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Solar Panel Cost | 2024 Guide

By Alex Hawkins

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Solar panel costs typically range from $17,430 to $23,870, but many homeowners will pay around $20,650 on average. Solar panels are a considerable investment. Various factors influence your project price, including the panels you choose, your home's energy needs, and applicable state and federal tax incentives.

We have conducted in-depth research on the best solar companies in the United States and the industry overall. This guide breaks down the significant factors that influence what solar panels cost, as well as the national average for a solar energy system.

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Note: All cost data in this article is based on data from EnergySage, Consumer Affairs, Home Advisor, and Angi.

Average Cost of Solar Panels

Though solar pricing varies by location, system size, and other project variables, EnergySage data shows these figures as the national average:

• Low end: $17,430
• Middle: $20,650
• High end: $23,870

How Much Do Solar Panels Cost in Each State?

Solar panel costs can vary according to your state's energy rates and access to solar technology. Check the table below to get an idea of what solar panels might cost you in your state.

Solar Panel Cost Breakdown

EnergySage estimates that the national average cost for a typical 6-kilowatt (kW, or 6,000 watts) residential rooftop solar system is roughly $20,650 before any federal tax credits or local incentives.* Overall, you should expect to pay anywhere between $17,430 and $23,870, depending on your system size and location.

The total cost of a solar system includes solar panel prices, which vary in price by brand and type, installation labor, system size, and additional equipment. A solar installation company will charge a combination of labor costs and a price per watt for each solar panel.

*Based on a June report.

Types of Solar Panels

The type of solar panel you order will influence your total price. Below is a breakdown of the three most popular types of solar panels and their average price.

• Monocrystalline:

  Monocrystalline panels are considered the most efficient solar panels , with an average efficiency rate of 24%.

  However, they are also the most costly. The average cost for monocrystalline solar panels is $1 to $1.50 per watt. Therefore, a standard 6kW system costs between $6,000 and $9,000.

• Polycrystalline:

  Polycrystalline panels are a more cost-effective option up front. However, they feature a lower efficiency rate than mono panels, at an average of 20%. The average cost for polycrystalline solar panels is $0.90 to $1 per watt, or $5,400 to $6, total for a 6 kW system.

• Thin-film:

  Thin-film solar panels are less popular for residential solar systems. They tend to cost around $0.70 to $1 per watt. That's roughly $4,200 to $6,000 total for a 6 kW system.

Labor

Installation costs including labor and permits average around 25% of the cost of the solar panel system itself. So, for example, if you purchase a 6-kW monocrystalline solar panel system for $20,000, then a solar installation company will likely charge approximately around $25,000 for the system and the installation, combined. The installation of a larger system will naturally increase labor costs.

System Size

Determining the right system size for your property requires looking at a few factors: energy needs, roof size, and layout. You can determine how much energy it typically takes to power your home by looking at your monthly electric bill. We've included more on this in the next section. The size and shape of your roof, or wherever you intend to install the panels, also influences the system you can install. EnergySage estimates that the typical household needs an average of 19 panels to fulfill its electricity needs, which is roughly a 7-kW system.

Additional Equipment

Residential solar systems also typically require a battery to store energy and an inverter, which converts the variable direct current (DC) output of your PV solar panels into alternating current (AC). Most solar companies will include these components in your solar system's design. However, if you request specific brands of inverters or batteries, they may come at a premium.

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Solar Incentives and Rebates

Most states offer several solar tax credits and rebates that help purchasers save money, incentivizing them to switch to solar and power their homes more sustainably. You can check on your state's Department of Energy website to learn which programs are available in your area and on websites such as EnergySage and the Solar Energy Industries Association (SEIA).

Common state-level solar incentives include:

• Renewable energy tax credits

• Sales and property tax exemptions

• Solar easements and right-to-solar laws

At the local level, many utility companies offer net-metering programs that allow solar owners to send any excess energy their system generates to the power grid, earning them credits in return.

The biggest financial incentive is the federal solar tax credit (ITC). This federal-level credit lets solar buyers claim 30% of the total system cost on their income taxes the year of installation.

We recommend using the Database of State Incentives for Renewables & Efficiency (DSIRE) to see which solar rebates and state tax credits you can receive.

Other Factors to Consider About Solar Panel Costs

In addition to the cost per watt for each solar panel, other factors influence the overall cost of a solar power system.

Energy Needs

Take note of your current cost of electricity, as switching to solar may or may not save you money on your energy costs.

Location

The location of your home plays a vital role in how much money solar panels can save you.

Roof Type

You can use a solar panel system even if you don't live in these blue-sky states.

Payment Options

• Purchase:

  Paying for your solar system up-front is the most cost-effective payment method for a solar system.

• Solar Loan:

  Solar companies understand that not every homeowner is willing or able to pay for their system up-front.

• Solar Lease:

  Some homeowners may elect to lease their solar panel systems.

• Power Purchase Agreement (PPA):

  A solar PPA lets you pay little to nothing for the actual installation of the PV system.

Are Solar Panels Worth the Cost?

In most cases, solar panels are worth the cost.

Hidden Costs of Solar

Maintenance, energy storage, and other costs are necessary to protect your system and get the most value out of it.

Solar Panel System Installation

Most solar companies follow these steps for installations:

1. Site evaluation:

   An installer will visit your home to confirm the planned design and estimate the scope of work.

2. Permit approval:

   Most states require a permit to install solar panels.

3. Installation:

   Installation typically takes one to three days.

4. Cleanup:

   Installers should remove debris and leave your property in good condition.

5. City inspection:

   Your provider should coordinate with your city to have an inspector check that your system is up to code.

6. Utility connection:

   Your system must be connected to your local utility system.

Our Recommendation

Residential solar panels help you cut electricity costs and carbon emissions.

Solar Panel Costs FAQ

Is solar energy a good investment?

As the solar industry continues to grow and the average cost of solar panels continues to decrease, solar energy is panning out to be a good investment for many homeowners.

What is a payback period?

A payback period refers to the amount of time it takes for the cost of an investment to break even.

How long do solar panels last?

According to the Office of Energy Efficiency Renewable Energy (EERE), most solar panels last 30 to 35 years.

How We Chose the Top Solar Companies

We researched and analyzed dozens of solar panels and solar installation companies.

Want more information on Polycrystalline Solar Panels Exporter? Feel free to contact us.