.2% from the second half of 2025, according to EnergySage marketplace data. Because solar is priced per watt, the size of your system has the biggest impact on the total. Here's what common system sizes cost at that rate:
|
System Size |
Estimated Cost Before Incentives |
|---|---|
|
4 kW |
About $10,300 |
|
6 kW |
About $15,400 |
|
8 kW |
About $20,600 |
|
10 kW |
About $25,700 |
|
12 kW |
About $30,800 |
Note: Estimates are based on the 2026 median of $2.57 per watt and can vary by state, roof type, and equipment.
Is There Still a Solar Tax Credit in 2026?
Not for homeowners who buy their systems. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025. However, other incentives can still lower your cost:
- Leases and PPAs: When a solar company owns the panels on your roof, it can still use commercial tax credits, which often lowers the price you pay for the electricity.
- Net Metering: In many states, you earn bill credits for the extra electricity your panels send to the grid. Rules and credit rates vary by state and utility.
- State Tax Credits and Rebates: Some states offer their own tax credits or cash rebates. You can check what's available in your state in the DSIRE incentives database.
- Property Tax Exemptions: Some states don't count the value solar panels add to your home when calculating property taxes.
- Solar Renewable Energy Credits (SRECs): In some states, you can earn tradable certificates for the clean energy your panels produce and sell them to utilities.
What Affects the Cost of Solar Panels?
The four main factors that affect the cost of solar panels are system size, panel type, location, and installation.
A bigger system costs more in total but produces more electricity, so it can cover more of your energy bill. Larger systems also tend to cost less per watt, much like buying in bulk. The right size depends on how much electricity you use and your budget.
The three main types of solar panels differ in efficiency, lifespan, and price:
|
Panel Type |
Price |
Best For |
|---|---|---|
|
Monocrystalline |
Highest |
Maximum efficiency and a sleek look, especially on smaller roofs |
|
Polycrystalline |
Moderate |
A lower price with slightly less efficiency |
|
Thin-Film |
Lowest |
Tight budgets, with lower efficiency and a shorter lifespan |
Your location affects both what you pay and how much you save:
- Sunshine: Sunny states like California and Arizona produce more solar power, while cloudier states like Oregon and Washington may need more panels to produce the same amount.
- Electricity Rates: In states with high electricity prices, like Hawaii, solar saves you more money. In states with low rates, savings are smaller.
- Local Rules and Incentives: Installation prices, permits, net metering rules, and incentives all vary by state.
Installation is usually included in your solar quote. The price depends on the complexity of your roof and project and on the company you hire. Solar isn't a DIY project, so paying for a professional installation protects your system's performance, safety, and warranty.
How Long Do Solar Panels Take to Pay for Themselves?
The average estimated payback period for solar was about 10.9 years in the first half of 2026, according to EnergySage. After that, the electricity your panels produce is essentially free for the rest of their 25 to 30 year lifespan.
You can estimate your own payback period with this formula: (system cost minus upfront incentives) divided by your annual savings. Payback is shorter in states with high electricity rates and strong local incentives.
How Can You Lower the Cost of Solar Panels?
The best ways to lower the cost of solar panels are choosing the right system size, using state and local incentives, comparing ownership options, and getting several quotes:
- Size your system correctly: Match the system to your actual energy use instead of oversizing it.
- Use local incentives: Check state, city, and utility programs before you sign.
- Compare buying, leasing, and PPAs: In the first half of 2026, pre-paid leases cost 39% less per kilowatt-hour than cash purchases on EnergySage, and pre-paid PPAs cost 57% less.
- Choose the right panel type: High-efficiency panels aren't always necessary if you have plenty of roof space.
- Get multiple quotes: Compare prices, equipment, and warranties from more than one installer.
Want to know what solar would cost for your home? Get free quotes from local solar experts.
Get a Free Estimate For Solar Panels!
Get QuotesFrequently Asked Questions
How much does a 10 kW solar system cost?
A 10 kW solar system costs about $25,700 before incentives at the 2026 median price of $2.57 per watt. Your actual price depends on your state, roof, and equipment.
Is the federal solar tax credit still available?
No, the 30% federal tax credit for homeowner-owned solar systems ended on December 31, 2025. Leases, PPAs, and state or local incentives can still lower the cost.
Is it cheaper to lease or buy solar panels?
Leasing usually costs less upfront, and in 2026 pre-paid leases offered a lower cost per kilowatt-hour than cash purchases on EnergySage. Buying lets you own the system and keep all the savings once it's paid off.
Are solar panels worth it in 2026?
Solar is usually worth it if you have a sunny roof, high electricity rates, and plan to stay in your home past the payback period. Learn more about the pros and cons of solar energy.
How long do solar panels last?
Most solar panels last 25 to 30 years. They need very little maintenance, so they keep cutting your bills long after they pay for themselves.
Related Resources
Solar Energy Pros and Cons: Is It Worth It in 2026?
How Sustainable Are Solar Panels? [2026]
Last update: 15 Nov 2026
