How much do solar panels cost?
An average 12 kW home solar system costs about $31,000 before incentives in 2026 (~$2.60/watt); the 30% federal credit expired for owned systems.
Key takeaways
- Residential solar averages about $2.60 per watt in 2026, per EnergySage.
- An average 12 kW system costs about $31,000 before incentives (typical range $27,500–$34,000).
- The 30% federal residential tax credit (Section 25D) fell to 0% for customer-owned systems on January 1, 2026.
- Cash and loan buyers in 2026 pay the full sticker price; only leases and PPAs still capture a (commercial) credit passed through as savings.
- Bigger systems cost less per watt: about $2.89/W at 4 kW versus $2.47/W at 15 kW.
An average 12 kW home solar system costs about $31,000 before incentives in 2026, or roughly $2.60 per watt, with a typical range of $27,500–$34,000, according to EnergySage. Importantly, the 30% federal residential tax credit (Section 25D) fell to 0% for customer-owned systems on January 1, 2026 — so cash and loan buyers this year pay the full price, and the figures below are before any credit because owned systems no longer qualify.
What solar costs in 2026
EnergySage’s 2026 data puts the national average at about $2.60 per watt, with the average installed system size around 12 kW and an average total cost of $31,135 before incentives — typically $27,526 to $33,869. Larger systems cost less per watt: a 4 kW system averages about $2.89/W, while a 15 kW system drops to roughly $2.47/W. State pricing varies widely, from about $30,745 on the low end (Arizona) to $54,027 on the high end (Alabama), partly reflecting differing electricity needs by climate.
Estimated cost by system size
| System size | Approx. cost before incentives | Good for |
|---|---|---|
| 6 kW | ~$15,600–$17,000 | Small home / modest usage |
| 8 kW | ~$20,800–$22,000 | Average home |
| 10 kW | ~$26,000 | Larger home |
| 12 kW (average) | ~$31,000 ($27,500–$34,000) | US average install |
| 15 kW | ~$37,000 | High usage / EV charging |
Estimates apply EnergySage’s ~$2.60/W average; smaller systems trend toward $2.89/W and larger ones toward $2.47/W, so actual quotes will vary.
The federal tax credit: before vs. after
Historically, the 30% Residential Clean Energy Credit (Section 25D) would have cut a $31,000 system to about $21,800. That no longer applies: EnergySage states the credit “fell to 0% for customer-owned residential systems on January 1, 2026” and “expired for customer-owned residential solar systems installed after 2025.” The one exception is third-party ownership — leases and power purchase agreements (PPAs), where the installer claims a commercial credit and may pass some savings through as a lower rate. For anyone buying a system outright in 2026, the before-credit price is the price.
What moves the price
- System size (kW): The biggest driver of total cost; larger systems cost more overall but less per watt.
- Panel type: High-efficiency monocrystalline panels cost more than lower-efficiency options.
- Roof complexity and shading: Steep, cut-up or shaded roofs raise installation cost.
- Electrical upgrades: An older main panel may need upgrading to support solar.
- Region and incentives: Labor, permitting and any state or utility incentives vary widely by location.
- Ownership model: Cash/loan purchases get no federal credit in 2026; leases/PPAs may pass through a commercial credit.
How to keep costs down
Get quotes from at least three installers and compare price per watt, not just the total. Right-size the system to your actual electricity use rather than overbuilding, and check for state, local and utility incentives that survive independent of the expired federal credit. Prices here are current as of the verified date and vary by your location and installer.
How to save on solar panels
- Claim the federal residential clean energy tax credit and any state or local incentives, which reduce your net cost substantially.
- Get quotes from at least three installers; per-watt pricing and equipment markups vary widely between companies.
- Right-size the system to your actual electricity use rather than overbuilding, so you pay only for the capacity you need.
- Compare paying cash or using a low-interest solar loan against leases and power-purchase agreements, which cost more over time.
- Improve efficiency first (LED lighting, insulation, an efficient HVAC) to shrink the system size required.
- Choose standard high-value panels over premium-tier modules unless limited roof space forces the higher efficiency.
- Ask about local installers with lower overhead than large national brands offering the same equipment.
Cost scenarios
Budget (around $27,500): A 12 kW system with value-tier panels and a straightforward roof mount from a competitively priced local installer, before incentives.
Typical (around $31,000): A 12 kW installation with mainstream panels, a quality inverter, and standard permitting and labor.
Premium (around $45,000+): A 12 kW system with high-efficiency panels, battery storage, or complex roof work and premium monitoring, before incentives.
Cost by state
Prices vary by where you live. These estimates scale the national typical ($31,000) by each state's overall price level, so treat them as a regional guide rather than a quote for how much do solar panels cost?.
See all 50 states + DC
| State | Estimated typical | vs U.S. |
|---|---|---|
| Alabama | $27,540 | -11% |
| Alaska | $31,730 | +2% |
| Arizona | $31,210 | +1% |
| Arkansas | $26,950 | -13% |
| California | $34,320 | +11% |
| Colorado | $31,950 | +3% |
| Connecticut | $32,120 | +4% |
| Delaware | $30,940 | 0% |
| District of Columbia | $34,070 | +10% |
| Florida | $32,060 | +3% |
| Georgia | $29,850 | -4% |
| Hawaii | $34,080 | +10% |
| Idaho | $29,600 | -5% |
| Illinois | $30,990 | 0% |
| Indiana | $28,930 | -7% |
| Iowa | $27,210 | -12% |
| Kansas | $27,920 | -10% |
| Kentucky | $27,950 | -10% |
| Louisiana | $27,340 | -12% |
| Maine | $30,090 | -3% |
| Maryland | $32,540 | +5% |
| Massachusetts | $32,780 | +6% |
| Michigan | $29,830 | -4% |
| Minnesota | $30,570 | -1% |
| Mississippi | $26,960 | -13% |
| Missouri | $28,150 | -9% |
| Montana | $29,340 | -5% |
| Nebraska | $27,930 | -10% |
| Nevada | $30,990 | 0% |
| New Hampshire | $32,290 | +4% |
| New Jersey | $33,730 | +9% |
| New Mexico | $28,590 | -8% |
| New York | $33,460 | +8% |
| North Carolina | $29,240 | -6% |
| North Dakota | $27,580 | -11% |
| Ohio | $28,760 | -7% |
| Oklahoma | $27,230 | -12% |
| Oregon | $32,040 | +3% |
| Pennsylvania | $30,250 | -2% |
| Rhode Island | $31,710 | +2% |
| South Carolina | $29,060 | -6% |
| South Dakota | $27,460 | -11% |
| Tennessee | $28,480 | -8% |
| Texas | $30,090 | -3% |
| Utah | $30,650 | -1% |
| Vermont | $30,370 | -2% |
| Virginia | $31,340 | +1% |
| Washington | $33,170 | +7% |
| West Virginia | $27,740 | -11% |
| Wisconsin | $29,170 | -6% |
| Wyoming | $28,730 | -7% |
Regional estimates scale our national typical by BEA Regional Price Parities (2024), an index of overall state price levels — actual variation for this specific service differs. Source: BEA.
Frequently asked questions
How much do solar panels cost in 2026?
About $2.60 per watt, or roughly $31,000 for an average 12 kW system before incentives, with a typical range of $27,500–$34,000, per EnergySage.
Is there still a 30% federal solar tax credit?
Not for systems you own. EnergySage states the residential credit (Section 25D) fell to 0% for customer-owned systems on January 1, 2026. Only leases and PPAs may still pass through savings from the commercial credit.
What would the tax credit have saved me?
Historically about 30% — for example a $31,000 system would have dropped to roughly $21,800. That reduction is no longer available for systems purchased and owned in 2026.
How much does solar cost per watt?
About $2.60 per watt on average. Smaller systems run closer to $2.89/W (4 kW) and larger ones closer to $2.47/W (15 kW).
Does a bigger system cost more?
Yes in total dollars, but less per watt. A larger system has a higher sticker price while the per-watt rate drops with scale.
Why do solar prices vary so much by state?
Electricity needs, labor and permitting costs, and local incentives differ by region. EnergySage shows state averages from about $30,745 (Arizona) to $54,027 (Alabama).
How we estimate this
Every figure on this page is compiled from the public sources cited above and given as a low–typical–high range rather than a single false-precise number. Where costs vary by location we scale the national typical using published state price levels. We recheck figures on a set schedule and stamp each report with the date last verified. We are independent and are never paid to change a number — see how we price things.
