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The national average installed cost of solar panels is $2.58 per watt in 2026. For a typical 10 kW system, that's about $25,800 before state incentives. Costs vary significantly by state, roof type, and equipment.
$2.58
Avg Cost per Watt
~$25,800
Avg 10 kW System
26%
Price Drop Since 2015
9
States Compared
Solar panel costs have dropped from $3.50/W in 2015 to $2.58/W in 2026, a 26% decline. The brief increase in 2021-2022 was caused by supply chain disruptions, but prices have continued their downward trend.
Sources: NREL ATB 2024, Lawrence Berkeley Lab Tracking the Sun, EnergySage Marketplace
Compare solar panel pricing, payback periods, and 25-year savings across all 9 states we serve. Click any state for detailed cost data and local incentives.
Pricing data from EnergySage Marketplace (January 2026). System costs based on average system size per state before incentives.
Understanding what you're paying for helps you evaluate quotes. Here's how a typical solar installation cost breaks down.
Equipment (Panels, Inverters, Racking)
Solar panels, inverters, racking/mounting hardware, wiring, and monitoring systems.
Labor & Installation
Licensed electricians, NABCEP-certified installers, roof work, and electrical connections.
Permits, Inspection & Overhead
Building permits, utility interconnection, engineering review, insurance, and company overhead.
The Section 25D residential solar tax credit expired Dec 31, 2025. Homeowner cash/loan purchases receive no federal credit in 2026. State incentives may still reduce your net cost.
The $2.58/W national average is just a starting point. Your actual cost depends on these key factors.
Standard asphalt shingle roofs are the least expensive to install on. Metal, tile, flat, or slate roofs may add $0.10-0.30/W. Older roofs may need replacement before solar installation.
Larger systems have a lower cost per watt due to economies of scale. A 5 kW system may cost $2.80/W while a 12 kW system costs $2.45/W. Your electricity usage determines the optimal size.
Premium panels (REC, SunPower) and microinverters (Enphase) cost more than standard equipment but offer better efficiency, longer warranties, and higher production in shade.
Solar costs vary significantly by state due to local labor rates, permit costs, and market competition. Texas ($2.20/W) is 45% cheaper than New Hampshire ($3.18/W).
Pricing data from EnergySage Marketplace (January 2026). EnergySage is the leading online marketplace for solar quotes, enabling homeowners to compare competitive offers from pre-screened installers. NuWatt Energy pricing may differ based on equipment selection and project scope.
Common questions about solar panel costs in 2026.
The national average solar panel cost is $2.58 per watt in 2026. For a typical 10 kW system, that comes to about $25,800 before incentives. Costs vary by state from $2.20/W in Texas to $3.18/W in New Hampshire. Factors like roof type, system size, and equipment choice affect your final price.
No. The Section 25D residential solar tax credit expired on December 31, 2025 under the OBBBA. Homeowners who purchase solar with cash or a loan receive $0 in federal tax credits in 2026. However, third-party owned systems (solar lease or PPA) still qualify for the 30% commercial Investment Tax Credit under Section 48/48E, which is passed through as lower monthly payments.
Solar panel payback periods vary from 7 to 17 years depending on your state. Massachusetts and New Jersey have the fastest payback at approximately 7.6 years thanks to high electricity rates and strong state incentives. Payback depends on your local electricity rate, available state incentives, system cost, and how much energy your system produces.
Yes. Solar electricity costs approximately $0.06 to $0.08 per kWh over 25 years, compared to utility electricity rates of $0.14 to $0.30 per kWh that rise 3-5% annually. Even without the federal residential tax credit, solar locks in a low, predictable electricity cost for 25+ years. In states with high electricity rates, solar pays for itself in under 10 years.
Solar panel savings range from $29,000 to $154,000 over 25 years depending on your state. States with high electricity rates like Massachusetts ($154,000), Rhode Island ($100,000), and Connecticut ($94,000) see the largest savings. Even in states with lower rates, solar provides positive lifetime returns.
National averages are a starting point. Your actual solar cost depends on your roof, location, and energy usage. Get a free, personalized quote in minutes.
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