Solar Costs (2026)
Solar panel costs by city, plus state-by-state incentives — prices adjusted locally, with state and utility rebates and net-metering rules (the 30% federal credit expired after 2025).
Nationally, solar panel installation averages about $22,000 — but a national average is the wrong number to budget with. The same solar panel installation costs about $25,430 in San Francisco, CA and $18,900 in McAllen, TX, a 35% difference for identical work driven by local labor rates, code requirements, and climate. Every price here starts from a researched national base and is adjusted with the federal government's own regional price data for your metro, across 100 US markets.
Solar costs at a glance
National averages before local adjustment. Year-over-year change is anchored to the BLS Producer Price Index for the materials and equipment in each project.
| Project | National average | Typical range | YoY |
|---|---|---|---|
| Solar Panel Installation | $22,000 | $15,000 – $37,000 | ▼ down 2.2% |
What drives solar costs
System size in kilowatts sets most of the price, and it should be matched to your actual annual kWh usage rather than your roof's capacity — where exports are credited below the retail rate, an oversized array wastes money. Panel and inverter quality, roof complexity and orientation, and whether the main electrical panel needs upgrading all move the total. Battery storage adds substantial cost and pays back only where net metering is weak or outages are common. The economics changed sharply in 2026: the 30% federal residential credit (Section 25D) expired December 31, 2025, so a purchased system no longer earns it. What remains is state and utility incentives, net-metering terms, and your local electricity price — which is why payback ranges from roughly 7 years in high-rate California markets to nearly 30 in cheap-power Seattle.
Where solar panel installation costs the most — and the least
Across the 100 metros we cover, using the same national base cost adjusted by each metro's BEA price factor.
| Most expensive | Avg. solar panel installation | Least expensive | Avg. solar panel installation |
|---|---|---|---|
| San Francisco, CA | $25,430 | McAllen, TX | $18,900 |
| Miami, FL | $25,120 | Wichita, KS | $19,560 |
| Los Angeles, CA | $24,990 | Jackson, MS | $19,580 |
| New York, NY | $24,770 | Tulsa, OK | $19,620 |
| San Diego, CA | $24,620 | Little Rock, AR | $19,670 |
Solar projects
Solar incentives by state
Popular solar panel installation costs by city
See all cities for solar panel installation →
Frequently asked questions
- How much does a solar installation cost in 2026?
- Solar Panel Installation averages about $22,000 nationally, with most homeowners paying $15,000 – $37,000. Local prices vary from that average by metro.
- Why does solar panel installation cost more in some cities than others?
- Because labor rates, code requirements, permit fees, and climate differ by metro. We apply the BEA Regional Price Parity for your metro to a researched national base cost, so solar panel installation runs about $25,430 in San Francisco and $18,900 in McAllen. The work is the same; the local price level is not.
- Which cities are most and least expensive for solar panel installation?
- Of the 100 metros we track, San Francisco, CA is the most expensive at about $25,430, and McAllen, TX the least at about $18,900. The full city list is below.
- Are solar panel installation prices going up?
- Hardware is getting cheaper — installed prices are down about 2.2% year over year — but what homeowners actually pay went up in 2026, because the 30% federal residential credit (Section 25D) expired on December 31, 2025. A cheaper system with no tax credit is a higher net cost than last year's dearer one with it.
- How many quotes should I get?
- At least three written quotes from licensed local contractors, compared line by line rather than on the bottom-line number. Check what each includes — permits, disposal, cleanup, and warranty terms vary between bids and are where apparent bargains usually come from. Our figures are informational estimates to help you sanity-check those bids, not quotes.
Cost factors from the BEA Regional Price Parities; trade wages from BLS OEWS; trends from the BLS Producer Price Index. Full method on How We Estimate. Figures are informational estimates, not quotes.
