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
A typical residential solar panel system in 2026 costs $14,000–$35,000 before incentives, or roughly $2.40–$3.50 per watt installed. For most homeowners, a 6–10 kW system sized to offset their full electricity bill falls in the $19,200–$28,000 range. The federal 30% Investment Tax Credit (Section 25D) expired on December 31, 2025 — state and utility incentives vary by location and can still reduce your net cost meaningfully.
| System Size | Avg. Cost Before Incentives | Est. Annual Output | Homes It Offsets |
|---|---|---|---|
| 4 kW | $9,600 | $14,000 | Small home or partial offset |
| 6 kW | $14,400 | $21,000 | Average 1,000–1,500 sq ft home |
| 8 kW | $19,200 | $28,000 | Most common residential size |
| 10 kW | $24,000 | $35,000 | Large home or EV charging |
| 12 kW | $28,800 | $42,000 | High-usage home or battery prep |
The federal residential solar tax credit (Section 25D) allowed homeowners to deduct 30% of their system cost from federal taxes. That credit expired on December 31, 2025. Systems installed and placed in service before that date are still eligible — if you signed a contract in 2025 but your system was not operational by year-end, consult a tax professional about grandfathering eligibility. Leased systems and solar PPAs were never eligible for the 25D credit regardless of installation date. State-level incentives — including property tax exemptions, sales tax exemptions, and net metering credits — remain in effect in most states and are now the primary financial lever for new buyers.
System size (kW)
Larger systems cost more in total but typically cost less per watt due to installer efficiencies. Most installers price at $2.40–$3.50/W installed for residential systems.
Panel brand and efficiency
Premium panels (SunPower, REC, Panasonic) run $0.20–$0.50/W more than standard Tier-1 panels but produce more per square foot — useful on smaller roofs.
Roof complexity
Steep pitches, multiple facets, or difficult access add $500–$2,000 in labor. A simple south-facing single-slope roof is the cheapest to install on.
Inverter type
String inverters are cheapest ($1,000–$2,000). Microinverters or power optimizers (Enphase, SolarEdge) add $1,500–$3,000 but improve shaded-roof performance.
State and local permitting
Permit costs range from $200 in rural areas to $1,500+ in dense urban markets. Some cities (e.g., Los Angeles) have streamlined permitting that reduces soft costs.
Installer competition in your market
Markets with many installers (Florida, California, New Jersey) tend to have lower prices. Rural or less-competitive markets can run $0.30–$0.50/W higher.
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 → |
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The average installed cost for residential solar in 2026 is $2.40–$3.50 per watt, including panels, inverter, racking, wiring, and labor. Premium panel brands or complex roofs push toward the higher end. The equipment-only cost (panels alone) is roughly $0.40–$0.80/W — the majority of the installed price is labor, permitting, and soft costs.