Solar Calculator: Installation Cost and Savings Estimates

Partner content: This content was created by a business partner of Dow Jones, independent of the MarketWatch newsroom. Links in this article may result in us earning a commission. Learn More

On average, going solar costs between $15,000-$20,000. Get a customized estimate of the cost and savings you could get by going solar. Hybrid Inverter

Solar Calculator: Installation Cost and Savings Estimates

Faith Wakefield is a writer based in North Carolina. She holds economics and English degrees from UNC Chapel Hill, and her work has been featured on EcoWatch, The World Economic Forum and Today’s Homeowner. In her free time, she loves to binge-watch personal finance videos on YouTube, collect books and spend time in nature.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

Homeowners interested in solar panels may be apprehensive because of the cost. According to the Solar Energy Industries Association (SEIA), an average 6 kilowatt-hour (kWh) system costs between $16,000 and $21,000. While solar panels can be worth the cost, it’s important to determine your home’s solar potential before making such a big investment.

We at the MarketWatch Guides team have created a solar panel cost calculator to help you estimate your potential system cost and energy savings. Get a customized estimate by entering details about your energy usage and home, including its size, layout and roof design. We’ll also provide a snapshot of your long-term solar energy savings.

Get an installation quote from our top provider, Sunrun

Use the tool below to get estimates and determine if a move to solar energy is the right investment for your home.

How Much Does Solar Cost?

Use the calculator to see how much you could save!

Our solar calculator uses a few key metrics about your home and location to estimate your solar cost.

First, we estimate your roof size according to the square footage of your house and the steepness of your roof. This helps us calculate how many panels could fit on your roof.

Next, we estimate your total household energy consumption based on your average monthly electric bill and ZIP code. How much energy your household uses largely determines your solar system size.

Finally, we scale capacity based on your location and how much shade your roof receives. For example, if you have a shaded roof and live in a state that sees fewer-than-average sunlight hours, you may need to scale up your system to meet your energy needs.

According to our 2023 poll of 2,000 homeowners with solar, respondents paid an average of $15,000 to $20,000 for their solar panel systems.

The total cost of your solar panel system can vary depending on your installation company, system capacity and location.

Generally, you can expect the equipment — including the panels, inverters, racking and mounting hardware — to make up about 50% of your total installation cost. The remaining costs include labor, administration fees, taxes and permitting.

Learn how much solar panels cost in your state using the dropdown menu below:

Our solar cost calculator evaluates several factors to determine how much going solar will cost. We’ve provided a breakdown for each factor below.

Despite the cost-saving advantages of solar energy systems, homeowners often hesitate to spend the large amount of money needed to go solar. Customers want to be sure that such a significant initial investment will pay off in the long run.

On average, solar panels pay for themselves in six to 10 years. This is known as the payback period. The time frame will fluctuate depending on your system size, current energy usage and estimated monthly savings.

Our solar calculator will provide your estimated lifetime savings from going solar. This is a 25-year estimate based on the typical lifespan of monocrystalline solar panels, the best type of panels available. You’ll also get estimates for your yearly energy costs with and without a solar system.

You can achieve a faster return on investment (ROI) by using state and federal solar incentives and rebates. These incentives offset the installation costs of your system, leading to a quicker payback period. You can receive additional savings from net-metering programs, which allow you to sell the excess energy you generate back to the power grid. You receive credits for this energy that can be applied to your future utility bills or paid back to you at the end of the calendar year.

Depending on your installer, you can choose from several solar panel financing options, including a cash purchase, solar loan, solar lease or power purchase agreement (PPA). To achieve the highest return on investment, we recommend purchasing your solar panels in cash or taking out a loan to pay for your system over time.

Although solar leases and PPAs have low startup costs, homeowners who lease their panels typically save less over the lifespan of their solar electric system. You also do not own your system with a lease or PPA, and as a result, cannot claim certain solar incentives like the federal solar tax credit.

Purchasing solar panels in cash is the most straightforward way to pay for your system. Although the initial cost is high, you’ll avoid paying interest on a solar loan and see the most energy savings over time when you pay in cash.

Unfortunately, a cash payment is not viable for every homeowner. Many companies offer other solar financing options that are more flexible and realistic if you’re on a budget.

Solar loan financing is the next best option if you cannot afford to pay for your solar panels in cash. Although you may pay some interest, a solar loan offers the flexibility of paying for your solar system in installments.

Many solar companies offer $0 down loan financing, flexible term lengths and low-interest rates that help you customize your payment plan. You can also put some money down on your system to reduce the interest you will pay over time.

Solar customers may find that their solar loan payment is less than their average energy bill, so they start seeing savings immediately.

With solar leases and PPAs, your solar provider will install panels on your home with little or no upfront cost. Your solar provider also handles the upkeep and maintenance costs of the system over your agreed-upon term length. But instead of paying to own your system, you pay a monthly rate to “rent” your solar equipment or the energy your panels generate.

Although solar leases and PPAs can save you some money on utility bills, you do not own the system and therefore cannot take advantage of solar incentives or rebates. Additionally, solar leases lock you into long-term contracts (typically 25 years) that are difficult or impossible to break without paying for the system in full.

In most cases, we do not recommend solar leases or PPAs. Owning your system almost always offers more savings over the lifespan of the panels.

We’ve provided the following resources to help with your solar energy conversion:

Learn more about your home services options in our top reviews to see how you can keep your peace of mind.

We conducted in-depth research and analyzed several factors when determining our cost data, including:

Aa Battery Spring Contacts By using this site you agree to the Subscriber Agreement & Terms of Use, Privacy Notice, and Cookie Notice.