In 2025, the average cost of solar panels for residential use typically ranges from about $2.80 to $3.80 per watt. This means:
- A 5 kW solar panel system may start at around $14,000.
- A 6 kW system can cost between $16,800 and $22,800.
- A 7.2 kW system averages about $21,816.
- Larger systems, like 10 kW, can cost upwards of $28,000 to $38,000 before incentives.
The total cost includes not only panels but also installation, local labor costs, and other fees. After applying federal solar tax credits and other incentives, prices drop considerably. For example, the federal tax credit can reduce costs by 30%, saving thousands. Commercial solar installations have lower per-watt costs, averaging $1.80 to $2.60 per watt, but require much larger system sizes. Home solar panels usually come with long warranties (around 25 years) and low maintenance needs, contributing to electricity bill savings over time. Therefore, while upfront costs range roughly from $14,000 to over $30,000 depending on system size and location, incentives and long- term savings make solar panels an increasingly attractive investment in 2025.
