How Much Do Solar Panels Cost in 2025?

While the upfront costs may seem daunting, understanding the full picture of solar panel installation can help you make an informed decision. After federal tax credits, a complete solar panel system for a typical 2,000-square-foot home can cost around $13,549–$25,974.* This price range accounts for a 10-kilowatt (kW) system, which we found to be the most common system size in our solar survey.

However, your actual cost depends on several factors, such as the type of panels you choose, your roof’s layout, and even your home’s location. While the upfront investment can be high, solar panels reduce or even eliminate your electricity bills. In this guide, we break down all the costs involved in solar installation and explore available incentives to help you understand your potential return on investment.

*Cost information is based on 2024 EnergySage reports and our 2025 survey of 1,000 residential solar customers.

Compare Solar Companies

We’ve researched the best solar companies in the country to determine which offer the best pricing for high-quality, high-efficiency solar panels. SunPower tops our list with some of the best-performing solar panels and most robust warranties. Both of these factors play a major part in our rating methodology. Learn more about our top picks for solar installation in the table below.

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Company	Star Rating	BBB Rating	Warranties
Blue Raven SolarGet Quote	4.4/5	A+	25-year panels, 10-year workmanship
Venture SolarGet Quote	4.2/5	A+	25 years
Solar Energy WorldGet Quote	4.4/5	A+	25–30 years
SunrunGet Quote	4.5/5	A+	25-year panels, 10-year workmanship

What Is the Average Cost of Solar Panels?

The average cost of a residential solar panel system ranges from $13,549–$25,974 after federal tax credits, with most homeowners paying around $16,129.* These figures are based on current market rates for 10 kW systems, which are typical for 2,000-square-foot homes. System costs vary significantly based on location. States like California and New York see higher installation costs due to labor rates and building codes, while states like Texas and Florida tend to have lower costs.

*Cost information is based on 2024 EnergySage reports and our 2025 survey of 1,000 residential solar customers.

Which Factors Impact Solar Panel Costs?

Several factors influence the final price of your solar panel installation, with equipment selection and installation requirements typically having the biggest impact on your bottom line. Understanding both major and minor cost factors can help you better plan your solar investment and potentially identify areas for savings.

Cost by Type of Panel

There are three main types of solar panels, each offering different efficiency levels and price points to match varying energy needs and budgets. Monocrystalline panels are more expensive due to their higher efficiency and sleek appearance, while polycrystalline panels are a more budget-friendly option with slightly lower efficiency. Thin-film panels, though less common in residential installations, provide unique advantages for specific applications where traditional panels aren’t practical.

Cost by Home Size

Your home’s square footage influences solar system costs because larger homes typically consume more electricity for heating, cooling, and powering additional living spaces. However, the correlation isn’t always direct. Factors such as your local climate, insulation, and routine energy usage play huge roles in determining your optimal system size. A well-insulated 2,500-square-foot home in a moderate climate might actually require a smaller system than a poorly insulated 1,500-square-foot home in an extreme climate.

Primary Cost Factors

The most significant elements affecting your solar installation costs account for roughly 70%–80% of your total investment. These fundamental factors will shape the basic framework of your system’s cost:

• Annual energy usage: Your household’s electricity consumption patterns determine the system size needed, directly affecting equipment and installation costs. A home using 12,000 kilowatt-hours (kWh) annually typically requires a larger, more expensive system than one using 8,000 kWh.
• Equipment selection: Panel type, inverter quality, and mounting system choices can swing costs by $5,000 or more. Premium monocrystalline panels with microinverters cost significantly more than a basic polycrystalline system with a string inverter but may deliver better long-term value.
• Installation requirements: Roof condition, angle, and accessibility impact labor costs and equipment needs. Complex installations, such as ground mounts or reinforced roofing, can increase your project’s cost.
• Location: Your geographic location influences not only available sunlight but also labor costs, permit fees, and available incentives. The same system could cost $5,000 more in Massachusetts than in Texas due to these regional variations.

Additional Cost Considerations

While these factors typically have a smaller impact on your total cost, they can still affect your budget and should be factored into your planning:

• HOA requirements: Some homeowners associations require specific equipment or installation methods that can increase costs.
• Insurance adjustments: Adding solar panels may increase your home insurance premiums, though the panels are typically covered under existing policies.
• Monitoring systems: Advanced monitoring equipment and software can increase your system’s overall cost but provide valuable insights into system performance.
• Permit fees: Local permitting and inspection fees vary significantly by jurisdiction, but they will add to your overall cost.
• Tree removal: Removing shade-causing trees adds to your project costs.

How Much Do Solar Batteries Cost?

A single solar battery typically costs between $6,000 and $13,000, or $600–$1,000 per kWh, depending on capacity, type, and brand.* For whole-house backup systems with more than 25 kWh capacity, costs can exceed $25,000, not including installation.

The price varies significantly based on storage capacity and brand—popular options like the Tesla Powerwall cost around $11,500 with installation, while premium systems like the Enphase IQ Battery can cost upward of $11,000 before installation costs. While batteries add substantially to your initial investment, they can provide valuable backup power during outages and help maximize your solar system’s efficiency by storing excess energy for use during peak rate periods or nighttime hours.

*Cost figures are based on reports from NREL and HomeGuide. 

How Much Do Solar Panels Cost by State?

How Can I Save Money on Solar Panels?

A combination of federal, state, and local solar incentives can reduce total costs by 40%–70%. While the 30% federal tax credit provides significant savings through 2032, state-specific programs offer additional opportunities to maximize return on investment. Strategic timing and equipment choices can further reduce costs without compromising system quality.

Solar Incentives and Rebates

One of the most popular methods to save money on solar panels is through solar tax incentives and rebates. Learn more about these options below. 

Additional Ways to Save

Although tax incentives are one of the most significant ways to save, here are a few other tips for getting a better price and saving. 

What Are My Solar Panel Payment Options?

Choosing the right payment option for your solar panel system can significantly impact both your immediate costs and long-term savings. Each financing method offers distinct advantages and potential drawbacks that should be carefully weighed against your financial goals and circumstances.

• Cash purchase: A full upfront payment offers the highest long-term returns. While requiring substantial capital, you’ll own the system outright and avoid interest charges. This option is ideal for homeowners with available funds who want to maximize their investment returns and simplify the ownership process.
• Solar loan: Solar-specific loans require little to no money down and offer terms of five to 20 years. While these loans make solar accessible, they add interest charges over the loan term. This solar financing method suits homeowners who want to go solar with minimal upfront costs and don’t mind paying some interest for the convenience.
• Solar lease/power purchase agreement (PPA): These zero-down options eliminate upfront costs and maintenance responsibilities. While this offers immediate electric bill savings, you won’t own the system or qualify for tax incentives, and long-term savings are significantly lower than ownership options. This choice best serves those who prioritize immediate savings over long-term returns and prefer not to handle system maintenance.

Survey Insights from Solar Customers

In 2025, we surveyed 1,000 home solar customers across the U.S. to understand their experience shopping for and installing solar panel systems. Most homeowners said they paid around $16,129 for a solar panel system, with an average of 14 solar panels installed. While Sunrun was the most popular provider in our survey, many respondents reported choosing a local or regional installer rather than a large, national company. Additionally, 53% of respondents claimed they wanted solar panels to reduce power bills, and most reported an average decrease of $14 per panel, translating to $196 saved on monthly utility costs.

Are Solar Panels Worth It?

For most homeowners, solar panels prove to be a worthwhile long-term investment that delivers both financial and environmental benefits. When you factor in the 30% federal tax credit, state incentives, and current electricity rates averaging 17 cents per kWh nationwide, a typical solar installation can save $25,000–$45,000 over its 25-year lifespan making them worth the cost.* However, this value proposition becomes even stronger if you live in an area with high electricity rates (like California at 30 cents per kWh), receive significant sun exposure, or consume more than 900 kWh per month.

*Cost data is based on reports from the U.S. Energy Information Administration.

Solar panels deliver several key benefits that contribute to their overall value:

• Energy independence: By generating your own electricity, you’re protected from rising utility rates. This independence becomes especially valuable during peak rate periods or energy shortages.
• Environmental impact: A typical residential solar system eliminates 3-4 tons of carbon emissions annually, equivalent to planting 100 trees each year. This reduction helps combat climate change while improving local air quality.
• Home value increase: Solar panels typically raise property values by 4%–6%, with a median increase of $15,000 for middle-priced homes. Unlike many home improvements, solar installations often retain their value well over time.
• Reliable performance: Modern solar panels come with 25-year warranties and typically maintain 85% or more of their original efficiency after 25 years, providing predictable energy production for decades.

However, solar panels might not be the best investment if you have heavy shade coverage, plan to move within five years, need roof replacement soon, or live in an area with electricity rates below 10 cents per kWh. Additionally, homes with very low electricity usage (under 500 kWh monthly) may take longer to recoup their investment.

How Long Does It Take to Break Even With Solar?

The average solar payback period ranges from six to 10 years, with most homeowners breaking even in about seven and a half years. However, this timeline varies significantly based on your location, electricity rates, and available incentives. For example, homeowners in Hawaii or California often see payback periods as short as four to six years due to high electricity rates, while those in states with lower rates might need eight to 12 years to break even.

To calculate your specific break-even point, add up your total costs (including installation, equipment, and any loan interest) and subtract all incentives and tax credits. Then, divide this net cost by your annual energy savings (your current electricity bill multiplied by 12, adjusted for any expected utility rate increases). 

For instance, if your net system cost is $15,000 and you save $2,000 annually on electricity, you would divide 15,000 by 2,000 for a payback period of seven and a half years. Remember to factor in potential electricity rate increases, which can actually shorten your payback period as utility costs rise.

What Are the Hidden Costs and Downsides of Going Solar?

While solar panels offer significant long-term benefits, several often-overlooked costs and considerations can impact your overall investment. Beyond the advertised installation price, homeowners should prepare for additional expenses throughout their system’s lifetime and understand certain limitations that might affect their solar experience. Understanding these hidden factors helps set realistic expectations and allows for better financial planning.

The most significant hidden costs and potential drawbacks include:

• Annual maintenance: Professional panel cleaning and inspection services are needed once or twice per year to maintain optimal performance. While panels are generally low-maintenance, neglecting this routine care can reduce efficiency over time.
• Roof repairs: If your roof needs maintenance after solar installation, removing and reinstalling panels adds to typical roof repair costs. Some installers recommend preventative roof maintenance before installation.
• Home insurance: Adding solar panels increases home insurance premiums, though the exact amount varies by provider and coverage level. Some insurers may require specific coverage riders for solar equipment.
• HOAs and permitting: In addition to basic permit fees, some homeowners face unexpected costs when meeting HOA requirements or local building codes. These requirements might include specialized mounting hardware, screening materials, or system modifications.
• Inverter replacement: Most string inverters need to be replaced after 10–15 years. While this expense is predictable, it’s often overlooked in initial cost calculations. Microinverters last longer but cost more upfront.
• Monitoring fees: While many monitoring systems are free initially, some require annual subscriptions after the first few years to maintain advanced monitoring capabilities and smartphone app access.
• Utility connection: Some utility companies charge additional fees for grid interconnection or require system upgrades to accommodate solar installations.
• Winter performance: Snow removal services might be necessary in colder climates. Additionally, reduced winter sunlight can lower system production during these months, affecting your overall return on investment calculations.

Expert Insights

We consulted additional experts for insight into the benefits of solar energy, the affordability of solar panels, and advancements in solar technology. See their insights below.

Terrence L. Chambers, Ph.D.

Donald and Janice Mosing BORSF Endowed Chair in Mechanical Engineering

Director of the Energy Efficiency and Sustainable Energy (EESE) Center

University of Louisiana at Lafayette

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What are the main benefits of using solar energy?

Solar energy is clean, quiet, and safe to use. If paired with battery storage it can provide backup power in an emergency. Many homeowners are interested in helping offset the pollution that comes with traditional power generation, so participating in solar energy generation, either with a rooftop solar installation, a subscription to a community solar program, or a solar program available from the utility company, allows these residents to help build a cleaner and greener world.

Do you think solar panels are getting more affordable?

The cost of solar panels has dropped by about 90% over the last decade, such that at the utility scale, in many locations in the U.S., solar energy is the least costly alternative for new electrical power generation. It now costs less to build a new solar power plant than to continue to operate a coal plant. For that reason, solar energy accounted for over half of all new power generation in the U.S. last year, outpacing even natural gas. The cost for a commercial or residential installation is higher simply due to economies of scale, but it may still be cost-effective under certain circumstances. A homeowner would do well to consult a solar energy professional regarding their specific situation.

What are your thoughts about the advancements in solar technology?

Recent advances in solar technology are leading to ever-higher efficiencies and lower costs. At some point in the future, we will reach a saturation limit where new solar, which is an intermittent, cannot be added to the grid without upgrading the transmission system or pairing it with energy storage. Further research is needed to help the US power grid adapt to absorbing a larger and larger share of renewable energy sources. I am confident that we can solve the technical issues and that we will continue to see a move toward cleaner electrical power generation over the next several decades.

Terrence L. Chambers, Ph.D., is the Donald and Janice Mosing BORSF Endowed Chair in Mechanical Engineering and the director of the Energy Efficiency and Sustainable Energy (EESE) Center at the University of Louisiana at Lafayette. He is the author of more than 70 peer-reviewed publications and has been awarded more than $57M in externally funded research grants. Chambers serves as a member of the Governor’s Climate Initiative Task Force. He is a registered professional engineer in the state of Louisiana.

Mark Z. Jacobson, Ph.D.

Director of the Atmosphere/Energy Program and Professor of Civil and Environmental Engineering

Stanford University

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What are the main benefits of using solar energy?

Installing solar photovoltaics (PV) on your roof reduces the electricity you need to import from the grid, particularly during times of high electricity prices, in the afternoons. This becomes even more beneficial when you convert your natural gas air and/or water heater to electric heat pump air and/or water heaters (which use one-fourth the energy as gas), your gas stove to an electric induction cooktop, and your gasoline car to an electric car. Solar PV also eliminates air pollution from fossil-fuel or bioenergy electricity generation. Also, installing solar PV on your roof, particularly in new homes, may avoid the need for expensive roofing material. Rooftop PV also cools your home during hot summer days by absorbing 20% of the sunlight and converting it to electricity.

Do you think solar panels are getting more affordable?

Solar PV panels have dropped in cost substantially during the past 10 years. At the utility scale, solar PV is half the cost of new natural gas or coal. On commercial buildings, it is also less expensive than the cost of fossil fuels. On individual residential buildings, PV cost has declined as well, but its savings are enormous because PV avoids the need to import high-cost electricity in the afternoon to your home and the cost of transmission and distribution. Solar PV on your roof also allows you to keep your lights on during a blackout on the grid if you also purchase a battery to store PV electricity. The best overall strategy for a homeowner in terms of saving lots of money over the long run, eliminating air pollution in your home, and supplying your own electricity and heat in a blackout is to electrify everything in your home and provide the electricity with solar PV and store the electricity in a battery. There is no need for two forms of energy in your home. That just increases the money you spend.

What are your thoughts about the advancements in solar technology?

Solar PV technologies continue to improve, resulting in the continued decline in PV prices. This holds true also for all electric appliances in an all-electric home: electric heat pumps for air and water heating and air conditioning, electric induction cooktops, electric heat pump clothes dryers, LED lights, and electric vehicles, for example.

Mark Z. Jacobson, Ph.D., is director of the atmosphere/energy program and professor of civil and environmental engineering at Stanford University. He is also a senior fellow of the Woods Institute for the Environment and of the Precourt Institute for Energy. His career focuses on better understanding air pollution and global warming problems and developing large-scale clean, renewable energy solutions to them. He has published six books, including his latest, “No Miracles Needed,” and more than 185 peer-reviewed journal articles. He is ranked as the No. 1 most impactful scientist in the world in the field of meteorology and atmospheric sciences and No. 6 in the field of energy among those first publishing past 1985.

Juan-Pablo Correa-Baena, Ph.D.

Assistant Professor and Goizueta Junior Faculty Chair in the School of Materials Science and Engineering

Georgia Institute of Technology

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What are the main benefits of using solar energy?

There are four main benefits: First, solar energy lowers energy bills in the long run by producing electricity from solar light. The initial cost of installation is recovered after a few years, depending on how much sunlight the panels receive. Second, the panels help keep your house cooler in summer as they absorb most of the light that turns into heat and convert it into electricity. Third, solar panels provide your house with an off-the-grid solution in case of power outages. This means that your panels do not rely on long-range transmission lines and can provide electricity even during natural disaster events. Finally, producing electricity from solar panels lowers your carbon footprint and helps alleviate our impact on the climate and environment by producing clean energy without toxic fumes and without emitting carbon dioxide.

Do you think solar panels are getting more affordable?

Yes, they are. Solar panels are becoming increasingly more affordable as economics of scale push prices down. Large manufacturing facilities are continuing to increase the supply of the panels and this lowers costs. In addition, federal investments in this area, through the Inflation Reduction Act (IRA) and other incentives, are bringing manufacturing facilities to the U.S., which helps increase the supply and lower costs.

What are your thoughts about the advancements in solar technology?

We need to increase solar panel efficiency so that we can produce more power over smaller areas. This is an area of research my group is spearheading. We are trying to develop panels that have two or more devices on top of each other to increase the amount of power per area of a cell. We are developing new materials and devices to achieve this. These advancements will also have an impact on cost, as we will be able to extract more energy for a smaller footprint and that saves money on space, whether they are deployed on a roof or in a field.

Juan-Pablo Correa-Baena, Ph.D., is an assistant professor and the Goizueta Junior Faculty Chair in the School of Materials Science and Engineering at the Georgia Institute of Technology. At Georgia Tech, his research group focuses on the development of next-generation solar panel materials to complement or augment existing silicon-based solar panels. His research program at Georgia Tech has attracted funding from NASA, the National Science Foundation, the Department of Energy, the Department of Defense, and industry partners. His work has been cited more than 35,000 times, making him a top-cited researcher in the world as recognized by the Web of Science Group Highly Cited Researchers (since 2019) and Nature Index Leading early career researcher in materials science (2019).

Dave James, Ph.D.

Associate Professor and Director of Solar and Renewable Energy Programs

University of Nevada Las Vegas

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What are the main benefits of using solar energy?

Solar panels on a private home can generate electricity in the summer months during times of peak demand and associated high rates and reduce the homeowner’s electricity costs. Additionally, solar panels can usually offset some portion of non-renewable generated electricity and thereby reduce fossil fuel consumption and CO2 emissions.

Do you think solar panels are getting more affordable?

In some states and utility service areas, because of continued increases in efficiency and life span of flat-plate solar photovoltaic panels, lifecycle costs are now competitive with costs for other forms of electricity. However, homeowners should check with their local utility and with a reputable solar designer/contractor to find out if any connection charges or net-metering charges would be applied to their rooftop installations that might reduce the cost advantages.

What are your thoughts about the advancements in solar technology?

Photovoltaic panel efficiencies have continued to steadily improve over the last two decades, and their life spans are now up to twenty years. When combined with improvements in battery storage technologies and inverter efficiencies, solar photovoltaic power is now a practical, cost-effective, low-environmental impact option for both homeowner-scale, commercial-scale and utility-scale installations that can offset greenhouse gas emissions and reduce the environmental impacts of fossil fuel extraction. If your house rooftop is oriented correctly and not shaded by trees or other buildings, or if you have sufficient space for a ground-mounted installation, solar technologies for electricity generation are a practical, reliable, and cost-effective option for generating power and reducing environmental impacts.

David E. James, Ph.D., is the associate professor and director of solar and renewable energy programs at the University of Nevada Las Vegas (UNLV). He is also licensed as a civil engineer in Nevada. Dave coordinates plans of study for students of UNLV’s solar and renewable energy minor and graduate certificate programs and has published research in solar distillation.

Cordula Schmid, Ph.D.

Associate Professor

University of Massachusetts Lowell

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What are the main benefits of using solar energy?

Solar energy is a sustainable and renewable source of energy, which helps to reduce reliance on finite fossil fuels and decreases greenhouse gas emissions. Many users find their electricity bills are lower than before and remain lower over longer periods of time, as solar panels can generate electricity for 25 years or more. Solar energy systems are low maintenance and can be installed in various locations, providing energy independence and resilience during power outages. Additionally, solar energy can create local jobs and stimulate economic growth in communities.

Do you think solar panels are getting more affordable?

Solar panels have become significantly more affordable over the past decade. The cost of solar panels has decreased by about 70% since 2010, primarily due to advances in technology, increased production efficiency, and economies of scale.

What are your thoughts about the advancements in solar technology?

Advancements in solar technology have been remarkable and continue to drive the adoption of solar energy worldwide. Improved efficiency and durability of solar panels mean more electricity can be generated from the same area of panels. Innovations in energy storage, such as batteries, capable of storing excess energy for use when the sun isn’t shining, are making solar power more reliable. Additionally, developments in flexible and transparent solar panels are expanding the range of applications, from integration into building materials to use in portable electronics. These advancements are crucial in making solar energy a widespread source of renewable energy.

Dr. Cordula Schmid has been an associate professor at the University of Massachusetts Lowell since September 2020, where she is the director of the Photovoltaic Prototyping and Testing Lab and the associate director of the Center of Energy Innovation. Her research focuses on the development of reliability testing for specialty solar PV applications. Prior to joining UML, she was a member of the PV Technologies team at the Fraunhofer Center for Sustainable Energy CSE since 2010 and managed that team since 2016. She focused on the reliability and electrical characterization of solar PV modules. From 2004–2010, Cordula served as a member of the scientific staff at the Fraunhofer Institute for Mechanics of Materials IWM in Freiburg, Germany, where she worked with domestic and international solar industry clients onsite to develop methods to increase production yield during solar cell processing and module fabrication. She obtained her Doctor of Engineering from the Karlsruhe Institute of Technology in Germany in the area of breakage losses in silicon solar cells.

How We Evaluated Solar Panel Installation Companies

We ranked the top solar energy system installation companies on their service options, performance guarantees, certifications, and experience. We make sure every company offers at least high-quality monocrystalline solar panel installation and backup battery storage options. 

Our Rating System

To determine the best of the best in residential solar energy, we’ve developed a rigorous methodology that helps us analyze providers on significant service options to the most minute details of warranty coverage. We assess each company in six key areas.

Here’s a breakdown of our solar panel installer methodology:

• Solar equipment and services: We review each provider’s service catalog to determine which residential solar services they offer and whether they offer helpful additional services, such as a dedicated app or web portal, energy audits, monitoring services, and roofing services. These services help speed up and maintain solar panel installation. We also investigate whether a provider uses in-house installation crews or outsources to a third-party company. 
• Warranty and performance guarantees: We evaluate each company’s warranty coverage and guarantees to make sure you receive adequate coverage and protection for factory malfunctions or improper installation issues. Companies that offer 25 years or more on workmanship and performance receive the most points, while companies that include a production guarantee or roof-leak coverage receive additional points. 
• Brand reputation and professional certifications: We check each provider on the Better Business Bureau (BBB) and analyze hundreds of its most recent customer reviews for realistic insight into what it’s like to work with that company. Additionally, we check for ongoing lawsuits or company alerts and whether the company holds NABCEP (North American Board of Certified Energy Practitioners) certification.
• Financing options: We review each company’s payment and financing options. The more payment methods a company offers, the more points it receives. However, we award fewer points to leasing and PPAs, as we find them less desirable for long-term cost-effectiveness. We also give additional points if the company provides in-house financing rather than relying on you to find a third-party lender. 
• Industry experience: The longer a company has been in the residential solar industry, the more points it receives. 
• State availability: We check each provider’s service area. The more states it offers solar panel and battery installation in, the more points it receives.