Solar Energy Cost

One of the first questions we hear in our classes is, “How much does solar cost?” The answer depends on your home, your electricity use, and your utility’s rules. But we can give you a useful starting point.

Many factors can influence the cost, including

  • Where you live, and how sunny it is

  • How much solar you want or need to install

  • How your local utility manages solar interconnection

  • If you plan to also install batteries for home resiliency

  • What kind of roof or structure you have,  how much of it is available for solar and what direction your roof faces

  • If you have tall trees, buildings, or other obstructions that would prevent sunlight from reaching your solar panels

The average US household consumes nearly 11,000kWh each year, or approximately 900 kWh per month. [1] Electricity rates vary considerably depending on location and can range from over $0.60 / kWh to under $0.08 with the national average in 2026 at 18.34c/kWh [2]. This means the average American household spent nearly $2,000 electricity in the past year. Costs have increased year over year, and are projected to continue to increase [3].

For a household with ‘average’ electrical consumption , a 7kW solar PV system would likely generate enough electricity of the course of the year [4]. For a professionally installed rooftop system without a battery, a rough budgeting range is $2.50 to $4.00 per watt before local incentives. At that range, an 7kW system (7,000W) would cost about $17,000 to $32,000. Actual quotes can fall outside that range, especially if the roof is complicated or electrical work is needed. At $3/Watt the cost of an ‘average’ system, including installation, would be about $21,000.   Batteries adds cost, but may also provide backup power during an outage; a standard grid-tied solar system generally shuts down when the grid goes down.

What about payback and return on investment (ROI)?  Solar saves money by reducing the electricity you buy from your utility. You may also receive credit for extra electricity sent to the grid, but the value of that credit varies by utility. Today, net metering is usually a billing arrangement—not simply a meter spinning backward. A typical U.S. residential rooftop solar system pays for itself through electric bill savings in about 10–11 years. This is assuming the electricity cost stays the same, and that there is a  net metering policy in your area. If electricity costs continue to rise, it could pay off even sooner! It is important to look into the net metering policy in your area, as some states have different rules for how this works and who is eligible. Because the system can last 25+ years, after payback there will still be many years of cost savings! 

Of course, all of this depends on the particulars of your situation! Thankfully, there are many resources you can use to figure out exactly what it might cost for you.

A great first step is checking out your utility bill. You can usually see exactly how many kWh of electricity you bought in the last month, and oftentimes you can see the amounts for previous months as well. Consider when you use the most electricity - is it in summer, when you’re blasting the AC? Or winter, if you heat with electricity? Don’t just look at one month of your utility bill and assume it applies all year. This is a great step in understanding your own consumption habits, and how much solar you would need to partially or fully offset what you purchase. 

PVWatts is a tool you can use to see the estimated available solar in your area, and how much electricity you could expect to produce with different sizes (in kW) of solar systems. 

Of course, the best way to get an estimate of how much it will cost for you is likely to contact a solar installer in your area. They will likely be able to help you understand any tax incentives, rebates, or other unique circumstances for your area - and give you an exact quote taking into account your unique situation. 

While this maybe wasn’t an exact answer to “how much does solar cost”, we hope you feel more informed about how to figure out what it will cost for you!

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References

[1] “How much electricity does an American home use? - Frequently Asked Questions (FAQs).” n.d. U.S. Energy Information Administration (EIA). . https://www.eia.gov/tools/faqs/faq.php?id=97&t=3.

[2] “Electricity Rates by State (October 2026).” Electric Choice. . https://www.electricchoice.com/electricity-prices-by-state/.

[3] “US EIA — Electricity Monthly Update, end use.” Electricity Monthly Update - U.S. Energy Information Administration (EIA). . 

[4] “How Many Solar Panels to Power a House?” Sunergy Solutions. https://sunergysolutionsllc.com/how-many-solar-panels-to-power-a-house/.


Caroline Woffordsolar, solar energy, solar cost, solar PV, solar panel