Solar Panel Installation Cost Calculator

How much does solar panel installation cost in 2026?

Solar panel installation costs $2.50 to $3.50 per watt installed in 2026, or roughly $17,500 to $24,500 for a typical 7 kW residential system before any incentives. The single most important cost update for 2026: the 30% federal residential solar tax credit (Section 25D) expired for direct-purchase systems placed in service after December 31, 2025. Unlike prior years, homeowners buying solar with cash or a loan in 2026 cannot claim that federal credit — budget based on the pre-incentive price, then layer in whatever state or utility incentives you actually qualify for. Use our free calculator above to estimate your system size from your electric bill and get an instant cost estimate.

Solar panel installation cost calculator — by system size

Larger systems typically cost less per watt, since fixed costs like permitting and the site visit are spread across more panels — a 10 kW system usually runs closer to 1.7x a 5 kW system, not exactly double.

Is the federal solar tax credit still available in 2026?

Not for direct-purchase systems. The 30% federal residential solar tax credit (Section 25D), which had been in place for over a decade, expired on December 31, 2025 under the One Big Beautiful Bill Act. If you buy or finance a solar system with cash or a loan in 2026, you cannot claim that credit. There's one meaningful exception: solar leases and power purchase agreements (PPAs) can still indirectly access a commercial-side credit (Section 48E) through 2027, since the leasing company — not you — owns the system and can claim it, sometimes passing some savings through as a lower monthly payment. Many state, local, and utility incentives remain available independent of the federal credit and vary significantly by location — the DSIRE database (Database of State Incentives for Renewables and Efficiency) is the most reliable place to check what applies where you live.

How many solar panels do I need?

The simplest starting point is your electric bill, not your roof size. Divide your annual electricity usage in kWh by roughly 1,200–1,500 (a national blended production estimate) to get your target system size in kW. Most homes with a $120–$200 monthly bill land in the 6–10 kW range, translating to roughly 17–25 standard 400-watt panels. Our calculator above runs this same math automatically from your monthly bill, targeting about 85% offset of your usage — a realistic goal once shading, seasonal variation, and system losses are accounted for.

Is solar worth it without the federal tax credit?

For many homes, yes — just with a longer payback period than the 6–9 years commonly quoted when the federal credit was still active. Without it, a cash-purchase system typically pays for itself in 9 to 14 years, depending on your local electricity rate and sun exposure, with 20+ years of largely free electricity after that. The math works best for homes with consistently high electric bills (generally above $120/month) in states with strong electricity rates or solid net metering policies. Before committing, get a clear, itemized quote and check what state or utility incentives you actually qualify for — in some states those can still meaningfully close the gap the federal credit used to cover.

Battery storage: is it worth adding?

Battery storage adds real cost — typically $8,000 to $18,000 depending on capacity — and isn't required for a grid-tied solar system to work. It makes the most sense in three specific situations: frequent power outages in your area, a utility with poor net metering (where selling excess power back isn't worth much), or time-of-use electricity rates where storing your own solar power for evening use saves more than exporting it during the day. If none of those apply to you, a battery mainly adds resilience rather than direct financial payback.

Frequently asked questions