How Much Do Solar Panels Cost In 2023? (2023)

Average Cost of Solar Panels
Average Cost$16,000
Lowest Cost$4,500
Highest Cost$36,000

Cost of Solar Panels by State

Of course, solar panel costs and pricing estimates will vary by state and by region. Regions with higher usage and statistically more sunny days per year will typically have robust incentive programs built in place already, whereas other areas of the U.S. may not be seeing that level of development.

StateAverage Cost for 6-kW System with 26% Federal Tax Credit AppliedAverage Cost for Grid Power (July 2022)Average Household kWh Use Per MonthDerived Estimated Yearly Savings Assuming 100% Solar Coverage of Electrical NeedsDerived Estimated number of Year to “Break Even” on Investment
Pennsylvania$11,41116.63 ¢/kWh821.88$1,640.146.96
Montana$12,25411.71 ¢/kWh858.24$1,206.0010.16
Nebraska$11,70712.03 ¢/kWh1,013.19$1,462.648
Nevada$10,92213.50 ¢/kWh970.67$1,572.496.95
New Hampshire$12,92021.82 ¢/kWh622.41$1,629.727.93
New Jersey$10,74517.21 ¢/kWh673.24$1,390.387.73
New Mexico$12,34315.09 ¢/kWh669.89$1,213.0410.18
New York$11,76621.88 ¢/kWh599.78$1,574.787.47
North Carolina$10,39012.03 ¢/kWh1,040.83$1,502.546.91
North Dakota$10,03112.54 ¢/kWh1,085.26$1,633.106.14
Ohio$10,65614.86 ¢/kWh888.02$1,583.526.73
Oklahoma$10,85413.35 ¢/kWh1,078.20$1,727.286.28
Oregon$11,14411.74 ¢/kWh916.27$1,290.848.63
Missouri$10,70114.24 ¢/kWh1,027.74$1,756.206.09
Rhode Island$11,98819.44 ¢/kWh598.93$1,397.188.58
South Carolina$12,21014.26 ¢/kWh1,080.70$1,849.296.6
South Dakota$10,01613.05 ¢/kWh1,036.73$1,623.526.17
Tennessee$10,29313.09 ¢/kWh1,168.32$1,835.205.61
Texas$10,96713.53 ¢/kWh1,131.93$1,837.805.97
Utah$11,41111.49 ¢/kWh768.85$1,060.0910.76
Vermont$12,29920.24 ¢/kWh567.13$1,377.458.93
Virginia$11,65014.42 ¢/kWh1,095.21$1,895.156.15
Washington$10,39010.42 ¢/kWh969.49$1,212.258.57
West Virginia$10,92513.76 ¢/kWh1,051.24$1,735.816.29
Wisconsin$13,00915.59 ¢/kWh694.24$1,298.7810.02
Wyoming$10,62611.81 ¢/kWh869.33$1,232.018.62
Illinois$12,38816.61 ¢/kWh697.97$1,391.198.9
Alaska$9,95624.25 ¢/kWh552.29$1,607.166.19
Arizona$10,12313.08 ¢/kWh1,113.69$1,748.055.79
Arkansas$10,88812.74 ¢/kWh1,060.04$1,620.596.72
California$11,27826.77 ¢/kWh604.91$1,943.215.8
Colorado$12,65414.52 ¢/kWh711.1$1,239.0210.21
Connecticut$11,50023.37 ¢/kWh702.76$1,970.825.84
Delaware$11,32213.42 ¢/kWh934.53$1,504.977.52
District of Columbia$11,63313.78 ¢/kWh****630.55$1,042.6811.16
Florida$10,30113.95 ¢/kWh1,141.50$1,910.875.39
Georgia$11,72216.02 ¢/kWh1,081.17$2,078.445.64
Hawaii$14,47444.81 ¢/kWh537.15$2,888.365.01
Idaho$12,65411.22 ¢/kWh955.28$1,286.199.84
Alabama$10,14214.99 ¢/kWh1,144.77$2,059.214.93
Indiana$11,32215.03 ¢/kWh938.22$1,692.176.69
Iowa$10,47815.61 ¢/kWh865.03$1,620.376.47
Kansas$9,88114.91 ¢/kWh883.18$1,580.196.25
Kentucky$9,64113.24 ¢/kWh1,073.17$1,705.055.65
Louisiana$11,58813.81 ¢/kWh1,200.58$1,989.605.82
Maine$11,89423.11 ¢/kWh566.83$1,571.937.57
Maryland$11,50014.28 ¢/kWh964.17$1,652.206.96
Massachusetts$12,16623.93 ¢/kWh610.26$1,752.426.94
Michigan$11,85518.03 ¢/kWh675.6$1,461.738.11
Minnesota$12,78715.15 ¢/kWh774.81$1,408.609.08
Mississippi$13,44212.35 ¢/kWh1,146.33$1,698.867.91

Cost of Solar Panels by Type

Solar panels vary in durability, efficiency and size depending on the type you choose. Homes or projects with limited roof space typically require more efficient panels. Learn more below about the top three solar panel types.

Monocrystalline Solar Panels

On average, monocrystalline solar panels (themost energy-efficient solar paneloption) cost$1 to $1.50 per watt, meaning that outfitting a 6kW solar panel system (also known as a solar system) costs between$6,000 and $9,000. They have an average lifespan of up to 40 years, and though both are common for residential use, monocrystalline panels are more efficient than polycrystalline panels.

Polycrystalline Solar Panels

Less energy-efficient thanmonocrystalline solar panels, polycrystalline solar panels cost$0.75 to $1 per watt, so outfitting a 6kW solar panel system would cost between$4,500 and $6,000making it a more affordable option. Like monocrystalline panels, polycrystalline panels are common for residential use. Polycrystalline panels aren’t as efficient, but they are more affordable. They have an average lifespan of 25 to 30 years.

Thin-Film Solar Panels

On average, thin-film solar panels cost between$0.75 and $1.10 per watt, meaning that outfitting a 6kW solar panel system costs between$4,500 and $6,600. Thin-film solar panels are more inexpensive than their counterparts but require a large amount of space, and hence, are primarily used in industrial settings or for small projects like RVs or sheds. They have an average lifespan of just 10 to 20 years and a shorter warranty.

Average Cost by Panel Type

Panel TypeCost Per Watt6kW System Cost
Monocrystalline$1.00 - $1.50$6,000 - $9,000
Polycrystalline$0.90 - $1.00$5,400 - $6,000
Thin-film$1.00 - $1.50$6,000 - $9,000

Average Cost by Solar System Size

Anticipate spending anywhere from$5,400 to $18,000for an average solar system ranging from 6kW to 12kWs. With installation, that price range increases to between$6,600 and $22,800.

Eligible residential solar systems purchased through 2032 will receive a 30%federal solar tax credit. This tax credit could decrease your solar system costs to somewhere between$4,600 and $16,000.

Below is a closer look at solar system material costs by size:

Solar System SizeAverage Annual System Output* (kWh)Average Cost Before Federal Tax CreditAverage Cost After Federal Tax Credit (30%)
6kW8,000 - 10,000 kWh$6,600 - $11,400$4,600 - $8,000
8kW10,500 - 13,300 kWh$8,800 - $15,200$6,200 - $10,600
10kW13,300 - 16,700 kWh$11,000 - $19,000$7,700 - $13,300
12kW16,000 - 20,000 kWh$13,200 - $22,800$9,200 - $16,000
*Depends on location and the amount of sun hours received

Solar Panel Installation Costs

Installing solar panels can cost anywhere between$5,400 and $18,000. This price will depend on two important factors: the amount of sunlight and regional incentives.

Amount of Sunlight

The number of solar panels you’ll need to generate enough power is the greatest reason for these cost disparities.

For example, if you live in the Golden State of California, you may require fewer solar panels to generate enough energy to power your home than, say, if you live in North Dakota. You’ll find that solar power costs more in regions farther from the equator, like Alaska, and costs less in sun-drenched regions, making it a more economical option for those latter areas.

Local Incentives

At the same time, location isn’t everything—there are sunny states that could have strong solar power incentives andnet meteringprograms, but don’t.

Take Alabama, for instance. The state receives a great deal of sunlight, but according to research from theCenter for Biological Diversity, there are limited net metering policies in place to help you receive credits for the energy your solar system produces.

Meanwhile, you have a state like Washington, which doesn’t receive as much sunlight overall, but has excellent net metering programs to help you earn money back for generating solar energy.

Consider local and state incentives as you factor in the cost of your solar panels. You can use theDatabase of State Incentives for Renewables and Efficiency(DSIRE) to find policies and incentives in your area that might lower the cost of your solar panel system.

Price Per Watt

The average cost to install solar panels per watt is between$0.90 and $1.50 per wattfor the materials and an additional25% for the labor. This means you’ll spend anywhere between$1.10 and $1.90 per wattin total.


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Factors That Affect Solar Panel Costs

Multiple unique factors go into the price of solar panels, and they are related to your electricity use and home. Here’s what to consider when calculating costs:

Solar Companies

The cost of solar panels is dependent on the solar panel company you choose. From the solar equipment system itself to installation costs and add-ons, the price will vary from company to company and the first step is to consider your options for thebest solar companies.

Size, Weight and Number of Panels

When assessing solar panel cost, the size, weight and number of panels are important. For instance, when determininghow many solar panelsto buy, there are a few pieces of information you’ll need to know:

  • How much energy your household uses
  • How much space you have on your roof
  • Howmany hours of sun your home getsand the wattage and relative efficiency of the photovoltaic (PV) solar panels you’ll be installing

Once you determine those, you can begin to calculate the cost. Divide your annual energy usage by 12 to get your monthly average in kWh. The average energy output of a typical solar panel is about 45 kWh per month. Use that number to determine how many panels you’ll need to cover your monthly usage.

You’ll need20 to 25 panelsto fully power most homes. However, that number can range anywhere from 15 to 34 panels depending on the size of the home, the efficiency of the panels and where they’re located. A solar panel installer should be able to give you an accurate estimate using your energy usage information.

Federal Solar Tax Credit

Installing solar panels earns you afederal solar tax credit.That means you’ll get credit for your income taxes, which lowers your tax bill. Congress renewed the federal tax credit so that systems installed from 2022 through 2032 can now receive a 30% tax credit.

Type of Panels

There are three maintypes of solar panelsavailable for residential use: monocrystalline, polycrystalline and thin-film. The most energy-efficient andbest solar panels for your home, monocrystalline solar panels, cost$1 to $1.50 per watt. Less energy-efficient, polycrystalline solar panels cost$0.90 to $1 per watt. Thin-film solar panels cost between$1 and $1.50 per watt.

Solar Panel Manufacturer

Since solar panels come in varying quality, the cost can depend highly on the solar panel’s manufacturer. Although most manufacturers generally see similar cost ranges, the better the solar panel quality, the higher the price.


The efficiency of solar panels is determined by the amount of sunlight reflected on the panels’ surface, which is then transformed into electrical or thermal energy.

Monocrystalline solar panels are the most efficient, but their price point is high because of their complex construction. Polycrystalline solar panels are simpler to create, making them less expensive than monocrystalline ones. Thin-film PV cells are easier and less expensive to produce but are the least efficient type of solar panel.


Solar panel costs also vary by state due to local quoting trends and system size differences. States have different average system sizes and incentives, causing prices to differ depending on where you live.

Roof Pitch

Your roof’s characteristics, like its pitch, will also determine solar panel cost. Typically, your solar company will charge for the difficulty of the installation, and having a complex roof will make your system cost more.

Type of Mount

Solar panels tend to come with mounting equipment that can be set up or adjusted to catch the maximum amount of sunlight. Technology has given some panels the ability to self-adjust after mounting, though this capability comes at a higher cost.

  • Fixed mountsstay in place and are ideal in areas that get constant sun from all angles. They cost$10 to $15 each.
  • Adjustable mountscan be shifted throughout the day for maximum efficiency. They cost$50 each.
  • Tracking mountsself-track the sun for up to 45% more energy production. They can cost$500 to $3,000 each.

Type of Solar Power System

There are three types of solar power systems. Material and installation costs for each vary depending on how much equipment is needed.

  • Grid-tied solar systemsinteract with your municipal power grid and don’t require a solar battery. This makes them the most affordable with the lowest installation cost.
  • Grid-tied solar systemswith storage offer a hybrid solution where panels are tied to the grid but have solar battery backups. Each battery can add$9,200or more to your installation costs.
  • Off-grid systemsare the most expensive option at$45,000 to $65,000. They require high-capacity solar battery storage and a backup generator.

Additional Solar Panel Costs to Consider

Additional costs can sneak up while you’re budgeting for a solar panel installation, including maintenance, cleaning, repair and more. Here’s what you need to know.


The cost tomaintain solar panelsfalls between$140 to $180 per service, or$280 to $720 annually. Solar panels need routine maintenance at least twice a year, depending on the manufacturer and manual that came with your panels. Some homeowners may decide to schedule maintenance services four times a year to stay on top of any potential problems.


Cleaning your solar panels costs around$25 per panelor$425 to $525for an average solar system containing 17 to 21 panels. Pollen, dirt, debris and other grime can greatly impact the efficiency of your panels, leading to a lower energy yield. As such, you’ll want to clean your solar panels once or twice yearly.

If you decide toclean solar panels yourself, you’ll only spend around$100on the cost of the cleaning tool and a cleaning solution. Just be sure you can do so safely.

Home Insurance

Because solar panels increase your home’s value, you might see an increase in the price of your homeowner’s insurance. The amount that your policy rates increase will vary, but you’ll want to ensure that your coverage accounts for the cost to replace solar panels if your home gets damaged.

Solar System Monitoring

If you want to keep track of your solar system’s energy production, you’ll spend anywhere from$0 to $400. Some companies, like SolarEdge, may offer free PV system monitoring, but most installations will require some level of monetary investment into measurement instruments, the internet and other specs.

Tree Trimming

Tree trimming costs between$250 and $700,on average. The type of tree, number of trees and complexity of the project will determine the total cost of the service, with larger, hard-to-reach trees in need of major trimming services costing the most.

Roof Repair

If you need to fix any roofing problems before you install solar panels,roof repairs costbetween$150 and $1,500for minor concerns and$1,500 to $7,000for major repairs. You must have a structurally sound roof before installing solar panels.

Solar Panel Repair

The cost to repair solar panels falls between$300 and $1,300,on average. Small cracks or chips in the glass fall on the lower end of the price range, while solar panel inverter repairs may cost the most.

Solar Shingles and Tiles

Solar shingles and tiles serve a dual role as an energy production system and a roofing system. These high-tech roof coverings attach directly to your roof without any additional wiring, acting as a protective layer while generating power for your home. A solar roof can cost anywhere from$23,000 to $80,000depending on the quality of the materials you choose.

When to Install Solar Panels

Contrary to popular belief, winter is actually the best time to install solar panels. There is simply less demand for this service in winter, so the installation should cost less as a whole. Even if you live in a region that tends to be cloudy and chilly, your solar panels will still be able to generate energy and in some cases, will even generate more energy than they would in warmer months.

Installing solar panels during winter is also efficient. As solar installation companies typically do fewer jobs in the off-season, your panels are likely to be installed faster. And they will be up and running in no time.

How Much Do Solar Panels Save?

Though solar panels cost money upfront, they can save homeowners money in the long term. The question of how much solar panels will save you depends on several factors, including the hours of daily direct sunlight available, the angle of your roof and thesize of your solar panel system. The most important factor in determining how much money solar panels will save you is your local electricity rates.

To determine how much money yoursolar panels will save you each year, calculate how much you spend on electricity annually. For reference, the typical American family spends about$1,450 annually on electricityaccording to theEnergy Information Administration(EIA). Then, determine your current utility rate, keeping in mind that utility rates tend to increase by 2.2% each year (yet another reason to install solar panels).

Use an online calculator to estimate your annual savings by plugging in information like your location, energy usage and the current average price of solar panel installation in your area.

A common misconception is that solar panels will eradicate your electricity bills. While this isn’t always the case,solar panels do significantly reduce your monthly electricity billand are worth the investment.

How Can I Pay for Solar Panels?

Although it is a significant investment, homeowners can benefit from lower utility costs once solar panels are installed. When paid for outright, solar panels can cost homeowners anywhere from$16,000 to $36,000. If you’re wondering how to pay for solar panels, there are several ways you can go about it.


Consider paying for solar panel installation outright in cash if you have the extra money in the bank. By owning your solar panels outright, you’ll be able to take advantage of the generousrebate and the tax incentiveimmediately.

Solar Loans

Solar loans allow you to finance solar panels to help alleviate financial stress. Plus, you canhave the solar panels installedand start using them to power your home right away with little to no money down. The payment plan will involve monthly payments over a period of time with interest added.

Solar Leases or Power Purchase Agreements (PPA)

In some states, homeowners canlease solar panelsor finance them through what is known as a power purchase agreement (PPA). These leases or PPAs mean a third party will own and install the solar panel system on your roof while you pay that party for your energy each month. Some PPAs will lock you in for a set rate, but some have a payment schedule that rises each year.

Cash-Out Refinance

If you are refinancing your mortgage, consider a cash-out refinance. This allows you to extract cash from your home’s equity, which homeowners often earmark for needed home improvements or to pay down other debt.

Home Equity Line of Credit (HELOC)

Another alternative financing option is a home equity line of credit (HELOC). This allows you to tap into your home’s equity and use it as a lower-interest credit card so you can access cash for home projects.


Renting solar panels allows you to harness the power of alternative energy at a low monthly rate—only available throughTesla. However, it’s important to note you do not own these panels, so you will not receive any tax advantages or rebates from them.


THIS IS AN ADVERTISEMENT AND NOT EDITORIAL CONTENT. Please note that we do receive compensation for any products you buy or sign up to via this advertisement, and that compensation impacts the ranking and placement of any offers listed herein. We do not present information about every offer available. The information and savings numbers depicted above are for demonstration purposes only, and your results may vary.

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How Long Does It Take to Break Even on Solar Panel Costs?

According to the EIA, the average annual energy bill in 2022 was approximately$1,650. Since the average solar system costsbetween $4,600 and $16,000after the tax credit, it could take you anywhere from three to 10 years to break even on the cost of your solar energy system. It may take you more or less time depending on your electricity costs and financing options, including applied incentives like local and federal tax credits.

To get an idea of how long it may take you to break even, subtract the value of any applied incentives or rebates from the total material and installation cost of your system. Compare your pre-solar utility bills with your post-solar utility bills once your system is operational. Divide the initial cost by your savings to determine the number of years until you break even.

What Does the Solar Panel Installation Process Look Like?

To better understand the installation process, it is recommended that you speak to a solar energy consultant, especially since there are many things to consider and each home is unique. For instance, a consultant can let you know how long installation usually takes on homes similar to yours.

Check for Compatibility

To begin the solar panel installation process, you’ll have to ensure your home is ready for a solar energy system. First and foremost, your roof needs to be large enough, your electrical panel needs to be up to date, and, most importantly, in good shape, so it won’t have to be replaced soon.

Select the Size

Once you’ve determined that your roof is compatible, it’s essential to plan out what you would like your system to provide. Whether you want energy to run lighting or a few appliances or create enough energy to sell some back to the power company or anything in between, this will determine the system’s size.

Get Permits

Before your installation, ensure you have the proper permits from your localities. The most time-consuming parts of the project are often waiting for the permits to be approved and scheduling the subsequent inspections.

Apply for Incentives

You’ll want to consider incentive programs to make the most of your solar investment. These vary by locality and state. Even federal incentives can change from time to time. It would help if you also looked into tax credits, rebates or grants from multiple sources to offset costs. Apply for these incentives before starting physical work.


Since solar panel requirements vary depending on needs and locations, it’s best to order your project’s unique solar panel components all at once to ensure all the materials are compatible and to be as prepared as possible.


Once everything is properly in place, it is time for thesolar panel installation. Install the racking system, the panels, the heat sink, the charge controller, the battery bank, the power inverter and the energy meter. Next, double-check all wiring before connecting the energy system to the energy panel to complete the process.

Are Solar Panels Worth It?

Solar panels can generate major savings if you’re trying to reduce your electricity costs, carbon emissions, or both. The primary factor in determining whether or not solar panels are worthwhile for you is the cost you’re currently paying for electricity. The higher your electricity costs, the more a solar panel system will save you in the long run. This can vary significantly based on your location.

If you live in a region with middle- to upper-level utility rates, you can pretty much guarantee that a solar panel will save you big bucks over time. Solar panels tend to be worth the investment as long as you go about the installation process wisely.

Best Solar Companies By State

Cost to DIY Solar Panel Installation

Technically, you can purchase a DIY solar panel installation kit for about$1 to $2 per wattand install them yourself. However, the job is complex and dangerous enough that we don’t recommend it.

Solar panel installation involves highly specific skills and technology, heavy equipment, climbing on roofs and risk of electric shock. Most areas require you to pay for a permit and inspection, and some states require you to have a solar contractor license to install panels. Improper installation can void your system’s warranty. Instead, we recommend hiring a local solar panel installation company to correctly install your system for maximum safety and efficiency.

To arrive at the average costs in this article, we surveyedfourlocal and national cost databases. All averaged figures were correct at the time of publication and may be subject to change.

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THIS IS AN ADVERTISEMENT AND NOT EDITORIAL CONTENT. Please note that we do receive compensation for any products you buy or sign up to via this advertisement, and that compensation impacts the ranking and placement of any offers listed herein. We do not present information about every offer available. The information and savings numbers depicted above are for demonstration purposes only, and your results may vary.

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Frequently Asked Questions (FAQs)

How much energy can you save with solar panels?

The most significant benefit of installing solar panels is that you will save energy and, in turn, electricity costs. If your solar panels are large enough, you can produce enough electricity for your home. But, even if your solar panels switch between the electricity from your solar panels to using energy from the National Grid, you’ll undoubtedly use less electricity and pay lower bills.

Do solar panels increase the value of your home?

Solar panels help reduce your monthly electricity bills and can potentially increase the home’s value in the eyes of buyers more than comparable homes with no solar panels. According to research conducted by Zillow, homes with a solar energy system have a 4.1% higher selling point than homes without solar energy

How long does solar panel installation take?

Solar panels can take anywhere from one to five days to install, with most installations taking up to three days on average. The size of your system, weather conditions and the accessibility of your rooftop will all determine how long it takes for your installation crew to complete the project.

What is net metering?

Net metering, or net energy metering, is a mechanism that allows you to transfer solar energy produced by your panels to the grid. Your utility or electric company will pay you for the energy by running your electric meter backward, decreasing your energy bills. Net metering is only possible with a grid-tied solar system.

How long do solar panels last?

The typical solar panel lifespanis 25 to 30 years, though some types of panels can last up to 40 years or more. Most manufacturers have limited warranties for 25 years, but you’ll want to check the specifications on your particular panels to be sure. These warranties are typically only valid when the panels are installed professionally.

How much does a 6kW solar system cost?

You’ll pay between $6,600 and $11,400 to install a 6kW solar system. Remember, if you’re eligible, you’ll receive a 30% tax credit, which will put your final cost somewhere between $4,600 and $8,000, on average. Research solar energy incentives in your local area to see what credits or rebates you may qualify for.

How much does a 10kW solar system cost?

The average 10kW solar system costs anywhere from$9,000 to $15,000or$11,000 to $19,000 with labor. After the solar tax credit, you’re likely to paybetween $7,700 and $13,300for a panel of this size.

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