How Much Do Solar Panels Cost?

Installing solar panels on your home typically ranges from $15,000 to $25,000, depending on system size, location, and equipment. The average cost of a residential solar project falls around $18,000, though this can rise if you add features like energy storage systems or premium panel types. 

Homes with standard-sized solar systems (5kW–10kW) usually see costs between $12,500 and $35,000 before incentives. However, federal tax credits and local rebates can significantly reduce the total. 

Investing in solar panels is a smart way to reduce energy bills and contribute to environmental sustainability, but understanding the costs involved is key to making an informed decision. Solar panel installation costs vary depending on several factors, including system size, location, and available incentives. Here’s what you need to know about the cost of going solar. 

Average Solar Panel Cost Ranges

• Cost per Watt: Solar panel systems are generally priced based on their energy output in watts. In 2024, the average cost for a solar panel installation is about $2.50 to $3.50 per watt. For example, a 6 kW system might cost between $15,000 and $21,000 before any tax credits or incentives.
• Cost After Incentives: Federal and state incentives can significantly reduce the cost of your solar project. The federal solar tax credit currently offers a 30% reduction on the total installation cost, which could bring a $20,000 system down to $14,000 after the tax credit. 

Additional Costs to Consider

• Battery Storage: If you're adding battery storage to your system to store excess energy, expect to pay an additional $5,000 to $10,000 for a high-capacity battery like the Tesla Powerwall.
• Maintenance: Solar systems are generally low-maintenance, but you should budget for occasional panel cleaning and potential inverter replacements every 10 to 15 years. Maintenance costs typically run between $300 and $700 per year.

Factors Affecting Solar Panel Costs

The price of a solar system can differ greatly based on the following: 

1. System Size: Larger systems that produce more energy tend to cost more upfront but offer higher long-term savings. A typical home system ranges between 4 kW and 10 kW, with larger systems being better for homes with higher energy usage.
2. Location: Solar installation costs can vary widely depending on where you live. Labor costs, state incentives, and energy needs in your area will all influence your total installation price. States with higher electricity rates like California or New York may offer more savings in the long run, even with higher installation costs. 
3. Type of Solar Panels: The type of panels you choose also impacts the total cost. Monocrystalline panels, for instance, are more efficient but more expensive, while polycrystalline panels are more affordable but offer lower efficiency.
4. Installation Costs: Labor and installation typically add significant costs to a solar project. This includes wiring, racking, inverters, and monitoring systems.
5. Permitting and Fees: Many local governments require permits to install solar panels, which can add $1,000 to $3,000 to the overall cost, depending on your area. 

Solar Panel Costs by Brand

When comparing solar panel installation costs, it’s essential to consider well-known brands offering various efficiency levels, warranties, and system features. Below is a breakdown of popular solar brands and their average installation costs.

Tesla Solar Panels

Tesla solar panels are known for their sleek design and high efficiency. The cost typically ranges from $10,000 to $25,000, depending on system size and location. Tesla also offers Powerwall storage options. 

Explore reviews from real homeowners on Tesla's services.

SunPower Solar Panels 

SunPower provides some of the most efficient solar panels on the market. Expect costs to range from $15,000 to $40,000 for a complete system, including installation and warranties. 

Explore reviews from real homeowners on SunPower's services.

LG Solar Panels

LG offers high-quality solar panels known for durability and energy production. The average cost for an LG solar system is between $12,000 and $30,000, depending on your energy needs and location. 

Explore reviews from real homeowners on LG's services.

Each brand comes with unique features, from premium warranties to enhanced aesthetics, impacting the final cost of your solar investment.

Savings Over Time

One of the biggest benefits of solar panels is the potential for long-term savings. Depending on your energy usage and the amount of sunlight your home receives, you could save between $10,000 and $30,000 on electricity costs over the lifetime of your solar system (25+ years). 

The Bottom Line: Is Solar Worth the Investment?

Solar panel installation costs vary depending on system size, brand, labor, and additional features like energy storage. On average, solar panels cost between $2.50 to $3.50 per watt, with total project costs typically ranging from $15,000 to $25,000. Adding features like battery storage can raise costs by another $5,000 to $10,000. Though the initial cost of solar panels can seem high, the potential savings on electricity bills, combined with federal and state incentives, make solar a worthy investment for many homeowners. Be sure to compare quotes from local solar installers, take advantage of incentives like the federal tax credit, and inquire about financing options to manage the upfront investment and maximize long-term savings.