How much do solar panels cost in 2026?

A practical way to compare solar quotes, understand price per watt, and separate core equipment from optional upgrades.

Sources reviewed: 2026-10-06

What determines the price of a home solar system?

Residential solar pricing is easiest to compare in dollars per watt. Divide the gross solar-only price by the system's direct-current capacity in watts, before incentives. A 7 kW system priced at $20,300 costs $2.90 per watt. The National Renewable Energy Laboratory's residential cost benchmark separates hardware, labor, permitting, sales, overhead, and profit, which explains why the panel brand alone cannot predict a final quote.

Local labor, permitting, roof complexity, equipment selection, and installer workload all matter. A simple asphalt-shingle roof with short cable runs usually costs less than a tile roof, multiple roof planes, or a project needing trenching. Ask every bidder to separate the base solar array from batteries, roofing, main-panel work, electric-vehicle charging, and other upgrades.

A worked 7 kW cost example

Suppose the solar-only cash quote is $20,300 for 7,000 watts. The gross comparison price is $20,300 ÷ 7,000 = $2.90 per watt. If the proposal also includes an $11,000 battery and $3,000 electrical upgrade, keep those amounts outside the solar price-per-watt calculation. The full project is $34,300, but calling it $4.90 per watt would make the solar installation look artificially expensive.

For a new installation, do not subtract a federal Residential Clean Energy Credit: the IRS current guidance says property placed in service after December 31, 2025 is not eligible. The 30% credit applied to qualifying property installed from 2022 through December 31, 2025. Valid historical claims and unused carryforwards are separate tax-return matters, not discounts on a new installation; see the Form 5695 instructions.

Cash, loan, lease, and power purchase agreement prices

Cash and financed prices can differ. Some solar loans include dealer fees that raise the project price in exchange for a lower advertised interest rate. Compare the cash-equivalent price, total of payments, annual percentage rate, prepayment terms, and lien or security provisions. The Federal Trade Commission's solar consumer guidance recommends understanding whether you are buying the system or buying its power and how a sale of the home would work.

A lease or power purchase agreement can reduce upfront cost, but the provider generally owns the equipment. Review escalators, production guarantees, transfer requirements, end-of-term choices, and roof-work responsibilities. Do not compare a monthly lease payment with a cash purchase without also comparing ownership, incentives, and total payments.

How to compare the price with expected value

Use the Solar Cost Atlas calculator to create a planning estimate, then verify production with a site-specific design. Shade, roof orientation, equipment losses, future electricity use, and utility export rules can move savings above or below an early estimate.

Policy and electricity prices vary materially by location. Review the California solar guide for net-billing considerations, the Texas solar guide for utility-specific export plans, and the Florida solar guide for that state's interconnection and tax context. The complete state guide index covers every currently published market.

Questions to ask before accepting a price

Request the exact panel and inverter models, system capacity in both DC and AC, estimated first-year production, workmanship coverage, payment milestones, and a list of exclusions. Confirm who pays for permitting, interconnection, inspections, monitoring, service calls, roof removal and reinstallation, and any utility-required upgrades.

A low quote can be reasonable, but it can also omit work or use optimistic production assumptions. Compare the normalized figures below, then use the solar quote comparison checklist before signing.