How Much Do Solar Panels Cost in 2026?
Average Solar Panel Costs in 2026#
The average cost of solar panels in the United States is $2.77 per watt before incentives. For a typical 8 kW residential system, that works out to approximately $22,160 before the federal tax credit.
After applying the 30% federal Investment Tax Credit (ITC), the net cost drops to about $15,512.
Cost Breakdown by System Size#
| System Size | Gross Cost | After 30% ITC |
|---|---|---|
| 5 kW | $13,850 | $9,695 |
| 6 kW | $16,620 | $11,634 |
| 8 kW | $22,160 | $15,512 |
| 10 kW | $27,700 | $19,390 |
| 12 kW | $33,240 | $23,268 |
What Affects Solar Panel Costs?#
Several factors influence the total cost of your solar installation:
Panel Quality and Efficiency#
Higher-efficiency panels from premium manufacturers like SunPower cost more upfront but generate more electricity per square foot, which can be important if you have limited roof space.
Roof Characteristics#
Your roof’s age, material, pitch, and complexity all affect installation costs. A simple south-facing roof is the easiest and cheapest to install on.
Local Labor Costs#
Installation labor varies significantly by region. Urban areas tend to have higher labor costs than rural areas.
Permits and Interconnection#
Local permitting requirements and utility interconnection fees vary by municipality.
How to Reduce Your Solar Costs#
Federal Investment Tax Credit (ITC)#
The federal ITC provides a 30% tax credit on your total solar installation cost. This credit applies to both the equipment and labor costs.
State and Local Incentives#
Many states offer additional incentives including tax credits, rebates, and Solar Renewable Energy Credits (SRECs). Check our state-by-state guides for specific programs in your area.
Net Metering#
Net metering allows you to sell excess solar electricity back to the grid, further reducing your effective costs.
Use our solar calculator to estimate your costs based on your specific situation, or request a free quote for a personalized assessment.
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