Solar Calculators

Solar Installation Cost Estimator

Estimate the gross cost, federal tax credit, and net cost of installing solar panels at your home.

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kW
Solar: $2.65/W
Gross system cost
$21,200
Federal tax credit (30%)
$6,360
Net cost after ITC
$14,840

Gross vs Net Cost

Federal Investment Tax Credit reduces total cost

These are estimates based on national and state averages. Actual costs vary by installer, system specifics, roof complexity, and local market conditions. Get multiple quotes from certified solar installers for accurate pricing.

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Under the hood

How the Solar Installation Cost Estimator works

The formulas, data sources, and assumptions behind every number you see above.

This calculator estimates total solar installation cost based on system size and your state's average cost per watt. National averages from EnergySage, NREL, and SEIA show typical residential solar pricing ranges from about $2.50 to $3.30 per watt before incentives, with state-by-state variation driven by labor costs, permitting complexity, and competition.

Gross cost is calculated as system size (in watts) × cost per watt. The federal Investment Tax Credit (ITC) under the Inflation Reduction Act covers 30% of the gross cost through 2032, dropping to 26% in 2033 and 22% in 2034. We apply the rate that corresponds to your selected install year.

The net cost shown excludes any state, local, or utility-specific incentives you may also qualify for. The DSIRE database (dsireusa.org) maintains the most comprehensive list of state-level programs.

Deeper dive

What to know before acting on this estimate

Context, trade-offs, and next-step guidance that a simple number can't capture.

The total cost of a residential solar installation has fallen dramatically over the past decade — from roughly $7 per watt in 2010 to about $2.85 per watt nationally in 2026. This decline is driven by cheaper panels, more efficient installation practices, and increased competition among installers.

That said, prices vary significantly by state. Markets with high installer density and lower soft costs (permitting, inspection, labor) tend to be cheapest. Heavily regulated markets and states with smaller solar industries see higher per-watt pricing.

The single biggest cost reducer is the federal Investment Tax Credit, which covers 30% of qualified expenditures through 2032 under the Inflation Reduction Act. Many states also offer additional incentives — sales tax exemptions, property tax abatements, performance-based incentives, or upfront rebates. These can reduce the net cost by another 5 to 25% depending on your location.

Quick answers

FAQ: Solar Installation Cost Estimator

The questions homeowners most often ask about this calculator.