How Much Does Solar Panel Installation Labor Cost?

Solar installation labor cost is usually a small part of the price: estimates based on NREL (now NLR) and DOE data put on-site installation labor at roughly 5.5% to 7% of a home solar system's total cost. Applied to EnergySage's average 8 kW to 12 kW prices in mid-2026 ($20,960 to $30,720), that is roughly $1,150 to $2,150 (our estimate). Installers usually bundle labor into one price rather than listing it separately.

Key takeaways

• Solar.com, using an NREL benchmark based on 2022 labor rates, put installation labor at about 5.5% of total cost, or about $0.16 per watt.
• Tesla's cost guide (updated October 2025), citing DOE data, puts installation labor at around 7% of total expenses.
• The BLS reports a median wage of $25.55 an hour for solar PV installers in May 2025.
• Soft costs such as design, permitting, sales and overhead are much bigger than hands-on labor.
• Because labor is a small slice, comparing total price per watt matters more than haggling over labor.

How much does solar installation labor cost?

Few quotes break out labor, so the best estimates come from cost models. Solar.com, drawing on an NREL benchmark that used 2022 labor rates, estimated installation labor at about 5.5% of total cost. In NREL's modeled 7.9 kW system priced at $23,305, labor came to $1,264, or about 16 cents per watt. Tesla's cost breakdown, citing the U.S. Department of Energy, says installation labor makes up around 7% of total expenses, with materials at 43% and design, engineering, project management and overhead at 28%.

Applying those two percentages to EnergySage's average system prices (cost guide updated June 30, 2026) gives a rough labor range. The labor columns are our own estimates:

System size	EnergySage average price (June 2026)	Labor at 5.5% (estimate)	Labor at 7% (estimate)
6 kW	$16,080	$884	$1,126
8 kW	$20,960	$1,153	$1,467
10 kW	$25,800	$1,419	$1,806
12 kW	$30,720	$1,690	$2,150
15 kW	$37,050	$2,038	$2,594

These are estimates, not quotes. Real labor costs depend on local wages, crew size, roof type and how long the job takes.

What solar installers are paid

The U.S. Bureau of Labor Statistics reports that the median annual wage for solar photovoltaic installers was $53,140 in May 2025, or $25.55 an hour. Installers held about 31,100 jobs in 2025, and the BLS projects employment to grow 37% from 2025 to 2035, much faster than the average for all occupations.

The BLS says installers assemble and maintain rooftop and other systems: they mount support structures, install panels, connect them to the electrical system and test the result. Most need a high school diploma and get on-the-job training lasting from about a month to a year.

A crew's wages are only part of what you pay for labor. The installer also covers payroll taxes, insurance, vehicles, tools, travel time and profit.

Where the rest of your solar installation cost goes

If hands-on labor is only around 5% to 7%, where does the rest go? EnergySage estimated in October 2025 that equipment makes up about 46% of total system cost. Tesla's DOE-based breakdown puts materials at 43% and design, engineering, permitting and overhead at 28%.

The NLR and DOE 2025Q1 cost benchmark for an 8 kW home system splits costs into modules, inverters, structural and electrical parts, fieldwork, office work and other costs. It put the modeled market price at $2.95 per watt for solar only. Office work, customer acquisition, permitting and profit are what people usually mean by "soft costs."

EnergySage reported in October 2025 that Australian home solar averaged about $0.59 per watt (USD) as of March 2025, less than a quarter of its U.S. average, and pointed to Australia's near-instant online permitting as a big reason. In the U.S., EnergySage estimates permits and fees at about 8% of total cost.

What makes solar labor cost more

Labor time rises with job difficulty. Common reasons a crew needs more hours:

• Steep or multi-level roofs that need extra safety gear
• Tile, slate or metal roofs that need special mounts
• Panels spread over several roof faces
• Long wire runs or trenching for a ground mount
• A main electrical panel upgrade
• Adding a battery and backup wiring
• High local wages or a busy installation season

See our guides on whether solar costs more on a steep or complex roof and the cost of a main panel upgrade.

Can you save money with DIY solar installation?

Because labor is a small share of the total, doing it yourself saves less than many people expect. On a $25,800 10 kW system, 5.5% to 7% is about $1,400 to $1,800. You would still pay for equipment, permits and inspections, and you take on safety risks and the job of getting utility approval. Read the equipment warranty terms before you start, and check your local permit rules.

A better way to save is to compare full quotes. Berkeley Lab found that median prices among the 100 largest home installers ranged from about $2.4 to $6.3 per watt in 2025. That gap dwarfs any labor savings.

Is solar labor getting more expensive?

Demand for installers is growing. The BLS projects about 4,200 openings for solar PV installers each year over the decade to 2035, many of them to replace workers who change jobs or retire. NREL's Q1 2023 cost benchmark report noted that industry interview participants named high wages and strong competition for labor as challenges. More recently, EnergySage's first-half 2026 market report said 74% of contractors it surveyed reported higher labor rates.

Even so, overall prices have moved only modestly. EnergySage reported its median quote rose about 3% to $2.57 per watt in the first half of 2026, while Berkeley Lab data, as reported by Mercom, shows the inflation-adjusted median installed price for host-owned home systems fell from $4.10 per watt in 2024 to $3.60 in 2025. Labor is one input among many, and equipment, financing and sales costs often move the price more.

Financing can cost far more than labor

If you finance, the loan can add more than the entire labor bill. The CFPB reported in August 2024 that dealer fees often raise the cost of a solar loan by 30% or more above the cash price, and these fees are often not reflected in the stated APR. On a $25,800 system, a 30% markup would be about $7,700 (our math), several times the estimated labor cost. Berkeley Lab's 2025 data, as reported by Mercom, shows the same pattern: a median of $3.00 per watt for cash purchases versus $4.50 for loan-financed systems. Always ask for the cash price in writing.

How to judge labor in a solar quote

You rarely need to know the labor line item. Instead:

1. Convert each quote to a cash price per watt: total price before incentives divided by system watts.
2. Compare with benchmarks. EnergySage reported a median quote of $2.57 per watt in the first half of 2026, and Berkeley Lab's 2025 median for cash purchases was $3.00 per watt (as reported by Mercom).
3. Ask who does the installation: the company's own crew or a subcontractor, and who backs the workmanship warranty.
4. Get the workmanship warranty in writing, including how long it lasts and what it covers.
5. Check licenses. The FTC suggests confirming that the company has the licenses, certificates or bonding your state, county and city require.

One tax point if you are tempted to do it yourself or rush a job: the federal Section 25D credit is not allowed for expenditures made after December 31, 2025, and IRS guidance treats a solar expenditure as made when installation is completed. So no installation timeline, fast or slow, earns a buyer the old credit on a system finished now.

Next steps

Instead of asking for a labor breakdown, get several full written quotes and compare the cash price per watt. Use our solar quote checker to see whether a quote is in line, and our solar panel calculator to confirm the size.