Solar Panel Cost Breakdown
Using these numbers, an average-sized 8-kilowatt residential solar system would cost between $21,900 – $26,400. Regional pricing differences, the
Generally, installing solar panels on businesses costs a bit less per watt because the systems are larger, but the total costs will be higher. In 2025, the average cost for commercial solar panels is just about $2.00 per watt. There is a lot to consider when figuring out how much you'll spend on a solar installation.
Using these numbers, an average-sized 8-kilowatt residential solar system would cost between $21,900 – $26,400. Regional pricing differences, the system size, local installation costs, inclusion of home battery backup, and local incentives are other factors which affect the final cost.
What's the cost of solar panels for a 3-bedroom house? The average pre-incentive cost of home solar is $29,161 for a three-bedroom house, or $20,412 after claiming the 30% tax credit.
Solar panel installation costs vary by the installation company and project scope, making it challenging to pinpoint exactly how much you'll pay to have a pro install your solar panels. However, the U.S. Department of Energy estimates that installers add around $2.25 per watt to the cost of a solar panel installation.
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