True Cost Guide Energy Efficiency Install Solar Panels

How Much Does Solar Panel Installation Cost in 2024?

Typical Range:

$18,365 - $36,394

Cost data is based on actual project costs as reported by 2,531 HomeAdvisor members. Embed this data

How We Get This Data

Homeowners use HomeAdvisor to find pros for home projects.

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When their projects are done, they fill out a short cost survey.

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We compile the data and report costs back to you.

Updated August 30, 2024

Written by HomeAdvisor.

Highlights

Solar panel installation averages $18,600 in total or $2.50 to $3.60 per watt for most systems.
Monocrystalline panels offer the highest efficiency over the longest lifespan, about $1 to $1.50 per watt for up to 40 years.
Panel types, location, solar company labor, and other factors influence installation costs.
System size or capacity depends largely on your home’s average energy consumption.

Installing a solar panel system costs an average of $27,162, and that price has been falling over time. Most homeowners pay between $18,365 and $36,394. Expect to pay $2.50 to $3.60 per watt, with most systems in the 3kW to b10kW range. These costs don’t reflect tax credits, which can offset 30% of installation and equipment costs.

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National Average	$27,162
Typical Range	$18,365 - $36,394
Low End - High End	$3,500 - $55,000

Cost data is based on actual project costs as reported by 2,531 HomeAdvisor members.

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Solar Panel Cost Factors

Hard and soft costs both make up the total price of an installed solar panel system. Hard costs include the equipment and components of the system, such as the panels and mounting equipment. Soft costs represent labor, permits, and administrative fees.

Solar power system manufacturers and installers often break down costs into per watt to provide a standardized measure across different installations and equipment. Cost per watt also demonstrates how overcall cost and performance scales with the system’s capacity, with larger systems typically having lower cost per watt but higher upfront costs than smaller systems.

System Size

System size is generally measured by capacity in kilowatts. Residential systems usually range from three kilowatts to 10 kilowatts, with higher kilowatt capacities indicating higher electricity production. Based on a 400-watt panel, the typical U.S. home needs between 15 and 30 solar panels to fully rely on solar power, which costs $15,000 to $42,000. That works out to a cost-per-watt range of $2.50 to $7 for a 6-kilowatt system or $1.25 to $3.50 for a 12-kilowatt system.

The right system size depends on your home’s energy consumption, layout, roof size, solar panel efficiency, and other factors. Energy consumption, measured in kilowatt-hours, is the main cost influence—for example, a home using 10,000 kilowatt-hours per year needs a system that can match the demand. Solar panels vary in capacity and dimensions from 250- 400 watts, with higher capacities corresponding to larger sizes.

See the following home square footage compared to electricity and solar panel needs.

Home Size (Square Feet)	Annual Electricity Estimate (Kilowatt-Hours)	Solar Panels Needed (400 Watts)
1,000	4,710	8
2,000	9,420	16
2,500	11,775	20
3,000	14,130	24

Panel Types

Solar panels make up about a third of the cost of a solar panel system and come in three types, each with its own price tag and features. On average, solar panels cost $0.70 to $1.50 per watt. With labor and other factors, solar panel installation costs a total of $2.50 to $3.50 per watt.

Monocrystalline solar panels are made with one lab-grown ingot crystal attached to the panel, offering the highest efficiency. Polycrystalline panels use fragmented crystals in wafer shapes, resulting in a lower-cost option with less efficiency. Thin-film panels use amorphous silicon, which is more affordable and versatile but generally the least efficient and durable.

Type	Price per Watt	Life Expectancy
Monocrystalline	$1–$1.50	25–40 years
Polycrystalline	$0.00–$1.50	25–30 years
Thin-Film	$1–$1.50	10–20 years

Electrical System and Equipment

In addition to panels, a residential solar power system includes various electrical and structural components. The main electrical components support the solar power system’s operation and include inverters, wiring and cables, disconnect switches, net metering systems, and electrical panels. A solar panel installation also includes an energy storage system, which may include battery inverters, charge controllers, and solar batteries that allow the system to back up energy.

Structural components, such as basic or tracking mounts, are responsible for supporting solar panels. Roof attachments, clamps, and other parts also keep the panels secure.

Component	Average Cost (Per Watt)
Solar Inverter(s)	$0.15–$0.25
Structural	$0.10–$0.20
Electrical Storage	$0.30–$0.60
Charge Controller	$0.05–$0.10
Electrical Wiring	$0.05–$0.10
Disconnect Switches	$0.01–$0.03
Net Meter/Smart Meter	$0.02–$0.05

Location

Your home’s geographical location and local weather play an important role in the total installation cost and cost per watt. Homes in areas with high sunlight levels, such as California, Florida, and Arizona, generally have more efficient energy output, reducing the overall number of panels needed. While solar cells can generate 80% of their potential on cloudy days, areas with less sunlight may benefit from investing in additional battery storage to stockpile excess solar energy and adjustable mounts to maximize sunlight exposure.

Labor

Expect to pay $0.50 to $1 per watt for labor when hiring a local solar panel installer. For a 6kW system, expect to pay between $3,000 and $6,000 for labor. Labor for a 10kW system ranges from $5,000 to $10,000. Overall, labor makes up between 15% and 25% of the total installation cost.

Permits and Inspections

While not as significant a cost as labor and equipment, permits and inspection make up some of the total cost. Depending on your local building code and the extent of structural construction to accommodate your system, you may need a building permit and solar panel inspection, respectively ranging from $460 to $2,860 and $140 to $350.

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Additional Solar Panel Cost Factors

Other costs outside of the main installation can also influence upfront and lifetime costs for your system.

Purchase Options

Homeowners can purchase solar panel systems outright, but other options can help fund their installation. Solar loans allow you to fund your home with varying down payments, interest rates, and other conditions. Homeowners can also access a purchase power agreement (PPA), in which a third party owns and installs the system in exchange for fixed monthly payments. PPAs aren’t eligible for tax benefits.

Tax Rebates and Incentives

The Federal Investment Tax Credit (ITC), sometimes called the federal solar tax credit, allows homeowners to claim a dollar-for-dollar credit that reduces federal income taxes due. For systems installed in tax years 2022 to 2032, homeowners can claim up to 30% of eligible system and installation costs. Between 2033 and 2035, homeowners can claim 26%.

State and local governments also offer solar tax incentives and credits. For example, New York offers a 25% tax credit for eligible systems. Local programs may also provide cash rebates to reduce upfront installation costs. Utility companies may purchase Solar Renewable Energy Certificates from homeowners or offer credits for excess energy the solar system generates and sends to the grid—benefits vary, but rebate rates are often around $0.50 per watt.

Ongoing Costs

While panel installation represents the bulk of costs and can significantly reduce your electricity bills, it’s important to factor in ongoing costs. In some cases, solar panels can increase your home’s value and, in turn, your home insurance.

Maintenance and cleaning are essential for maintaining efficiency—each professional cleaning costs between $100 and $350 or $10 to 20 per panel. Systems require cleaning annually at least, but some may need up to four cleans per year depending on weather and other factors. Yearly inspections cost between $150 and $300.

Solar panel systems can also sustain wear and damage and may need occasional repairs for equipment or the supporting roof structure. Solar panel repair costs range from $225 to $1,700 on average. Examples of repairs you can expect include:

Maintenance/Repair Type	Average Cost Range
Yearly Inspection	$150–$300
Panel Cleaning	$100–$350
Loose Wiring	$100–$200
Hail Damage	$120–$500 per panel
Broken Panel	$150–$500 per panel
Inverter Replacement	$1,000–$2,000
Roof Repair	$150–$7,000

Solar Panel Cost by State

Here are the average costs for 6 to 10-kW systems for each state:

State	Average Cost Range (6- to 10-kW)
Alabama	$14,700–$23,510
Alaska	$14,430–$23,060
Arizona	$14,640–$24,400
Arkansas	$17,100–$28,500
California	$18,360–$30,600
Colorado	$20,640–$34,400
Connecticut	$19,200–$32,000
Delaware	$17,100–$28,500
Florida	$15,180–$25,300
Georgia	$17,700–$29,500
Hawaii	$16,000–$25,580
Idaho	$18,060–$30,100
Illinois	$19,080–$31,800
Indiana	$21,960–$36,600
Iowa	$20,940–$36,600
Kansas	$17,220–$28,700
Kentucky	$19,140–$31,900
Louisiana	$18,900–$31,500
Maine	$21,420–$35,700
Maryland	$18,060–$30,100
Massachusetts	$21,420–$35,300
Michigan	$20,220–$33,700
Minnesota	$19,740–$32,900
Mississippi	$15,830–$25,310
Missouri	$17,220–$28,700
Montana	$14,540–$23,240
Nebraska	$16,970–$27,110
Nevada	$15,420–$25,700
New Hampshire	$21,900–$36,500
New Jersey	$18,000–$30,000
New Mexico	$19,680–$32,800
New York	$20,100–$33,500
North Carolina	$16,680–$27,800
North Dakota	$14,538–$23,240
Ohio	$16,500–$27,500
Oklahoma	$15,360–$25,600
Oregon	$18,300–$30,500
Pennsylvania	$18,300–$30,500
Rhode Island	$21,660–$36,100
South Carolina	$16,800–$28,000
South Dakota	$14,320–$22,880
Tennessee	$19,380–$32,300
Texas	$15,840–$26,400
Utah	$15,720–$26,400
Vermont	$19,800–$33,000
Virginia	$17,100–$28,500
Washington	$18,300–$30,500
West Virginia	$18,240–$30,400
Wisconsin	$20,040–$33,400
Wyoming	$15,400–$24,590

Solar Panel Installation Process

The solar panel installation process involves the following steps:

Consultation: A contractor assesses your roof and property, analyzes energy usage and capacity needs, and designs a system.
Permits: Depending on your local regulations, the installer and homeowner coordinate on permit applications. You may need to obtain approval and net metering agreements from the local utility company.
Installation: The installer sets up structural systems, installs panels, and completes electrical work.
Inspection: The installer tests the system for proper function, and local authorities inspect the system to ensure building code compliance.

Do Solar Panels Increase Home Value?

According to the Department of Energy, solar panels can increase home value by about 4% or about $20 for every $1 saved on annual utility bills, especially as potential home buyers increasingly value energy efficiency, reduced utility bills, and sustainability. Bigger systems don’t necessarily correlate with increased value—rather, it’s important that the system is properly installed and meets the general capacity of the home.

Budgeting for Solar Panel Installation

Investing in solar panels can offer major long-term cost savings, but the upfront cost is still a significant expense. Try these strategies to streamline your solar panel installation costs:

Apply for government credits and tax incentives.
Get quotes from multiple solar installation companies.
Carefully review the equipment quality, installation procedures, and equipment quality of each contractor estimate.
Consider specialized solar loans with favorable rates.
Optimize system design, such as correct sizing, panel layout, panel wattage, and adjustable mounting.

How HomeAdvisor Gets Its Cost Data

No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. We surveyed thousands of real customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.

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FAQs

When is the best time to install solar panels?

Spring and Fall are usually the best times to install solar panels since there’s usually less demand for new installations. Contractors often have better availability and rates during non-peak periods. The mild weather conditions of these seasons also allow for more comfortable contractor work and minimal weather delays.

Are solar panels worth it?

Solar panels can save money long-term. A correctly sized system can eliminate most or all of your electricity bill. If you save $100 per month, for example, your savings can add up to over $50,000 over 30 years. Your actual savings depend on your system’s efficiency, local electricity rates, and other factors.

How long does it take for solar panels to pay for themselves?

The average solar system recovers its post-tax credit cost in between 6 and 10 years. Purchasing your system upfront without financing, tax credits, net metering, panel efficiency, and other factors can shorten the time it takes to recoup installation costs. For example, the average annual energy bill in 2023 was $1,650. If your system costs $15,000 after tax credits and covers your entire energy demand, your system earns your costs back in about nine years.

How long do solar panels last?

Solar panels have an average lifespan of 25 to 30 years, largely depending on the type—mono and poly solar panels last from 25 to 40 years, while thin-film panels 10 to 20 years. Regular maintenance, proper installation, and prompt repairs help extend the longevity of your system.

Can I run my whole house on solar alone?

A properly sized system can meet the full energy demand of your home. Switching entirely to solar power requires careful planning and depends on energy consumption, sunlight availability, battery storage, and budget.