See your savings, payback period, and 25-year financial benefits of going solar
Solar panels cost $2.50-3.50 per watt installed in 2026 before incentives, so a typical 6 kW system (14-16 panels) runs $15,000-21,000. The 30% federal tax credit brings the net cost to $10,500-14,700, or $1.75-2.45 per watt. The calculator above estimates your system size, savings, and payback from your bill, home size, and sun exposure; below is the market context you need to evaluate any quote.
Labor and soft costs (permits, design, interconnection, overhead) make up 30-50% of the installed price, which is why per-watt pricing falls with system size: fixed costs spread over more panels. Equipment tier matters less than most quotes suggest: Tier-1 panels and a quality inverter are table stakes, and the price difference between mainstream and premium panels is $0.10-0.30 per watt. Roof complexity, market competition, and state installer density move quotes by $0.50-1.00 per watt.
Regional differences matter. Competitive sun-belt markets (California, Texas, Florida, Arizona) price at $2.50-3.00/watt; thinner northern markets run $3.00-3.50/watt. Production varies even more: the same system makes 30-40% more energy in Phoenix than Seattle. Payback runs 6-12 years depending on your utility net-metering tariff, electricity rate, and sun.
A typical owned system delivers $35,000-60,000 of lifetime savings over 25 years, an 8-12% annualized return after the 30% credit. Payback runs 6-12 years, then the power is essentially free. Solar also adds $15,000-25,000 of home value and is exempt from property tax reassessment in 30+ states. The 30% federal credit is locked through 2032, making 2026-2032 the best window to go solar.
Ownership beats leasing in almost every scenario. Cash delivers the highest return (8-12% annualized over 25 years); a low-APR loan with no prepayment penalty is the practical middle path. Leases and PPAs require $0 upfront and save 10-30% on bills, but cost $5,000-15,000 more than owning over 25 years and complicate home sales, since buyers must qualify to assume the contract. The 30% federal credit belongs to the owner, so with a lease the company claims it and prices it into your payments. If you cannot use the credit or want zero capital outlay, community solar offers $0-down savings without a rooftop system.
Enter your monthly bill, home size, roof exposure, and local electricity rate, and the calculator estimates the system size needed to offset your usage, the installed cost at 2026 pricing, the 30% credit, and your 25-year financial picture. It models realistic per-watt pricing, production by sun exposure, and payback. For the full market breakdown, see our 2026 complete cost guide.
Net metering is the billing rule that values the power your panels export, and it moves payback by 2-5 years. Roughly 30 states still offer 1:1 retail net metering, where the grid acts as a free battery; California, Hawaii, and parts of the Southeast pay lower wholesale or time-based export rates. Under weak export rates, a home battery ($10,000-20,000, 30% credit applies) becomes the value engine, storing cheap solar hours and discharging at peak rates. Under 1:1 net metering, batteries are a backup-power purchase, not an investment. Check your utility tariff, not a state summary, because the export rate, monthly fees, and demand charges live in the tariff.
Panels carry 25-year warranties and produce at 80-88% of rated output at year 25, then keep generating for years beyond. The inverter is the component that needs replacement, typically at year 10-15, for $1,000-2,500.
You need a south-, east-, or west-facing roof plane with 15+ years of remaining life and limited shading. Most homes lose 10-20% of potential production to orientation and shading; severe shading can rule out rooftop solar in favor of ground mounts or community solar.
Yes. Panels produce from diffuse light and actually run slightly more efficiently in cold weather. Germany, one of the cloudiest major solar markets, generates more solar per capita than almost any country. Production is lower but payback still works when rates are high.