Solar Panel Installation Cost Trend (2026)
The national average cost of solar panel installation has fallen about 2.2% over the past year, reaching roughly $22,000 in 2026. Hardware keeps getting cheaper (installed prices near $2.75/W), but the headline number understates 2026 reality for homeowners.
The 2026 wrinkle EnergySage / DOE — installed $/W; IRS Sec. 25D
The 30% federal Residential Clean Energy Credit (Section 25D) expired December 31, 2025. Even though panel prices fell ~2%, the net cost most homeowners pay rose sharply in 2026 because that credit is gone — the single biggest change to solar economics this year.
Solar Panel Installation cost trajectory, 2021–2026
Indexed estimate (2021 = 100) based on BLS Producer Price Index category data and skilled-trade wage growth; actual prices vary by city and scope.
Where solar panel installation costs the most & least
Local prices swing widely around the national average — driven by labor rates, climate, and permit costs. Here is how solar panel installation ranks across the 50 metros we track.
| Rank | Metro | Local factor | Avg. cost |
|---|---|---|---|
| 1 | San Francisco, CA | 1.18 | $26,000 |
| 2 | Los Angeles, CA | 1.16 | $25,410 |
| 3 | Seattle, WA | 1.13 | $24,860 |
| 4 | San Jose, CA | 1.13 | $24,840 |
| 5 | New York, NY | 1.13 | $24,750 |
| 6 | Miami, FL | 1.12 | $24,600 |
| 7 | Boston, MA | 1.12 | $24,550 |
| 8 | San Diego, CA | 1.11 | $24,530 |
| 9 | Sacramento, CA | 1.09 | $23,960 |
| 10 | Washington, DC | 1.09 | $23,890 |
| 11 | Riverside, CA | 1.08 | $23,740 |
| 12 | Portland, OR | 1.07 | $23,450 |
| 13 | Phoenix, AZ | 1.05 | $23,210 |
| 14 | Denver, CO | 1.05 | $23,210 |
| 15 | Minneapolis, MN | 1.04 | $22,990 |
| 16 | Philadelphia, PA | 1.03 | $22,770 |
| 17 | Tampa, FL | 1.03 | $22,750 |
| 18 | Dallas, TX | 1.03 | $22,730 |
| 19 | Baltimore, MD | 1.03 | $22,590 |
| 20 | Chicago, IL | 1.03 | $22,570 |
| 21 | Hartford, CT | 1.03 | $22,570 |
| 22 | Orlando, FL | 1.01 | $22,240 |
| 23 | Atlanta, GA | 1.01 | $22,200 |
| 24 | Providence, RI | 1.01 | $22,200 |
| 25 | Houston, TX | 1.00 | $22,040 |
| 26 | Jacksonville, FL | 0.99 | $21,820 |
| 27 | Detroit, MI | 0.98 | $21,560 |
| 28 | Richmond, VA | 0.98 | $21,560 |
| 29 | Raleigh, NC | 0.98 | $21,560 |
| 30 | Austin, TX | 0.98 | $21,470 |
| 31 | Las Vegas, NV | 0.97 | $21,430 |
| 32 | Nashville, TN | 0.97 | $21,430 |
| 33 | Virginia Beach, VA | 0.97 | $21,430 |
| 34 | Charlotte, NC | 0.97 | $21,340 |
| 35 | Salt Lake City, UT | 0.96 | $21,210 |
| 36 | St. Louis, MO | 0.96 | $21,190 |
| 37 | Milwaukee, WI | 0.95 | $21,010 |
| 38 | Indianapolis, IN | 0.95 | $20,810 |
| 39 | Columbus, OH | 0.94 | $20,790 |
| 40 | Pittsburgh, PA | 0.94 | $20,770 |
| 41 | Buffalo, NY | 0.94 | $20,770 |
| 42 | Cincinnati, OH | 0.94 | $20,700 |
| 43 | Louisville, KY | 0.94 | $20,680 |
| 44 | San Antonio, TX | 0.94 | $20,610 |
| 45 | Kansas City, MO | 0.93 | $20,530 |
| 46 | Cleveland, OH | 0.93 | $20,460 |
| 47 | Birmingham, AL | 0.93 | $20,370 |
| 48 | Memphis, TN | 0.92 | $20,330 |
| 49 | New Orleans, LA | 0.91 | $20,040 |
| 50 | Oklahoma City, OK | 0.91 | $20,020 |
Frequently asked questions
- Are solar panel installation costs going up in 2026?
- On a hardware basis, no — solar panel installation prices have fallen about 2.2% over the past year. The 30% federal Residential Clean Energy Credit (Section 25D) expired December 31, 2025. Even though panel prices fell ~2%, the net cost most homeowners pay rose sharply in 2026 because that credit is gone — the single biggest change to solar economics this year.
- What is the average cost of solar panel installation in 2026?
- The U.S. average is about $22,000 before local adjustment, typically ranging from $15,000 to $37,000 depending on scope and your city.
- Why have solar panel installation prices changed?
- Hardware keeps getting cheaper (installed prices near $2.75/W), but the headline number understates 2026 reality for homeowners.