How long does solar take to pay for itself?

The average payback period is 6-10 years depending on your electricity rate, sun exposure, and incentives. After payback, solar generates free electricity for 15-20 more years.

How much do solar panels save per month?

Most homeowners save $100-200 per month on electricity. Over 25 years, total savings typically reach $25,000-50,000 after system cost.

2026 prices, after the federal credit ended

How Much Do Solar Panels Cost to Install?

Updated 27 March 2026

Calculate your exact solar installation cost based on your electric bill, state, and panel type. See your payback period and 25-year savings.

Solar Panel Cost Calculator

Monthly Electric Bill

State

Panel Type

Add battery storage (+$12,000)

System Size

6.4 kW

Installed Cost

$16,116

Payback Period

10.5 yrs

Cost Breakdown

Installed solar cost	$16,116
Total out of pocket	$16,116

Savings & ROI

Annual electricity savings	$1,530/year
Payback period	10.5 years
25-year net savings	$22,134
State incentives	No state incentive

The 30% federal solar credit ended 31 December 2025

The One Big Beautiful Bill Act terminated the Section 25D residential clean energy credit for systems placed in service after 31 December 2025. A home solar system purchased in 2026 gets no federal tax credit, so the figures above are the full installed cost. Only systems fully installed by 31 December 2025 could claim the 30% credit (and carry forward any unused amount). State rebates, SRECs, and net metering still apply where offered.

Average Solar Panel Costs by System Size

System Size	Installed Cost	Powers
4 kW	$10,000-12,800	Small home, 1-2 people
6 kW	$15,000-19,200	Average home, 2-3 people
8 kW	$20,000-25,600	Larger home, 3-4 people
10 kW	$25,000-32,000	Large home or EV charging
12 kW	$30,000-38,400	Large home + battery + EV

Average US installation: $15,000-20,000 installed

The average American home needs a 6-8 kW system. At $2.50/watt (national average), that's $15,000-20,000 installed. The 30% federal solar credit ended for systems placed in service after 31 December 2025, so a 2026 purchase pays the full amount. Get at least 3 quotes - prices vary 20-40% between installers.

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