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How Much Is The Average Cost Of Home Solar Panel System?

How much do solar panels cost?

As the cost of solar panels has dropped over the years, more and more homeowners are installing them. But what are some typical costs associated with this trend?

The average cost of home solar panel system

The average cost of a solar panel installation in 2022 ranges from $17,538 to $23,458 after taking into account the federal solar tax credit, with an average solar installation costing about $20,498.

The average cost of solar panels is about $2.77 per watt. However, this price can vary depending on the type of solar panel, the size of the system, and the state in which you live.

Solar Panel Installation Costs by Size

The cost of solar panels can vary widely, depending on a number of factors. The most important factor is the size of the system you need. Larger systems will typically cost more than smaller ones.

In addition, costs can vary depending on your home’s geographical location. For example, installation costs in Hawaii are typically higher than in other states.

Costs also vary depending on the type of solar panel you choose. Here are some average prices for different types of systems:

  • Monocrystalline solar panels: $1 to $1.50 per watt
  • Polycrystalline solar: $0.90 to $1 per watt
  • Thin-Film solar panels: $1 and $1.50 per watt
average cost of home solar panel system

How many solar panels do I need?

The amount of panels you need depends on how much electricity your home uses. The average home in the U.S needs between 20 and 24 solar panels to cover its electric bills.

Solar cost per watt

The cost of a solar panel is measured in watts. The price of a solar system is the price that homeowners will pay for every watt of solar being installed. This cost per watt is simple: the total system cost is divided by the number of watts.

The average price for a solar system is $2.77 per watt, with some quotes being as low as $0.95 per watt or higher than $3.60 per watt. However, prices vary depending on technology and location.

Solar energy cost per kWh

SunShot’s original 2020 goal that had been set three years ago for utility-scale solar power was achieved three years ahead of schedule, which dropped from about $0.28 per kWh to $0.06 per kWh in 2017.

What impacts the cost of solar panels?

Roof characteristics

The orientation of your roof plays a major part in the cost of solar panels and installation. A south-facing roof is best for capturing sunlight, but an east- or west-facing roof will also work. If you have a north-facing roof, your home isn’t suitable for solar panels.

The equipment needed to install solar panels will increase with a complex roof and may have additional costs associated with it. For example, if you need to remove trees or debris from the roof before installing the solar panels, that will add to the overall cost.


The cost of solar panels varies by state. Some states get more sunlight than others, and this impacts the efficiency of solar panels. Sunnier states tend to have more sun, but legislation is a significant factor in terms of solar power output as well. Solar installers will install these types of panels no matter where you live in the US, but some states are definitely better suited for solar energy production than others. You can find the top 10 cumulative lists for solar electric capacity at SEIA.


The cost of solar installation labor depends on your roof type and size. The average cost of labor for installation is $0.59 per watt.

Labor costs increase if your home is multi-storied or has dormers, skylights, or a problematic 45 degree roof pitch. These features can add time and complexity to the installation process and may require extra crew members.

Some installers offer varying warranties and internal operations, which can affect the price they charge for their work. It’s important to do your research and compare multiple estimates before selecting an installer.

Solar system size, panels, and equipment

The size of your solar system, the type of panels you choose, and the equipment you need will all impact the final cost of your installation. Here are some general things to keep in mind:

Monocrystalline panels are the most expensive, but they also have the highest efficiency.

Thin-film panels are less efficient than monocrystalline panels, but they’re also less expensive and can be installed on a wider variety of surfaces.

If you’re considering a solar panel system, it’s important to consider many factors before making a final purchasing decision. These include the size and type of your home, as well as how much sun exposure your roof receives. You’ll also want to compare prices on different systems and use an installer with experience in order to get the most value for your money.

Permitting and interconnection

When deciding to install a solar energy system, you will need to factor in the cost of permits and interconnection fees. Permitting costs can vary greatly from state to state and even municipality to municipality. Interconnection fees are charged by utilities when homeowners want to connect their solar energy system to the grid. The Department of Energy’s “SolarApp+” is trying to make the interconnection process cheaper and quicker for everyone involved.

How does solar panel installation work?

The process of switching to solar power is not as difficult as you might think. In fact, it can be completed in five easy steps: survey, design, permitting, installation and connection. Most homeowners report that the entire process from start to finish takes anywhere from two to four months.

Of course, the length of time it takes to install a solar panel system will depend on the availability of a company and its procedures. However, most reputable solar panel companies have a relatively quick turnaround time once they receive your order.

In order for your home or business to switch to solar energy, there are five important steps that need to take place: survey, design, permitting, installation, and connection. Keep in mind that each state has different requirements when it comes to installing a solar panel system–so make sure you do your research before getting started!

Once you have chosen a qualified solar installer, they will send someone out to survey your property and determine how many panels will be needed for your particular space. This step is important because it helps the installer give you an accurate quote for the cost of materials and labor.

After the survey is complete, the designer will create a custom blueprint for your system based on sun exposure data and other factors. Once the design is finalized, the installer will apply for any necessary permits and begin installation.

The final step is to have the solar panel system connected to your home or business grid. This process usually takes a few hours, but your local utility company will be able to give you more information about their specific requirements.

How much does it cost to install solar panels?

The cost of solar panels will vary depending on the system you choose and the amount of electricity your home or business needs. The average cost of a solar panel system is between$17,538 to $23,458 after taking into account the federal solar tax credit, with an average solar installation costing about $20,498.

This may seem like an expensive upfront investment, but it’s important to remember that you’ll save money in the long term.

What do I need to know before I hire a pro to install home solar panels?

There are a few things you should keep in mind when hiring a professional to install solar panels on your home:

  • First, make sure to ask the right questions in order to get a good deal and hire the right pro.
  • Second, professionals can buy high-quality materials directly from the manufacturer, and get lower prices than a homeowner.
  • Third, professionals are knowledgeable about design, tax credits, and the permit-pulling processes.
  • Fourth, if you want a valid warranty for your solar panels, it’s best to have them installed by a professional.
  • Finally, most solar panel installation experts offer free estimates – so don’t hesitate to reach out!

How do solar panel systems save money?

There are many benefits to having a solar panel system installed in your home. One of the most obvious is that you’ll be able to save money on your electricity bill.

In general, though, you can expect to see significant savings over time. The break-even point for a solar panel system also varies depending on its size–it could take 7 to 10 years for the investment to “pay for itself.”

After that point, you’ll start seeing savings each month on your electricity bill. And unlike other investments, a solar panel system actually increases in value as it ages!

One important thing to note is that even if you don’t use all the electricity generated by your solar panels, you’ll still get a utility bill from your local provider. That’s because they need to keep track of the net amount of energy used by your household each month (the difference between what goes into and comes out of your home). But thanks to net metering credits, any excess energy produced by your solar panels will be credited back to you on your next bill.

The federal tax credit for solar panel systems is currently 26%, but it decreases incrementally each year through 2022. After that, the tax credit will be 22%. So there’s still an incentive to make the switch to solar!

How to finance a solar panel system

If you’re thinking about going solar, you may be wondering how to finance your system. NerdWallet is a website that offers personal finance advice, and we’ve put together a guide to help you through the process.

There are a few ways to finance solar panels: through a loan, lease, or power purchase agreement (PPA). Each option has its own benefits and drawbacks, so it’s important to do your research before deciding which one is right for you.

A loan is the most common way to pay for solar panels. You can either take out a loan from a bank or use a home equity line of credit. Leasing is another option: many companies offer leases that allow you to pay monthly payments for the use of the panels. A PPA is similar to leasing, but instead of paying monthly rent, you agree to buy all the electricity your system produces at a set price over the course of 20 years or so.

No matter which financing method you choose, make sure you work with an installer who has experience with solar loans and leases. They’ll be able to help guide you through the process and make sure everything goes smoothly.

Solar panel system payback period

When most homeowners think of solar panels, the first thing that comes to mind is saving money on their electric bills. And while that’s certainly a big part of it, there are other benefits to installing a solar panel system on your home. Perhaps the most obvious one is that you’re doing your part to help the environment by using renewable energy.

So how long does it take for a solar panel system to pay for itself? The average payback period for a residential solar electric system is between 7-10 years. That means you’ll start seeing savings on your electric bill pretty quickly, and you’ll continue enjoying those savings for years after the initial investment has been paid off.

Solar panels also increase the resale value of your home, so if you ever decide to sell, you can expect to get back some of what you spent on installation costs.

Solar panel system federal tax incentives and rebates

Solar panel system state incentives

States and cities offer their own policies, incentives, and credits which can add up to a 50% savings. For example, the state of New Jersey offers a program called the Solar Renewable Energy Certificates, or SRECs. These credits are sold to utility companies and can be used to reduce the solar homeowner’s electric bill each month.

Solar panel system net metering

Solar panel system net metering is a popular policy in the United States. Net Metering (NEM) is a federal tax incentive that reduces the cost of installing solar panels. The incentives are available to both homeowners and businesses. Utility companies also benefit from NEM, as it incentivizes them to support more consumers going solar.


Is it expensive to install solar panels?

The average cost of a solar panel system is between $17,538 to $23,458. The additional costs associated with the project can quickly add up.

Do solar panels work at night?

Solar panels need sunlight to produce power; they don’t work at night. However, some solar panel systems include batteries that store energy collected during the day so that you can use it at night or during cloudy days.

How much does 1 solar panel cost?

The cost of a solar panel varies from $2.67 and $3.43 per watt.

The cost of solar panels can vary greatly depending on the size and type of system you need. The price of the whole system is based on its capacity, measured in watts. How big a system you need will be based on how much energy you use, your roof’s sunlight exposure, and panel efficiency.

What is the ROI on Solar Panels?

The return on investment, or ROI, is a calculation of how long it will take for your solar panel system to pay for itself. In most cases, the ROI is 7 to 10 years. This calculation takes into account the cost of the solar panels, the cost of installation, and the amount you spend on electricity each month.

If you would like to know if we can install solar and put thousands of dollars in your pocket for doing it, use the form below to submit your electric bill for a no cost, no obligation evaluation.