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Home Projects · Startup costs

How much do solar panels cost?

Estimate what a rooftop solar system costs, what it saves, and when it pays for itself. Prices here are what people actually paid in your state, not a quote from someone selling panels.

The 30% federal solar tax credit is gone. Under Public Law 119-21, the residential clean energy credit (section 25D) does not apply to any system placed in service after December 31, 2025. The IRS says what counts is when installation is completed, not when you pay or sign, so a deposit last year does not rescue a 2026 install. Most solar calculators and quotes still show 30% off. This one does not, because it no longer exists.

§ 01 Your numbers

Median price actually paid per watt, from LBNL's project-level data. Selecting a state also sets its electricity rate.
A typical US home system is 7 to 10 kW. Bigger roof, bigger bill, bigger system.
Set by your state above, but your own bill is the accurate number. US average is 17.3 cents.
EIA: what US residential rooftop solar actually produced per kW last year. Sunnier states run higher, cloudier lower.
Leave at zero for panels only. A home battery typically adds $10,000 to $18,000.
Estimated cost
$32,960

Typical range $28,016$39,552

  • Solar system, installed$32,960
  • Battery storage$0
  • Federal tax credit (expired)$0
  • Total$32,960
See next steps →

§ 02 The return

Produces (EIA)13,152 kWh/yr
Electricity saved$2,275/yr
Pays for itself in14.5 yr
Federal tax credit$0

Prices from LBNL are gross and pre-incentive, and cover only the 12 states with mandatory installer reporting; other states fall back to the national median. Savings assume you use or net-meter everything you generate, which depends on your utility.

Where the money goes

Solar system, installed$32,960

When it pays back

Cumulative cash flow. The line crosses zero the month your accumulated savings have repaid what you spent.

break-even n/a

Recommended next steps

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A larger array, likely with storage. Compare price per watt across installers and check the warranty.

By the numbers

  • LBNL: the median US household paid about $4.12 per watt for rooftop solar, based on project-level data from systems people actually bought. That is the price paid, not a quote.
  • EIA: real US residential rooftop systems produced about 1644 kWh per kW installed last year. That is measured fleet output, not a simulation.
  • IRS: the 30 percent federal solar tax credit (section 25D) is gone. It does not apply to any system placed in service after December 31, 2025, and what counts is when installation is finished, not when you pay or sign the contract.

Sources: Lawrence Berkeley National Laboratory, Tracking the Sun · U.S. Energy Information Administration, electricity data · IRS, Residential Clean Energy Credit (section 25D)

How this estimate is calculated

  • The price per watt is the median actually paid by households in your state, from LBNL's project-level dataset. It is host-owned systems only, because leased and third-party-owned 'prices' are transfer prices between affiliates and do not mean what they look like.
  • The 30 percent federal tax credit expired for systems placed in service after December 31, 2025. Most solar calculators still apply it. This one does not, because it no longer exists.
  • Production is what real rooftop systems measured out at, nationally. Your roof's pitch, shading, and latitude will move it, so adjust the figure if you have a quote with a production estimate.
  • Payback assumes your electricity rate holds steady. In reality rates tend to rise, which shortens payback, so treat this as the conservative case.

Frequently asked questions

How much do solar panels cost?
The median US household paid about $4.12 per watt, so a typical 8 kW system runs around $32,960 before any incentives. That figure comes from LBNL's project-level data on systems people actually bought, not from a company selling panels.
Is there still a 30% federal solar tax credit in 2026?
No. The residential clean energy credit under section 25D was terminated and does not apply to any system placed in service after December 31, 2025. Critically, the IRS says eligibility depends on when installation is COMPLETED, not when you pay or sign a contract, so a 2025 deposit on a 2026 install does not qualify. Many solar quotes and calculators still show the 30 percent credit. Check your own before you sign.
How long do solar panels take to pay for themselves?
It depends almost entirely on your electricity rate. At California's rate a system pays back far faster than at Texas's, because you are saving more per kWh. Use the calculator above with your own rate, which is on your bill.
Do solar panels still make sense without the tax credit?
Sometimes, but the maths got materially worse. Losing 30 percent off the sticker price lengthens payback by years. It still works best where electricity is expensive and sun is plentiful. Run your own numbers rather than trusting a salesperson's.