The federal tax credit is gone. Here's exactly what you'll pay for solar in 2026, what drives the price, and how to make sure you're not overpaying.
The 30% federal Investment Tax Credit (ITC) for residential solar was permanently eliminated by the One Big Beautiful Bill Act signed July 4, 2025. There is no federal tax credit for solar systems installed after that date. Any installer or website still advertising "30% federal tax credit savings" is giving you outdated information.
State-level incentives and utility rebates remain available in many areas. See our State Incentives guide for what's available where you live.
Installed solar prices have stabilized after years of decline. Here are the realistic numbers without any incentives.
Solar quotes vary significantly even for the same home. The $2.80–3.50/watt range is a national average — you might see quotes as low as $2.50/watt in highly competitive markets (Texas, Florida, Arizona) or as high as $4.50/watt in states with fewer installers or higher labor costs.
Price per watt is the single most useful metric for comparing quotes. It normalizes for system size so you're comparing apples to apples.
Equipment quality also drives price differences. A quote using premium TOPCon panels and microinverters will legitimately cost $0.30–0.60/watt more than a quote using standard panels with a string inverter.
When comparing quotes, always divide the total installed price by the system's watt rating. A $24,000 quote for an 8,000W system = $3.00/watt. A $19,000 quote for a 6,000W system = $3.17/watt. The smaller system is actually more expensive per unit of capacity.
Despite losing the federal credit, many states offer their own credits: New York offers up to $5,000; Massachusetts offers up to 15% (capped at $1,000); Maryland offers 30% (up to $5,000).
A $25,000 solar quote isn't just panels on a roof. Here's the full cost breakdown for a typical 8kW residential system.
| Component | % of Total | Typical Cost (8kW System) | Notes |
|---|---|---|---|
| Solar Panels | ~30% | $6,700 – $9,000 | 20 panels at ~400W each; monocrystalline standard |
| Inverter | ~10% | $2,200 – $3,000 | String inverter on low end; microinverters add $1,000–$2,500 |
| Racking & Mounting | ~8% | $1,800 – $2,500 | Rails, clamps, flashing; complex roofs cost more |
| Wiring & Electrical | ~7% | $1,600 – $2,200 | Conduit, junction boxes, disconnect switch, panel upgrade if needed |
| Labor | ~20% | $4,500 – $6,000 | Installation crew, typically 1–3 days |
| Permitting & Inspection | ~5% | $1,100 – $1,500 | Building + electrical permits; varies widely by jurisdiction |
| Overhead & Profit | ~20% | $4,500 – $6,000 | Installer margin, software, customer acquisition, warranty reserves |
| Total Installed | 100% | $22,400 – $30,200 | Before any state/utility incentives |
Some installers run lean operations with 12–15% margins; others build in 25–35%. This is why identical systems from different companies can be quoted $5,000–$8,000 apart. Getting 3+ quotes is the single most effective way to avoid overpaying.
Use this table to ballpark your expected cost based on your home's energy needs.
| System Size | Approx. Panels (400W) | Gross Installed Cost | Est. Annual Production | Est. Annual Savings | Payback Period |
|---|---|---|---|---|---|
| 4 kW | 10 panels | $11,200 – $14,000 | 4,800 – 7,200 kWh/yr | $880 – $1,320/yr | 9 – 14 years |
| 6 kW | 15 panels | $16,800 – $21,000 | 7,200 – 10,800 kWh/yr | $1,320 – $1,980/yr | 9 – 13 years |
| 8 kW Most Common | 20 panels | $22,400 – $28,000 | 9,600 – 14,400 kWh/yr | $1,760 – $2,640/yr | 9 – 12 years |
| 10 kW | 25 panels | $28,000 – $35,000 | 12,000 – 18,000 kWh/yr | $2,200 – $3,300/yr | 9 – 11 years |
| 12 kW | 30 panels | $33,600 – $42,000 | 14,400 – 21,600 kWh/yr | $2,640 – $3,960/yr | 9 – 11 years |
These variables can add anywhere from a few hundred to several thousand dollars to an installation.
Steep roofs require safety equipment and slow down installation. Complex roofs with multiple facets, dormers, and skylights limit panel placement. A complex roof can add $1,500–$4,000 to an otherwise standard installation.
If your roof has significant shading, your installer may recommend microinverters or DC power optimizers. This technology adds $800–$2,500 to the system cost but can increase production by enough to justify the premium.
The further your electrical panel is from the roof, the more conduit and wiring your installer needs. In some older homes, the main electrical panel may need to be upgraded — a panel upgrade typically adds $1,500–$3,500.
Permitting fees vary enormously — from under $200 in streamlined markets to over $2,000 in jurisdictions with complex approval processes. Markets with well-established solar permitting (California, Arizona, Florida) process permits faster and cheaper.
Markets with many solar installers — Texas, Florida, California, Arizona — are more price-competitive. Rural areas or states with fewer solar companies often see 15–25% higher prices simply due to less competition.
Battery storage systems like the Tesla Powerwall 3 ($9,500 + installation) or Enphase IQ Battery 5P ($10,000–$15,000 installed) add significant upfront cost. Without a clear financial case, batteries extend payback periods by 3–5 years.
How you pay for solar significantly affects your total cost, monthly savings, and long-term returns.
Best for: Homeowners with savings who plan to stay in the home 10+ years.
Best for: Homeowners who want ownership but prefer to preserve cash.
Best for: Homeowners who can't get a loan or plan to move within 5 years.
Solar is a large purchase. These six steps protect you from overpriced quotes, shady installers, and high-pressure sales tactics.
Don't stop at two. Get quotes from at least one national installer (SunPower, Sunrun, Tesla Energy), one regional company, and one well-reviewed local installer. Prices routinely vary $4,000–$10,000 for equivalent systems. Use a marketplace like EnergySage (energysage.com) to receive multiple quotes online without in-home sales pressure.
A $22,000 quote for a 7kW system ($3.14/watt) is more expensive than a $25,000 quote for a 9kW system ($2.78/watt). Always divide total price by system wattage to get a true comparison.
Every installer working in your state must hold a valid contractor's license for electrical work. Additionally, look for installers with NABCEP certification — the industry's most respected credential. You can search NABCEP-certified installers at nabcep.org.
Reputable installers typically require 0–20% at contract signing. Any company demanding 50–100% cash upfront is a red flag. If your contract requires a deposit, pay it by credit card rather than check or bank transfer.
Check the installer on SolarReviews.com, Google Reviews, and the Better Business Bureau. Look specifically at reviews mentioning post-installation support and warranty claims — that's where the quality of an installer really shows.
A complete solar installation comes with multiple warranties: panel production warranty (25–30 years), inverter warranty (10–25 years), and installer workmanship warranty (typically 5–10 years). If an installer can't clearly specify each warranty term in writing, walk away.
High-pressure "today only" pricing. Still advertising the 30% federal tax credit. Quotes that don't include a detailed equipment list with specific panel and inverter model numbers. Unlicensed subcontractors doing the actual work.
Use our free calculator to get a personalized estimate based on your electricity usage, roof size, and local utility rates.
EnergySage is an independent quote marketplace. We may receive a referral fee if you use their service. Disclosure.