How much do solar panels cost in 2026?
Solar costs about $2.85 per watt installed in the US in 2026. That's $17,100 for a 6 kW system or $28,500 for 10 kW before incentives — roughly $11,970 and $19,950 after the 30% federal tax credit.
Cost by system size
| System size | Panels | Gross cost | After 30% credit |
|---|---|---|---|
| 4 kW | 10 | $11,400 | $7,980 |
| 6 kW | 15 | $17,100 | $11,970 |
| 8 kW | 20 | $22,800 | $15,960 |
| 10 kW | 25 | $28,500 | $19,950 |
| 12 kW | 30 | $34,200 | $23,940 |
| 15 kW | 38 | $42,750 | $29,925 |
Where the money actually goes
| Component | Share | Notes |
|---|---|---|
| Panels | ~25% | The cheapest part now — prices fell ~40% since 2020 |
| Inverter | ~10% | String inverter or per-panel microinverters |
| Racking & electrical | ~10% | Mounts, wiring, disconnects |
| Labour | ~20% | Varies most by region |
| Permits & inspection | ~5% | Highly local |
| Sales, overhead, margin | ~30% | The most negotiable line |
What raises your price
- Roof complexity — multiple planes, steep pitch, tile or slate can add 10–25%
- Electrical upgrades — an old panel may need a $2,000–4,000 service upgrade
- Batteries — add $8,000–15,000 and usually lengthen payback
- Premium equipment — high-efficiency panels cost more per watt for marginal gain on a roof with space
Cost in your city
Labour and permitting vary a lot by market. See estimated cost and payback for 788 cities →
What this looks like in real cities
Measured rooftop data, spanning the range from fastest to slowest payback we have found:
| City | Sun hrs/yr | Rate | Payback |
|---|---|---|---|
| Honolulu, HI | 1,787 | 42.1¢ | 3.1 yrs |
| Sacramento, CA | 1,796 | 31.2¢ | 8.8 yrs |
| Atlanta, GA | 1,545 | 14.1¢ | 10.9 yrs |
| Norwich, East of England | 1,016 | 26.1¢ | 12.9 yrs |
| Gatineau, QC | 1,291 | 7.9¢ | 33.3 yrs |
Frequently asked
Is solar cheaper than it was?
Yes. Installed cost per watt has fallen roughly 40% since 2020, driven mainly by panel manufacturing scale and higher panel efficiency. Hardware is now a minority of a typical quote — labour, permitting, inspection and installer margin make up much of the price, which is why quotes vary so widely.
Should I buy or lease solar panels?
Buying almost always returns more over 25 years. Leases and power purchase agreements require no money up front but capture much of the savings, and can complicate selling your home since the buyer must agree to take over the contract. If you can finance a purchase, that usually wins.
Does the 30% tax credit apply to everyone?
It is a US federal tax credit that offsets tax you owe. If you owe less tax than the credit, it can generally be carried forward, but it is not a cash rebate. Households with little federal tax liability may never capture the full value, which changes the maths considerably.
Related guides
General information, updated 2026-08-22. Not financial, tax or engineering advice.