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.
With competitive price and timely delivery, KINGSUN sincerely hope to be your supplier and partner.
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 EnergySage reports and our survey of 1,000 residential solar customers.
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.
Ad DisclaimerThe listings that appear are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This listing does not include all companies or all available offers and products.
Company Logo Star Rating BBB Rating Warranties Blue Raven SolarGet QuoteA+25-year panels, 10-year workmanship Venture SolarGet QuoteA+25 years Solar Energy WorldGet QuoteA+25–30 years SunrunGet QuoteA+25-year panels, 10-year workmanshipThe 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 EnergySage reports and our survey of 1,000 residential solar customers.
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.
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.
Monocrystalline solar panels are made from single-crystal silicon. They offer the highest efficiency rates, around 15%–22%, and the longest lifespan. Their higher cost reflects their superior performance and smaller footprint needed to generate the same amount of power. Polycrystalline solar panels are made from multiple silicon crystals, these panels provide solid performance at a more accessible price point. Their efficiency ranges from 13%–17%, making them a popular choice for homeowners seeking a balance between cost and output. Thin-film solar panels, while less efficient (10%–13%) than crystalline options, excel in high-temperature conditions and flexible installation scenarios. Their lower material costs are offset by the need for more extensive roof space to achieve equivalent power output.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.
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:
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:
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.
Solar panel costs can vary dramatically by state due to several key factors: local labor and permitting costs, state-specific incentives and regulations, and varying levels of market competition among installers. These differences lead to price swings, with northeastern states like Massachusetts and New York typically seeing higher installation costs but southern states like Texas and Florida seeing lower rates.
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 , state-specific programs offer additional opportunities to maximize return on investment. Strategic timing and equipment choices can further reduce costs without compromising system quality.
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.
The federal solar tax credit offers 30% savings on your total system cost through , including both equipment and installation expenses. This incentive applies without a maximum limit, though you must have sufficient tax liability to claim it. Unused credits can roll over to future tax years, providing flexibility in how you capture these savings. Most states provide tax credits, but the amount varies by location. Property tax exemptions in 36 states prevent your home’s assessed value from increasing due to solar installation. In states with Solar Renewable Energy Certificates (SREC), you can earn credit per megawatt-hour of production. This is done through net metering programs, which your state or local utility provider may provide. Local utilities often offer installation rebates. Community solar initiatives can reduce costs by 15%–20% through group purchasing power. Many local governments also partner with financial institutions to offer solar-specific loans with reduced interest rates between 2% and 5%.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.
Choosing polycrystalline panels over monocrystalline can save you money while maintaining good efficiency levels. Standard mounting equipment offers savings compared to premium options, while string inverters can reduce costs compared to microinverters for simple roof layouts. Winter installations can typically save you money due to reduced demand. Bundling solar installation with needed roof repairs can reduce overall costs through shared labor and equipment. Getting three to five competitive quotes will yield pricing variations, and handling permit paperwork yourself can save you money in administrative fees. Designing your system to match actual usage prevents overspending on unnecessary capacity. Time-of-use utility plans combined with strategic panel orientation can maximize savings, while regular maintenance ensures optimal performance. Consider making energy efficiency improvements before sizing your system to reduce the required capacity and overall costs.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.
In , 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.
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:
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.
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.
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:
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.
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.
For more information, please visit Thin Frame PV Module.
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:
New solar installations are not cheap.
A new 10 kilowatt (kW) solar panel installation costs $2.75 per watt or $19,250 after applying the 30% federal tax credit. Adding to this hefty price tag, solar payback periods can feel like an eternity, ranging between nine and 12 years – sometimes longer. Even if your solar system is fully paid off, looking back at the thousands of dollars you previously spent on your installation can send chills down your spine!
Taking all of these factors into consideration, should you ease upfront costs on your solar installation by purchasing used solar panels?
The short answer? Maybe. Used solar panels aren’t a bad idea if you know what to expect and know your way around used products. These products will never be as good as brand new solar panels – and that’s okay. That shouldn’t stop you from investing in used solar panels if they are more suitable for your budget.
See how much you can save with solar panelsA used solar panel is any panel that was previously owned by a person or business, usually a utility company. A solar panel that was purchased, taken out of the box, and never installed on a rooftop is still considered used. A solar panel described as "like new" is a barely used product and performs like a new solar panel. On the far end of this spectrum, a solar panel used for 15-plus years and has broken cells or worn-out frames is also considered a used product.
The takeaway here is that not all used solar panels are equal. Some are in better shape than others. As an eager buyer, you can use the wide definition of “used” to your advantage. Finding a used solar panel worth buying is not that difficult if you know what to look for. All it takes is a list of features or realistic standards that you want to have in a used solar panel and some patience in waiting for the right seller.
There are two options for buying second-hand solar panels: used or refurbished products. As you now know, used solar panels were previously owned by a consumer or business. Refurbished solar panels are used solar panels that have been restored to an acceptable condition or standard by a refurbishing company or the manufacturer.
Below, we've highlighted the main differences between used and refurbished solar panels to better aid you in making the right choice for your home and budget.
Refurbished: Most refurbished solar panels can operate like new because some faulty or worn-out parts have been replaced. However, they don’t usually last as long as a new panel.
Used: Expect used solar panels to display some form of degraded performance. They may also break faster than a refurbished panel. Take extra care of used solar panels so they last long on your rooftop.
Refurbished: Refurbished solar panels cost 50%-70% less than new solar panels. They cost more than used solar panels because the products have been restored to an acceptable condition or standard.
Used: Expect to pay between $0.10 to $0.60 per watt for second-hand solar panels. The price range for used solar panels is wide due to the varying condition of the products. Used solar panels typically consist of a mix of “like new” used panels and heavily used panels. It’s important to understand exactly the type of used solar panels you’re purchasing before you commit.
Refurbished: Some refurbished solar panels come with a refurbished warranty. These warranties have shorter coverage periods than new solar panels. Refurbished solar panel warranties range from three months to nine years. Some refurbished panels don’t come with a warranty at all.
Used: Most solar panel warranties are transferable from the original owner to another individual. Warranty transfers are common when a home with solar panels is sold to a buyer who, by purchasing the home, also buys the solar power system. However, used solar panels sold online or via a marketplace usually don’t come with a warranty. This is because the reseller business buys used solar panels directly from people without a warranty.
You know the type of used solar panel you want for your system and you know where to buy them. Now what? It’s time to dive into the actual listings. There are several things to watch out for and consider when shopping for used solar panels.
Length of service refers to how long the modules were generating solar power on the rooftop before being removed for selling on the market. Generally, a short service period means the panels have fewer worn-out parts compared to panels placed under long service periods. In some cases, you can use very long service periods as a reason to bargain for lower prices if the seller is open to negotiation.
The reason for selling solar panels usually provides a glimpse into the condition of the product. If the reason for selling is related to upgrading to a more powerful panel or related to moving homes, then the product should still be in good working condition. Watch out for and avoid reasons that directly affect the condition of the solar panel such as storms, damaged parts, and performance issues.
Used and refurbished solar panels don’t usually come with a manufacturer’s warranty. But if the used online ad or listing you’re looking at does, you should highly consider such offers because they are uncommon.
It’s natural to be interested in used solar panels if they are beneficial to your budget. Though, used solar panels that are priced very low can be fishy. The seller could be trying to hide something, such as damaged wiring, worn solar cells, or decreased power output in an attempt to get rid of the panel. These extremely lucrative ads usually don’t have clear pictures or detailed descriptions. Avoid these types of used solar panels at all costs!
Finding a solar installer willing to handle projects involving used solar panels is difficult. This is because the quality and long-term performance of second-hand PV modules are questionable, which can be a problem for businesses that offer workmanship warranties for their solar installations. Therefore, most local solar installers are very hesitant to put their name behind such projects.
DIY solar installations using second-hand panels come with their own set of risks. First, verify that DIY solar installations are legal in your area if you’re connecting the system to the local grid. You must also acquire the right permits and hire a local inspector for compliance even for small solar installations. Consider that you need to have the right technical knowledge to be able to install, troubleshoot, maintain, and repair the system over the long term. Using defective second-hand panels could make the installation even more complex due to potentially faulty system components.
Sunhub goes out of its way to provide very detailed information in its listings. You can see the age and stock of a product, as well as download spec sheets directly from the site.
The platform allows you to search for used solar panels by brand, panel type, and shipping type. As a one-stop-shop for everything solar, Sunhub also sells microinverters, batteries, and solar kits. Unfortunately, this platform does not have a mobile app.
Great Solar Panels is a national-used solar panel seller. The website serves US-based buyers looking for used solar panel equipment. In fact, this is the only thing the solar company does, and it does it very well. The listings are very straightforward and indicate how much stock they have for specific products. This is helpful because most systems require more than one panel for a full solar array. Overall, this platform is ideal for DIY solar enthusiasts and installations. Variety is limited and stock for used items is lower than average.
SecondSol is another website that specializes in used solar panels made by reputable manufacturers, including Canadian Solar and Sunpower. The platform caters to sellers and buyers across the globe, so if you're looking for variety this is the place to be! Just consider that you'll have to convert to your local currency for some international listings. SecondSol has a mobile app that can help you navigate through listings easily.
If you're looking for a reliable site with decades of experience selling second-hand goods, including used solar panels, check out eBay.
Interestingly, eBay has effective search tools to help you find the exact type of used solar panel you need for your installation or project. You can narrow your search based on panel wattage and volts.
Used solar panels are right for your home as long as you fully understand what you're purchasing. Deals for second-hand solar panels are very enticing at first, but in the long run, such products could give you headaches and regrets. When buying used solar panels, make sure you do extensive research about the website you're buying from, the seller, and the condition of the used product.
If possible, stick to refurbished solar panels with limited refurbished warranties, as these products have been reconditioned, tested, and inspected by a specialist. They also cost a bit more than regular used solar panels, but the extra $$$ is worth it in our view. Getting your hands on refurbished solar panels can be a bit difficult at this time, as there are only a handful of businesses specializing in this type of product.
If you're serious about your long-term commitment to going solar, we highly recommend investing in new solar panels. These systems are not cheap, but there are numerous ways to ease the upfront costs of your home solar installation.
Want more information on 430 Watt Solar Panel? Feel free to contact us.