Solar Panel Cost in the US (2026): Price by System Size

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Home solar in the US costs about $2.60 per watt installed in 2026. That puts a typical 7 kW system at around $18,300 and the average 12 kW system at around $31,100, before any state or utility incentives. The 30% federal tax credit for homeowners who buy their system ended for systems placed in service after December 31, 2025, so those are now close to your real out-of-pocket numbers.

How much does solar cost by system size?

Bigger systems cost more in total but less per watt, because permits, design, and labor are spread over more panels. These are average installed prices from quotes on the EnergySage marketplace, before incentives.

How much does solar cost for my size of home?

Your electric bill matters more than your square footage, but home size is a useful starting point. The table below uses typical usage for each home size and the $2.60 per watt average. Treat it as a rough estimate, not a quote.

What is the solar panel cost per square foot?

There are two ways people ask this. Per square foot of home, solar typically works out to about $9 to $13. Per square foot of panel area, it is about $50 installed: a 400-watt panel covers roughly 21 square feet, which is about 19 watts per square foot, and 19 × $2.60 ≈ $49. Use the second number if you are checking whether your roof has enough room for a quote.

What changed in 2026: the federal tax credit ended

Under the 2025 budget law (often called the One Big Beautiful Bill Act), the 30% Residential Clean Energy Credit (Section 25D) does not apply to systems placed in service after December 31, 2025. On a $18,340 system, that is about $5,500 you no longer get back.

• Installed and working in 2025? You can still claim the credit on your 2025 tax return, and carry any unused amount forward to later years.
• Buying in 2026? Assume no federal credit. State rebates, utility programs, and property tax exemptions may still apply.
• Leasing or signing a PPA? The installer owns the system and may still claim a business tax credit for a limited time. Some of that saving can show up as a lower monthly payment, but it is not guaranteed. Ask for it in writing.

Tax rules are detailed and depend on your situation. Check with a tax professional before you rely on any credit.

What drives the price of solar panels?

• System size. More watts cost more in total, but less per watt.
• Your state and installer. Labor rates, permit fees, and competition vary widely.
• Equipment. Premium panels and microinverters cost more than standard panels with a string inverter.
• Roof. Steep, tile, or multi-angle roofs take longer to install. A roof that needs replacing should be fixed first.
• Electrical upgrades. An older main panel may need a $1,500 to $3,000 upgrade.
• Batteries. Adding home battery storage typically adds $10,000 or more.
• Financing. Some solar loans include a hidden dealer fee of 15% to 30% baked into the price.

How much does solar cost in different states?

Price per watt can vary by more than $1.50 between states. A few examples from 2026 marketplace data:

How long does it take for solar to pay for itself?

Here is the math for a typical 7 kW system bought in cash in 2026, with no federal credit:

1. Yearly production: 7 kW × about 1,350 kWh per kW = about 9,450 kWh a year.
2. Yearly savings: 9,450 kWh × $0.182 (the 2026 US average residential rate) ≈ $1,720.
3. Payback: $18,340 ÷ $1,720 ≈ 10.7 years.

Panels usually carry 25-year warranties, so a 10- to 11-year payback leaves about 14 years of near-free power. Your result will be faster if you pay more than 18¢ per kWh or live somewhere sunny, and slower if your utility pays little for the power you send back to the grid. Production ranges from about 1,100 kWh per kW in the cloudy Northeast to 1,700 in the Southwest.

How do you get a fair solar quote?

1. Get at least three quotes. Prices for the same home often differ by thousands of dollars.
2. Compare cost per watt, not total price. Divide each quote’s total by its system size in watts. Anything well above $3.00 in a mid-priced state deserves a question.
3. Ask for the cash price. If the loan price is higher, the difference is a dealer fee.
4. Check the production estimate. Make sure it uses your roof’s actual shading and direction.
5. Read the warranty terms. Look for 25 years on panels and at least 10 years on workmanship.

Frequently asked questions

Is solar still worth it without the federal tax credit?

For many homes, yes. Payback is now closer to 10 to 11 years at average rates instead of 7 to 8, but it is still well inside a 25-year panel warranty. It makes the most sense where electricity is expensive and net metering is fair.

How much does a single solar panel cost?

A 400-watt residential panel on its own typically sells for about $200 to $400. Installed as part of a system, the all-in cost is about $1,000 per panel, because labor, inverters, racking, wiring, and permits make up most of the price.

Will solar prices drop in 2027?

No one knows for sure. Panel prices have been fairly flat, while tariffs and the end of the federal credit could push installers either way. Waiting usually costs you a year of savings, which for a typical system is about $1,700.

Do solar panels raise your property taxes?

In many states, no. Over 30 states offer a property tax exemption for solar. Check with your county assessor.

Sources

• EnergySage: How much do solar panels cost? (updated June 2026)
• US Energy Information Administration: Short-Term Energy Outlook, electricity (October 2026)
• IRS: Residential Clean Energy Credit

Last updated: October 2026. Prices are averages before incentives and will vary with your home, location, and installer. This article is for information only and is not tax or financial advice.