How Much Does Solar Cost
The average residential solar installation in the U.S. costs between $2.90 and $3.80 per watt before incentives, meaning a typical 6 kW system lands around $17,000 to $23,000. After the federal solar tax credit and local rebates, the net cost often drops to roughly $13,000 to $17,000, though the final number depends on hardware, roof complexity, and where you live.
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Several factors push the price up or down. System size, panel wattage, inverter type, mounting hardware, and labor rates in your area all matter. Roofs with multiple angles, skylights, or older materials require more labor and custom racking, which adds cost. Permitting fees, inspection charges, and interconnection deposits vary by municipality and utility.
Cost by System Size
- 3 kW system — $10,000 to $14,000 gross
- 6 kW system — $17,000 to $23,000 gross
- 10 kW system — $27,000 to $35,000 gross
Incentives That Lower the Price
The federal Investment Tax Credit currently allows homeowners to deduct 30% of the total system cost from their federal tax liability. Many states and utilities offer additional rebates, tax exemptions, or performance-based incentives. Net metering policies let you offset grid electricity with exported power, shortening the payback period.
Financing and Long-Term Savings
Cash purchases yield the lowest lifetime cost and fastest payback, typically 6 to 10 years. Solar loans and leases spread payments over time but reduce or eliminate the upfront outlay. A well-designed system can offset most or all of a household's electricity bill, and with panel warranties lasting 25 years or more, the long-term savings often far exceed the initial investment.