How much are solar panels?
In 2026, installed residential solar costs roughly $2.50 to $3.80 per watt, or about $20,000 to $28,000 for a typical 8 kW system before incentives. Note that the 30% federal residential tax credit expired at the end of 2025, so most homeowners buying outright in 2026 pay the full price.
Cost breakdown
| Option | Price | Notes |
|---|---|---|
| Cost per watt (installed) | $2.50 - $3.80/W | National 2026 average; smaller systems cost more per watt. |
| Small system (5 kW) | $13,000 - $19,000 | Before incentives; suits smaller homes or partial offset. |
| Typical system (8 kW) | $20,000 - $28,000 | Common size for an average single-family home. |
| Large system (10 kW) | $25,000 - $35,000 | Higher usage homes; lower cost per watt due to scale. |
| Federal tax credit (buy outright) | $0 in 2026 | The 25D residential credit expired after Dec 31, 2025. |
| Lease / PPA option | Lower monthly cost | Third-party owners may still claim a commercial credit and pass savings on. |
What solar panels cost in 2026
Installed residential solar panel systems in the United States cost about $2.50 to $3.80 per watt in 2026, including equipment, labor, permitting, and inspection. For a typical 8 kW system, that works out to roughly $20,000 to $28,000 before any incentives. Smaller 5 kW systems run around $13,000 to $19,000, while larger 10 kW systems can reach $25,000 to $35,000.
Because of economies of scale, the per-watt price tends to drop as system size grows. A small system carries higher fixed costs (a single crew visit, fixed permitting fees, an inverter) spread across fewer watts, so homeowners with higher electricity usage often see a better price per watt on larger installations.
The federal tax credit changed
For years the 30% federal residential clean energy credit (Section 25D) cut the effective cost of a purchased system by thousands of dollars. That credit expired with no phase-down after December 31, 2025, following the One Big Beautiful Bill Act. As a result, homeowners who buy a system outright in 2026 generally cannot claim a federal credit and pay the full sticker price.
Some federal incentive savings can still reach homeowners indirectly through third-party ownership. With a lease or power purchase agreement (PPA), the solar company owns the system and may claim a commercial credit, passing part of the savings through as a lower monthly payment. State and local incentives, net metering, and utility rebates may also still apply depending on where you live.
What drives the variation
Price differences come from system size, panel and inverter brand, roof complexity, and region. Steep, multi-plane, or hard-to-access roofs cost more to install, and premium high-efficiency panels carry a higher per-watt price than standard modules. Permitting and labor costs also vary widely by state and utility territory.
Geography is a major factor: the Northeast and West Coast typically run above the national midpoint, while parts of the South and Midwest fall below it. Getting multiple quotes is the most reliable way to gauge a fair local price, since installer pricing for the same hardware can differ by thousands of dollars.
Frequently asked questions
- Is there still a solar tax credit in 2026?
- The 30% residential clean energy credit (Section 25D) expired after December 31, 2025, so homeowners buying a system outright in 2026 generally cannot claim it. Lease and PPA arrangements may still capture federal incentives indirectly through the system owner.
- How much does a typical home solar system cost?
- A typical 8 kW residential system costs about $20,000 to $28,000 installed before incentives, based on a 2026 national average of roughly $2.50 to $3.80 per watt.
- Why is the per-watt price lower on bigger systems?
- Fixed costs like permitting, the inverter, and a crew visit are spread across more watts on a larger system, lowering the cost per watt compared with a small installation.
Researched and edited by Calvin Lauderdale, Lead Researcher & Editor. Figures on this page were verified against the sources above as of June 23, 2026.