2026 update: The federal residential solar tax credit (Section 25D) expired December 31, 2025. Prices on this page reflect 2026 costs without the ITC. Commercial solar (Section 48E) still has a 30% credit →
Quick Answer
Solar installation in 2026 costs $2.40–$3.50 per watt all-in, but that number hides very different line items. Labor accounts for $0.50–$1.00/W, equipment (panels, inverter, racking) runs $1.00–$1.80/W, and permitting plus soft costs add another $0.40–$0.80/W. Understanding where the money goes helps you evaluate quotes — a low total price that cuts corners on inverter quality or skips proper permitting will cost more in the long run.
| Cost Component | Typical Cost | % of Total | Notes |
|---|---|---|---|
| Solar panels (equipment) | $3,200 | $5,600 | Tier-1 panels, 8 kW system |
| Inverter(s) | $1,200 | $3,200 | String vs. microinverters |
| Racking & mounting hardware | $800 | $1,600 | Roof type affects cost |
| Wiring & electrical | $600 | $1,200 | Panel upgrades may add cost |
| Labor (installation) | $4,000 | $8,000 | $0.50–$1.00/W |
| Permitting & inspection fees | $200 | $1,500 | Varies widely by municipality |
| Interconnection & utility fees | $100 | $500 | Utility application fees |
| Installer overhead & profit | $2,000 | $5,000 | Varies by company size |
The federal residential solar tax credit (Section 25D) covered 30% of total installed costs — including labor, equipment, and permitting — for systems placed in service before December 31, 2025. That credit has now expired for new residential installations. This is relevant to installation cost because the credit applied to the full installed price, not just equipment. Homeowners who installed before the deadline and haven't yet filed their 2025 taxes should use IRS Form 5695 to claim the credit. For new buyers in 2026, the focus shifts to state-level incentives, which vary significantly by utility territory.
Labor market in your area
Labor is the most variable line item. Urban markets with unionized electricians (New York, California) run $0.80–$1.00/W in labor alone. Rural markets or states with lower prevailing wages can be $0.50–$0.65/W.
Roof type and complexity
Tile roofs require special mounting hardware and more labor time than asphalt shingle. Multi-story homes or steep pitches add safety equipment costs and slow installation.
Electrical panel upgrade
If your main panel is undersized (100A or older), an upgrade to 200A adds $1,500–$3,500 to the project. This is a common hidden cost in older homes.
Interconnection complexity
Some utilities require additional equipment (disconnect switches, anti-islanding relays) or have lengthy interconnection queues that add soft costs. Municipal utilities (like JEA in Jacksonville) sometimes have more complex requirements than investor-owned utilities.
Installer overhead model
Large national installers (Sunrun, SunPower) typically charge more per watt than regional installers due to higher customer acquisition costs and overhead. Local installers often offer better pricing but vary in quality.
Post-ITC figures — federal residential credit expired Dec 31, 2025.
| City | Avg System Cost | |
|---|---|---|
Atlanta, GA | $15,200–$22,500 | Full breakdown → |
Tampa, FL | $14,800–$21,000 | Full breakdown → |
Orlando, FL | $14,500–$20,800 | Full breakdown → |
Jacksonville, FL | $14,200–$20,500 | Full breakdown → |
Denver, CO | $15,500–$23,000 | Full breakdown → |
Charlotte, NC | $14,800–$21,500 | Full breakdown → |
Newark, NJ | $16,500–$24,000 | Full breakdown → |
Sacramento, CA | $17,500–$26,000 | Full breakdown → |
San Diego, CA | $18,500–$27,500 | Full breakdown → |
Providence, RI | $16,000–$23,500 | Full breakdown → |
Hartford, CT | $15,800–$23,200 | Full breakdown → |
Colorado Springs, CO | $14,900–$21,800 | Full breakdown → |
Boston, MA | $16,400–$24,100 | Full breakdown → |
Worcester, MA | $15,600–$22,900 | Full breakdown → |
Richmond, VA | $14,500–$21,000 | Full breakdown → |
Columbus, OH | $13,800–$20,500 | Full breakdown → |
Chicago, IL | $14,200–$21,000 | Full breakdown → |
Cincinnati, OH | $13,500–$20,000 | Full breakdown → |
Baltimore, MD | $14,000–$21,000 | Full breakdown → |
Portland, OR | $14,500–$21,500 | Full breakdown → |
Albuquerque, NM | $13,000–$19,500 | Full breakdown → |
Indianapolis, IN | $14,000–$21,000 | Full breakdown → |
Memphis, TN | $13,500–$20,000 | Full breakdown → |
Louisville, KY | $13,500–$20,500 | Full breakdown → |
Kansas City, MO | $13,500–$20,500 | Full breakdown → |
Oklahoma City, OK | $13,000–$19,500 | Full breakdown → |
Tucson, AZ | $13,000–$19,500 | Full breakdown → |
See what solar costs in your area
Get up to 3 free quotes from pre-vetted local installers.
The all-in installed cost in 2026 averages $2.40–$3.50 per watt. Labor alone is typically $0.50–$1.00/W. The remainder covers equipment (panels, inverter, racking), permitting, and installer overhead. Getting 3 quotes from local installers is the most reliable way to benchmark your specific market.