How much do solar panels cost in 2026?

Price per watt: the only fair way to compare

Solar is priced by capacity, measured in watts (W) or kilowatts (kW) of panel output under standard test conditions. Divide the total quoted price by the system size in watts and you get the price per watt. A $26,000 quote for an 8 kW system is $3.25/W. A $22,000 quote for a 6 kW system looks cheaper but is actually $3.67/W.

LBNL's annual distributed solar data, which tracks millions of US installations, is the most reliable public benchmark. Its latest release, covering systems installed through 2025, found:

Medians hide a wide spread. Prices differ by state, installer, roof complexity, equipment and market conditions, and figures outside the US (UK, Canada, Australia) follow their own local markets. Treat these as reference points, not quotes.

What different system sizes cost

Multiply size by price per watt to get a ballpark. Here is the same arithmetic at three price levels drawn from the LBNL medians:

Larger systems usually cost a little less per watt because fixed costs such as permitting, design, sales and the inverter setup are spread over more panels.

Where the money goes

Panels are no longer the biggest line item. NREL cost benchmarks have repeatedly shown that "soft costs" such as customer acquisition, labor, permitting, inspection, overhead and profit make up a large share of a residential system's price, often more than the hardware itself. That is why two installers using similar equipment can quote very different prices.

• Modules (panels): a minority of the total. Premium high-efficiency panels cost more but matter mainly when roof space is tight.
• Inverters: a string inverter is usually cheapest; microinverters or optimizers add cost but help with shading and panel-level monitoring.
• Racking and electrical: mounting hardware, wiring, disconnects and sometimes a main panel upgrade.
• Labor and soft costs: design, permits, interconnection paperwork, sales and installer margin.

What pushes your price up or down

Factors that raise cost

• Complex roofs with many planes, steep pitches, tile or slate.
• An electrical panel that needs upgrading to handle solar.
• Adding a battery, which in the LBNL data lifted the median residential price from about $3.60/W to $4.90/W.
• Financing with dealer fees baked in.
• Ground mounts, long wire runs or trenching.

Factors that lower cost

• A simple, south- or west-facing roof in good condition.
• Paying cash or bringing your own low-rate financing.
• Getting several competing quotes; see our guide to comparing solar quotes.
• Standard, widely available equipment rather than boutique brands.

Worked example: sizing and pricing a system

Suppose your household uses 900 kWh a month, or 10,800 kWh a year, which is close to typical US usage according to EIA data. In your location, a tool such as NREL's PVWatts estimates each kW of panels will produce about 1,300 kWh per year. (Cloudier northern sites may see 1,100 or less; the desert Southwest can exceed 1,600.)

1. System size to cover 100% of use: 10,800 ÷ 1,300 = 8.3 kW.
2. Cost at the overall median: 8,300 W × $3.60 = $29,880.
3. Cost at the cash median: 8,300 W × $3.00 = $24,900.

You do not have to offset 100% of use. Under export rules that pay little for surplus power, a smaller system matched to daytime use can deliver a better return. Our net metering guide explains why.

What that money buys: cost per kWh

A more useful figure is what the system costs per kilowatt-hour it will produce. Take the median 7.7 kW system at $3.60/W, or $27,720. At 1,300 kWh per kW per year that is about 10,010 kWh in year one. Panels lose roughly 0.5% of output per year, according to NREL research, so over 25 years the system produces about 235,800 kWh in total.

$27,720 ÷ 235,800 kWh ≈ 11.8 cents per kWh, before maintenance or an inverter replacement. Compare that with the US average residential electricity price, which EIA puts at about 17.3 cents per kWh for 2025, and you can see why solar often makes sense. It also shows why it may not where power is cheap or sunshine is limited. Our guide on whether solar is worth it walks through payback in detail.

Incentives in 2026

Incentives can change the math a lot, and they changed sharply in the US after 2025 federal legislation. The 30% federal Residential Clean Energy Credit (25D) applied only to systems installed by December 31, 2025, so homeowners buying in 2026 should not count on it. Some state, utility and local programs continue, and lease or power purchase agreement providers may still use separate business credits for a limited time. Rather than rely on figures that may already be out of date, check our incentives page for current programs where you live.

Outside the US, look to national and regional schemes. In the UK, for example, the Smart Export Guarantee pays for exported power rather than for installation.

How to get a fair price

1. Estimate your own system size and output with our solar savings calculator or NREL PVWatts.
2. Collect at least three itemized quotes. If you want a head start, you can request free quotes from local installers.
3. Convert each to price per watt and cost per expected kWh.
4. Ask for the cash price separately from any financed price.
5. Read our comparison of lease, loan, cash and PPA before signing any finance agreement.

This guide is general information, not financial, tax or engineering advice. Prices and incentives change — confirm with qualified local professionals and official program sources. See our methodology and disclosures.