How Much Do Solar Panels Really Cost in 2026?

Most solar quotes arrive as a single number, and that number is almost designed to be hard to compare. Two installers can quote the same roof $8,000 apart and both be "fair" — the difference usually lives in equipment tier, financing structure, and what's bundled into overhead. This is the breakdown that number is hiding.

What actually makes up the price

A solar quote isn't really one price — it's five, stacked:

1. Panels and inverter hardware — roughly 30–40% of the total
2. Labor and permitting — 15–25%, and highly local (permitting fees alone vary by county)
3. Soft costs — sales, marketing, overhead — often the largest single share, and the one number installers won't itemize
4. Racking, wiring, and balance-of-system parts
5. Installer margin

| System Size | Typical Cost Before Incentives | Typical Cost After 30% Federal Credit | |---|---|---| | 5 kW | $15,000–$19,000 | $10,500–$13,300 | | 7 kW | $20,000–$25,000 | $14,000–$17,500 | | 10 kW | $28,000–$35,000 | $19,600–$24,500 |

Ranges reflect national variation reported in DOE cost benchmarking; your state and installer will move these numbers, sometimes significantly.

Why "price per watt" is the number to actually compare

Total price tells you almost nothing without system size attached. Price per watt normalizes for that. If you want to understand how it's calculated and why installers quote it differently, see our glossary entry on price per watt.

Three questions worth asking before you sign

• What's the itemized equipment list, by brand and model — not just "tier 1 panels"?
• Is the 30% federal credit already reflected in this number, or is that separate?
• What's the labor warranty length, separate from the equipment manufacturer's warranty?

Our installer directory lists vetted companies with disclosed verification methodology to help you vet quotes line by line.

Run your own numbers

Rather than rely on averages, use our Solar Savings Calculator with your actual utility rate and roof size — it shows the same math this article does, with your numbers instead of national ones.

FAQ

Does the 30% federal tax credit reduce the price on my quote, or do I claim it later? It's a credit you claim on your federal tax return the year the system is placed in service — it does not typically reduce the sticker price of the quote itself. See the IRS guidance linked in our sources.

Is a lower price-per-watt quote always the better deal? Not necessarily — it can also reflect lower-tier equipment or a shorter labor warranty. Compare equipment specs and warranty terms alongside price per watt, not instead of it.

Do prices vary significantly by state? Yes — labor costs, permitting fees, and local competition all move the number by a meaningful margin, which is why we show ranges rather than a single national average.

Fact-checked by Priya Nadar, P.E. Sources and their access dates are listed above. Found an error? See our Corrections Policy.