Home Equity HELOCs How Much Does It Cost to Install Solar Panels? 2 people contribute to this content Written by Jonathon Jachura Written by Jonathon Jachura Expertise: Home improvement, HVAC systems, energy efficiency, plumbing, lawn care Jon Jachura is a home improvement enthusiast and engineer with more than a decade of experience in HVAC systems and hands-on home projects. He enjoys helping homeowners understand, plan, and budget for upgrades that make their homes more comfortable and efficient. Learn more about Jonathon Jachura Edited by Kristen Barrett, MAT Edited by Kristen Barrett, MAT Expertise: Student loans, mortgages, personal loans, home equity, investing Kristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015. Learn more about Kristen Barrett, MAT Written by Jonathon Jachura Written by Jonathon Jachura Expertise: Home improvement, HVAC systems, energy efficiency, plumbing, lawn care Jon Jachura is a home improvement enthusiast and engineer with more than a decade of experience in HVAC systems and hands-on home projects. He enjoys helping homeowners understand, plan, and budget for upgrades that make their homes more comfortable and efficient. Learn more about Jonathon Jachura Edited by Kristen Barrett, MAT Edited by Kristen Barrett, MAT Expertise: Student loans, mortgages, personal loans, home equity, investing Kristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015. Learn more about Kristen Barrett, MAT show more Jan 05, 2026 Nationally, solar installations average $27,150. I’ve seen quotes range from $18,350 on the low end to $36,400 on the high end. Per-watt pricing sits at $2.50 to $3.50. What you’ll pay depends on your system size, which panels you pick, what electricians charge in your town, and where you live. I got a quote for my 3,100 square foot home in Northern Indiana back in 2023. The installer priced the system at $34,000, which landed on the higher end of that national range. I didn’t move forward with the project. Prices have since since come down, though. The payback math just didn’t work for me at the time, and I had concerns about the look of them on the front side of my roof. However, I learned a great deal about how these quotes come together and what drives the numbers up or down. Below, I’ll break down what affects solar costs and how you might finance an installation if you decide to go ahead. Costs sourced from contractor estimates via Angi. Table of Contents Average cost to install solar panels by system size By system type Grid-tied vs. off-grid vs. hybrid Roof-mounted vs. ground-mounted Install solar panels and battery Install Tesla solar panels Labor cost What makes labor more expensive? Cost to DIY Federal and state incentives How to finance HELOC Other options Is it worth it? FAQ Average cost to install solar panels by system size When I called for quotes, the first thing every company wanted to know was my electric usage. Makes sense; that’s how they size the system. Solar capacity is rated in kilowatts (kW). A larger array means a higher total cost, but you pay less per watt as you increase its size. Homes typically require a power range of 4 kW to 10 kW. Grab your electric bills from the past year, and look at the kilowatts you’re using each month. Think about future changes, too. Planning to add an electric vehicle or finish a basement? You’ll need a bigger system to offset that added load. My quote was sized to offset most of my electricity usage in a 3,100 square foot house. At $34,000, it sat near the top of the national range, reflecting the larger system required for a home that size in a climate with cold winters and hot summers. System sizeNumber of panelsCost range4 kW10 — 12$8,000 — $13,0006 kW15 — 18$12,000 — $19,0008 kW20 — 24$15,000 — $23,00010 kW25 — 30$18,000 — $27,000 Cost by system type Grid-tied vs. off-grid vs. hybrid systems Three main setups exist. Grid-tied is the one where your panels stay connected to the power company. It’s also the cheapest, at around $10,000. When your panels make more electricity than you need, the surplus feeds back into the grid, and the utility gives you credit. The catch? No backup during outages. Want zero reliance on the power company? Off-grid runs about $25,000. The idea of total energy independence has appeal, sure. Battery banks can be costly and require ongoing maintenance. Living in a subdivision where utility poles are already on your street? An off-grid system likely costs more than it’s worth. Hybrid sits at about $18,000. Your house remains connected to the utility, but a battery bank provides backup during power outages. You pay more, and the install gets complicated. Roof-mounted vs. ground-mounted panels Drive through any neighborhood, and the solar you’ll see is bolted to rooftops. That approach costs around $15,000. Your yard stays open, and the setup works for most houses. Roof age and material both affect the installation process. Own some acreage? Ground-mounted runs around $18,000. The install crew can aim panels wherever the sun exposure is best, and you won’t need a ladder when it’s time to wipe them down. The downside? You need the land for it. I looked into ground-mounted for my place since I have a few acres to work with. My installer quoted me an extra $2,000 to $3,000 just for digging trenches to run the electrical lines. Cost to install solar panels and battery Want battery backup? Batteries add $8,000 or more to your project. You’ve likely seen Tesla’s Powerwall mentioned online; it’s the big name in home energy storage. The unit charges up while the sun’s out and powers your house after dark. When a storm knocks out the grid, it switches over automatically. One thing people forget: Batteries wear out. You’ll get 10 to 15 years out of them before replacement, so factor that into your calculations. If your power rarely goes out and the grid is reliable where you live, batteries might be a money-saving investment. Batteries pencil out better in areas where electric rates change throughout the day. Store your solar power when it’s cheap, and use it at night when rates spike. Cost to install Tesla solar panels Tesla sells regular panels and also manufactures solar roof tiles, which are shingles that generate power while resembling a normal roof. The shingle option averages around $25,000 and does look sharp. Finding someone to install them can be harder since not many contractors are certified for the product. Add a Powerwall to your Tesla panels, and you’re looking at another $8,000 minimum on top of everything else. Labor cost to install solar panels Labor makes up a big piece of your installation bill. Installers charge either by the watt ($0.50 to $1.00) or by the hour ($50 to $100). How they bill varies by company. What makes labor more expensive? Steep roofs require more safety equipment and slow down the crew, according to the Department of Energy’s homeowner’s guide to solar. Multi-story homes add complexity. Roofs with tricky access points, tile or slate roofs, and homes that need electrical panel upgrades add more time on site, which means a bigger bill. Permit fees land between $200 and $1,000 based on where you live and system size. Some towns turn permits around in days. Others take weeks to push paperwork through. My installer warned me that permit timelines in my county had stretched to six weeks during busy seasons. Cost to install your own solar panels You can buy a DIY solar kit for $6,000 to $12,000. The box shows up with panels, an inverter, and mounting brackets. But here’s the problem: Mess up the electrical work, and you’re looking at code violations, fines, or a house fire. Get something wrong during installation, and your warranty might be worthless. DIY installations often don’t qualify for incentives or rebates. And if something goes wrong with your roof, leaks around mounting points, for example, you’re on your own. Going with a pro keeps your tax credit eligibility intact and saves you from fixing expensive mistakes down the road. Federal and state incentives for solar installation Everything changed with the federal solar tax credit in 2025. The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, changed the timeline for residential credits. For homeowner-purchased systems (cash or loan), the 30% federal tax credit expired on December 31, 2025. There’s no gradual phase-down, as originally scheduled under the Inflation Reduction Act. Third-party ownership arrangements like leases and power purchase agreements (PPAs) can still access the 48E tax credit through the end of 2027. Under these setups, the installation company claims the credit and passes savings to you through lower payments. What your state or city offers is all over the map. Certain utilities allow you to sell excess power back through net metering programs. Check the DSIRE database to see what resources are available in your area. How to finance solar panel installation Writing a check for the full amount saves you the most money over time. But dropping $20,000 or $30,000 at once isn’t realistic for many families. A few financing routes can break up that cost. Use a HELOC A home equity line of credit (HELOC) lets you tap into your home’s value. You’re putting up your house as security, which is why banks charge less interest than they would on an unsecured loan. The interest might even be tax-deductible since solar counts as a home improvement. (Talk to your tax person to be sure.) Figure has a fixed-rate HELOC that funds quickly. For a bigger solar project, it’s worth a look. Our Figure HELOC review covers the details. Best HELOC Lenders and Rates Other financing options Home equity loans provide lump-sum borrowing with fixed rates. They work well when you know your exact project cost upfront. Personal loans for solar don’t require collateral and approvals come faster. The trade-off is you’ll pay more in interest. Home improvement loans are another avenue worth comparing. Read our breakdown of the best home improvement loans or learn how to get a home improvement loan. Not sure which way to go? Our comparison of home improvement loans vs. home equity loans breaks down the differences. Solar Loans: Lenders Offering Solar Panel Financing Is solar panel installation worth it? I ran the numbers on my own quote and found that breakeven would take about nine years. That’s pretty typical: Payback lands somewhere between six and 12 years, depending on your situation. Monthly savings, upfront costs, and tax credits all shift that number. After you’ve recouped your investment, the electricity your panels generate costs you nothing. Selling your house? Solar can add 3% to 5% to the sale price. A Department of Energy study found that homes with panels sold for about $15,000 more on average. The amount you’ll save each month depends on system size, your utility charges per kilowatt-hour, and the amount of direct sunlight your roof receives. The panels themselves can last 25 to 30 years. Inverters typically last less time, so plan on replacing yours after 10 to 15 years. FAQ How much does it cost to install solar panels on a roof? Roof-mounted systems start around $15,000 for a basic setup. Panel count, your roof’s condition, and what installers charge locally all influence that number. Quotes can range between $18,350 and $36,400. How long does solar panel installation take? Crews can typically install panels in one to three days. Some homeowners transition from a signed contract to a working system in a couple of weeks. Others wait months for permits and inspections to clear. Do solar panels require maintenance? There isn’t much to do once the panels are up. Dust and leaves build up and cut into output, so occasional cleaning helps. Professional cleaning services typically charge between $150 and $400. Will solar panels work in cloudy or cold climates? Yes, they work in cloudy and colder regions. Cold weather actually helps them work more efficiently; heat reduces their effectiveness. Look at Germany: Overcast skies are the norm there, yet the country ranks among the top solar producers globally. Article sources At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards. Angi, How Much Does Solar Panel Installation Cost? IRS, Residential Clean Energy Credit U.S. Department of Energy, Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics U.S. Department of Energy, Benefits of Residential Solar Electricity White House, The One Big Beautiful Bill DSIRE (N.C. Clean Energy Technology Center), Database of State Incentives for Renewables and Efficiency About our contributors Written by Jonathon Jachura Jon Jachura is a home improvement enthusiast and engineer with more than a decade of experience in HVAC systems and hands-on home projects. He enjoys helping homeowners understand, plan, and budget for upgrades that make their homes more comfortable and efficient. Edited by Kristen Barrett, MAT Kristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015.