PV Panel Cost Calculator — Price, Savings and Payback for Your Home
Sunlight and electricity prices update for any U.S. location. Your location isn't stored.
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"Value of solar power" reflects how your utility credits it: 100% means every solar kWh saves your full rate. Many utilities credit power you send back to the grid at less, so 80–90% is a reasonable middle. Power made beyond 100% of your usage is valued at a quarter of your rate. Panels are assumed to lose 0.5% of output a year.
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Output is modeled for south-facing panels at a 20° tilt with typical shading and wiring losses, using a typical weather year for this location. Usage is spread evenly across months; your real bills will vary by season.
| Over 25 years | Pay cash | Solar loan | Keep paying the utility |
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Where you live matters less than what you pay per kilowatt-hour. A sunny state with cheap power can take longer to pay off than a cloudier one with expensive power, because every kWh your panels make is worth only what it would have cost you. Right now homes in your state pay 15.3¢ per kWh, against a U.S. average of 18.2¢. The second biggest lever is the price per watt you negotiate — moving the cost slider by 50 cents usually shifts payback by more than a year.
For a home in Orlando, FL with a $150 monthly electric bill, covering all of that usage takes about 6.9 kW — 16 panels of 430 watts. At $3.00 a watt installed, that is roughly $20,640 before any state or utility incentive, saving about $1,459 in the first year and paying for itself in about 12.2 years.
Key Answers About Solar Panel Costs
Numbers marked by location update when you change the place above.
Most homeowners pay for an installed system, not panels alone — panels are only often well under a quarter of the price, with inverters, racking, wiring, labor, permits and the installer's overhead making up the rest. Installed prices commonly run $2.50 to $3.50 per watt. For a home in Orlando, FL with a $150 monthly electric bill, covering all of that usage takes about 6.9 kW — 16 panels of 430 watts. At $3.00 a watt installed, that is roughly $20,640 before any state or utility incentive, saving about $1,459 in the first year and paying for itself in about 12.2 years.
Divide your yearly electricity use by what one kilowatt of panels makes where you live — about 1,544 kWh a year here — then divide by the panel size. A typical 430-watt panel is about 21 square feet, so 20 panels need roughly 430 square feet of open, unshaded roof.
Not for homeowners who buy. The 30% Residential Clean Energy Credit ended for systems completed after December 31, 2025. If your system was finished by then, you can still claim it, and unused credit carries forward to later years. Companies that own leased or power-purchase systems can still claim a business credit through 2027, which may show up as a lower monthly payment.
It depends mostly on your electric rate and your price per watt. For the example home here, payback is about 12.2 yrs. Panels typically carry 25-year warranties, so anything well under 15 years leaves a long stretch of savings; anything near 20 is a thin margin.
Buying with cash gives the biggest lifetime savings. A loan spreads the cost but adds interest — and financed systems are often quoted at a noticeably higher price per watt, so compare the cash price too. A lease or power-purchase agreement needs no money down and the owner can still use a federal credit, but you save less and the contract can complicate selling your home.
Not to save money in most places — the grid acts as your storage when your utility credits exported power fairly. A battery mainly buys backup during outages and helps where utilities pay little for exported power. It often adds $10,000 or more, which this calculator leaves out.
Solar Panel Cost by System Size
In Orlando, FL, each kilowatt of south-facing roof panels produces about 1,544 kWh a year in a typical weather year, from 5.6 peak sun hours a day on average. Output peaks in May and is lowest in December.
| System | Panels | Installed cost | Yearly output | Power value / month |
|---|---|---|---|---|
| 4 kW | 10 panels | $12,000 | 6,176 kWh | $79 |
| 6 kW | 14 panels | $18,000 | 9,264 kWh | $118 |
| 8 kW | 19 panels | $24,000 | 12,352 kWh | $157 |
| 10 kW | 24 panels | $30,000 | 15,440 kWh | $197 |
| 12 kW | 28 panels | $36,000 | 18,528 kWh | $236 |
Installed cost at $3.00 a watt; output from local sunlight in Orlando, FL; power value at 15.3¢ per kWh.
Is My Solar Quote a Fair Price?
Installers price systems differently, so convert every quote to price per watt: total price before incentives divided by system size in watts. Then compare.
Enter a quote's total price and size to see its price per watt.
Many solar loans carry a "dealer fee" that the installer adds to the system price so the advertised interest rate looks low. That is one reason financed systems have run about $1.20 a watt above cash purchases. Always ask for the cash price and the loan price side by side, in writing.
What Changed With the Federal Solar Tax Credit
For two decades, homeowners could subtract 30% of a solar system's cost from their federal income tax. A 2025 federal law ended that credit for homeowner-owned systems completed after December 31, 2025.
No federal credit. On a $25,000 system, that is about $7,500 you no longer get back — which is why price per watt and state incentives matter more than ever.
You can still claim the 30% credit on that year's return. It's nonrefundable, but any amount larger than your tax bill carries forward to future years.
The company that owns the panels can still claim a business credit through the end of 2027. Ask how much of it is reflected in your monthly payment, and read the escalator clause — many contracts raise the payment every year.
Some states offer substantial help — New York, for example, has a 25% state tax credit up to $5,000 plus per-watt rebates, and South Carolina offers a 25% credit up to $35,000. Many states also exempt solar from sales tax and from property-tax increases. Enter any rebate you qualify for in the calculator above.
What to Do in Your Situation
Solar can lock in part of your electric bill, but only a cash purchase with a short payback really protects a fixed budget. A 20-year loan that starts at 75 or later may outlast the plans you have for the house. If your payback in the calculator is more than about 12 years, an energy audit and weatherization often save more per dollar spent.
You'd likely leave before the system pays for itself, and buyers don't always pay full value for panels. A leased system needs the buyer to take over the contract, which can slow a sale. Owned, paid-off panels are the easiest to sell a house with.
Replace it first or at the same time. Removing and reinstalling panels later to reroof typically costs thousands of dollars, wiping out a year or more of savings.
A homeowner credit on a purchased system no longer exists, and "free" panels are usually a lease or loan. Don't sign on the spot, don't share utility-account logins, and check the installer's license with your state. You generally have three days to cancel a contract signed at your home.
Find Solar Installers Near You
Get at least three quotes from licensed local installers, ideally with a certified professional on staff, and compare them in the quote checker above.
Solar output comes live from the National Laboratory of the Rockies' PVWatts model (typical-year weather, south-facing 20° array, 14% system losses). State electricity prices come live from the U.S. Energy Information Administration's Electric Power Monthly (average residential price, year to date). Location lookups use zippopotam.us and the FCC Area API. Installed-cost benchmarks are national figures from 2024–2026 market reports; your quotes will differ. Results are estimates for information only, not financial or tax advice. This page is independent and not affiliated with any installer or lender.
Key sources: NREL/NLR PVWatts · U.S. Energy Information Administration · IRS · SEIA and Wood Mackenzie · EnergySage · Lawrence Berkeley National Laboratory · DSIRE