How Much Do Solar Panels Cost in 2026? Price per Watt and What Drives It

Residential solar is usually priced per watt of capacity. Berkeley Lab's October 2025 data update put the national median installed price for host-owned residential systems at $4.0 per watt for 2024 installations, with most systems between $3.0 and $5.2 per watt. EnergySage's marketplace quotes were lower, with a median of $2.57 per watt in the first half of 2026. Because the federal 25D credit ended for systems installed after 2025, buyers now pay that price minus only state, local or utility incentives.

Solar panel cost per watt: what the data says

Two well-known sources track US residential solar prices, and they measure different things, so their numbers differ.

Source (date)	What it measures	Figure
Berkeley Lab, U.S. Distributed Solar and Storage: 2025 Data Update (Oct. 2025)	Median installed price of host-owned residential systems installed in 2024 (cash and loan)	$4.0/W median; $3.0–$5.2/W for the middle 60% of systems
Berkeley Lab, 2026 Data Update (Aug. 2026)	Change in host-owned residential prices, 2024 to 2025	Fell $0.5/W (inflation-adjusted)
EnergySage, Home Electrification Marketplace Report, H1 2026	Median quoted price on EnergySage's marketplace, before incentives	$2.57/W overall; $2.62/W for solar-only quotes

Berkeley Lab's figures come from reported installed prices across the US, while EnergySage's come from quotes submitted on its platform. Neither is "the" price you'll pay. Use them to judge whether a quote is in a reasonable range, then compare at least three bids.

How prices have moved over time

Over the long run, solar has become far cheaper. Berkeley Lab's 2026 data update reports that installed prices fell by $9–11 per watt across customer segments over the past two decades, a 70–80% reduction after inflation, and that since 2014 declines have averaged about $0.1–0.2/W per year. Host-owned residential prices fell another $0.5/W from 2024 to 2025.

Short-term moves are smaller and can go either way. EnergySage's H1 2026 report found its overall median quote rose about 3% from the second half of 2025, while solar-only quotes were flat over the same period and down 1% from a year earlier. Quotes that included storage rose 5%. The University of Illinois Extension, for its part, cites a 2023 benchmark of $3.16 per watt in its sizing and cost guide, another reminder that any single figure depends on who measured it, when, and how.

What a system costs in total

To turn cost per watt into a total, multiply by the system size in watts. Berkeley Lab reports the median residential system was 7.2 kW in 2024 (2025 data update) and 7.7 kW in 2025 (2026 data update). The table below shows illustrative totals at several prices per watt, before any incentives.

System size	At $2.50/W	At $3.00/W	At $4.00/W	At $5.00/W
5 kW	$12,500	$15,000	$20,000	$25,000
7 kW	$17,500	$21,000	$28,000	$35,000
8 kW	$20,000	$24,000	$32,000	$40,000
10 kW	$25,000	$30,000	$40,000	$50,000

Not sure what size you need? See how many solar panels do I need.

What drives the price per watt

1. Your installer

The installer you choose can matter more than the panels. Berkeley Lab found median prices among the top-100 residential installers ranged from $2.7 to $6.5 per watt for 2024 installations. This is why DOE's Energy Saver planning guide recommends getting at least three bids and says cost per watt and estimated cost per kWh are the most useful metrics for comparing installers.

2. Where you live

Labor, permitting and market competition differ by state. Berkeley Lab's Tracking the Sun 2024 executive summary reported 2023 state-level median residential prices ranging from $3.2 to $5.2 per watt. Permitting and inspection timelines differ too. DOE's consumer guide notes they can take weeks to months depending on local rules.

3. System size

Larger systems spread fixed costs, such as design, permits and the site visit, over more watts. Berkeley Lab's Tracking the Sun 2024 found median prices were roughly $1.0/W lower for the largest residential systems than for the smallest.

4. Equipment choices

Panel brand and efficiency, inverter type and racking all affect price. Tracking the Sun 2024 reports that module-level power electronics (microinverters or DC optimizers) were used in 93% of 2023 residential systems, and that DC optimizers were associated with about a $0.4/W increase in residential prices.

5. Adding a battery

A battery raises the price per watt of solar capacity. Berkeley Lab's 2026 update found paired solar-plus-storage systems bought with cash had median prices $2.1/W higher than stand-alone solar. See are solar batteries worth it.

6. Roof condition and complexity

Steep, multi-plane or hard-to-reach roofs take more labor. If your roof needs replacing soon, DOE notes that installing solar alongside a roof replacement can save money compared with removing and reinstalling panels later.

How incentives change the net cost in 2026

The biggest change this year is federal. The IRS says the Residential Clean Energy Credit (25D) is not allowed for expenditures made after December 31, 2025, and an installed item counts as an expenditure when its installation is completed. A system that finished installation in 2026 does not qualify, even if it was paid for in 2025.

State, local and utility programs may still lower the cost. Search the DSIRE database by ZIP code for rebates, tax credits and performance incentives where you live. Leases and PPAs are priced differently because the company owns the system; see solar lease vs buy vs PPA.

Cash price vs. financed price

How you pay can change the price you are quoted. Berkeley Lab's 2025 data update found that, for residential solar-plus-storage systems, the cash-purchase median price fell $0.6/W from 2023 to 2024 while the loan-financed median rose $0.5/W. When you get quotes, ask for the cash price and the financed price separately, and compare the loan's total cost over its full term, not just the monthly payment. The FTC suggests asking about the APR, whether payments can change, whether there is a balloon payment and whether a lien will be placed on your home.

How to tell if a quote is fair

1. Convert it to cost per watt. Divide the total price by the system size in watts (DC). Compare with the ranges above.
2. Check what's included. DOE says bids should include total costs such as hardware, installation, grid connection, permitting, sales tax and warranty.
3. Compare production, not just price. Bids should state estimated annual kWh. Check them against NREL's PVWatts Calculator.
4. Compare cost per kWh. Divide the price by expected lifetime production to see what each kWh really costs you.
5. Check the installer. DOE recommends confirming licensing and certification and asking for proof before you commit; its consumer guide points to NABCEP certification as one marker to look for.
6. Read warranties. The FTC advises comparing warranties on equipment and workmanship, and any production guarantee.

Is the price worth it?

Cost is only half of the equation. The other half is the value of the electricity you'd no longer buy, which depends on your rate. The average US residential price was 18.16¢ per kWh in August 2026, but your state may be well above or below that. Our is solar worth it in 2026 guide walks through payback.

Next steps

Get a size and payback estimate for your home with the solar panel calculator, and compare typical costs and payback on our solar panels by state pages.