How Much Does Solar Panel Installation Cost? [2025 Data]

Solar panels cost anywhere from $3,500 to $55,000, including professional labor and materials. Most homeowners pay an average of $27,173 on their solar panel installation costs. However, solar panel prices depend on factors like the type of panel, its wattage, and the number of panels purchased. 

Home energy technology is evolving quickly, and after the recent extension of the Solar Investment Tax Credit (ITC), homeowners can take a 30% tax credit for solar panel installation until 2032. We’ll take you through every cost factor to consider before adding solar panels to your home.

Solar Panel Installation Cost Factors

A lot more goes into your solar panel project than the panels themselves. The solar panel installation cost breakdown looks something like this: 

• 50% materials

• 25% labor and permits

• 25% maintenance and overhead

Once you start digging into your project, you’ll find just how unique your individual costs can be. Where you live, the type of solar panels you choose, the wattage you need, and the number of panels you install to power your home will all factor into your final price tag.

Location

If you live in a cloudy New England town, you’ll likely pay a bit more than in a sun-soaked area of Arizona because you’ll need more wattage for the same result. The cost of labor and local incentives—even at the county level—will contribute to how much you'll pay out of pocket for solar installation.

Overall, solar panel installation tends to cost the most in the northeast, where labor costs are higher than average and you’ll need more wattage to compensate for the dark winters and cloudy weather. Nonetheless, you cannot discount the long-term savings. The ROI of solar power is dramatically higher in areas with high energy costs, and the panels pay for themselves much more quickly. 

For example, in California, which has notoriously high energy prices, you could save more than $100,000 on your electric bill over the life span of your solar panels. In Utah, where energy costs are much lower than average, you may only save a few thousand.

Type of Panel

When choosing the type of solar panel that works best for your home, consider three main factors: efficiency, life expectancy, and design.

Here’s how the type of solar panel can affect your cost:

Number of Panels Needed 

On average, most homes need anywhere from 20 to 25 panels to fully power a home, but this can range from as little as 15 to as many as 34. How many panels you need depends on the number of watts per panel, your energy consumption, and the efficiency of your panels. Your average solar panel will have an output of anywhere from 250 to 400 watts. The dimensions of your solar panels will also depend on the power output.

Here’s a breakdown of the number of panels you might need depending on low-wattage and high-wattage solar panels:

These figures assume the panels receive an average amount of sunlight—between five and six hours of full sun daily—and you consume the national average of 10,715 kWh (kilowatt-hour) of electricity annually.

Solar System Size 

The size of the solar system will impact your solar panel installation costs. The larger the output, the more you’ll pay (though the federal solar tax credit can offset the cost by up to 30%). Most homes need 6- to 10-kW (kilowatt) systems, which works out to anywhere from 15 to 34 panels, depending on the wattage.

Here’s how the size of the solar system will affect the installation cost: 

Price per Watt

Between the cost of materials and labor, you will pay between $2.50 and $3.50 per watt for solar panel installation. 

The number of watts necessary for your solar panel system varies widely. While the average home will require around 6kW—or 6,000 watts—the number needed for your home will depend on:

• The amount of direct sun on your home

• Your local climate

• The structure of your home

Solar Panel Installation Pro Costs 

Hiring an experienced pro to install your solar panels is key to making the most of this exciting new home addition. Budget $0.50 per watt for labor when you hire a professional solar panel installer near you. This number doesn’t include permits or the cost of additional technology, such as special mounts, tiles, or shingles. 

Electrical Labor Costs 

Solar panel installation does require electrical work. Though many solar panel installation companies have a licensed electrician on staff who specializes in solar panels, roofing contractors sometimes subcontract an electrician. The cost of hiring an electrician is $60 to $120 per hour.

Additional Cost Factors 

Beyond the cost of the actual solar panels, things like the pitch of your roof, the type of mount, and whether you use one or more solar inverters will impact the cost of your installation.

Roof Pitch

Your roof's pitch—or the steepness of its slope—and access to your installation area can also affect solar panel prices.

While roofs with lower pitches that are easy to access may cost less, flat roofs can cost more because the solar panels will need an angled platform for maximum sun exposure. Your roof’s direction also plays a role, with roofs that face the south, west, or southwest receiving the most sunlight.

Mount Type

The more advanced the technology, the higher the up-front cost.

• Fixed mounts: $10 to $15 per mount 

• Adjustable mounts: $50 per mount

• Tracking: $500 to $3,000 or more per mount (these mounts can self-track sunlight, leading to up to 45% more energy production)

Other Materials

Solar energy systems use a single solar inverter or several microinverters that convert direct current (DC) electricity to alternating current (AC) electricity. This comprises about 15% of the total cost, about $1,000 to $3,000.

Additional materials, such as wiring and a standard storage battery, are often grouped with the package price unless you opt for add-on services.

Here are cost estimates for different materials when installing solar panels:

Solar Companies

Different solar companies charge different rates for panels, even if they’re selling products from the same manufacturers. The cost of solar panels also depends on the quality of the products. 

Low-range quotes that seem too good to be true may be exactly that. An unreputable company can lead to a poor installation, which in turn leads to costly repairs down the road. It’s also wise to compare solar quotes from at least three companies. 

Solar Panel Brands or Manufacturers

Like with most products, the price of solar panels varies with the brand. Some brands manufacture panels with higher efficiency ratings, which cost more. Most panels operate at 15% to 20% efficiency, but monocrystalline panels (which cost the most) can reach efficiencies above 20%, depending on the specific brand. 

Permits and Inspections

Depending on your area, you may need to get a building permit and a solar panel inspection before you can unveil your new solar panels. Permits and inspections will add an average of $450 to the solar panel costs.

Check with your solar company before you get started to ensure they’ll cover and apply for the permit on your behalf. Many states have a net metering program that you’ll need to sign an agreement to enroll in before you can receive a permit. This auto-enrollment program gives the utility company access to excess electricity that your solar system produces to help reduce your energy costs.

Solar Panel Maintenance

You might need to remove trees for your solar panels or trim branches to eliminate the shade. You should also have your solar panels inspected and cleaned at least once per year. If a severe storm strikes, or you’ve had several weeks of heavy snow, rain, or wind, it’s also wise to call a pro to check out your panels to ensure they didn’t suffer any damage.

Solar Panel Repairs

Most homeowners spend between $200 and $1,250 on solar panel repairs or an average of $720. But what you'll pay for solar repairs depends on the type of panel, its size, and the extent of the damage. Small fixes could cost as little as $100, while extensive repairs or replacements can add up to $3,600 or more. Sometimes, homeowners insurance covers solar panel repairs or removal, but installation can increase your premiums.

• Yearly inspection cost: $150–$300

• Solar panel cleaning costs: $150–$750

• Tree trimming costs: $250–$700

• Loose wiring cost: $100–$200

• Hail damage repair cost: $120–$500 per panel

• Cracked panel cost: $150–$500 per panel

• Solar panel inverter replacement cost: $1,000–$3,000

• Roof repair cost: $150–$7,000

• Solar panel monitoring system: $0–$1,500 or a monthly subscription fee

Ways to Save Money When Installing Solar Panels

Sometimes, you have to spend money to save money, and solar panels are no different. Saving money on any energy source involves balancing up-front and long-term costs. In many cases, the more advanced the system, the more energy and money you'll save on bills in the future.

Government Credits and Tax Incentives

The best way to save money on the up-front costs of installing solar panels is to take advantage of the Solar Investment Tax Credit. This credit was passed in 2022 as part of the Inflation Reduction Act and allows homeowners to claim federal income taxes on the price of solar panel systems. It makes solar energy more affordable for everyday homeowners looking for clean energy alternatives to the electrical grid. 

As noted above, you can claim 30% of solar panel installation costs as a reduction for that tax year on your tax return until 2034. For example, if your solar panel system costs $30,000 before the federal tax credit, you’ll save around $9,000.

These tax savings don’t last forever, so you’ll want to take advantage of the credits before they decrease incrementally. In 2033, the tax credit for solar panel systems will decrease to 26%. It will decrease to 22% in 2034 before phasing out in 2035. 

Additionally, the extra power you choose not to store in a battery can be sent back to the grid. Your local utility company will compensate you for that power, but the amount will vary. You can check the Utility Rate Database on Open EI to estimate how much you can expect to receive for generating excess energy.

State or Local Solar Incentives

Beyond the federal tax credit, your state or city may have additional incentives to help offset the cost of solar panels. This can include:

• Income tax credits for your state return

• Rebates based on wattage

• Sales tax exemptions

• Property tax exemptions

• Affordable installations for lower-income households

• Financing options through state or local organizations

• Net metering programs, which allow you to sell excess energy back to your utility company for a credit on your bill

For example, New York State has a 25% solar equipment tax credit that you can use on qualified solar energy expenses, as well as several local programs like the NY-Sun Initiative. Similarly, California has the PACE program, which offers financing options, and the Self-Generation Incentive Program (SGIP), which offers rebates for solar battery installation. Talk to a solar panel installer to review the options in your area.

How Much Money Do Solar Panels Save?

On average, you can save between $650 and $1,500 per year on your electric bills by switching to solar energy. Since the average solar panel system costs around $27,173, once you’ve paid off your system, your electrical bills could be close to nothing. 

With the new tax credit, your total cost will also decrease to around $20,000 on average. However, every state and area has different electricity rates, so keep this in mind as you budget.

Here’s how much you can save on electric bills after installing solar panels:

Cost to Install Solar Panels Yourself

We all love a good DIY project, but there are better ones than installing solar panels. While you can technically purchase and install solar panels yourself, we don’t recommend it. Improper installation can also void your warranty, leaving you to pay for damaged panels. In some states, this type of installation also requires a specialized solar contractor license. 

You can find DIY solar panel installation kits for between $1 to $2 per watt, just a bit under what it costs to hire a solar pro, so DIY installation won’t save you much money, either. Keep in mind that you’ll also likely need to pay for a building permit and inspection costs, depending on your local laws. Hiring the best solar panel team can help you spend your Saturday lounging on the porch rather than taking on a risky DIY.

Are Solar Panels Worth It? 

Before starting a project with such a sizable up-front investment, most homeowners want to know if solar panels are worth it. Most of the time, the answer is a resounding yes. Solar panels pay for themselves in six to 10 years. That window is smaller if you live in an area with high energy costs and plenty of sun. You can also participate in net metering programs and earn credit on your electric bill by sending unused power back to the public grid. 

That said, solar panels aren’t always economical or even feasible to install. For a solar energy system to pay off the most:

• You need a south-facing roof made of a strong material that can support the panels

• The roof must slope 15–40 degrees (flat roofing can’t support panels)

• Your roof should have enough unobstructed surface area to fit the panels

• Your roof isn’t shaded by tall buildings, trees, or other obstructions

• You qualify for solar tax credits, rebates, and local incentives

• You live in an area with high or average energy costs

• You live in a sunny state (you don’t need full sun for panels to work, but they will be less efficient)

According to a Zillow study, homes with solar panels sell for 4.1% more than those without them. The real ROI, though, comes from the energy savings. On average, you can save $1,380 per year on energy costs.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We’ve surveyed thousands of real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.