Solar Panel Installation cost breakdown
At a mid-range, national-average baseline, a typical solar panel installation project is estimated at $15,000 to $30,000. The table below breaks the cost down so you can see where your project is likely to land.
| System size | Cost before credit | After 30% credit |
|---|---|---|
| Small (6 kW) | $12,000 to $21,000 | About $8,400 to $14,700 |
| Average (8 kW) | $15,000 to $30,000 | About $10,500 to $21,000 |
| Large (12 kW) | $22,000 to $40,000 | About $15,400 to $28,000 |
| With battery | $25,000 to $50,000 | About $17,500 to $35,000 |
What drives solar panel installation cost
- System size in kilowatts, based on your electricity use.
- Panel and inverter quality.
- Roof type, pitch, and complexity.
- Whether you add battery storage (often $10,000 or more).
- Any electrical panel upgrade needed.
- Regional labor and permitting.
Key cost factors
The federal tax credit
The 30 percent federal residential clean energy credit applies to the full system cost, including labor and battery storage. Many states and utilities add rebates on top, which can cut the net cost substantially.
Size to your usage
Systems are sized to your annual electricity use. An oversized system wastes money, while an undersized one leaves savings on the table. A good installer designs to your actual bills.
Payback period
Payback typically runs 7 to 12 years depending on local electricity rates and incentives. After payback, the power is largely free for the 25-plus year life of the panels.