The average cost to install solar panels in a United States home ranges between $15,000 and $30,000 before incentives in 2025. Most homeowners pay $10,500 to $20,500 after applying the 30% federal solar tax credit. Solar prices vary based on system size, location, panel brand and installer markup.
Solar system cost per watt averages $2.00 to $3.00, but larger systems tend to benefit from lower per-watt rates, as low as $2.05 in states like Arizona and Texas. A 11 kW system, which covers the needs of most US homes, costs around $20,500 post-incentives.
Solar pricing also differs by state. For instance, California’s average after-incentive cost is $14,200, while West Virginia tops out at over $31,000. Panel count and system size scale with home size, a 2,000 sq. ft. home needs a 7 to 8 kW system, costing around $13,000 to $15,000 after incentives.
Additional factors like roof condition, installation complexity, permitting fees and electrical upgrades can increase final costs of solar panels. To estimate your exact price, you will need to calculate your energy usage, system size and apply incentives and installer quotes accordingly.
The upfront costs of solar panels vary, but long-term savings on electricity and federal incentives make them a strong investment for most US homeowners.
The average cost of solar panels for a residential system installation in the United States ranges from $15,000 to $30,000 before tax credits and incentives, but it depends on system size and region. The net costs fall between $10,500 and $20,500 for an average home system after applying the 30% federal solar tax credit.
For example, an 8 kW solar system from Tesla is estimated to cost between $21,900 and $26,400 before incentives. EnergySage data shows an average 11 kW system costs about $20,552 after federal tax credits.
The cost per watt installed ranges from about $2.00 to $3.00, with some estimates as low as $1.80 per watt and others around $2.75 per watt depending on location and installer.
Cost per square foot of solar panel installation is generally between $7 and $10, or about $8.77 after tax credits.
The infographic below displays the historical price decline of solar photovoltaic (PV) modules from 1975 to 2024, showing a significant drop from $124.63 per watt to approximately $0.11 per watt as cumulative capacity reached over 2,000 gigawatts.
Solar system costs vary by system size, with prices decreasing per watt as the system grows larger. Smaller solar systems of around 3 to 5 kW, cost from $9,300 to $13,000 before incentives, which drops to approximately $6,500 to $9,100 after applying the 30% federal solar tax credit. Mid-sized solar systems between 6 and 8 kW cost between $17,000 and $23,000 before incentives, and about $12,000 to $16,000 after tax credits. Larger residential systems, from 9 to 13 kW, cost from $25,500 up to $34,000 before incentives, with net costs after tax credits falling between $17,800 and $24,000.
Solar panel price per watt decreases from $3.10 for smaller systems to $2.60 for larger installations which makes bigger solar systems more cost-effective on a per-watt basis.
The detailed breakdown of solar panel costs based on recent 2025 data is shown in the table below.
System size | Average cost per watt (before incentives) | Cost before federal tax credit | Cost after 30% federal tax credit |
3 kW | $3.10 | $9,300 | $6,510 |
4 kW | $3.10 to $3.91 | $10,948 (Washington example) | $6,960 to $10,948 |
5 kW | $3.26 | $13,040 | $9,128 |
6 kW | $2.97 to $3.37 | $17,034 to $17,340 | $11,924 to $12,138 |
7 kW | $3.21 | $19,873 | $13,911 |
8 kW | $2.89 to $3.10 | $22,712 to $22,800 | $15,898 to $17,360 |
9 kW | $3.01 | $25,551 | $17,886 |
10 kW | $2.77 to $2.93 | $28,241 to $29,810 | $19,873 to $20,867 |
11 kW | $2.56 to $2.71 | $20,552 (EnergySage average) | $14,386 |
12 kW | $2.60 | $34,200 | $23,940 |
13 kW | $2.60 | $33,800 | $23,660 |
The table shows that solar system costs scale with size, with larger systems offering more favorable cost per watt but higher total upfront investment. A residential system of around 10 to 11 kW costs $20,000 on average after incentives.
Solar panel costs vary significantly by state due to differences in labor rates, permitting, local incentives, and market competition. The average cost after incentives for a residential solar system ranges from about $14,476 in California (with a cost per watt of $2.30) to as high as $31,636 in West Virginia (cost per watt of $3.10), though some states like Wyoming reach even higher prices depending on specific market conditions.
Arizona and Texas offer relatively affordable solar installation which averages about $18,799 and $20,308 after incentives, respectively, with costs per watt around $2.07 to $2.06. Meanwhile, states such as Massachusetts, New Hampshire and Indiana see higher costs, with prices after incentives reaching $23,710, $25,550 and $25,620, respectively, and costs per watt between $3.53 and $3.66 for Massachusetts and Indiana.
The table for solar panel costs by state, including both the average cost before incentives and the average cost after incentives, along with the cost per watt, based on EnergySage data as of May 2025 is given below.
State | Cost before incentives | Cost after incentives | Cost per watt |
Alabama | $44,062 | $30,843 | $3.15 |
Arizona | $27,045 | $18,932 | $2.05 |
Arkansas | $32,670 | $22,869 | $2.47 |
California | $20,304 | $14,213 | $2.29 |
Colorado | $30,263 | $21,184 | $2.84 |
Connecticut | $31,420 | $21,994 | $2.81 |
Delaware | $30,955 | $21,669 | $2.29 |
Florida | $32,670 | $21,557 | $2.20 |
Georgia | $31,763 | $22,234 | $2.55 |
Hawaii | $29,325 | $20,528 | $3.40 |
Idaho | $32,090 | $22,463 | $2.50 |
Illinois | $33,912 | $23,738 | $2.80 |
Indiana | $37,508 | $26,256 | $2.93 |
Iowa | $36,132 | $25,292 | $2.98 |
Kansas | $35,341 | $24,739 | $2.90 |
Kentucky | $36,529 | $25,570 | $2.70 |
Louisiana | $29,789 | $20,852 | $2.50 |
Maine | $34,961 | $24,473 | $2.94 |
Maryland | $35,862 | $25,103 | $2.69 |
Massachusetts | $32,602 | $22,821 | $3.05 |
Michigan | $33,137 | $23,196 | $3.11 |
Minnesota | $34,159 | $23,911 | $2.86 |
Missouri | $34,796 | $24,357 | $2.79 |
Mississippi | $28,344 | $19,841 | $2.72 |
Montana | $31,406 | $21,984 | $2.47 |
North Carolina | $30,985 | $21,690 | $2.29 |
Nebraska | $30,766 | $21,536 | $2.24 |
New Hampshire | $31,884 | $22,319 | $2.99 |
New Jersey | $32,748 | $22,924 | $2.60 |
New Mexico | $26,756 | $18,729 | $2.91 |
Nevada | $26,488 | $18,542 | $2.20 |
New York | $33,673 | $23,571 | $2.84 |
Ohio | $32,299 | $22,609 | $2.62 |
Oklahoma | $33,115 | $23,181 | $2.38 |
Oregon | $30,686 | $21,480 | $2.65 |
Pennsylvania | $33,820 | $23,674 | $2.63 |
Rhode Island | $32,376 | $22,663 | $3.22 |
South Carolina | $31,710 | $22,197 | $2.56 |
Tennessee | $43,600 | $30,520 | $3.37 |
Texas | $29,319 | $20,523 | $2.12 |
Utah | $30,040 | $21,028 | $2.58 |
Vermont | $32,744 | $22,921 | $2.98 |
Virginia | $37,516 | $26,261 | $2.82 |
Washington | $33,880 | $23,716 | $2.61 |
Washington, D.C. | $28,413 | $19,889 | $2.99 |
West Virginia | $45,453 | $31,817 | $3.15 |
Wisconsin | $34,857 | $24,400 | $2.96 |
Wyoming | $43,165 | $30,215 | $3.54 |
The table shows that most states in the US fall within a range of $18,000 to $26,000 after incentives for a standard solar system, but there are notable exceptions both above and below this range which reflect local market dynamics and regulatory environments.
Solar panels for houses cost between $15,000 and $22,500 before incentives for an average 2,000-square-foot home in the United States, according to the MarketWatch Guides. The average national price for a larger solar system before applying tax credits is around $29,000.
Most homeowners pay between $10,500 and $20,500 for mid-sized systems, or about $20,552 for an 11 kW system after the 30% federal tax credit, which is the average needed to cover most homes’ electricity usage.
The overview of solar panel system costs for homes, including the average home square footage and the number of panels needed, according to SolarReviews data is given in the table below.
Home size (square foot) | Estimated panels needed | Estimated system size | Cost after incentives (approx.) |
1,000 | 8–10 | ~4–5 kW | $6,500–$9,000 |
1,500 | 12–16 | ~6–6.6 kW | $9,800–$13,000 |
2,000 | 15 | ~7–8 kW | $13,000–$15,000 |
2,500 | 19 | ~9–10 kW | $16,300–$20,000 |
3,000 | 23 | ~11–12 kW | $19,600–$24,000 |
The table shows estimated solar panel costs per square foot of home, but actual costs and panel counts may vary based on local electricity rates, sun exposure and specific energy needs.
It costs about $29,000 to install residential solar panels in the U.S. in 2025 before incentives, but after the federal tax credit, most homeowners pay around $20,500 for an 11 kW system. Solar panel costs vary by state, system size and home size, with smaller homes paying less and larger homes more.
The factors that affect the cost of solar panels include the type, brand, efficiency and size of the solar panel system, as well as the inclusion of additional hardware and installation complexity. Other important considerations are the purchasing method, roof condition, permitting requirements and the availability of state or local incentives.
The factors that affect the cost of solar panels are listed below.
To calculate the cost of solar panels, you should start by determining your energy usage and the size of the solar system needed to meet it. Gather quotes from installers for the required system size, factor in any additional equipment and installation costs and subtract available incentives to find your total net cost of solar panels.
The step-by-step process to calculate the cost of solar panels is outlined below.
The additional cost considerations for solar panels include permitting and inspection fees, roof repairs or replacement, electrical upgrades and equipment replacement over time. They also involve supply chain and overhead costs, hidden fees in contracts, special mounting or installation needs and interconnection fees required by your utility.
Some additional costs associated with solar panel installation are outlined below.
Solar panel maintenance costs between $300 and $850 per year for professional cleaning and inspections, depending on system size and location, according to homeguide.
Regular solar maintenance helps in efficiency and long system life of solar panels, with most homeowners needing service once or twice annually. Additional repairs or tree trimming sometimes increase pricing as needed.
Commercial solar panels cost between $1.44 and $1.83 per watt installed for most businesses, with total project costs commonly ranging from $140,000 to $500,000 or more depending on system size and energy needs. The price of smaller solar systems start as low as $43,000 for 25 kW, while larger installations exceed $700,000.
A 10kW solar system costs about $26,600 to $30,000 before incentives in the US, with most recent averages around $27,500 to $28,241 in 2024 to 2025. After applying the 30% federal tax credit, the price drops to $18,620 to $19,873, depending on your location and installation specifics.
Yes, solar panels are expensive with residential installation costs ranging from $18,000 to $43,000 depending on system size and location. Federal and state incentives, however, can reduce costs by up to 50%, and ongoing energy savings help offset the expense over time which makes solar increasingly affordable for many homeowners.
The most expensive part in a solar installation is the photovoltaic (PV) cells because they are made of high-purity silicon and have complex manufacturing processes and higher efficiency. PV cells account for 25 to 30% of total costs for residential systems.
Yes, solar panels are worth the cost because the average payback period in the US is about 10 years, and homeowners can save $31,000 to $100,000 over 25 years. Solar is a strong hedge against energy inflation and adds value to your home, with solar prices near historic lows and utility rates rising.
Common financing options for home solar panels include paying upfront with cash, obtaining a solar-specific loan, using a home equity loan or line of credit (HELOC) and taking out a personal loan. Some homeowners opt for government-backed programs or contractor financing. Leasing and power purchase agreements (PPAs) are alternatives where you do not own the solar system.
Yes, incentives and tax credits reduce solar costs. The federal solar tax credit allows homeowners and businesses to deduct 30% of installation expenses, while state and local incentives, such as rebates and solar renewable energy certificates (SRECs), further lower upfront costs. Combined, these can reduce the total investment needed for solar by 30% to 50%.
The 30% federal tax credit for solar, officially called the Residential Clean Energy Credit, lets homeowners deduct 30% of the cost of installing a solar energy system from their federal income taxes. There is no income limit or maximum credit amount, and the credit applies to systems activated from 2022 through 2032.
You can claim the solar tax credit for the year your solar system is installed and becomes operational. You can roll the unused portion forward for as long as the credit is available if you do not use the full credit that year.