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How much do solar panels cost in 2022?

How much do solar panels cost in 2022?

In 2022, solar panels cost about $20,498 on average. That’s $2.77/W for a 10 kW system minus the 26 percent federal solar tax credit. In this article, we’ll break down the cost of solar by system size, state, and panel brand, all of which can significantly impact the final number you pay.

Key takeaways about solar panel cost

– Total average solar installation cost ranges from $17,538 to $23,458 after the 26 percent federal solar tax credit.
– The cost of solar has fallen about 13 percent over the past 5 years.
– The best way to get a fair price for solar?

Solar panel cost in 2022

The cost of a solar panel installation in 2022 ranges from $17,538 to $23,458 after taking into account the federal solar tax credit. A single solar panel costs between $200 and $250. On average, a 10 kilowatt (kW) solar panel installation costs $20,498 after taking into account the federal solar tax credit ($27,700 before the tax credit). On a cost per watt ($/W) basis, solar panel prices in 2022 average $2.77/W.

Solar installations are a unique product – just based on your state and the manufacturer of your chosen solar panels, average solar panel costs can vary widely. Here are they key factors that impact solar installation pricing:

  • System size: The bigger your solar panel system, the pricier it will be. Importantly, the average per-unit price for solar decreases with increasing system size.
  • Location: Pricing varies by state as well, which is a result of both local quoting trends and system size differences – states that have a larger average system size will naturally have a lower average cost of solar.
  • Panel brand and quality: Like any product or appliance, solar panels come in varying quality. 
  • Roof characteristics: The cost of a solar panel installation doesn’t just come from equipment. Your solar installer will also charge for the difficulty of the installation, and having a complex roof might make your system cost more.
  • Labor: Solar companies all charge different labor rates for their work. You may opt to pay more for a more reputable company with better reviews and a shorter timetable to installation.
  • Permitting and interconnection: While it’s not a large factor, paying for permits and your interconnection fee to the grid will add a little to the top of your total solar installation price.

A note about pricing: gross vs. net costs

Throughout this article (and all around our website), we usually talk about solar panel pricing in terms of gross cost, aka the cost before any solar rebates and incentives that can reduce the upfront cost of solar, or even get you some money back over time. For example, our cost per Watt ($/W) figures throughout the rest of this article are always the gross cost. This is because solar rebates and incentives aren’t always available to everyone. Even the 26 percent federal solar tax credit isn’t always available for everyone to take full advantage of – you need to have enough tax liability to claim the credit.

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