Quick answer: Across the major 2026 cost guides, the average installed price of solar panels falls between about $2.50 and $3.15 per watt before incentives. For a 7 kW home system that is roughly $17,500 to $22,000, and for a 10 kW system, it is roughly $25,000 to $31,500. Your own price depends on system size, roof, equipment, location, and how you pay.
If you search for the average cost of solar panels, you will see totals ranging from about $20,000 to more than $31,000, and every one of them is presented as “the average.” The numbers are not wrong. They are built on different system sizes, locations, and data. This guide puts them side by side, shows what a fair price looks like by system size and state, and explains the extra costs that averages leave out, so you can judge a real quote against the right benchmark.
What you will learn:
- The average cost of solar panels in 2026, in total dollars and per watt
- Why one website says $20,000 and another says $31,000
- Average costs by system size and by state
- Where each dollar of a solar quote goes
- The extra costs most averages do not include
- How incentives and financing change what you actually pay
Average Cost of Solar Panels at a Glance
| Measure | 2026 figure | Source |
|---|---|---|
| Average installed system, national | $20,534 | ConsumerAffairs, August 2026 |
| Average cost per watt, national | $2.78 | ConsumerAffairs |
| Average cost per watt, California | $3.14 | SolarReviews, October 2026 |
| Average cost per watt, Los Angeles | $2.51 | EnergySage, September 2026 |
| Typical price range per watt | $2.50 to $3.25 | ConsumerAffairs |
| Single panel, panel only | $200 to $350 | ConsumerAffairs |
| Solar battery add-on | $7,000 to $18,000 | ConsumerAffairs |
| Solar loan payment | $100 to $300 per month | ConsumerAffairs |
| Solar lease payment | $150 to $250 per month | ConsumerAffairs |
All figures are before incentives. For a deeper look at the per-watt number, see our guide to solar cost per watt.
Why Every Website Shows a Different Average
The biggest source of confusion is system size. A guide that averages a 7 kW system will always show a lower total than a guide that averages a 12 kW system, even when both charge the same price per watt.
| Source | Reported figure | System size behind it | Cost per watt | Scope |
|---|---|---|---|---|
| ConsumerAffairs | $20,534 | About 7.4 kW (total divided by cost per watt) | $2.78 | National |
| EnergySage national page | $31,135 | 12 kW | About $2.59 (calculated) | National |
| EnergySage Los Angeles page | $25,055 | 10 kW | $2.51 | Los Angeles |
| SolarReviews California page | $22,600 | 7.2 kW (about 18 panels of 400 W) | $3.14 | California |
What Explains the Gap
- System size: larger systems cost more in total but usually less per watt.
- Data type: some averages come from real marketplace quotes, others from installer or survey data.
- Location: labor rates, permitting, and competition differ by state and city.
- Scope: some figures include a battery or extras, and some do not.
- Date: a guide last updated before 2026 may still reflect old incentives or older equipment prices.
The practical takeaway is to compare cost per watt, not the total. A total price only tells you something once you know how large the system is.
Average Solar Panel Cost by System Size
The table below multiplies system size by three benchmarks: the lower end of the typical range ($2.50 per watt), the national average ($2.78), and the California average ($3.14). It is an estimate for planning, not a quote.
| System size | Lower end ($2.50 per watt) | National average ($2.78 per watt) | California average ($3.14 per watt) |
|---|---|---|---|
| 3 kW | $7,500 | $8,340 | $9,420 |
| 4 kW | $10,000 | $11,120 | $12,560 |
| 5 kW | $12,500 | $13,900 | $15,700 |
| 6 kW | $15,000 | $16,680 | $18,840 |
| 7 kW | $17,500 | $19,460 | $21,980 |
| 8 kW | $20,000 | $22,240 | $25,120 |
| 9 kW | $22,500 | $25,020 | $28,260 |
| 10 kW | $25,000 | $27,800 | $31,400 |
| 12 kW | $30,000 | $33,360 | $37,680 |
How to Estimate the System Size You Need
- Find the total kilowatt-hours (kWh) on your last 12 months of electric bills.
- Divide that annual usage by about 1,200 for a rough system size in kW. A home using 12,000 kWh per year needs roughly 10 kW.
- Remember that roof space, shade, and orientation can limit the size your roof can host.
Panel output varies by model, so see average solar panel output to understand how many panels that size usually means.
Average Solar Panel Cost by State
Cost per watt is the fairest way to compare states. The state totals below look very different partly because the average home in each state installs a different size system.
| State | Typical installation cost | Cost per watt | Estimated payback (cash) |
|---|---|---|---|
| California | $21,042 | $2.52 | 9 years |
| Texas | $28,755 | $2.25 | 8.9 years |
| Florida | $30,804 | $2.12 | 9 years |
| Illinois | $34,449 | $2.98 | 9.4 years |
Figures are from ConsumerAffairs state data, before incentives. Note that SolarReviews reports a higher California figure of $3.14 per watt, which is another example of how sources differ.
Why Higher Rates Can Mean Faster Payback
States with expensive electricity, such as California, can pay back faster than states with cheap electricity even when the installed price is higher, because every kilowatt-hour your system offsets is worth more. For a state-by-state view of savings, see solar savings by state, and for California export rules, read about NEM 3.0 solar savings.
Where Your Money Goes: A Solar Quote Breakdown
Panels are a small slice of the total. Using a federal cost benchmark cited by ConsumerAffairs, here is how a $20,000 system breaks down.
Hard Costs: The Equipment (about 45 percent)
| Item | Share of total | Cost on a $20,000 system |
|---|---|---|
| Solar panels | 12% | $2,400 |
| Wiring and electrical components | 11% | $2,200 |
| Inverter | 10% | $2,000 |
| Supply chain, shipping and inventory | 9% | $1,800 |
| Racking and mounting hardware | 3% | $600 |
Soft Costs: Everything Else (about 55 percent)
| Item | Share of total | Cost on a $20,000 system |
|---|---|---|
| Sales and marketing | 18% | $3,600 |
| Overhead | 11% | $2,200 |
| Profit | 11% | $2,200 |
| Permitting, inspection, and interconnection | 8% | $1,600 |
| Installation labor | 7% | $1,400 |
Soft costs are why two quotes for identical panels can be thousands of dollars apart. To see how sales structure affects what you pay, read about solar panel suppliers vs. installers and solar panel distribution costs in California.
What Pushes Your Price Above or Below the Average
System Size and Electricity Use
The more electricity you use, the larger the system you need. A home using 6,000 kWh per year needs about half the system of a home using 12,000 kWh.
Roof Angle and Complexity
- Unshaded south-facing roofs produce more per panel, so you may need fewer panels.
- A steep north-facing roof can raise costs by 30 to 40 percent because you need more equipment for the same output.
- Multiple roof planes, dormers, and skylights add labor and mounting hardware.
Equipment Tier and Inverter Type
- Premium panels cost more per watt but can produce more in limited space and often carry stronger warranties.
- String inverters are usually the lowest cost. Microinverters and optimizers cost more but handle shade and complex roofs better. Inverters typically cost $1,000 to $3,000.
- A battery is the largest optional line item and can add $7,000 to $18,000.
Installer Overhead and Sales Model
Marketing-heavy companies carry more overhead per job. A smaller local company or a manufacturer-direct program can have fewer layers between the equipment and your roof, so always ask for an itemized breakdown instead of a lump sum.
Extra Costs the Average Does Not Include
The published average assumes a straightforward installation. These items are commonly added after a site visit.
| Possible extra | Typical cost | Why it comes up |
|---|---|---|
| Electrical panel upgrade | $1,500 to $4,000 | Older homes with a 100-amp panel often need more capacity |
| Tree trimming or removal | $400 to $2,000 | Shade reduces production |
| Roof repair or replacement | $5,000 to $15,000 | The roof should outlast the panels |
| Permits and inspections | $300 to $1,000 | Varies by city, and California caps home solar permit fees at $450 |
| Interconnection fee | $75 to $500 | Higher where grid upgrades are needed |
| Professional panel cleaning | $100 to $350 | Optional, since rinsing with a hose is often enough |
| Inverter replacement | $1,000 to $3,000 | Many inverter warranties run 10 to 15 years |
If your roof is near the end of its life, read whether your roof is too old for solar panels before you compare quotes. For battery pricing, see how much a solar battery costs.
Incentives and Your Net Cost
Several 2026 guides now state that the federal residential solar tax credit has ended for systems bought with cash or a loan. EnergySage and ConsumerAffairs both describe it as expired after 2025, while some lease and power purchase agreement providers can still claim a version of it and may pass savings along.
- Check the publish date: a guide that still subtracts a 30 percent credit may be out of date.
- Look at state, local, and utility programs: these vary by address and can still lower your net price.
- Read your contract: some providers claim local rebates for themselves, so confirm who receives them.
- Confirm tax treatment with a tax professional before relying on any credit in your math.
See current programs in solar incentives for 2026, and if you are in California, read how to claim a solar rebate in California.
What “Rate for Solar Panels” Really Means
Homeowners use the word “rate” for several different numbers. Knowing which one you mean keeps you from comparing the wrong figures.
| When people say rate, they mean | What it measures | Where to learn more |
|---|---|---|
| Price per watt | Installed system price divided by system wattage, usually $2.50 to $3.25 | Solar cost per watt explained |
| Loan interest rate (APR) | The cost of borrowing, which can be hidden by dealer fees in the system price | Solar financing rates |
| Utility electricity rate | What you pay per kWh today, which sets how much solar saves | Solar panel payback period |
| Export or buyback rate | The credit you receive for power sent to the grid, which is lower under NEM 3.0 | NEM 3.0 solar savings |
How Your Payment Method Changes the Cost
The average assumes a single cash price. Financing can change the total you pay.
| Payment method | What you pay | What to watch |
|---|---|---|
| Cash | One upfront price | Usually the lowest total, and often the best long-term deal |
| Solar loan | $100 to $300 per month is typical | Dealer fees can raise the financed price well above the cash price |
| Solar lease | $150 to $250 per month is typical | You do not own the system, and escalators can raise payments |
| Power purchase agreement | A per-kWh rate for the power produced | Check the escalator and what happens if you sell the home |
Consumer Affairs gives an example of a system that costs $18,000 in cash but $25,000 or more when financed, because of dealer fees built into the price. Before you sign, ask for the cash price, the financed price, and the total repaid over the loan term.
Compare options in solar lease vs. loan in California and check current solar financing rates.
Is the Average Cost Worth Paying?
The average cost is the entry price. Whether it is worth it depends on how quickly your bill savings repay it.
- ConsumerAffairs reports payback periods of about 5 to 15 years depending on local electricity rates.
- EnergySage estimates about 5.8 years for Los Angeles, while SolarReviews estimates about 9 years for California without a battery.
- Higher utility rates shorten payback, and cheap electricity lengthens it.
For the full return calculation, see solar panel payback period and solar panel cost and your ROI.
How to Find Your Real Price
An average is a benchmark. Use these steps to turn it into your own number.
- Gather 12 months of electric bills to find your annual kWh usage.
- Run a calculator: try the solar install cost calculator or the California solar cost calculator.
- Get at least three itemized quotes and divide each total by system watts to get cost per watt.
- Ask what is not included, such as panel upgrades, roof work, and permit fees.
- Request both cash and financed prices for the same equipment.
- Check the installer: use our 10 questions to ask a solar installer as a checklist.
To see why an estimate can differ from a final quote, read how solar estimates work. For Los Angeles homeowners, see solar install cost estimates in Los Angeles.
Where These Numbers Come From
Averages in this guide come from three published 2026 cost guides and were reviewed in October 2026. Totals by system size are our own calculations from the per-watt benchmarks listed above.
- ConsumerAffairs: How Much Do Solar Panels Cost in 2026 (updated August 2026)
- EnergySage: Los Angeles solar panel cost (updated September 2026)
- SolarReviews: California solar panel cost (updated October 2026)
Prices change often. Treat every average as a starting point and confirm with quotes for your own home.
Your Number, Not the National One
The average cost of solar panels in 2026 is best read as a range of about $2.50 to $3.15 per watt, not a single price tag. The total that matters is your system size multiplied by a fair per-watt price, plus any extras your roof and electrical panel require, minus the incentives that still apply to you. When you are ready to turn the average into a number for your home, get a free, no-pressure solar estimate built around your actual roof and bills.
Frequently Asked Questions
What is the average cost of solar panels in 2026?
Most 2026 cost guides put the average installed price between about $2.50 and $3.15 per watt before incentives. ConsumerAffairs reports a national average system price of $20,534, while EnergySage lists $31,135 for a 12 kW system. The totals differ mainly because each source assumes a different system size.
What is the average cost per watt for solar panels?
The national average is about $2.78 per watt according to ConsumerAffairs, and California averages about $3.14 per watt according to SolarReviews. EnergySage shows $2.51 per watt for Los Angeles. A price under $2.50 per watt is generally considered a good price, and a price above $3.50 per watt is considered expensive unless the quote includes a complex roof or a battery.
How much do solar panels cost for an average house?
A typical home system is 5 kW to 10 kW, which costs about $13,900 to $27,800 at the national average of $2.78 per watt, before incentives. A home using about 12,000 kWh per year needs roughly a 10 kW system, while a home using 6,000 kWh needs about 5 kW.
Does the average cost of solar panels include installation?
Yes. Published averages are all-in system prices that cover panels, inverter, racking, wiring, permitting, labor, and the installer’s overhead and profit. A panel-only price of $200 to $350 per panel is not comparable to a full system average.
Why do different websites show different average solar costs?
Each source uses a different system size, data set, and location. A $20,534 national average, a $22,600 California average for 7.2 kW, and a $31,135 national figure for 12 kW can all be accurate for their own assumptions. Compare cost per watt instead of the total price to line them up.
Is the federal solar tax credit still available?
EnergySage and ConsumerAffairs both report that the federal credit is no longer available for systems purchased with cash or a loan after 2025. Some lease and power purchase agreement providers can still claim a version of it and may pass savings to you. Confirm your situation with a tax professional, and check the publication date of any guide that still lists a 30 percent credit.
How much does a solar battery add to the average cost?
ConsumerAffairs puts a typical solar battery at $7,000 to $18,000 on top of the system price. SolarReviews estimates about $15,600 for a Tesla Powerwall installed in California. Batteries are optional, but they matter more under California’s NEM 3.0 export rules.
What are the monthly costs of solar panels?
Solar panels have no monthly cost if you pay cash. ConsumerAffairs reports typical loan payments of $100 to $300 per month and typical lease payments of $150 to $250 per month. Compare the payment against the utility bill it replaces, and compare the cash price against the financed price.
How can I lower the cost of solar panels?
Reduce your electrical load first, since the difference between a 7 kW and an 8 kW system can be close to $3,000. Then compare at least three itemized quotes by cost per watt, ask for both a cash price and a financed price, and check state, local, and utility incentives that apply to your address.