Last updated: July 7, 2026 · Prices reviewed quarterly
Solar panels cost $2.50 to $3.20 per watt installed in 2026 — putting a typical home system at $13,962-$27,924 before incentives. And 2026 changed the game: the 30% federal tax credit for purchased systems ended December 31, 2025, so the math now has to stand on its own.
Cost by system size (before incentives)
| System size | Typical 2026 installed cost | Fits |
|---|---|---|
| 5 kW | $12,500 – $16,000 | Small homes, modest usage |
| 6 kW | $15,000 – $19,200 | U.S. median household |
| 8 kW | $20,000 – $25,600 | Larger homes, EV charging |
| 10 kW | $25,000 – $32,000 | High usage, pool or AC-heavy |
The 2026 incentive reality (read before any sales pitch)
The residential clean energy credit (Section 25D) expired for systems placed in service after December 31, 2025 — cash and loan buyers get $0 federal credit now. The lease/PPA workaround (installers claiming the commercial 48E credit and passing savings through) closed for new projects after July 4, 2026. What remains: state rebates and credits (verify on DSIRE — they vary enormously), net metering where offered, property-tax exemptions in many states, and utility battery programs. Any installer quoting “after the 30% federal credit” on a 2026 purchase is misinformed or misleading you.
Comparing quotes: dollars per watt is the only honest metric
Divide total price by system watts. A $19,000 quote for 6.2 kW is $3.06/W; a $17,500 quote for 5.4 kW is $3.24/W — the “cheaper” bid costs more. Three quotes minimum, equipment tiers confirmed (panel wattage, degradation warranty, inverter type), and watch soft costs: identical hardware varies $5,000 between installers on overhead and commissions alone. Whether it pays back at all: our worth-it analysis.
Roof first — always
Panels last 25-30 years; removing and reinstalling them to replace a roof later costs $1,500-$6,000. Under 10 years of roof life left? Replace it first — this sequencing error is one of the most expensive in home improvement.
Official resources & free help
- Production estimate for YOUR roof (free, unbiased): NREL PVWatts — pvwatts.nrel.gov
- Every current state/utility incentive: DSIREusa.org
- Homeowner guide: Energy.gov going-solar guide
- Credit status, official: IRS — Residential Clean Energy Credit
- Sales scams: consumer.ftc.gov
FAQ
Are prices dropping enough to wait?
Hardware keeps cheapening slowly, but soft costs are sticky and the federal credit is already gone — waiting has no big scheduled payoff. Decide on your rates and usage.
Do batteries change the math?
A battery adds $9,000-$16,000 installed. It pays with frequent outages, wide time-of-use spreads, or weak net metering — otherwise it is resilience, not ROI.
Buy, loan, lease or PPA in 2026?
Cash beats loans (APRs and dealer fees eat savings). Leases/PPAs lost their credit pass-through for new projects — scrutinize anything signed after July 4, 2026 line by line.
Prices on this page are researched estimates compiled from the cited sources; your local costs will vary with market, access and scope. Always get multiple written quotes from licensed professionals before hiring.