How much does it cost to install solar panels?
Last edited
Author
Andrew Blok
Electrification and Solar Writer and Editor
Editor
Andrew Giermak
Solar and Electrification Writer and Editor
You're about to collect solar quotes and want to know what a fair price looks like first. Based on Palmetto data, installed rooftop solar costs an average of $2.36 to $3.24 per watt depending on the state, or roughly $17,400 to $34,200 for the average system size in each state.
Solar is priced by the watt, a unit of power. Home solar panel systems are measured in kilowatts (kW), where 1 kW is 1,000 watts. The estimated state averages below are just that, not a quote for your home. We’ll also get into what can shift your cost up or down and how to determine when you’ve been quoted a decent price.
What is the average cost of solar panels?
In 26 of the 29 states in our data, the average price falls between $2.69 and $3.19 per watt.
Price per watt lets you compare quotes of different sizes. Divide the total price by the system size in watts. In a hypothetical example, an 8 kW system quoted at $24,000 is $3.00 per watt.
| State | System size (kW) | Avg. est. cost | Avg. est. price per watt |
|---|---|---|---|
| Arizona | 8.20 | $22,405.00 | $2.73 |
| California | 6.67 | $19,288.00 | $2.89 |
| Colorado | 6.56 | $19,534.00 | $2.98 |
| Connecticut | 9.46 | $28,049.00 | $2.97 |
| Florida | 10.53 | $28,316.00 | $2.69 |
| Georgia | 9.13 | $25,329.00 | $2.77 |
| Illinois | 9.84 | $28,095.00 | $2.86 |
| Indiana | 8.91 | $26,559.00 | $2.99 |
| Kansas | 7.79 | $23,524.00 | $3.02 |
| Kentucky | 8.91 | $26,559.00 | $2.99 |
| Maine | 8.50 | $27,148.00 | $3.19 |
| Maryland | 10.25 | $29,165.00 | $2.85 |
| Massachusetts | 9.03 | $24,981.00 | $2.77 |
| Michigan | 6.80 | $21,521.00 | $3.16 |
| New Hampshire | 9.24 | $28,839.00 | $3.12 |
| New Jersey | 9.02 | $25,955.00 | $2.88 |
| New Mexico | 6.15 | $17,448.00 | $2.84 |
| New York | 9.43 | $22,968.00 | $2.44 |
| North Carolina | 8.92 | $24,802.00 | $2.78 |
| Ohio | 8.36 | $23,814.00 | $2.85 |
| Oklahoma | 8.30 | $24,076.00 | $2.90 |
| Oregon | 7.48 | $23,057.00 | $2.99 |
| Pennsylvania | 9.43 | $26,082.00 | $2.77 |
| Rhode Island | 7.38 | $23,888.00 | $3.24 |
| South Carolina | 7.38 | $17,436.00 | $2.36 |
| Texas | 8.91 | $25,222.00 | $2.83 |
| Vermont | 9.12 | $27,141.00 | $2.98 |
| Virginia | 9.84 | $27,111.00 | $2.76 |
| Wisconsin | 11.11 | $34,173.00 | $3.08 |
(Average system size and cost are based on real Palmetto installations purchased with cash and loans in the second half of 2025. Your costs can differ. Reach out for a personalized savings estimate. Visit individual state pages for methodology and assumptions.)
Solar leasing cost
If you lease solar panels, your cost shifts from an upfront payment to predictable monthly payments. You don’t own leased panels, so the leasing company also covers maintenance and most common repairs.
To know if a solar lease will work with your budget consider both the monthly cost (and any annual escalators) and the amount you’ll pay over the lifetime of your leasing agreement.
Factors affecting cost
Five things can move your quote up or down.
- System size: More panels cost more in total, though the price per watt usually drops.
- Roof: Large, uninterrupted surfaces are generally easier to work on. If your roof is near the end of its life, you may need a replacement first, and a new roof is a good time to go solar.
- Location: Local labor, permits, and utility requirements vary. Interconnection, your utility's approval to connect panels to the grid, adds cost too.
- Equipment: Panels, an inverter (which converts the power your panels make into power your home can use), racking, and wiring.
- Battery: It adds cost, and in some areas it can open up savings. See our solar battery guide.
How you pay matters too. The Palmetto Energy Plan solar lease has zero money down, no processing fees, and predictable monthly payments over 25 years, with maintenance included.
Read more: Leasing vs. buying solar covers the tradeoffs.
How to check a quote
- Get the price per watt and system size. Compare them to the table and other quotes for your home. A quote well above your state's average needs an explanation. In the hypothetical above, $30,000 for 8 kW is $3.75 per watt, above every state average here.
- Ask for an itemized quote showing equipment, design, permitting, interconnection, and inspections.
- Ask whether the price is before or after incentives, and whether roof work is included.
- For a lease, ask what happens at the end. Here is what happens at the end of a solar lease.
- Use a longer checklist. Try these questions to ask your solar installer.
Read more: Breaking down a solar quote
Finding solar incentives
The main federal tax incentive for purchased solar panels expired at the end of 2025. But, your state, city, and utility may still offer cost-lowering incentives, like tax credits, rebates, and net metering, where your utility credits you for extra power you send to the grid.
Availability and eligibility vary by program so, while your solar company is a good place to start, it’s always wise to confirm your eligibility with a personal tax or energy expert. If you lease, ask the provider how any incentives it receives affect your payment.
How much can solar save?
In Palmetto's estimates, average monthly savings range from $72 in Michigan to $289 in Massachusetts and Connecticut.
| State | System size (kW) | Avg. estimated monthly savings | Avg. estimated 25-year savings |
|---|---|---|---|
| Michigan | 6.80 | $72 | $31,535 |
| Texas | 8.91 | $164 | $72,119 |
| California | 6.67 | $238 | $104,508 |
| Massachusetts | 9.03 | $289 | $126,679 |
(Average savings estimates and payback periods are based on real Palmetto installations purchased with cash and loans in the second half of 2025, but do not necessarily reflect the value you would see. Visit individual state pages for methodology and assumptions.)
Your savings depend on your electric bill, the price you pay for the system, how many panels your roof can hold, and your utility's net metering policy. Palmetto's solar lease can start saving money in year one, depending on your usage and utility rates.
When you're ready, you can learn more about Palmetto's solar offerings or get a free quote for your home.
See how much you can save by going solar with Palmetto
Solar panel cost questions
How long do solar panels take to pay for themselves?
A solar payback period can vary by home. A home starting with high bills and high solar production potential will likely have a shorter payback period than a home less suited to solar starting with low bills. A hypothetical home might purchase a $24,000 system saving $2,000 a year pays back in 12 years.
Can I get solar panels with no money down?
Yes, with a lease. Palmetto's solar lease has zero money down and predictable monthly payments over 25 years.
What happens to solar panels if I sell my house?
It depends on whether you own or lease the system. If you own your panels, you’ll sell them along with the house. With a lease you typically buy out the lease so you can sell the panels with the house, or you transfer the lease to the new owner. See selling a house with solar panels.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
