The cost of solar panels ranges anywhere from $8,500 to $30,500 or $2.40 to $3.60 per watt including installation, with the average 6kW solar system falling around $12,700 after applying solar tax incentives. The federal solar tax credit allows you to claim back 30% of solar installation costs until 2033 and gradually reduces until it expires in 2035.
We found that solar panel prices vary based on where you live, the size of the system, the type of solar panels and more. With so many factors that go into the final price tag of your solar panels, knowing exactly where you might incur costs can help you budget for solar panels so that you can see the biggest energy savings.
Average Cost Of Solar Panels
| Average Cost | $12,700 |
|---|---|
| Highest Cost | $30,500 |
| Lowest Cost | $8,500 |
Cost of Solar Panels by Type
As you’re budgeting for a solar panel system, you may come across three types of solar panels. Each one can come with its own price tag, so consider the following price differences before you choose.
Monocrystalline Solar Panels
Monocrystalline solar panels cost between $1 and $1.50 per watt on average and are usually the most popular choice. As the name suggests, monocrystalline cells are made with one silicon crystal. These lab-grown crystals—called ingots—are cut into thin octagonal discs that are neatly attached to the panel for maximum efficiency. This higher efficiency comes at a cost, as most monocrystalline solar panels cost more to purchase and install than their counterparts.
Polycrystalline Solar Panels
The average cost for polycrystalline solar panels ranges from $0.90 to $1.50 per watt. Both polycrystalline and monocrystalline solar panels are photovoltaic (PV) solar panels. They convert sunlight into electricity. Unlike monocrystalline cells, however, the polycrystalline variety is comprised of fragmented silicon crystals cut into wafer-like shapes. This shortcut makes for a cheaper product that is faster to produce but also less efficient.
Thin-Film Solar Panels
Thin-film solar panels cost between $0.50 and $1.50 per watt, putting them at the lowest end of the price range for solar panels. These solar panels also utilize photovoltaic materials, only most thin-film cells use amorphous silicon, which isn’t crystalline. Thin-film solar panels are cheaper to produce and use readily available materials, making them better for the environment.
The panels tend to have a lower efficiency and therefore require more space to generate the same amount of energy. They also only last between 10 to 20 years, which is 10 to 15 years less than PV panels. Still, if you’re on the go, we believe thin-film solar panels are a good fit for RVs because of their lightweight properties.
Average Cost by Solar System Size
Depending on which state you live in, your average 6kW solar panel system will cost between $10,200 and $15,200 to install after accounting for the 30% solar tax credit. However, we know that every home has its own energy demands, and prices for solar panels can quickly increase or decrease based on the size of your system. Here’s a breakdown of solar system costs by size.
Solar Panel Installation Costs
The total cost of your solar panel installation can vary depending on the number of watts, amount of sunlight and local incentives. Let’s break down how each factor can impact the cost of going solar.
Price Per Watt
Solar panels cost between $2.40 and $3.60 per watt including installation. Therefore, just how much you pay for your system depends on how many watts you need to keep your home powered.
Amount of Sunlight
Your solar panel installation costs can vary based on how much sunlight your panels receive. The amount of sunlight depends on your location, climate, topography and shade coverage.
Local Incentives
Local and state incentives can make a difference in the cost of your solar panel system. For example, some local governments offer incentive programs that can reduce the cost of your solar panels by $2,500 or more. Other incentives may include referral programs with your local solar panel installation company.
To find incentives near you, check out the Database of State Incentives for Renewables and Efficiency (DSIRE). This resource allows you to discover policies and incentives by each state to lock you in on the best incentives possible.
