Solar Panel Costs & Pricing
What solar costs in 2026 by system size, state, and equipment — with the math behind every number.
Home solar in 2026 runs about $2.20 to $3.00+ per watt installed — roughly $18,000 to $28,000 gross for a typical 8–11 kW system before incentives. Because the federal residential tax credit (Section 25D) expired on December 31, 2025, cash and loan buyers now pay that full amount with no federal credit, so the gross price is also the net price.
What drives the price
Solar is priced per watt, and the installed rate is the single biggest lever on your total. Most 2026 installs land between $2.20 and $3.00 or more per watt, and where you fall in that band depends mostly on your state's labor and permitting costs, not the panels themselves. The same system can swing several thousand dollars between a low-cost, high-volume market and an expensive one.
After price per watt, the drivers are system size, roof complexity, and equipment. A steep, tile, or multi-plane roof adds labor; premium all-black panels and microinverters cost more than baseline modules and a string inverter. Fixed soft costs like permits and interconnection don't scale with size, so they weigh more on small systems. Our equipment comparison and net-metering guides go deeper on each of these; the solar cost calculator prices your specific setup with the $0 federal credit already baked in.
Cost by system size
Size in kilowatts is just the combined wattage of your panels, so cost scales with size times your local price per watt. With common ~400-watt modules, a 6 kW system needs about 15 panels, 8 kW about 20, and 11 kW about 28. The table below shows typical 2026 gross costs and the net you actually pay as a cash or loan buyer.
Don't buy a round number — buy the size that matches your usage. The average U.S. home uses roughly 10,000–11,000 kWh a year, which an 8–10 kW system usually covers depending on local sun. For the full breakdown by size and the panel math behind it, see our solar cost by system size guide, and use the sizing calculator to turn your annual kWh into a recommended size.
What to know before you commit
The headline change for 2026 is that there is no residential federal tax credit. Section 25D gave homeowners 30% back through 2025 and expired December 31, 2025, so for cash and loan buyers the net cost now equals the gross cost. A lease or PPA is different: you pay $0 upfront and the installer, as system owner, claims the 30% commercial credit (Section 48) and passes some of it through as a lower rate — our lease vs. buy guide covers the trade-offs.
Payback in good markets typically runs 8–13 years, but it hinges on three things: your electricity rate, your local sun hours, and your state's net-metering rules for the energy you export. Net metering is the biggest swing factor — under NEM 3.0-style export rates, oversizing past your own usage rarely pays. See the payback and net-metering guides before you sign, and run your own numbers in the solar cost calculator.
| System size | Panels (~400 W) | Typical gross cost | Federal credit (25D) | Typical net cost |
|---|---|---|---|---|
| 6 kW | ~15 | $13,000–$18,000 | $0 | $13,000–$18,000 |
| 8 kW | ~20 | $18,000–$24,000 | $0 | $18,000–$24,000 |
| 11 kW | ~28 | $24,000–$33,000 | $0 | $24,000–$33,000 |
Guides in this topic
Frequently asked questions
- How much do solar panels cost in 2026?
- Expect about $2.20 to $3.00 or more per watt installed. That puts a typical 8–11 kW home system near $18,000–$28,000 gross before incentives. Since the federal residential tax credit is $0 in 2026, cash and loan buyers pay that full amount, so the gross price is also the net price.
- Is there still a federal solar tax credit in 2026?
- Not for homeowners buying with cash or a loan. The 30% residential credit (Section 25D) expired December 31, 2025. Lease and PPA customers still benefit indirectly, because the installer owns the system and can claim the 30% commercial credit (Section 48), which it may pass through as a lower rate.
- How long is the payback period on solar in 2026?
- In good markets, roughly 8–13 years. The exact figure depends on your electricity rate, your local sun hours, and your state's net-metering rules for exported energy. High rates and full-retail net metering shorten it; low rates and NEM 3.0-style export credits lengthen it.
- Why does price per watt vary so much between homes?
- Mostly state and local labor and permitting costs, which set the base rate. On top of that, roof complexity (steep pitch, tile, or multiple planes), equipment choice (premium panels and microinverters versus baseline modules and a string inverter), and system size all move the number. Fixed soft costs spread across more watts, so larger systems often see a slightly lower price per watt.