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Solar Panel At Home Cost | How Much Does It Cost to Install Solar Panels at Home?

How much does it cost to install solar panels at home?

The cost of installing solar panels in the United States ranges from $17,538 to $23,458 depending on the size of the system. However, this price can be lowered with state and federal incentives.

Labor and operational costs make up a quarter of installation costs. Once installed, solar panel maintenance usually runs about $2,000 annually.

Solar panels are rated by kilowatt (kW). One kW equals 1,000 watts so it’s important to consider your average hourly energy requirement when figuring out how many you will need.

Cost of solar panels types

There are three main types of solar panels exist: monocrystalline polycrystalline and thin-film


The cost of monocrystalline solar panels is typically a bit more expensive than polycrystalline, but they last longer. Monocrystalline solar panels cost from $1 to $1.50 per watt.


Polycrystalline panels are the most common type of solar panel available. They can be identified by their blue color, and they’re known for being cheaper than other types of solar panels. Polycrystalline solar panels can run from $0.90 to $1 per watt.

Thin Film

Thin-film solar panels are made from semiconductor materials, such as amorphous silicon. Thin-film panels can be applied to many surfaces and are used in a wide variety of applications.

Thin-film panels are generally less expensive per watt than other types of solar panels. This is because they take up less space and require fewer raw materials, such as silicon. Thin-film solar panels average from $1 to $1.50 per watt.

Solar Panel Installation Costs

The average cost to install solar panels

An average 10kW rooftop solar panel installation will cost $17,538 to $23,458. This is an estimate for a basic installation, and it doesn’t include any special features.

Solar panel costs are based on the size of your system, which is measured in kilowatts (kW). The average American home uses about 11,000 kWh per year.

The cost to install solar panels is also based on the type of system you choose and where you live. For example, if your home has a south-facing roof, you will pay less to install solar panels than someone who lives in a northern climate.

Solar panel cost per watt

The average cost of a residential solar panel is $2.77 per watt, with most companies spending $2.53 to $3.15 on average before any tax credits or incentives are considered.

Factors affecting the cost of residential solar panels and installation

In general, the cost of residential solar panels and installation is driven by a few key factors. These include:

solar panel at home cost


A significant cost impact in terms of location is geography. State-specific legislation plays a big part in solar output levels, with states that have incentives like a solar investment tax credit and other solar-friendly programs having higher output levels regardless of sun exposure.

In states with high electricity rates, solar power is an attractive option for reducing the amount you spend on energy.  In some areas, it’s even possible to get a solar lease, which means you don’t have to pay for the system yourself.  A solar lease is like a car lease in that it’s a contract that allows the homeowner to use the system without having to pay for it.

Roof structure

The layout of your roof can affect the cost and return on investment for solar panels. For example, if you have a lot of trees nearby, it will be harder for the panels to get sunlight. The age of your roof and its structural soundness are also important factors to consider when comparing costs for solar panels. If your roof is old or needs repairs, it might not make financial sense to install solar panels until you replace the roof.

System panels and equipment

There are a few factors to consider when selecting solar panels for your system. The most important is the wattage of the panel. You will need to select a panel that has enough wattage to provide the power you need.

The cost of a solar system is affected by what equipment is included. Panels, inverters, and mounts are all essential components of a solar system and can increase or decrease the overall price.

Another factor to consider is how many batteries you will need. Batteries allow you to store energy from the sun so that you can use it at night or during times when there isn’t enough sun available. The number of batteries will depend on how much sun you receive and how much power your home needs.

Solar panel at home cost: DIY vs. Hiring a professional

When it comes to installing solar panels, there are two main ways to go about it- do it yourself (DIY) or hire a professional. Both have their own benefits and drawbacks, so how do you know which is the best option for you?

If you’re handy and have some knowledge of electrical work, then doing it yourself may be a good option for you. However, if you don’t know what you’re doing or don’t feel comfortable doing the installation yourself, then hiring a professional is definitely the way to go.

Professionals can buy high-quality materials directly from manufacturers and get lower prices than homeowners. They also have knowledge of tax credits and navigating permit processes that homeowners do not possess. This allows them to offer better deals than DIY solar panel companies.

Professionals typically possess a lot of knowledge in regards to the installation of solar panels, which is important for passing inspections and preventing defects. They also understand how to work with local authorities so that everything goes smoothly from start to finish.

How do solar panels work?

Solar panels convert sunlight into electrical energy. The solar panel consists of a number of cells, which are made up of silicon wafers. When the sun shines on the cell, the photons in the light excite electrons in the silicon atoms and create an electric current. This current is harnessed by wiring the cells together to form a panel.

The amount of electricity that a solar panel produces depends on its size and how sunny it is outside. Larger panels produce more electricity, but they also require more space. In general, solar panels will generate about half their rated capacity on a clear day with direct sunlight.

How do I choose the right home solar panel system?

There are a few things you should consider when choosing the right home solar panel system. One of the most important is your budget–you’ll need to decide how much you’re willing to spend on this investment. You also need to take into account the size of your home and how much sunlight it receives.

Another important factor is whether you want to buy or lease your solar panels. Leasing generally costs less in the short term, but buying will save you more money in the long run. You also have the option of financing your solar panels with a loan, which will spread out the cost over time.

Whatever route you choose, be sure to do your research and compare prices before making a decision. There are many companies that offer solar panel systems, so it’s important to find one that fits your needs and budget.

How does solar panel installation work?

Once you’ve decided on a system, the installation process will vary depending on whether you’re getting panels for your roof or an alternative location.


Before the installation of solar panels, a site visit is conducted by the company’s in-house or local engineer. The engineer will help design your system and even do some electrical inspections on your current system. This helps ensure that your home is ready for solar panel installation and that you’re getting the most efficient system possible.


When it comes to solar panel installation, homeowners have a few options. First, they can call a solar company and schedule an in-person assessment. The representative from the solar company will then walk through the home and take note of all the necessary information. They will also make recommendations on specific brands and products, and allow consumers to pick the ones that best fit their budget.


In order to install solar panels, companies must obtain the necessary permits. This is typically handled by the company, so you don’t need to worry about it. However, some states and territories have specific permitting requirements that companies must follow.

Solar companies are required to file for any state or federal programs in order to offset the cost of a solar system installation. For example, many states have net metering programs that allow homeowners to receive compensation for the energy generated by their solar panels. If a company fails to file for an incentive program, it may be on the hook financially.

Installing solar panels yourself is possible, but it’s best to hire an installer if you’re not familiar with the process. Solar panel installation is generally a straightforward process, but there can be some surprises along the way depending on your location and setup.


Installation of a solar panel system is a straightforward process. The installer will:

  • Make sure all roofing tiles or shingles are attached before connecting wiring.
  • Connect wiring that feeds into your power system.
  • Place the panels onto your roof.

Solar panel installation includes equipment that converts energy from the panels to usable power, which is then fed into your home’s electrical system.


The solar panel installation process will vary depending on the type of PV system that is being put in place. The two most common types are grid-tied and off-grid solar panel systems.

Grid-tied solar panel systems are the most common and have a slightly different installation process than an off-grid system, which is designed to be independent of any external energy sources.

What are the pros and cons of solar panels?

There are many benefits to solar panels, but there are also some drawbacks that homeowners should be aware of before making a decision. One of the pros is that solar panels can help reduce your carbon footprint and make you eligible for certain tax breaks in the process. Additionally, they’re a great way to cut down on your energy bills in the long run.

The upfront costs of installing solar panels can be high, but over time they will pay for themselves. In fact, according to EnergySage, “the cost of solar has dropped by more than 60 percent since 2010.” That’s good news for homeowners who want to switch to this renewable energy source!

Federal Solar Tax Credits & Incentives

How does the federal solar tax credit work?

The federal solar tax credit, also known as the investment tax credit (ITC), is 26% off the cost of installation. There is no limit on the amount of credits that can be claimed for commercial and residential solar systems. This incentive applies to both solar water heaters and photovoltaic (PV) cells.

Leased PV systems by individuals are not eligible for ITCs, but homeowners can still take advantage of state and local incentives.

The benefits from the federal solar tax credit will start decreasing after 2022, so it’s important to act soon if you’re interested in taking advantage of these savings! The current rate is 26% but drops down to 22% after 2022.

Solar state incentives

There are many different solar incentives available in the United States. The federal government offers a tax credit for solar installations, and states offer their own incentives as well. In addition to federal tax credits, many states offer incentives in the form of exemptions or rebates. Solar properties are often exempt from property taxes.

Net metering

Net metering is the process of selling excess energy back to your local utility. If you produce more energy than you use, your utility company will buy that energy from you at a set rate. This can be helpful for those who live in states where net metering is available, as it increases their return on investment and shortens the payback period. In some cases, you may even be able to roll over any unused credits to the next month’s billing cycle.

Frequently Asked Questions

Is it expensive to install solar panels?

The cost of solar panels can vary depending on the company you choose. The cost of installing solar panels is around $17,538 to $23,458 – larger systems will be more expensive.

By shopping around different companies and getting multiple quotes, you can find a good price that meets your budget and needs. Keep in mind that some states offer incentives to help offset the cost of installation.

How long will my solar panels last?

When it comes to solar panels, keep in mind that they are a long-term investment. Solar panels last 25-30 years with proper maintenance and cleaning. So, if you’re planning on having solar panels installed, make sure you factor that into your overall plans!

Do solar panels work at night?

No, solar panels generate power during the day, not at night. Solar panels require daylight to function.

Are solar panels worth it?

Solar panels are worth it because they provide a great return on investment. They also help the planet and reduce energy bills, which can give you peace of mind while still making some money.

What is the average payback period?

The average payback period for investing in solar panels is about 7 to 10 years. This means that you will break even on your investment in about 7 to 10 years, and after that, all the energy you use from then on will be free. The exact amount of money it takes to pay off your solar panels will depend on how much you use and the cost of electricity in your area.

How many solar panels do I need?

The answer to this question is dependent on a number of factors such as location and electricity usage. The average person in the US uses approximately 10,000 kWh per year, so it is recommended to install a solar panel system that can provide 100-200% of the annual usage. The average home in the U.S needs between 20 and 24 solar panels to cover its electric bills.

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.