Rooftop Solar Panel System Cost per Watt: 5kW-7kW, 6kW-8kW

This is a good time to install a photovoltaic solar power system on your property. Residential rooftop PV solar panels cost per watt installed has been dropping and newer technology is enabling a far greater efficiency – that’s more solar energy converted into electricity for home usage – for less money.

A new asphalt shingle roof outfitted with PV solar panels

Your options for buying, leasing, Purchasing Power Agreements (PPA, see below) are expanding, and many homeowners are getting solar panels installed on their rooftops for zero down.

In this guide:

  1. Cost per Watt
  2. Total System Cost
  3. Cost Factors
  4. Rooftop Installation Considerations
  5. PV Solar Panels
  6. Buying, Leasing, and PPA Options
  7. BiPV Solar Tiles
  8. Thin-Film Solar Laminates
  9. PACE Solar Finance Program
  10. Solar System Payback Period

Cost per Watt

The national average residential solar cost per watt installed is $3.10 for a typical 5kW (approximately $15,500) to 7kW (approximately $21,700) PV solar panels system when installed by local installers, before the 26% solar investment tax credits from the federal government.

Did you know? The 26% solar tax credits have recently been extended by congress through the end of 2022. Notably, solar ITC apply to the full amount paid for the installation of a new solar panels system.

Depending on the state you live in, your quoted cost per watt can range from $2.78 to $3.40, on average, when installed by a (small) local solar panel installer, before the 30% federal tax rebate.

How Solar Pricing Has Decreased Over Time In 2008, the cost of a solar power installation was $8.82 per watt.

Average System Cost for residential PV Solar Panels installed by Local Installers:

Small Home Average Home Large Home
Home Size 1 – 2 bedrooms 3 – 4 bedrooms 5 bedrooms
System Size 5 – 7kW 7 – 8.5kW 9 – 10kW
System Cost $15,300 to $21,420 $21,420 to $26,010 $27,540 to $30,600
After Tax Credits $11,322 to $15,850 $15,850 to $19,247 $20,380 to $22,644

Read more

Using Low Interest Loan to Go Solar at Zero Upfront Cost: Instant Payback

The reliability of solar panels and their ability to save on power bills have been proven in millions of installations worldwide. Solar panels have been used successfully at all project scales, ranging from small home systems with less than 20 modules, to utility-scale solar farms that cover hundreds of acres. High-quality solar panels have a service life of more than 25 years, and the leading manufacturers offer solid warranties that protect your investment.

Solaria PowerXT Black Solar Panels on a house in Massachusetts

However, the upfront cost of going solar in the US can be high. Consider the average photovoltaic system prices reported by Solar Energy Industries Association (SEIA), in their quarterly Solar Market Insight Report from December 2021.

  • Residential solar systems: $3.06 per watt ($3,060 per kilowatt)
  • Commercial solar systems: $1.45 per watt ($1,450 per kilowatt)
  • Utility solar system with fixed panels: $0.89 per watt ($890 per kilowatt)
  • Utility solar system with tracking panels: $1.01 per watt ($1,010 per kilowatt)

Based on these numbers, a homeowner planning to install a 5-kW solar panel system can expect a price tag of around $15,300. For a larger 10-kW system, the average cost doubles to $30,600. The savings achieved by solar panels during their service life are much higher than their ownership costs, but paying the full price upfront represents a major expense.

Reducing the Solar Payback Period to Zero with Loan Financing

Many homeowners and businesses use loan financing when going solar, which lets them avoid the upfront investment.

Read more

Top 3 Roof Issues to Address Before Installing Solar Panels

PV solar panels for residential roofs are in like never before, thanks to the fact that going solar has never been easier or more affordable.

A new asphalt shingle roof with PV solar panels

The Price of Going Solar Has Decreased Dramatically Over the Past 10 years

In fact, in 2022, most homeowners working with small local installers are paying between $2.80 and $3.50 per watt to install a new solar panels system before the 26% solar tax credits in 2021 and 2022 (26% in 2023).

The national average total cost for a typical 5kW PV solar power system is $15,300, when installed by a small local installer, before the 26% tax credits in 2021-2022 (26% in 2023).

Did you know? In 2008, the cost of a solar power installation was $8.82 per watt.

Using the US average for a residential PV solar panels system size at 5 kW (5,000 watts), a new solar system cost will be $10,952, after the 26% tax credits in 2021 and 2022 (The solar tax credits will be reduced to 22% in year 2023). — That’s a rather attractive price range for residential solar energy compared to the recent past.

historical cost of solar power on a per watt basis

So, should you jump on the solar bandwagon and take advantage of the 26% solar investment tax credits available to homeowners in 2021-2022 (22% in 2023) right away, or are there other factors to consider before installing solar panels on your home?

There are several important factors to consider before calling a solar company and getting those panels up on your roof, if you want to ensure a long-lasting and regret-free solar installation:

Read more