How Much Do Solar Panels Cost Per Watt in 2026?

Home solar cost per watt was about $2.57 at the median in the first half of 2026, according to EnergySage's marketplace data, which works out to roughly $20,600 for an 8 kW system before incentives. EnergySage's state averages run from about $2.12 per watt in Florida to $3.75 in Alabama, and Berkeley Lab found that individual installers' median prices ranged from $2.4 to $6.3 per watt in 2025.

Price per watt is the fairest way to compare solar quotes of different sizes. Below are the latest dated benchmarks, what drives the number up or down, and how to calculate it yourself.

Key takeaways

• EnergySage: $2.57 per watt median in H1 2026, up about 3% from late 2025; solar-only quotes were $2.62.
• NLR's Q1 2025 benchmark modeled a market price of $2.95 per watt for an 8 kW home system.
• Berkeley Lab says soft costs and other balance-of-system costs were roughly 80% of the median installed price in 2025.
• Larger systems usually cost a bit less per watt, but the installer you pick matters far more.
• The federal residential credit no longer lowers the net price for buyers; it is not allowed for expenditures made after December 31, 2025.

Average solar cost per watt in 2026

Benchmark	Price per watt	Source and date
Median quote, all solar	$2.57	EnergySage, H1 2026
Median quote, solar only	$2.62	EnergySage, H1 2026
National average, cost data page	About $2.60	EnergySage, 2026
Modeled sustainable price, 8 kW	$2.78	NLR benchmark via DOE, Q1 2025
Modeled market price, 8 kW	$2.95	NLR benchmark via DOE, Q1 2025
Modeled market price, 8 kW plus 13.5 kWh battery	$4.59	NLR benchmark via DOE, Q1 2025
Range of top-100 installer medians	$2.4 to $6.3	Berkeley Lab, 2025 installs

Why the numbers differ: EnergySage reports quotes from its own marketplace, which it says run below national medians. NLR's figures are modeled costs for a standard system. Berkeley Lab uses installed prices self-reported by installers or customers and collected by state agencies, utilities and other groups, and it leaves out leased and battery-paired systems. All three are before incentives, and NLR's figures are in 2024 dollars.

Solar Power World, summarizing the same EnergySage report, added that the highest average quoted price fell from $3.07 to $2.94 per watt. EnergySage's cost page says prices were about $3.16 per watt ten years ago.

Solar cost per watt by system size

Fixed costs such as permits, design and sales are spread over more watts in a bigger system. EnergySage's 2026 cost data shows a modest drop with size:

System size	Price per watt	Approximate total before incentives
4 kW	$2.89	$11,560
8 kW	$2.62	$20,960
12 kW	$2.56	$30,720
15 kW	$2.47	$37,050

Totals are our multiplication of EnergySage's per-watt figures by system size. Berkeley Lab, by contrast, said economies of scale were "not especially evident" for residential systems installed in 2025, so do not oversize a system just to chase a lower per-watt price.

Solar cost per watt by state

Labor rates, permitting, competition and local rules all change prices. In EnergySage's state data (last updated October 30, 2026):

• Lowest: Florida at about $2.12 per watt, followed by Arizona and Texas at about $2.25.
• Highest: Alabama at $3.75, followed by Tennessee ($3.49), Hawaii ($3.44) and Washington, DC ($3.18).

Berkeley Lab also notes that median prices vary by state and describes California as relatively low-cost for residential solar. Check your own state on our solar panels by state pages.

What goes into the price per watt

Panels are a small part of the bill. EnergySage's cost breakdown for a typical 12 kW system, based on a 2021 study by NLR (then NREL), puts equipment (including supply chain and sales tax) at about 46% of the price, installer costs at about 46%, and permitting and interconnection at about 8%. The panels themselves were only about 12% of the total. Berkeley Lab similarly found soft costs and other balance-of-system costs were roughly 80% of the median installed price in 2025.

Things that push price per watt up:

• Financing. Berkeley Lab found loan-financed systems priced considerably higher than cash systems, possibly because loan fees are rolled into the price. See dealer fees in solar loans.
• Batteries. Paired systems cost more per watt of solar. Berkeley Lab found cash-purchase paired systems were $2.1 per watt higher than solar alone in 2025.
• Complex roofs and electrical work, such as a main panel upgrade.
• Premium equipment and higher sales and marketing costs. Tesla's pricing guide says sales and marketing can account for up to 18% of a system's final price.
• Labor costs. EnergySage said 74% of contractors surveyed in early 2026 reported higher labor rates.

How to calculate solar cost per watt from a quote

1. Find the cash price before incentives. If you only have a loan price, ask for the cash price too.
2. Subtract any battery, EV charger or roofing costs, as Tesla's guide recommends for comparing installers.
3. Find the system size in kW (DC) and multiply by 1,000 to get watts.
4. Divide price by watts.

Example: a quote of $24,000 for a 9 kW system: $24,000 divided by 9,000 W = $2.67 per watt. That is close to EnergySage's 2026 median. A $31,500 quote for the same size would be $3.50 per watt, worth questioning.

Price per watt tells you what you pay, not what you get. Also compare expected annual production (kWh), equipment and warranties. Our what price per watt is too high guide gives rules of thumb.

Price per watt vs cost per kWh: leases, PPAs and loans

Price per watt works well for systems you buy. For leases and power purchase agreements (PPAs), you never see a cash price, so compare the cost of the electricity instead. Here is how the payment types stacked up on cost per kWh in EnergySage's marketplace data for January to June 2026:

Comparison	Result per kWh
Cash vs standard PPA	Cash 33% cheaper
Standard PPA vs loan	PPA 32% cheaper
Prepaid lease vs cash	Prepaid lease 39% cheaper
Prepaid PPA vs cash	Prepaid PPA 57% cheaper

EnergySage also found the share of installers on its marketplace quoting third-party ownership rose from about 14% to about 41% during the first half of 2026, as leasing companies can still use federal incentives that homeowners lost. If you get a mix of cash, loan and lease offers, convert each to an estimated cost per kWh over the term, not just a monthly payment. Our cheapest way to go solar guide walks through that comparison.

Is solar cost per watt going down?

Over the long run, yes. Berkeley Lab says residential prices fell $9 to $11 per watt over the past two decades, a 70 to 80% real reduction, and fell about $0.5 per watt in inflation-adjusted terms from 2024 to 2025. In the short run, EnergySage reported its median rose about 3% from late 2025 to early 2026, and noted Section 232 tariffs on imported polysilicon take effect December 4, 2026, which could add cost pressure in 2027.

The bigger change for buyers in 2026 is the end of the federal residential credit. It is not allowed for expenditures made after December 31, 2025, and the IRS counts a solar expenditure as made when installation is complete, so the price per watt you are quoted is closer to what you will actually pay.

Next steps

Run your quotes through our solar quote checker to see price per watt against local benchmarks, and use the solar panel calculator to make sure the system size fits your usage.