In 2022, solar panels cost about $20,000 on average. With the cost of solar panels dropping every year, there’s never been a better time to go solar. In this article, we’ll break down the cost of solar by system size, state, and panel brand, all of which can significantly impact the final number you pay.
Key takeaways about solar panel cost
- A solar panel installation costs about $20,498 on average. That’s $2.77/W for a 10 kW system minus the 26 percent federal solar tax credit
- Total average installation cost ranges from $17,538 to $23,458 after the 26 percent federal solar tax credit.
- The cost of solar has fallen about 13 percent over the past 5 years
- The best way to get a fair price for solar? Compare quotes on the EnergySage Marketplace, for free.
What you’ll learn about in this article
- How much does it cost to install solar panels?
- What factors impact the cost of a solar installation?
- Solar costs over time
- Rebates and incentives
- How do you pay for a solar installation?
- How does a solar installation work?
- Are solar panels worth it?
- Frequently asked questions
Solar panel cost in 2022
The cost of a solar panel installation in 2022 ranges from $17,538 to $23,458 after taking into account the federal solar tax credit. A single solar panel costs between $200 and $250. On average, a 10 kilowatt (kW) solar panel installation costs $20,498 after taking into account the federal solar tax credit ($27,700 before the tax credit). On a cost per watt ($/W) basis, solar panel prices in 2022 average $2.77/W.
Solar installations are a unique product – just based on your state and the manufacturer of your chosen solar panels, average solar panel costs can vary widely. Here are they key factors that impact solar installation pricing:
- System size: The bigger your solar panel system, the pricier it will be. Importantly, the average per-unit price for solar decreases with increasing system size.
- Location: Pricing varies by state as well, which is a result of both local quoting trends and system size differences – states that have a larger average system size will naturally have a lower average cost of solar.
- Panel brand and quality: Like any product or appliance, solar panels come in varying quality.
- Roof characteristics: The cost of a solar panel installation doesn’t just come from equipment. Your solar installer will also charge for the difficulty of the installation, and having a complex roof might make your system cost more.
- Labor: Solar companies all charge different labor rates for their work. You may opt to pay more for a more reputable company with better reviews and a shorter timetable to installation.
- Permitting and interconnection: While it’s not a large factor, paying for permits and your interconnection fee to the grid will add a little to the top of your total solar installation price.
A note about pricing: gross vs. net costs
Throughout this article (and all around our website), we usually talk about solar panel pricing in terms of gross cost, aka the cost before any solar rebates and incentives that can reduce the upfront cost of solar, or even get you some money back over time. For example, our cost per Watt ($/W) figures throughout the rest of this article are always the gross cost. This is because solar rebates and incentives aren’t always available to everyone. Even the 26 percent federal solar tax credit isn’t always available for everyone to take full advantage of – you need to have enough tax liability to claim the credit.
What factors impact the cost of a solar panel installation?
There’s a lot that goes into the sticker price a solar installer charges you. Solar installations are a unique product: the price you pay is heavily dependent on your unique situation and factors related to your electricity use and property. Here are some of the top factors to keep in mind that can and do influence the cost of solar panels for your property:
System size
Perhaps the most obvious and influential factor in the price you pay for a solar panel installation is the size of the system you get. It’s pretty simple: a bigger system with more panels will cost more money than a system with fewer panels (and lower energy output). However, there’s also that Costco-esque relationship between system size and price, where a larger system has a lower average $/W. It’s like buying food in bulk – the overall price is higher, but the per unit price is lower. Here’s what EnergySage Marketplace data shows the $/W to come out to for various system size buckets, and what that would translate to for a full system:
Cost of solar panels by system size
| System size | Average solar panel system cost (before tax credits) | Average solar panel system cost (after tax credits) | $/W |
|---|---|---|---|
| 2 | $6,567 | $4,859 | $3.28 |
| 3 | $9,288 | $6,873 | $3.10 |
| 4 | $11,522 | $8,526 | $2.88 |
| 5 | $14,330 | $10,604 | $2.87 |
| 6 | $16,999 | $12,579 | $2.83 |
| 7 | $19,556 | $14,472 | $2.79 |
| 8 | $22,039 | $16,309 | $2.75 |
| 9 | $24,809 | $18,359 | $2.76 |
| 10 | $27,331 | $20,225 | $2.73 |
| 11 | $29,842 | $22,083 | $2.71 |
| 12 | $31,995 | $23,677 | $2.67 |
NOTE: The $/W in this table reflects the average price in that system size range, i.e. $3.28 is the average $/W for systems ranging from 2 kW to 2.99 kW.
These prices reflect the cost of a solar energy system both before AND after deducting the federal solar tax credit, which saves you 26 percent. Some states, local governments, and utilities also offer rebates and other tax incentives that can save you further money.
Remember, while bigger solar power systems may cost more, they’ll also very likely save you more in the long run. If you install a 10 kW solar energy system that covers all of your electricity use, you might have to pay more out of pocket, but you’ll be cutting a significant monthly expense – your utility bill – and saving more money as a result. Zero-down, low-interest solar loans are becoming increasingly common, making it even easier to buy a solar panel system that can fully offset your electricity bill and maximize your solar savings.
Location
Solar installation costs also vary by your location, mostly by state. The spread of prices isn’t that wide and much of the differences by location are actually due to differences in system sizes and incentives, but it’s still something to keep an eye on.
We’ve analyzed quote data from our solar marketplace to understand solar panel system prices by state. But as we said above, system sizes tend to be larger in states with lower pricing, so it’s not always fair to compare a 10 kW system in Florida to a 10 kW system in Massachusetts. Their energy needs are just too different.
Cost of solar panels by state
| State | Solar panel cost: 6 kw system average | Solar panel cost: 10 kw system average | 2022 federal tax credit value (for 10 kw system) | Average cost per watt ($/W) |
|---|---|---|---|---|
| Arizona | $13,980 | $23,300 | $6,058 | $2.33 |
| California | $16,140 | $26,900 | $6,994 | $2.69 |
| Colorado | $18,780 | $31,300 | $8,138 | $3.13 |
| Connecticuit | $18,360 | $30,600 | $7,956 | $3.06 |
| Washington D.C. | $20,460 | $34,100 | $8,866 | $3.41 |
| Delaware | $15,720 | $26,200 | $6,812 | $2.62 |
| Florida | $14,640 | $24,400 | $6,344 | $2.44 |
| Georgia | $17,940 | $29,900 | $7,774 | $2.99 |
| Iowa | $18,120 | $30,200 | $7,852 | $3.02 |
| Illinois | $17,880 | $29,800 | $7,748 | $2.98 |
| Indiana | $19,500 | $32,500 | $8,450 | $3.25 |
| Louisiana | $18,840 | $31,400 | $8,164 | $3.14 |
| Massachusetts | $18,660 | $31,100 | $8,086 | $3.11 |
| Maryland | $17,520 | $29,200 | $7,592 | $2.92 |
| Maine | $15,840 | $26,400 | $6,864 | $2.64 |
| Michigan | $18,600 | $31,000 | $8,060 | $3.10 |
| Minnesota | $18,240 | $30,400 | $7,904 | $3.04 |
| North Carolina | $16,500 | $27,500 | $7,150 | $2.75 |
| New Hampshire | $18,360 | $30,600 | $7,956 | $3.06 |
| New Jersey | $16,740 | $27,900 | $7,254 | $2.79 |
| New Mexico | $19,260 | $32,100 | $8,346 | $3.21 |
| Nevada | $14,640 | $24,400 | $6,344 | $2.44 |
| New York | $18,960 | $31,600 | $8,216 | $3.16 |
| Ohio | $16,080 | $26,800 | $6,968 | $2.68 |
| Oregon | $17,340 | $28,900 | $7,514 | $2.89 |
| Pennsylvania | $18,060 | $30,100 | $7,826 | $3.01 |
| Rhode Island | $18,900 | $31,500 | $8,190 | $3.15 |
| South Carolina | $16,680 | $27,800 | $7,228 | $2.78 |
| Texas | $15,840 | $26,400 | $6,864 | $2.64 |
| Utah | $15,780 | $26,300 | $6,838 | $2.63 |
| Virginia | $17,100 | $28,500 | $7,410 | $2.85 |
| Vermont | $17,880 | $29,800 | $7,748 | $2.98 |
| Washington | $15,840 | $26,400 | $6,864 | $2.64 |
| Wisconsin | $18,120 | $30,200 | $7,852 | $3.02 |
NOTE: These ranges are system prices BEFORE the 26 percent federal tax credit for solar. Additionally, EnergySage does not currently provide quotes in all 50 states, which limits our ability to provide solar panel cost estimates in each.
In general, states where homeowners need to use air conditioning more often have more average electricity used per household. As such, some of the largest solar panel systems are installed in sunny, warm states like Arizona and Florida. Why does this matter? For solar installers, the larger your system, the less they will usually charge per kilowatt-hour (kWh). It’s like buying in bulk at Costco – you might pay a higher sticker price, but your per-unit costs are lower when you buy more at one time. We’ll dive into this phenomenon more below.
Back to solar panels. In the end, this very roughly translates to lower $/W pricing in warm states and higher $/W pricing in cold states. But in the end, total pricing is usually close to a wash – warm states have a lower price per watt, but larger system sizes, and cold states have a higher price per watt, but smaller system sizes.
The biggest takeaway from this data isn’t that some states are “better” than others when it comes to solar prices: it’s that solar is affordable across the board. Almost every single state falls within a $0.50 cent margin of the $2.77/W national average. Solar isn’t only worth it in the regions of the United States where costs are extremely low – there is a healthy trend of adoption across states without direct correlation to the lowest $/W. For example, New Jersey, Massachusetts, Virginia, and Georgia are all in the top 10 solar states in the United States for installed solar capacity, but are higher than the national average for $/W.
Panel brand and equipment quality
Another way to break down solar panel price data is by the panel brand. The following table was made using data from the EnergySage Marketplace and tracks the average cost of 6 kW and 10 kW solar panel systems by the brand of solar panel used in the installation project.
Cost of solar panels by panel manufacturer
| Manufacturer | Solar panel cost: 6 kw system average | Solar panel cost: 10 kw system average | 2022 federal tax credit value (for 10 kw system) | Average cost per watt ($/W) |
|---|---|---|---|---|
| AXITEC | $15,000 | $25,000 | $6,500 | $2.50 |
| Aptos Solar | $15,540 | $25,900 | $6,734 | $2.59 |
| Canadian Solar | $17,700 | $29,500 | $7,670 | $2.95 |
| CertainTeed | $16,140 | $26,900 | $6,994 | $2.69 |
| JA Solar | $16,800 | $28,000 | $7,280 | $2.80 |
| Jinko Solar | $15,660 | $26,100 | $6,786 | $2.61 |
| LA Solar | $14,400 | $24,000 | $6,240 | $2.40 |
| LG Solar | $17,520 | $29,200 | $7,592 | $2.92 |
| LONGi Solar | $17,580 | $29,300 | $7,618 | $2.93 |
| Panasonic | $16,620 | $27,700 | $7,202 | $2.77 |
| Phono Solar Technology Co, Ltd. | $17,640 | $29,400 | $7,644 | $2.94 |
| Q CELLS | $16,440 | $27,400 | $7,124 | $2.74 |
| REC | $16,260 | $27,100 | $7,046 | $2.71 |
| Silfab Solar | $16,620 | $27,700 | $7,202 | $2.77 |
| Solaria | $16,500 | $27,500 | $7,150 | $2.75 |
| SunPower | $20,580 | $34,300 | $8,918 | $3.43 |
| Suntech | $14,940 | $24,900 | $6,474 | $2.49 |
| Trina Solar | $17,100 | $28,500 | $7,410 | $2.85 |
NOTE: These ranges are system prices BEFORE the 26 percent federal tax credit for solar.
The price you pay for a solar panel brand is reflective of panel quality to a degree. For example, systems using SunPower panels see the highest average prices ($20,580 for a 6 kW system and $34,300 for a 10 kW system), and SunPower is known for producing well-made, high-efficiency products.
Interestingly, there aren’t that many outliers when it comes to brand pricing, and most manufacturers generally see similar cost ranges. It’s important to keep in mind that when comparing system prices based on panel brands, there are so many factors aside from just panel manufacturer that impact the final system price – like installer experience, location, racking equipment, inverter brand, warranty and more.
Roof characteristics
The characteristics of your home and roof also play a part in your total solar costs. If you have a south-facing roof that slopes at a 30-degree angle, installing solar on your home will be relatively easier for your installer, as they can probably install all of your panels on a single roof plane that has optimal sun exposure (better, more direct sun exposure = fewer panels needed, which will lower your costs). Conversely, if your roof has multiple levels, dormers, or skylights, the additional effort to finish the installation may include additional equipment and installation costs.
Labor
Another piece of the solar installation puzzle is the company actually performing the job. Solar installers charge varying amounts for their services, and the final price they offer for an installation depends on measures like your installer’s track record, warranty offerings, and internal operations. You can imagine how a well-regarded solar installer with premium warranty offerings can charge more for an installation job, and it will be worth your money.
EnergySage brings the best solar installers right to you on our Marketplace – check out our article on choosing an installer to learn how we vet installers, and how you can and should compare them against one another.
Permitting and interconnection
While equipment and labor costs make up a significant portion of your solar energy system quote, the cost of solar permits and your interconnection fees can also be a factor. Typically, you will have to obtain a few solar permit documents and pay a fee to get your solar energy system connected to the grid (known as “interconnection”). There is some exciting work happening in this area to keep the costs and time lag to getting an approved interconnection – the Department of Energy’s SolarApp+ is trying to make the interconnection process cheaper and quicker for everyone.
Solar costs over time continue to fall
A solar panel system hasn’t always been $2.77/W. As recently as five years ago, the cost of solar panels was almost 13 percent higher than it is now:
While prices are currently quite flat due to supply chain constraints, prices will likely continue to fall even more in the future. The solar industry is still young, and there’s plenty of innovation (and policy changes) still to come. As manufacturing and installation processes mature and become even more efficient, solar shoppers will hopefully start to see some of those cost savings impacting their sticker price for solar.
Rebates and incentives: reducing your solar costs
We’ve been talking about factors that add on cost to a solar installation, but it’s also equally essential to consider the ways you can save with solar rebates and incentives. Tax credits, cash rebates, performance-based incentives (PBIs), and energy credits are all ways you can get money back on a solar installation. The availability of these types of incentives almost always depend on where you live – utilities, cities, and states all usually offer their own solar incentives to people living in their service areas.
The solar tax credit: solar’s best incentive
The best incentive for going solar in the country is the federal solar tax credit, or the investment tax credit (ITC). This incentive allows you to deduct 26 percent of the cost of installing solar panels from your federal taxes, and there’s no cap on its value. For example, a 10 kW system priced at the national average ($2.76/W) comes out to $27,600. However, with the ITC, you’d be able to deduct 26 percent of that cost, or $7,176, from your taxes. This essentially reduces the cost of your system to the $20,424 price tag we highlighted at the beginning of this article.
How do you pay for a solar panel installation?
Once you know the cost of solar for your unique project, it’s time to decide how you’ll pay for solar. There are three primary ways to finance a solar panel installation: a cash purchase, a solar loan, or a solar lease/power purchase agreement.
Generally, a cash purchase is right for you if you’re looking to maximize your savings from solar, you have enough tax liability to take advantage of the solar tax credit, or you have the funds available to pay for a solar panel system upfront.
A solar loan is right for you if you don’t want to shell out the amount of cash required to pay for a solar panel system upfront, you still want the most savings on your electricity bills as possible, and you would like to be eligible for all incentives and rebates.
A solar lease or PPA is right for you if you would prefer someone else to monitor and maintain the system, if you aren’t eligible for tax incentives, or if you’d just like to reduce and/or lock-in your monthly electricity bill.
The cost of solar after installation
It’s not talked about as much, but one thing to keep in mind about the cost of a solar panel installation is the long-term maintenance associated with it. In general, solar panels require little to no maintenance over their lifetime, and you shouldn’t expect to shell out much money at all once your panels are installed and operational. There’s always the off-chance something happens that’s not covered by your warranties, however. You may need to trim trees as they grow, or hire a cleaner if you live in an area of the country with abnormal air pollution. Learn more about what you could run into post-installation in our article about the costs of solar panels after they’re installed.
How does a solar panel installation work?
Installing solar panels doesn’t happen overnight – there’s a process for what needs to happen to get your panels ready to begin powering your home. From the day you sign your contract with your installer, it will typically take between one and three months before your solar panels are grid-connected and producing energy for your home. We’ve outlined the five-step solar panel installation process below:
1. Choosing and order your equipment
The very first step in a solar installation is to choose your solar panels and inverters, and confirm with your installer so they can order it all for you. The two primary components you’ll need to evaluate for your system are solar panels and inverters. Durability, efficiency and aesthetics are the primary factors most homeowners will use to compare the various brands (other than price). Learn more in our guide to choosing solar equipment.
2. Engineering site visit
After you sign your solar contract, an engineer (likely an employee or sub-contractor of the installer you’re working with) will come by your property to inspect your home and make sure everything is compatible with your new solar system.
During the visit, the engineer will evaluate the condition of your roof to ensure that it’s structurally sound. They will also look at your electrical panel – the grey box in your basement – to see if you’ll need to upgrade it.
3. Permits and documentation
As with any big financial decision, installing solar panels involves a lot of paperwork. Luckily, most of this paperwork is dealt with by the installer. They’ll help you apply for solar incentives and fill out any permits and documents you need to legally go solar.
4. Solar installation: the big day
The actual installation is an exciting day for every solar homeowner who wants to rely on renewable energy as opposed to a utility company. There are several individual steps to the actual installation day, including preparing your roof with racking, setting up wiring, placing panels and inverters, and attaching everything together. The timeline for the installation will range from one to three days, completely dependent on the size of the system you are installing.
5. Approval and interconnection
The final step of going solar is “flipping the switch,” so to speak, and officially commencing to generate power from your rooftop. Before you can connect your solar panels to the electric grid, a representative from your town government will need to inspect the system and give approval. During this inspection, the representative will essentially be double-checking your installer’s work. He or she will verify that the electrical wiring was done correctly, the mounting was safely and sturdily attached, and the overall install meets standard electrical and roof setback codes.
In conclusion: are solar panels worth it?
At the end of the day, the cost of solar is only as important as the return you’ll get from installing solar panels. For most homeowners, solar is a worthwhile investment, and you can “break even” in as few as 7 or 8 years. From that point on, you’re essentially generating free electricity and racking up the savings. During those 7 to 8 years, you’ll be generating your own electricity instead of paying for electricity from the grid, and any extra electricity you produce you might be able to get credit for thanks to net metering policies (depending on where you live).
Of course, just like the cost of solar panels varies by state, your payback period with solar will also vary depending on where you live. As a general rule, places where electricity is most expensive (California, New York, and Massachusetts, for example) will lead to the most lifetime savings from a solar panel system. Check out our article about electricity rates and solar savings for a more in-depth explanation of how this actually works.
You can read more about payback periods and the benefits of solar in our article, “Are solar panels worth it?”. Or, head to our solar calculator for an instant estimate of your savings potential!
Frequently asked questions
A single solar panel can cost between $200 to $250 depending on factors such as quality, whether it has monocrystalline or polycrystalline cells, power output, and efficiency rating. The cost of a full solar system, of course, depends on the amount of panels you want to use and the total wattage. To calculate your price per watt, divide your total bill by the total number of watts in your system.
In general, polycrystalline solar panels are the least expensive solar panel option. In order to reduce your overall solar panel system costs, you’ll want to install a smaller system. Additionally, having a low-complexity roof in good condition will help lower the labor portion of your solar pricing.
Monocrystalline solar panels from manufacturers like SunPower are usually the most expensive solar panel options. Larger system sizes on more complicated roofs will also generally cost more.
Start your solar journey on EnergySage
The best way to get the most competitive prices for solar is to compare multiple quotes. EnergySage is the nation’s online Solar Marketplace: when you sign up for a free account, we connect you with solar companies in your area, who compete for your business with custom solar quotes tailored to fit your needs. Over 10 million people come to EnergySage each year to learn about, shop for, and invest in solar. Sign up today to see how much solar can save you.
