Average cost of solar panels in 2026: by size and state
A typical US solar system runs $15,000–$25,000 before incentives in 2026 — and with the federal credit gone, that’s close to your real cost.
Here’s the short version: in 2026 a typical American home solar system costs about $15,000 to $25,000 before incentives, at a national average of roughly $2.85 per watt installed. The bigger 2026 story isn’t the sticker price — it’s that the 30% federal tax credit that used to knock thousands off that number expired on December 31, 2025. So the gross price and your real out-of-pocket are now nearly the same thing, minus whatever your state still offers.
How does $2.85/W compare with 2026 market data? It sits between the two big national benchmarks: EnergySage’s marketplace reported a median quote of $2.57/W for the first half of 2026, while SEIA and Wood Mackenzie modeled $3.36/W for residential systems in Q2 2026. Shoppers who collect several itemized bids tend to land near the lower figure; the higher one reflects the average installer’s full cost. Our solar panel buying guide explains how to tell which end of that range a quote should fall in.
Use the calculator to turn your own bill into a system size and price, then read on for the breakdown.
Estimate your system size & cost
Three inputs. Real local rates. An honest 2026 estimate.
Fine-tune (orientation, offset, financing)
In California, a ~3.4 kW system could pay back in ~9.1 years.
- System size
- 3.4 kW
- Est. net cost
- $9,922
- Annual savings
- $1,087
- 25-yr savings
- $29,619
Loan payment: —
Your state’s rules & the 2026 credit
Net metering: Select your state.
Incentives: Select your state.
The 30% federal residential solar tax credit (IRC §25D) expired on December 31, 2025. Homeowners who buy a system in 2026 do not receive a federal tax credit. Leasing or a PPA (third-party ownership) may still pass through some federal benefit via the commercial credit, which requires construction started by July 4, 2026 or service by Dec 31, 2027 — always verify current federal and state incentives before signing.
Estimated annual production: —; gross cost —; panel count —.
Estimates only — not financial advice, and no federal credit applies to 2026 purchases. Your real numbers depend on roof, usage, utility, equipment, and quotes — verify and get itemized bids.
Cost by system size
Solar is priced by capacity (kilowatts), and capacity is driven by how much electricity you use. These are 2026 ballpark ranges before any state incentives:
| System size | Panels (~400W) | Gross cost (2026) | Typical fit |
|---|---|---|---|
| 5 kW | ~13 | $13,000–$17,500 | Small home / low usage |
| 7 kW | ~18 | $18,000–$24,500 | US average home |
| 10 kW | ~25 | $25,000–$35,000 | Large home / high usage |
| 12 kW | ~30 | $30,000–$42,000 | Large home + EV / electric heat |
Cost & payback by state
Two things move payback the most: your electricity rate (higher rate = faster payback) and your install cost per watt. Sun hours matter, but high-rate states like Massachusetts and California can still pay back faster than sunnier, cheaper-power states. Here’s how the launch states compare for a $165/month bill:
| State | ¢/kWh | Sun hrs/day | $/W | Est. system | Est. net cost | Est. payback |
|---|---|---|---|---|---|---|
| California | 33.0 | 5.5 | $2.95 | 3.4 kW | $9,922 | 9.1 years |
| Texas | 16.0 | 5.3 | $2.60 | 7.2 kW | $18,758 | 10.5 years |
| Florida | 15.4 | 5.3 | $2.50 | 7.5 kW | $18,705 | 10.5 years |
| Arizona | 15.4 | 6.5 | $2.35 | 6.1 kW | $13,327 | 11 years |
| North Carolina | 14.8 | 4.8 | $2.60 | 8.6 kW | $22,381 | 12.6 years |
| New Jersey | 23.8 | 4.3 | $2.95 | 6 kW | $17,606 | 9.9 years |
What actually drives your price
- System size — the single biggest factor; size to your real usage, not a salesperson’s upsell.
- Equipment tier — premium panels and microinverters cost more but can be worth it on complex roofs.
- Roof complexity — steep, multi-plane, or shaded roofs raise labor and reduce output.
- Add-ons — batteries ($8,000–$15,000+), main-panel upgrades, and EV chargers are separate line items.
- Your state & utility — labor, permitting, and incentives vary enormously by location.
How to keep your cost honest
Get three itemized quotes, insist on the all-in price per watt, and check your state’s incentives before you sign. Watch financing closely: a “$0-down” loan often carries a dealer fee baked into a higher system price. Cash usually wins on total cost; a low-fee loan can still make sense if it beats your utility’s rate inflation.
Frequently asked questions
What is the average cost of solar panels in 2026?
For a typical 7 kW residential system, expect roughly $18,000–$25,000 before incentives in 2026, at a national average around $2.85 per watt. Market benchmarks for 2026 range from a $2.57/W median quote (EnergySage, H1 2026) to $3.36/W (SEIA/Wood Mackenzie, Q2 2026). With the federal residential tax credit expired, the gross figure is close to your real net cost.
Did solar get more expensive in 2026?
The hardware price per watt is broadly flat to slightly lower, but your effective cost rose because the 30% federal tax credit for purchased systems ended on December 31, 2025. A $20,000 system that netted ~$14,000 after the credit in 2025 now costs the full ~$20,000 (minus any state incentives) in 2026.
What’s included in the price per watt?
The all-in $/W covers panels, inverter(s), racking, wiring, permits, inspection, labor, and the installer’s overhead and margin. Batteries, main-panel upgrades, and difficult roofs cost extra.
How can I lower my solar cost?
Get at least three itemized quotes, right-size the system to your actual usage, check your state and utility incentives, and compare cash vs. loan carefully — financing fees can quietly add thousands.