On average, going solar costs between $15,000-$20,000. Get a customized estimate of the cost and savings you could get by going solar.
Updated:
Apr 1, 2024
Written by
Faith Wakefield
Faith Wakefield
Edited by
Tori Addison
Tori Addison
Homeowners interested in solar panels may be apprehensive because of the cost. According to the Solar Energy Industries Association (SEIA), an average 6 kilowatt-hour (kWh) system costs between $16,000 and $21,000, and our survey of 1000 homeowners found the cost to be a bit lower at $15,000-$20,000 before incentives. While solar panels can be worth the cost, it’s important to determine your home’s solar potential before making such a big investment.
We at the MarketWatch Guides team have created a solar panel cost calculator to help you estimate your potential system cost and energy savings. Get a customized estimate by entering details about your energy usage and home, including its size, layout and roof design. We’ll also provide a snapshot of your long-term solar energy savings.
Calculate Your Solar Panel Installation Cost and Savings
Use the tool below to get estimates and determine if a move to solar energy is the right investment for your home.
Solar Calculator
How Much Does Solar Cost?
Use the calculator to see how much you could save!
What is your roof made of?
Asphalt shingles (or similar)
Metal
Clay or slate
EPDM or TPO (or other rubber membrane)
Other
How Our Solar Calculator Works
Our solar calculator uses a few key metrics about your home and location to estimate your solar cost. Here is a quick overview of how we calculate how much you can expect to pay for solar.
- We estimate your roof size according to the square footage of your house and the steepness of your roof. This helps us calculate how many panels could fit on your roof.
- We estimate your total household energy consumption based on your average monthly electric bill and ZIP code. How much energy your household uses largely determines your solar system size.
- Finally, we scale capacity based on your location and how much shade your roof receives. For example, if you have a shaded roof and live in a state that sees fewer-than-average sunlight hours, you may need to scale up your system to meet your energy needs.
How Much Do Solar Panels Cost?
According to our 2023 poll of 2,000 homeowners with solar, respondents paid an average of $15,000 to $20,000 for their solar panel systems.
The total cost of your solar panel system can vary depending on your installation company, system capacity and location.
Generally, you can expect the equipment — including the panels, inverters, racking and mounting hardware — to make up about 50% of your total installation cost. The remaining costs include labor, administration fees, taxes and permitting.
Learn how much solar panels cost in your state using the dropdown menu below:
Factors That Affect Solar Panel Costs
Our solar cost calculator evaluates several factors to determine how much going solar will cost. We’ve provided a breakdown for each factor below.
- Average monthly electric bill: Your monthly electric bill helps us estimate the right system size to meet your energy needs. It also helps us determine your potential long-term savings. A solar energy system might not provide adequate savings if you have low energy usage or if energy rates are low in your area. Enter an accurate average of your energy usage per year to get the best results and see it’s worth it for you to go solar.
- House size: Our solar panel calculator evaluates your home size to determine how many solar panels you need. Larger homes will need more panels for adequate power.
- Location: Location helps us determine the closest solar companies and estimated energy rates in your area. We use your area’s average solar panel cost per wattage to estimate your installation costs. These estimates will vary based on your chosen company, current energy usage and available federal and state solar incentives.
- Number of floors: Single-story homes with simple roofs have the most straightforward installations. Multi-story homes require more panels to meet proper energy needs. Multi-story homes can also affect roof layout. A complex layout or inadequate roof space to accommodate solar panels can increase costs.
- Roof pitch: Your roof’s pitch, or angle, impacts your solar panels’ efficiency. South-facing panels with a 30- to 45-degree tilt provide the best results. These positions will vary based on your location and local weather conditions. You may require additional mounting equipment to ensure your solar panels are in the best position. Your solar installer will consider your roof angle when designing your system.
- Roof type: Some roof types are better suited for solar panel systems than others. For example, asphalt shingle roofs require the fewest costly modifications. Metal roofs with standing seams don’t require installation drilling, reducing labor costs. Tiled or EPDM (ethylene propylene diene terpolymer) roofs need additional notifications to make them suitable for solar installation.
- Solar battery: You can include a solar battery in your cost estimation. Solar batteries store the excess energy your system generates for later use. They can be battery backups during a power outage or offset high energy rates during peak times. Solar battery banks can also be used at night or during periods of low sunlight.
- Surrounding shade: Shade decreases your solar panels’ efficiency, making it harder to absorb the necessary sunlight. Roofs with little to no shade are well-suited for solar power systems. Homes with constant shade from nearby trees and other tall obstructions aren’t ideal for rooftop solar panels. Some solar companies provide ground mount systems, but they usually cost more and take longer to install.
How Solar Panels Can Save You Money
Despite the cost-saving advantages of solar energy systems, homeowners often hesitate to spend the large amount of money needed to go solar. Customers want to be sure that such a significant initial investment will pay off in the long run.
On average, solar panels pay for themselves in six to 10 years. This is known as the payback period. The time frame will fluctuate depending on your system size, current energy usage and estimated monthly savings.
Our solar calculator will provide your estimated lifetime savings from going solar. This is a 25-year estimate based on the typical lifespan of monocrystalline solar panels, the best type of panels available. You’ll also get estimates for your yearly energy costs with and without a solar system.
You can achieve a faster return on investment (ROI) by using state and federal solar incentives and rebates. These incentives offset the installation costs of your system, leading to a quicker payback period. You can receive additional savings from net-metering programs, which allow you to sell the excess energy you generate back to the power grid. You receive credits for this energy that can be applied to your future utility bills or paid back to you at the end of the calendar year.
Solar Panel Financing Options
Depending on your installer, you can choose from several solar panel financing options, including a cash purchase, solar loan, solar lease or power purchase agreement (PPA). To achieve the highest return on investment, we recommend purchasing your solar panels in cash or taking out a loan to pay for your system over time.
Although solar leases and PPAs have low startup costs, homeowners who lease their panels typically save less over the lifespan of their solar electric system. You also do not own your system with a lease or PPA, and as a result, cannot claim certain solar incentives like the federal solar tax credit.
Cash Payment
Purchasing solar panels in cash is the most straightforward way to pay for your system. Although the initial cost is high, you’ll avoid paying interest on a solar loan and see the most energy savings over time when you pay in cash.
Unfortunately, a cash payment is not viable for every homeowner. Many companies offer other solar financing options that are more flexible and realistic if you’re on a budget.
Solar Loan
Solar loan financing is the next best option if you cannot afford to pay for your solar panels in cash. Although you may pay some interest, a solar loan offers the flexibility of paying for your solar system in installments.
Many solar companies offer $0 down loan financing, flexible term lengths and low-interest rates that help you customize your payment plan. You can also put some money down on your system to reduce the interest you will pay over time.
Solar customers may find that their solar loan payment is less than their average energy bill, so they start seeing savings immediately.
Solar Leases and PPAs
With solar leases and PPAs, your solar provider will install panels on your home with little or no upfront cost. Your solar provider also handles the upkeep and maintenance costs of the system over your agreed-upon term length. But instead of paying to own your system, you pay a monthly rate to “rent” your solar equipment or the energy your panels generate.
Although solar leases and PPAs can save you some money on utility bills, you do not own the system and therefore cannot take advantage of solar incentives or rebates. Additionally, solar leases lock you into long-term contracts (typically 25 years) that are difficult or impossible to break without paying for the system in full.
In most cases, we do not recommend solar leases or PPAs. Owning your system almost always offers more savings over the lifespan of the panels.
Recommended Solar Resources
We’ve provided the following resources to help with your solar energy conversion:
- Federal Solar Tax Credit Guide
- Best Solar Companies
- Solar Panel Cost Guide
- Best Solar Panels for Homes
- Are Solar Panels Worth It?
Other Home Service Resources From MarketWatch Guides
Learn more about your home services options in our top reviews to see how you can keep your peace of mind.
- Explore the Top Pet Insurance Companies
- Leading Home Warranty Providers
- Top Picks for National Gutter Guards
- Analyzing the Best Window Brands
- Top-rated Solar Panel Installers
- Affordable Home Warranty Providers
- Compare Premier Interstate Movers
How We Gathered Cost Data
We conducted in-depth research and analyzed several factors when determining our cost data, including:
- Conducting surveys: In March 2023, we polled 1,000 homeowners with a photovoltaic system on the cost of their residential solar panels, then compared the average price by system size and installer.
- Researching reliable sources: We gathered information from reliable solar sources like the Solar Energy Industries Administration (SEIA), the National Renewable Energy Laboratory (NREL) and the Energy Information Administration (EIA) to assess the national average cost of solar panels, as well as the cost of electricity and solar power systems by state.
- Consulting experts: We spoke with experts like Jesse Solomon, the co-founder of NCSolarNow, to understand the costs of going solar for both customers and installation companies.
