How Much Do Solar Panels Cost in 2024? (Expert Reviewed)
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Several factors impact solar panel prices, but our research found that the average solar system for a 2,000-square-foot home is roughly $31,460.* If that cost seems out of your budget, don’t worry—this figure is before applying valuable solar incentives that can shave off thousands.
Other factors, such as system type and size and your location, can raise or lower this price. Our guide looks at solar panel cost by panel type, home size, and state and includes ways to keep your expenses as low as possible.
*Cost figures in this article are sourced from EnergySage, ConsumerAffairs, and the National Renewable Energy Laboratory.
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What Is the Average Cost of Solar Panels?
The average cost of a 10-kilowatt (kW) residential solar panel system is $31,460. That’s before using any solar incentives or rebates, which can reduce your expenses by several thousand dollars. We’ll talk more about this later in the article. Your total solar panel cost depends on a few factors: your system type, home size, location, payment selection, and any incentives you apply.
| System Cost Range | Average Cost Before Tax Credit | Average Cost After Tax Credit |
|---|---|---|
| Average | $25,960 | $18,172 |
| Low-end | $31,460 | $22,022 |
| High-end | $36,960 | $25,872 |
How Much Do Solar Panels Cost by Type?
Your solar panels will likely cost between $0.30 and $1.50 per watt. There are three main types of solar panels: monocrystalline, polycrystalline, and thin-film. Monocrystalline solar panels are considered top quality due to their efficiency and energy production, so expect to pay more for their high performance. You may also need to invest in monocrystalline panels if you have a smaller roof to get the most energy production out of the fewer panels your roof can accommodate.
If you have a larger roof, you may be able to buy more panels with lower production, such as polycrystalline panels, for a decreased cost. Your solar provider can help you determine which option is best for your home.
Thin-film solar panels are the most budget-friendly, but they don’t generate much energy, making them best for small solar projects, such as powering a shed or recreational vehicle (RV).
| Panel Type | Average Cost Per Watt |
|---|---|
| Monocrystalline | $0.75–$1.50 |
| Polycrystalline | $0.70–$1.00 |
| Thin-film | $0.30–$0.70 |
How Much Do Solar Panels Cost by Home Size?
According to the latest U.S. census, the median size of a completed single-family home is 2,299 square feet. That house size requires more than 9,000 kilowatt-hours (kWh) of energy to power annually, requiring at least a 10-kW solar system. According to the data below, we estimate this costs between $29,410 and $34,353.
| Home Size (sq. feet) | Estimated Annual Electricity Needed | Recommended System Size | Number of Panels* | Average Cost | After Tax Credit |
|---|---|---|---|---|---|
| 1,000 | 4,710 kWh | 5-kW system | 13 | $16,002 | $11,202 |
| 2,000 | 9,420 kWh | 10-kW system | 25 | $29,410 | $20,587 |
| 2,500 | 11,775 kWh | 12-kW system | 31 | $34,353 | $24,047 |
| 3,000 | 14,130 kWh | 15-kW system | 39 | $39,338 | $27,537 |
How Much Do Solar Panels Cost by State?
Solar panel costs vary from state to state, partly due to the area’s average electricity bill and solar suitability. For example, Hawaii pays the most for electricity, while Utah pays the least. Those in Hawaii stand to see bigger savings than those in Utah when going solar.
Here’s a look at what you can expect a 10-kW system to cost in your state and an estimated time to return on investment. Note that cost per watt may vary by system size. You can also review if your state has a tax credit available. States are ordered from the least expensive solar installation cost to the most expensive.
| State | 10-kW System Cost Before Tax Credit | Federal Tax Credit Deduction | State Tax Credit Deduction | After Credit Cost | Average Cost Per Watt | Time to Return on Investment |
|---|---|---|---|---|---|---|
| South Dakota | $22,880 | $6,864 | N/A | $16,016 | $2.29 | 10 years, 5 months |
| Alaska | $23,060 | $6,918 | N/A | $16,142 | $2.31 | 10 years |
| Montana | $23,240 | $6,972 | N/A | $16,268 | $2.32 | 13 years, 2 months |
| North Dakota | $23,240 | $6,972 | N/A | $16,268 | $2.32 | 11 years, 1 months |
| Alabama | $23,510 | $7,053 | N/A | $16,457 | $2.35 | 8 years, 2 months |
| Arizona | $24,400 | $7,320 | $1,000 | $16,080 | $2.44 | 9 years, 8 months |
| Wyoming | $24,590 | $7,377 | N/A | $17,213 | $2.46 | 14 years, 6 months |
| Florida | $25,300 | $7,590 | N/A | $17,710 | $2.53 | 9 years, 7 months |
| Mississippi | $25,310 | $7,593 | N/A | $17,717 | $2.53 | 10 years |
| Hawaii | $25,580 | $7,674 | $5,000 | $12,906 | $2.56 | 4 years, 10 months |
| Oklahoma | $25,600 | $7,680 | N/A | $17,920 | $2.56 | 10 years, 5 months |
| Nevada | $25,700 | $7,710 | N/A | $17,990 | $2.57 | 11 years, 7 months |
| Utah | $26,200 | $7,860 | N/A | $18,340 | $2.62 | 18 years |
| Texas | $26,400 | $7,920 | N/A | $18,480 | $2.64 | 9 years, 6 months |
| Nebraska | $27,110 | $8,133 | N/A | $18,977 | $2.71 | 14 years, 1 months |
| Ohio | $27,500 | $8,250 | N/A | $19,250 | $2.75 | 13 years, 3 months |
| North Carolina | $27,800 | $8,340 | N/A | $19,460 | $2.78 | 13 years |
| South Carolina | $28,000 | $8,400 | $7,000* | $12,600 | $2.80 | 7 years, 1 month |
| Missouri | $28,200 | $8,460 | N/A | $19,740 | $2.82 | 13 years |
| Arkansas | $28,500 | $8,550 | N/A | $19,950 | $2.85 | 12 years, 5 months |
| Delaware | $28,500 | $8,550 | N/A | $19,950 | $2.85 | 12 years, 11 months |
| West Virginia | $28,500 | $8,550 | N/A | $19,950 | $2.85 | 11 years, 8 months |
| Kansas | $28,700 | $8,610 | N/A | $20,090 | $2.87 | 12 years, 11 months |
| Georgia | $29,500 | $8,850 | N/A | $20,650 | $2.95 | 11 years, 5 months |
| New Jersey | $30,000 | $9,000 | N/A | $21,000 | $3.00 | 15 years, 4 months |
| Idaho | $30,100 | $9,030 | N/A | $21,070 | $3.01 | 16 years, 10 months |
| Maryland | $30,100 | $9,030 | N/A | $21,070 | $3.01 | 12 years, 7 months |
| Virginia | $30,400 | $9,120 | N/A | $21,280 | $3.04 | 12 years, 3 months |
| Oregon | $30,500 | $9,150 | N/A | $21,350 | $3.05 | 16 years, 6 months |
| Pennsylvania | $30,500 | $9,150 | N/A | $21,350 | $3.05 | 13 years, 1 months |
| Washington | $30,500 | $9,150 | N/A | $21,350 | $3.05 | 17 years, 2 months |
| California | $30,600 | $9,180 | N/A | $21,420 | $3.06 | 12 years, 11 months |
| Louisiana | $31,500 | $9,450 | N/A | $22,050 | $3.15 | 11 years, 6 months |
| Illinois | $31,800 | $9,540 | N/A | $22,260 | $3.18 | 16 years, 5 months |
| Kentucky | $31,900 | $9,570 | N/A | $22,330 | $3.19 | 13 years, 2 months |
| Connecticut | $32,000 | $9,600 | N/A | $22,400 | $3.20 | 10 years, 7 months |
| Tennessee | $32,300 | $9,690 | N/A | $22,610 | $3.23 | 12 years, 11 months |
| New Mexico | $32,800 | $9,840 | $3,280 | $19,680 | $3.28 | 17 years, 12 months |
| Minnesota | $32,900 | $9,870 | N/A | $23,030 | $3.29 | 17 years, 5 months |
| Vermont | $33,000 | $9,900 | N/A | $23,100 | $3.30 | 17 years |
| Wisconsin | $33,400 | $10,020 | N/A | $23,380 | $3.34 | 18 years, 3 months |
| New York | $33,500 | $10,050 | $5,000 | $18,450 | $3.35 | 11 years, 9 months |
| Michigan | $33,700 | $10,110 | N/A | $23,590 | $3.37 | 16 years, 11 months |
| Colorado | $34,400 | $10,320 | N/A | $24,080 | $3.44 | 20 years, 5 months |
| Iowa | $34,900 | $10,470 | N/A | $24,430 | $3.49 | 17 years, 5 months |
| Massachusetts | $35,300 | $10,590 | $1,000 | $23,710 | $3.53 | 13 years, 2 months |
| Maine | $35,700 | $10,710 | N/A | $24,990 | $3.57 | 15 years, 11 months |
| Rhode Island | $36,100 | $10,830 | N/A | $25,270 | $3.61 | 15 years, 5 months |
| New Hampshire | $36,500 | $10,950 | N/A | $25,550 | $3.65 | 13 years, 5 months |
| Indiana | $36,600 | $10,980 | N/A | $25,620 | $3.66 | 15 years, 5 months |
Which Factors Impact Solar Panel Costs?
Below, we’ve broken down solar panel cost factors by importance. Some factors impact up-front cost, while others impact overall cost by influencing return on investment (ROI).
Solar panels’ cost is mainly based on the following factors:
Soft costs involved in solar panel installation include:
How Much Do Solar Batteries Cost?
A single solar battery for a 8kW system costs $7,964, per a national benchmark report from the National Renewable Energy Laboratory (NREL). This cost varies by state, battery brand and quality, your battery’s inverter, how much battery storage you need, and if you need to upgrade or add a new electric panel. Not every situation calls for a backup battery, but it can be helpful to provide around-the-clock power and protection from fluctuating electricity rates according to the Department of Energy. If you’re getting a solar battery simply as a backup energy source if the power grid goes down, you likely just need to purchase one. If you want to go completely off-grid, you could need as many as 10 to fully power your needs.
How Much Does Each Component Cost?
The National Renewable Energy Laboratory conducted a study of national solar energy price benchmarks for 2023. Using national averages, NREL calculated the typical cost of the components of a photovoltaic system, from panel to labor costs.
| Component | Percent of Total Price | Estimated Market Price* |
|---|---|---|
| Module | 12.61% | $3,273.25 |
| Inverter | 11.71% | $3,040.09 |
| Structural | 8.84% | $2,295.21 |
| Electrical | 12.4% | $3,219.05 |
| Field labor | 6.65% | $1,726.98 |
| Office labor | 25.94% | $6,734.07 |
| Other | 21.85% | $5,671.45 |
| Total: | 100% | $25,960 |
What Are My Solar Panel Payment Options?
Solar panel installation requires a significant financial commitment, so companies offer different payment options to suit different budgets. Here’s an overview of the typical solar financing options offered by solar providers:
- Full payment: You pay for the solar system outright without a loan or payment plan. This option will save you the most money because you won’t pay interest rates. Full payment also grants you system ownership, qualifying you for incentives.
- Solar loan: A loan allows you to make small payments over a longer payback period. However, you’ll pay more in the long run due to interest rates. Solar loans also qualify you for solar incentives.
- Solar lease: This option allows you to make fixed monthly payments for about 20 years and requires little to no up-front cost. Your solar installation company retains system ownership and is responsible for its upkeep. Leasing customers don’t qualify for solar incentives.
- Power purchasing agreement (PPA): With a PPA, you only pay for the energy you use. Like an electric bill, the rate fluctuates each month. Your solar company retains system ownership, disqualifying you from incentives.
How Can I Save Money on Solar Panels?
We surveyed 1,000 homeowners who received solar quotes and found that 52% of respondents did not move forward with installation because the panels were too expensive. However, there are a few ways to save on solar panels, namely federal, state, and local solar incentives that can save you thousands of dollars.
Solar Incentives and Rebates
Various government programs help you lower the cost of going solar. The more homeowners who switch to solar energy, the less strain there is on the collective power grid. This means federal and state government agencies want to incentivize homeowners to switch to a more sustainable energy source.
Below are the most valuable solar rebates and tax credits to look into
Additional Ways to Save
Making the wrong decisions during the buying process can cause you to overspend. Here’s what to look out for to avoid excess expenses.
- Be smart with financing: Your solar provider will offer at least a couple of financing options if not all four. Carefully review the math to determine which option makes the most financial sense for you long-term. Pay special attention to interest rates and contract terms. You may find a better loan option through your bank instead of through your installer.
- Choose the right system size: Review your average monthly energy costs from the past year to see what size system your home’s energy needs require. Go with a system that offers an energy production guarantee slightly above the amount of electricity you need. You may be tempted to buy a large system to ensure you have enough energy, but buying an excessively large system that generates more energy than you need isn’t financially sound. A solar battery, which stores excess energy your system produces, is likely a wiser investment.
- Choose the right system type: You’ll need to assess your roof, energy needs, and budget to determine if fewer monocrystalline panels or more polycrystalline panels will be cheaper.
- Get multiple quotes: Solar brands price their products and services differently. We recommend getting at least three quotes from well-rated solar installers to find the best deal.
- Install during the offseason: Installing solar panels isn’t comfortable, or necessarily safe, in extreme temperatures. If you can arrange installation during spring or fall, you may be able to negotiate a better price with the installer.
Are Solar Panels Worth It?
Our survey revealed that 94.6% of homeowners said installing solar panels was worth it, and most respondents said the installation reduced their energy bills. Although solar panels are worth the investment for many people, there are situations when they won’t benefit your home enough to justify the expense.
Solar is a balancing act between a hefty up-front cost and estimated savings. Given the right circumstances, solar panels pay for themselves over time. The average payback period for a solar system is six to 10 years. If you have access to SRECs and net metering, you’ll break even during this time frame and then generate additional savings.
Here are some considerations to gauge if solar is worth it for you:
Using solar power in your home reduces the need for costly fossil fuels and taps into a less expensive resource. Homes that use more electric-powered appliances will benefit from going solar.
Excess energy from your solar panel system can be stored in a solar battery or returned to the power grid. You can accumulate enough credits through net metering programs and SRECs to receive a monetary return. Check with your utility provider to see if it offers net metering.
Ask your solar installer which tax breaks they can help you obtain.
Houses with many obstructions, such as tall trees or surrounding buildings, don’t get enough sun exposure for panels to perform. You won’t see much benefit from going solar unless your home’s roof regularly gets hours of unobstructed sun. It’s also best if the roof is south-facing and has a slope that can hold a solar panel at a 15- to 40-degree angle.
How Long Does It Take to Break Even With Solar?
On average, most homeowners break even on their solar investment around eight years after installation. Determining your solar break-even point depends on a few numbers: the total system plus installation cost, any applied incentives, and your annual electricity bill savings.
Use the following steps to calculate your break-even point:
- Subtract the value of any applied incentives or rebates from your total solar power system plus installation cost. That’s your first number.
- Calculate how much you save annually in electricity costs by comparing pre-solar utility bills with post-solar utility bills. That’s your second number.
- Divide the first number by the second number for the number of years it will take you to break even. Every year after that should be counted as a financial gain.
What Are the Hidden Costs and Downsides of Going Solar?
As with any other home improvement project, there are some hidden costs and downsides to solar energy not often discussed.
Solar’s biggest hidden cost is if you include solar batteries with your system, which often run from $8,500–$10,000. The cost of a Tesla Powerwall battery is slightly higher, given how reputable the company and product are. Though you can opt out of installing a solar battery and its cost, many homeowners include it for backup power protection.
Here are some other hidden fees and downsides to consider:
- Insurance: You can expect your home insurance to increase with a solar panel system purchase. Your state might require you to get solar panel-specific insurance in addition to your current insurance coverage.
- Maintenance: Your solar panels will require maintenance to keep them in good working order. Most installers recommend having panels checked about every five years. You’ll need a professional to inspect wires and connections. Although this won’t be a substantial cost, you should plan for maintenance fees in your ongoing panel costs.
- Panel cleaning: Most solar panels are cleaned naturally with rainfall, but if you live in an area prone to wildfires or dust, you will need the occasional cleaning. We recommend hiring a pro to avoid the dangers of climbing on your roof. Your solar panel installer may include this service in your labor warranty agreement. If not, expect to pay around $20 per panel for cleaning.
- Repairs: Solar panels are durable, but there are some occasions when they require repair work. You must pay out of pocket if the panels aren’t covered by insurance.
- Roof work: Solar panel installation sometimes requires extra roof work to be completed before the project can even start. Depending on your roof’s condition, this can be the highest or second-highest hidden cost. If your roof is fewer than five years away from needing replacement, you may need to install an entirely new roof before installing solar panels. Alternatively, a solar installer might suggest simply fortifying your roof’s eaves. We suggest contacting a local roofing company for an in-depth roof replacement inspection.
- State policies: Not all states are solar-friendly. Some have far fewer incentive programs to help save, and some have policies that inhibit programs currently in place. For example, the California Public Utilities Commission revised its net metering policy to decrease the value of solar energy credits by 75%, pushing solar owners to invest in solar batteries.
- System monitoring: If you use a solar company’s active monitoring, there’s sometimes a monthly $10–$15 fee.
- Tree removal: If surrounding trees cast shadows on your panels, you may need tree removal services to ensure optimal panel performance. These services cost between $341 and $1,523 on average.
- Utility company charges: You’ll still receive a utility bill after going solar. Though that bill should be around $80 less than before, you’ll likely see some solar-specific charges from utility companies. Namely, you’ll notice a charge when your solar panels take electricity from the power grid instead of adding to it.
Experts Insights
We consulted additional experts for insight into the benefits of solar energy, the affordability of solar panels, and advancements in solar technology. See their insights below.
Our Conclusion
Although solar panels require a significant investment, they provide future financial and environmental benefits. Many factors, such as the panel type, your climate, and your energy needs, influence your final costs and whether a solar investment is worth it. Apply for federal and state incentives to help lower your system costs and leverage your potential long-term savings.
We recommend getting quotes from at least three solar companies for the best rates. Compare equipment quality, customer reviews, financing options, warranties, and pricing.
Use our tool below to begin searching for your area’s solar providers.
FAQ About Solar Panel Costs
How much is a solar system for a 2,000-square-foot house?
A 2,000-square-foot house will likely require a 10-kW solar panel system, costing an average price of $29,410.
What is the cost of one solar panel?
A typical solar panel costs between $200 and $315, but price is impacted by panel quality, brand, type, and size.
Do you really save money with solar panels?
According to EnergySage, a household with an average monthly energy bill of $150 can expect roughly $20,166 in electricity savings over 10 years. The higher your monthly energy bill, the more savings you stand to accrue over time.
How many solar panels does it take to run a house?
The average house in the U.S. requires a 10-kW system to power it, or roughly 24 solar panels.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
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