How Much Do Solar Panels Cost In 2025?

AVERAGE COST OF SOLAR PANELS
Low	$7,700
Average	$18,600
High	$34,700

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This chart refers to the average cost range across all common solar system sizes. Cost will vary depending on many factors, including your solar system’s size, which will greatly affect the cost

Solar panels cost between $2.55 and $3.15 per watt. For an average 6.5 kW solar system, you’ll spend anywhere from $16,600 to $20,500 before accounting for tax credits or rebates. You can break down the bulk of the cost of your solar panel system by looking at the panels and equipment, labor and permits.

Panels

Solar panels cost between $0.30 and $0.90 per watt without labor and other fees. Since your typical solar panel system size is 6.5 kW, anticipate spending around $3,900 for the panels alone, or somewhere between $1,950 and $5,900. However, system sizes range from 3 kW to 11 kW, so you could see prices for as little as $900 or as much as $8,800.

Installation Costs and Labor

Solar panel installation costs vary by the installation company and project scope, making it challenging to pinpoint exactly how much you’ll pay to have a pro install your solar panels. However, the U.S. Department of Energy estimates that installers add around $2.25 per watt to the cost of a solar panel installation. This accounts for labor, office work and other mechanical expenses.

Inverter

Solar panel inverters cost between $350 and $3,200. Solar inverters convert the energy produced by your solar panels into usable energy for your home. As with other solar panel equipment, the cost of an inverter or microinverter correlates with the size of the system. 3-kW inverters fall at the lower end of the price range, while systems exceeding 11 kW cost the most.

Solar Batteries

A whole-home solar battery costs between $1,700 and $9,000, or around $3,900 on average for 10 kilowatt-hours (kWh) of storage for materials. Labor can vary by size, location and complexity. Solar batteries store excess solar power in case it’s needed, and this battery size can power most essentials in a home during an outage for several hours.

Smaller, 12-volt (V), 100-amp-hour (Ah) solar batteries for powering a few electronics can run for as little as $200 on average, while large, 20,000-kWh solar battery kits for off-grid power can go for more than $15,000.

Permits

Before you can install solar panels on your home, you’ll need to acquire a permit. A residential solar panel installation permit costs between $75 and $450. Installations larger than 10 kW may cost more depending on your local municipality. A reputable, in-house solar installation company typically handles the permits for you and may include the costs in their overall quote, but if you have questions, contact your building department to determine the requirements in your area.

Net Metering

Many states offer statewide net metering that lowers your bills by sending excess energy produced by your solar panels to the grid. You’ll receive a credit, usually in the form of reduced electric bills. The Solar Energy Industries Association (SEIA) states that 34 states and Washington, D.C. and Puerto Rico participate in net metering programs, so we recommend asking your solar installer to see if it’s available where you live.

Many factors go into solar panel costs, including your home’s features, panels, location and energy habits.

Home Size

Home size doesn’t play a direct role in how much your solar panel system costs, but it can influence prices, especially if you have more or fewer family members living in your home than the average household size. Data from the U.S. Energy Information Administration (EIA) shows that the average home size is roughly 1,800 square feet. Larger household sizes consume more energy, so anticipate needing more solar panels to power your home if your home tops that square footage.

Number of Panels

The number of panels varies depending on the number of watts each panel produces and how efficiently the panels generate electricity. Panels that produce more watts generally cost more than panels that produce fewer watts, but you might spend less in material costs if you purchase panels with a higher wattage, as it may reduce the number of panels needed to power your home.

Refer to the following table to see how many panels are needed for different system sizes:

SYSTEM SIZE	NUMBER OF PANELS (400W)	AVERAGE COST
3 kW	8	$7,700 - $9,500
5 kW	13	$12,800 - $15,800
6.5 kW	17	$16,600 - $20,500
7 kW	18	$17,900 - $22,100
9 kW	23	$23,000 - $28,400
11 kW	28	$28,100 - $34,700

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Number of Watts

Most solar panels generate between 200 and 450 watts. The lower the output, the lower the cost of the panel. For instance, 200-watt solar panels cost around $175 each, while 450-watt panels cost $350 each on average before accounting for labor. Here’s a breakdown of panel prices by the number of watts produced.

SOLAR PANEL OUTPUT (WATTS)	AVERAGE MATERIAL COST
200	$175
250	$240
300	$250
350	$290
400	$325
450	$350

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Panel Efficiency

Similarly, the efficiency of your panels influences how much energy they produce, which in turn affects how many you need and the total cost of the system. The average solar panel is around 21% efficient, according to the Center for Sustainable Systems (CSS).

However, most residential solar panels range from 18% to 22%. Commercial and utility solar panels can have much higher efficiencies, as much as 24%, while some lower-quality solar panels may have slightly lower efficiencies of around 17%. High-efficiency panels may cost more up front than low-efficiency panels, but they’ll pay for themselves over time since you’ll need fewer panels to generate electricity.

Solar Panel Type

There are many solar panel types on the market. The most efficient and best-performing solar panel is the N-type monocrystalline panel, but it comes at a higher cost than your standard monocrystalline or P-type panel.

• N-type Panels: These panels use new technology and layers of high-quality materials like phosphorus to boost the number of electrons in each cell and protect the more susceptible layers from light-induced degradation. This boosts the panels’ efficiency, durability and performance.
• P-Type Panels: These were the traditional cells for solar panels, using boron, which creates fewer electrons than N-type cells. Over the years, solar manufacturers have experimented with ways to improve the efficiency and life span of solar panels, creating newer types that perform better.

Most home solar systems use monocrystalline solar panels, but for portable applications like RVs, you may choose thin-film panels. Thin-film panels tend to cost the most in smaller sizes and the least in wide-scale industrial uses. They also perform less efficiently, but their advantage is in their lightweight design. Thin-film comes from a variety of materials, unlike crystalline options. As a result, there can be a great deal of variability in the performance of the panels.

Polycrystalline panels were once popular but have been phased out for more efficient panels. Monocrystalline panels use a single silicone crystal, whereas polycrystalline panels use multiple crystals, which saves you money up front but doesn’t perform as well.

Refer to the following table to see current solar panel costs by type:

SOLAR PANEL TYPE	AVERAGE MATERIAL COST (PER WATT)
Standard Monocrystalline	$0.30 - $0.90
N-Type Monocrystalline	$0.80 - $1
P-Type Monocrystalline	$0.40 - $0.90
PERC Monocrystalline	$0.40 - $0.80

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Roof Pitch

Homes with steeper roof pitches may be more challenging to work on when installing solar panels. You may see the increased difficulty reflected in a higher quote for your solar panel installation.

Mount Type

Solar panel mounting hardware costs between $20 and $800 per panel. Fixed mounts cost the least, while dual-axis tracking mounts cost the most. Though you might spend more up front on a dual-axis tracker, these mounts can offer a high return on investment (ROI) by maximizing the amount of sunlight your panels receive by anywhere from 25% to 45% more than a fixed mounting system.

See how average costs vary below:

• Fixed mount: $20 – $55 per panel
• Ground mount: $75 – $400 per panel
• Adjustable mount: $30 – $425 per panel
• Dual-axis tracker: $300 – $800 per panel

Location

The cost of labor can increase considerably if you live in a region with a higher cost of living, where labor rates are naturally higher. Meanwhile, areas with a lower cost of living can expect slightly below average costs. We recommend asking several of the best solar companies near you for a quote to compare costs and choose the most competitively priced installation.

Energy Needs

Homes with higher energy demands need more solar panels or higher-quality solar panels to power their homes, which results in higher costs. Solar installers will take this into account and design a system based on your energy needs.

According to the EIA, most U.S. households consume between 6,200 and 14,800 kWh of energy annually, or around 10,800 kWh on average. Meanwhile, most solar panels produce between 1.5 to 2.2 kWh per day, with the actual amount of energy produced depending on the amount of direct sunlight and the number of watts.

On top of your typical solar panel, you’ll also want to consider maintenance, home prep, solar monitoring and homeowners insurance costs before finalizing your estimated expenses.

Solar Panel Maintenance

Routine solar maintenance costs between $140 and $180 annually and occurs anywhere from two to four times yearly. You may spend on the higher end if you need more frequent maintenance services. During your service, a professional solar technician will inspect your panels and clean them.

The average cost to clean solar panels ranges from $5 to $25 per panel, depending on the project scope and accessibility. Cleaning your solar panels helps ensure that they produce the most energy possible. Dust and other debris can block sunlight from reaching solar panels, decreasing their efficiency by 7%, according to the National Renewable Energy Laboratory.

Home Prep

Before installing solar panels, you may need to do some prep work on your property, with the most common ones being tree trimming and roof work. Here’s how much each service may cost:

• Tree trimming cost: $250 – $700 per tree
• Roof repair cost: $150 – $8,000
• Roof replacement cost: $6,700 – $80,000

Solar Monitoring

Depending on the solar company and brand you choose, you may receive complimentary solar monitoring through an app. For companies that don’t offer this service, a third-party monitoring system is an option worth considering. A solar load controller monitors and manages your energy loads and costs around $150 to $500. These controllers often come with an app to help you track your energy usage.

Homeowners Insurance

You could see an increase in your homeowners insurance if you install solar panels, as several studies have shown that solar panels can increase home values. You might also need to raise the coverage limits to accommodate solar panel replacement costs due to qualifying factors like hail or tornado damage.

Your property taxes may also rise based on increased home value due to solar panels; however, some states and municipalities have property tax increase exclusions if the increase is solely based on solar panel additions.

How you finance your solar panels also affects the cost of the system. Let’s see which financing options are available—and which one saves you the most money.

Buying vs. Leasing Solar Panels

If you’re wondering if you should lease or buy solar panels, the most economically advantageous option is to buy them. Paying in full is a great way to pay off your system because you won’t incur interest fees, but taking out a loan is the next best and most common option due to the high costs of solar panels. If you choose to lease your panels, it may cost less up front, but you’ll be ineligible to receive the 30% federal tax credit. You also won’t own the panels, so you won’t get the benefits like increased home value.

Many top solar companies, like Blue Raven Solar, offer other ways to finance your solar panels, including power purchase agreements (PPAs) or some combination of a solar lease and solar loan. A PPA is similar to a solar lease, only an energy company owns and installs the panels, and you pay for the energy produced. Solar experts don’t generally recommend this option, as you’re dependent on the company to maintain rates, which can increase unexpectedly over time, but as always, speak with an expert to try and find the best option for you.

Solar panels have a ROI of around 10% on average. Over time, solar panels pay for themselves, making your energy bills free or significantly lower.

For some homeowners, this long-term saving can make going solar a worthwhile investment, but for others, the high upfront costs aren’t worth it. You’ll need to weigh the pros and cons of solar energy for your household to determine whether or not you should invest in solar panels.

In our 2024 survey of 1,000 U.S. solar customers who installed panels in the last five years, 84% of respondents said they would recommend solar to their friends or family members.

How Much Will Solar Panels Save You On Bills?

Exactly how much solar panels can save you on your electricity bills depends on the size of your solar system and local incentives, like net metering and other rebates. If your solar panel system is large enough to cover your entire energy usage, and you have a backup solar battery on hand, you can save 100% on your electricity bill.

Most homes have smaller systems that cover a portion of their energy bills, however. In our solar survey, 67% of respondents said they save more than $50 per month. Calculate the size of your system and your electricity usage to determine how much solar panels can save on your bills.

How Long Does It Take To Break Even With Solar Panels?

It usually takes between four and 13 years to break even with solar panels, or just under eight years for a 6.5-kW system. Every household has its own energy demands based on the climate, number of residents, home type and more. Solar panels work less efficiently on cloudy days, making location a key factor. Homes in regions with high amounts of direct sunlight will see a faster break-even point for the same system size compared to homes in regions with less direct sunlight.

To calculate how long it takes to break even with solar panels, subtract any eligible tax credits from the cost of your solar system, then divide by your yearly household energy bills. We’ve calculated the general time frames to break even for popular solar system sizes below:

SOLAR PANEL SIZE	AVERAGE COST	30% TAX CREDIT	AVERAGE COST AFTER 30% TAX CREDIT	YEARS TO BREAK EVEN*
3 kW	$8,600	$2,600	$6,000	4
5 kW	$14,300	$4,300	$10,000	6
6.5 kW	$18,600	$5,600	$13,000	8
8 kW	$22,800	$6,900	$16,000	10
11 kW	$31,200	$9,400	$21,800	13

*We used figures based on the average bill for residential electricity of $136.84 per month, or approximately $1,640 annually, as per 2023 data from the EIA, the most recent available at the time of writing.

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There are different types of incentives for going solar, including national, state and local incentives. Each one offers potential savings that can lower the long-term or upfront costs of installing solar panels.

National Incentives

The solar tax credit through the Residential Clean Energy Credit helps offset the cost of solar panels and qualifying clean energy installations, like battery storage, solar water heaters and heat pumps. Through this tax credit, you’ll receive a one-time rebate equal to 30% of the cost of your solar system on your tax return if you install by 2032. The credit decreases to 26% in 2033, 22% in 2034 and is set to end in 2035.

State Incentives

Some states have their own incentives for solar energy. For example, New York offers a state tax credit, called the NY-Sun Initiative, on top of the national tax credit and any local ones. Check with your state government page to see if you qualify.

Local Incentives

Depending on your local municipality, energy provider and utility company, you may have additional incentives in your area. For instance, Austin, Texas, offers a Residential Solar Rebate that allows residents to receive a $2,500 rebate if they complete a course on solar education and install a qualifying solar panel system.

With the high cost of going solar, finding ways to save on solar panels can make a huge impact on your budget. Follow these tips to potentially lower your costs:

• Purchase a solar panel kit that comes with the inverter and hardware to bundle and save
• Choose high-performing, high-wattage solar panels to decrease the number of individual panels needed for your system and curb costs
• Compare installation rates from at least three of the best local solar installation companies
• Check with local, state and national resources to see if you qualify for additional credits or rebates
• Go for a smaller solar system and build your system over time to avoid high upfront costs
• Avoid additional solar monitoring features that have monthly subscription

To arrive at the average costs in this article, we surveyed 54 local and national cost databases. All averaged figures were correct at the time of publication and may be subject to change.