Solar Panel Cost Calculator
Estimate what solar panels cost for your home, what you save each month, and how fast they pay for themselves.
Calculate your solar cost
Your estimated solar cost
Cost by system size
Same cost per watt and tax credit, at your electricity rate and bill. Your selected size is highlighted.
How solar panel costs work
This free calculator estimates the cost of a home solar system, the federal tax credit, monthly production, monthly savings, and simple payback. It is for homeowners who want a quick, honest figure before talking to installers. It is free, needs no sign-up, and runs entirely in your browser.
How much do solar panels cost for a home?
A typical home system costs about $3.00 per watt before incentives, so a 6 kilowatt system costs about $18,000 before the federal tax credit. After the 30 percent credit, the same system costs about $12,600. Final prices vary with roof type, equipment brand, labour, permits, and your state, so treat every figure here as an estimate, not a quote.
According to Lawrence Berkeley National Laboratory, the median installed price for residential solar in the United States was about $3.70 per watt in 2024, before incentives. Prices have fallen a long way over the past decade, but they still differ a lot by state and installer, which is why comparing quotes on a cost per watt basis matters.
How does the 30 percent federal tax credit work?
The federal tax credit lets homeowners claim 30 percent of a solar system cost as a credit against income tax. It was set at 30 percent by the Inflation Reduction Act of 2022 and stays at that rate through 2032, then steps down. It is a credit, not a rebate. You need tax liability to claim the full amount.
The credit covers panels, inverters, wiring, and installation labour. If your tax bill is smaller than the credit in one year, you can usually carry the unused part to a later year, but check the current rules with a tax adviser before you rely on that.
How much electricity will my system produce?
This calculator assumes each kilowatt of panels produces about 120 kilowatt hours per month, which suits a home with good sun and a south facing roof. A 6 kilowatt system then produces about 720 kilowatt hours a month. Real output changes with shade, roof direction, tilt, temperature, and local weather, so check your installer production estimate before you decide.
Monthly savings only count the electricity you actually use or get paid for. If your system produces more than you use in a month, the extra value depends on your utility net metering rules, so a system sized to your usage usually gives the best return.
How long until solar panels pay for themselves?
Payback is the net cost after incentives divided by yearly savings, so a $12,600 system saving $120 a month pays back in about 8.75 years. Rising electricity prices shorten payback, while shade, maintenance, and loan interest lengthen it. Most home systems pay back in roughly 6 to 10 years and keep producing for 25 years or more.
To see payback in more detail, including the effect of rising prices year by year, use our Solar Payback Period Calculator.
What affects the cost per watt?
Equipment quality is the biggest factor, because premium panels and microinverters cost more than budget parts but often last longer and produce more power. Roof complexity, local labour rates, permits, and whether you add a battery also move the price. Get three written quotes and compare cost per watt, not just the total, before choosing an installer.
- Panels. Higher efficiency panels cost more per watt but need less roof space.
- Inverters. Microinverters and optimisers cost more than a single string inverter but handle shade better.
- Roof work. Steep, old, or complex roofs add labour and sometimes need repairs first.
- Battery. Adding storage can add several thousand dollars, so price it separately.
Frequently asked questions
How much does a 6 kW solar system cost?
At $3.00 per watt, a 6 kW system costs about $18,000 before incentives and about $12,600 after the 30 percent federal tax credit. Local prices vary, so use the calculator with a quote from your area for a sharper figure.
Is the 30 percent federal tax credit still available?
Yes. The credit is 30 percent under the Inflation Reduction Act of 2022 and stays at that rate through 2032, then steps down. It applies to the system cost including installation, and you claim it against federal income tax.
How much can solar panels save me each month?
It depends on your bill, your electricity rate, and how much your panels produce. A 6 kW system producing about 720 kWh a month at $0.17 per kWh saves about $122 a month if you use all of it. Enter your own bill and rate above for your figure.
Do solar panels increase home value?
Owned solar systems often add value to a home, because buyers value lower electricity bills. Leased systems are different and can complicate a sale, so owned systems are usually the better choice if you can afford them.
How long do solar panels last?
Most panels carry a 25 year performance warranty and keep producing for 25 to 30 years or more, at slightly lower output each year. Inverters usually need replacing once during that time, after about 10 to 15 years.
What size system do I need?
Size it to your monthly usage. A home using about 900 kWh a month needs roughly a 6 to 7 kW system in an area with good sun. Our How Many Solar Panels Do I Need Calculator works out the exact panel count for you.
Does this calculator store my data?
No. The calculator runs entirely in your browser. Nothing you type is uploaded, stored, or shared.
More tools you may need
Wondering when solar pays for itself? Try the Solar Payback Period Calculator. Working out panel numbers? Use the How Many Solar Panels Do I Need Calculator. Planning storage or a bigger system? See the Solar Battery Size Calculator and the Solar System Size Calculator.
