How much do Solar Panels Cost?

Going solar can save you thousands of dollars. Initial investments can cost from
$15,000 to $25,000, depending on the size of your property and your payment options.

But to give you a rough idea, let’s look into some average numbers.

Cost of Solar Panels on Average

Since 2010, the cost of putting solar panels on a home has dropped by 60%, from $7.53
per watt to $2.95 per watt. For example, a 6 kW household solar panel system would
have cost an average of $20,160 in 2015 and $45,180 in 2010.

In 2023, the average cost of solar panels for a home ranges from $15,000 to $20,000
before incentives. And solar installers quote prices in dollars per watt of power
generated. For example, a 6-kW system costs between $2.55 and $3.35 per watt.

The ultimate cost of a solar installation will vary depending on the homeowner's
demands. For instance, a home in a moderate climate might only require a system with
4 kW, whereas a home in a cold area might need 15 kW or more, costing the
homeowner more than $45,000.

Solar panel variation and infrastructure roofing can affect the cost of solar panels.
However, solar businesses can provide pricing packages that suit their clients'
installation needs.

Many tax rebates and incentives are also available to cut the cost of a solar panel
system. For example, the federal solar tax credit can reduce taxes by up to 30%.

What makes up the cost?

Hardware charges and soft costs are two types of expenses that affect the overall cost
of a home solar system.

Hardware contributes 46% of typical solar panel expenses. Hardware charges include
panels, inverters, and system supports (racking, mounting, wiring, etc.).

54 percent of soft costs are for installation, labor, and marketing charges, as well as
permitting and inspection fees.

Many other factors can also affect the cost of installing solar panels, including the size
of your solar panel system, the kind of roof on your property, the electrical system in a
home, and the materials used in construction. In some places, installation can be easy,
while others can have a more complicated setup.

Discover each factor with a significant influence on your solar panel pricing below.

Type and Angle of the Roof

When installing solar panels, it is critical to position them to receive the most sunlight.
Flat roofs, for example, need scaffolding and other supports to keep the solar panels

The Roof's Age

If you need to replace your roof, it's better to do so before installing solar panels so that
installers will not have to remove them when it comes time to repair the top.

Addressing roof issues before installing solar panels is more convenient than during

Structural Problems

Structural problems tie to the roof's age and the cost of installing solar panels. If your
property is older and has structural changes, you may need to address them before
installing your new roof. If not, you will have to reinstall your solar boards.

Types of Solar Panels

Monocrystalline solar panels, made of high-quality silicon, produce more electricity than
polycrystalline panels. As a result, they need the least amount of roof space and, on
average, endure more than 25 years. Monocrystalline panels generally range from 32
cents to $1.50 per watt.

PV solar panels are cost-effective compared to monocrystalline panels, despite having
a lower output. However, they do not hold up well in extreme temperatures, making
them unsuitable for residences in harsher year-round climates. PV solar panels range
from 70 cents to $1 per watt.

Thin-film solar panels are less expensive than traditional solar panels for smaller
projects. However, they only have an average efficiency rate of 6%–15%. As a result,
they have lower durability than other solar panels but are less expensive per watt.

Licenses Fees

Different laws in different countries govern solar panel installation. As a result, the
contractor may have to pay more than the standard fee or spend more time obtaining
the license. In addition, homeowners may need to pay additional fees for the
contractor's regulatory charges.

Monitoring Systems

Solar monitoring systems can be advantageous since homeowners can monitor their
solar system's performance. However, this can also lead to additional expenses that
may increase the overall cost.

Tax Rebates

Several municipalities and governments provide tax incentives for the installation of
solar energy. For example, solar income tax credits are claimable for a percentage of
the cost of a solar PV system. These incentives typically lower the overall price of

Can Solar Installation Companies influence the cost?

Solar power companies offer incentives to get new customers, meaning people who buy
solar panels pay less for their electricity.

Check with many businesses to find the most outstanding deal on your installation.
Don't simply choose the cheapest option. When selecting a provider, ensure you read
reviews and understand the quality of their work.

How to lower the cost of your solar power installation

You can use the investment tax credit to reduce your tax bill on new
investments. Anyone who pays taxes is eligible for this reward.

Solar firms and governments offer several incentives, like financial assistance, to solar
consumers. Some of these perks are worth hundreds of dollars.


Solar panels can be very cost-effective if you want to cut your power expenses. Still, it is
best to research the equipment cost, financing options, warranties, and any available
federal and state incentives before investing, mainly because power costs vary greatly
depending on where you live.