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.
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:
- Cost per Watt
- Total System Cost
- Cost Factors
- Rooftop Installation Considerations
- PV Solar Panels
- Buying, Leasing, and PPA Options
- BiPV Solar Tiles
- Thin-Film Solar Laminates
- PACE Solar Finance Program
- Solar System Payback Period
The national average residential solar cost per watt installed is $2.96 for a typical 5kW (approximately $14,800) to 7kW (approximately $20,720) 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 $3.22, on average, when installed by a (small) local solar panel installer, before the 26% federal tax rebate.
Note that solar investment tax credits (ITC) are being phased out, gradually, with the amount of tax credits decreasing from 26% to 22% in 2023 (the final year for solar ITC).
How Solar Pricing Has Decreased Over Time In 2008, the cost of a solar power installation was $8.82 per watt.
|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||$14,800 to $20,720||$20,800 to $25,160||$26,640 to $29,600|
|After Tax Credits||$10,952 to $15,333||$15,350 to $18,618||$19,714 to $21,904|