Solar Panel Cost Calculator
Most popular size — covers ~80% of average household electricity
Estimated Cost After Tax Credit
$20,000 – $28,000
Before credit: $20,000 – $28,000
Cost per Watt
$2.50 – $3.50
Annual Savings
$2,016
Payback Period
9.9 – 13.9 yrs
System Size
8 kW (8,000 W)
30% Federal Tax Credit: You save $0 – $0 with the federal Investment Tax Credit (ITC). This credit applies to the full system cost including battery storage and can be claimed on your federal income tax return.
Energy Production: A 8 kW system produces approximately 11,200 kWh per year, saving $2,016/year at $0.18/kWh. Actual production varies by location, roof orientation, and shading.
Disclaimer: Estimates are for budgeting purposes only. Actual costs vary by location, contractor, material availability, and project complexity. Always get professional quotes for exact pricing.
Solar Panel Cost Breakdown
| Panel Type | Cost / Watt | Efficiency | 8 kW System Cost |
|---|---|---|---|
| Monocrystalline | $2.50 – $3.50 | 20 – 22% | $20,000 – $28,000 |
| Polycrystalline | $2.00 – $2.80 | 15 – 17% | $16,000 – $22,400 |
| Thin-Film | $2.20 – $3.00 | 10 – 13% | $17,600 – $24,000 |
Average System Costs (Monocrystalline, Asphalt Shingle Roof)
| System Size | Before Tax Credit | After 30% Credit | Est. Annual Savings |
|---|---|---|---|
| 4 kW (Small) | $10,000 – $14,000 | $7,000 – $9,800 | $896 |
| 8 kW (Average) | $20,000 – $28,000 | $14,000 – $19,600 | $1,792 |
| 12 kW (Large) | $30,000 – $42,000 | $21,000 – $29,400 | $2,688 |
| 16 kW (Max) | $40,000 – $56,000 | $28,000 – $39,200 | $3,584 |
How We Calculate
Our solar panel cost calculator estimates installation costs using system size (kW), panel type, and roof type to determine total installed cost, then applies the 30% federal tax credit to show your net cost.
How the math works: We multiply system size (kW) × 1,000 to get watts, then × cost per watt (which varies by panel type). Roof type adders are added to the per-watt cost to account for additional mounting complexity. The 30% federal Investment Tax Credit (ITC) is applied to the total system cost including battery storage. Annual savings = system kW × 1,400 kWh/kW × $0.16/kWh. Payback period = net cost after tax credit ÷ annual savings.
Panel Type Comparison
Monocrystalline ($2.50–$3.50/W) panels offer the highest efficiency (20–22%) and longest warranties. They're the most popular choice for residential installations and produce the most power per square foot of roof space.
Polycrystalline ($2.00–$2.80/W) panels are the most affordable option with 15–17% efficiency. They require more roof space but offer the lowest cost per kW installed. Best for homeowners with ample roof area on a tighter budget.
Thin-Film ($2.20–$3.00/W) panels are lightweight and flexible, making them suitable for flat roofs or structures that can't support heavier panels. Efficiency is lower (10–13%), requiring more area for the same output.
Roof Type Impact
Roof material affects installation complexity and cost. Asphalt shingle roofs are the simplest and cheapest to work with. Metal roofs require specialized clamps. Tile roofs need tile removal and replacement around mounting points, adding $0.30–$0.50/W. Flat roofs require tilt-mount racking to achieve optimal panel angle.
Federal Tax Credit (ITC)
The federal Investment Tax Credit (ITC) provides a 30% credit on the total installed cost of a solar energy system, including panels, inverters, battery storage, wiring, and labor. The 30% rate is available through 2032. The credit is applied directly to your federal income tax liability and can be carried forward to future tax years if your tax bill is less than the credit amount.
Additional Cost Factors
Our estimates include panels, inverters, mounting hardware, and standard installation labor. Additional costs may include electrical panel upgrades ($1,500–$4,000 if your panel is under 200 amps), tree removal or trimming ($500–$2,000), roof repairs prior to installation, permitting fees ($200–$500), and monitoring systems. Many installers include permitting and interconnection in their quoted price.
Data Sources
Pricing data is compiled from EnergySage, NREL (National Renewable Energy Laboratory), SEIA (Solar Energy Industries Association), and verified installer quotes across multiple US regions. We review and update this data regularly to reflect current market rates.
Last updated: 2026-02-08
Frequently Asked Questions
How much do solar panels cost in 2026? +
The average cost of a residential solar panel system in 2026 is $2.50–$3.50 per watt for monocrystalline panels, the most common type. A typical 8 kW system costs $20,000–$28,000 before the 30% federal tax credit, or $14,000–$19,600 after. Polycrystalline panels cost $2.00–$2.80 per watt, while thin-film panels run $2.20–$3.00 per watt.
What is the 30% federal solar tax credit? +
The federal Investment Tax Credit (ITC) allows homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. This includes panels, inverters, battery storage, and installation labor. The 30% rate is available through 2032, then steps down to 26% in 2033 and 22% in 2034. There is no maximum dollar cap on the credit.
How long does it take for solar panels to pay for themselves? +
The average payback period for residential solar panels is 7–12 years, depending on system cost, local electricity rates, and sun exposure. After the payback period, your solar electricity is essentially free for the remaining 15–18 years of the typical 25-year panel warranty. Higher electricity rates and strong net metering policies shorten the payback period.
How many solar panels do I need for my home? +
The average US home uses about 10,500 kWh per year and needs a 6–8 kW system (15–20 panels at 400W each). To calculate your needs: divide your annual kWh usage by 1,400 (average kWh produced per kW of solar). A 4 kW system covers a small home, 8 kW covers most homes, and 12–16 kW handles large homes or EV charging.
Does roof type affect solar installation cost? +
Yes. Asphalt shingle roofs are the cheapest and easiest to install on, adding no extra cost. Metal roofs add $0.10–$0.20 per watt due to specialized mounting hardware. Tile roofs are the most expensive, adding $0.30–$0.50 per watt because tiles must be removed and replaced around mounts. Flat roofs add $0.05–$0.15 per watt for tilt-mount racking.
Is battery storage worth the extra cost? +
Home battery storage costs $10,000–$15,000 per unit and is worth considering if you experience frequent power outages, have time-of-use electricity rates, or want energy independence. Batteries also qualify for the 30% federal tax credit. Most homes need one battery per 10 kW of solar capacity. Without a battery, excess solar energy is sent back to the grid via net metering.
What is the difference between monocrystalline and polycrystalline panels? +
Monocrystalline panels are made from single-crystal silicon, offering 20–22% efficiency and a sleek black appearance. They cost more ($2.50–$3.50/W) but produce more power per square foot. Polycrystalline panels use multi-crystal silicon, have 15–17% efficiency, and cost less ($2.00–$2.80/W) but require more roof space. For most homeowners, monocrystalline is the better value due to higher lifetime output.
How much can I save per year with solar panels? +
Annual savings depend on system size and your electricity rate. At the national average of $0.16/kWh, a 4 kW system saves about $896/year, an 8 kW system saves $1,792/year, and a 12 kW system saves $2,688/year. In states with higher rates like California ($0.25+/kWh), savings can be 50–70% more. Over 25 years, total savings typically range from $20,000 to $60,000+.
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