Solar Panel Costs by State (2026)
Compare solar installation costs across all 50 states. Prices include the 30% federal tax credit calculation.
Solar Costs by State
| State | $/Watt | 8kW Before ITC | 8kW After ITC | Payback | 25yr Savings |
|---|---|---|---|---|---|
| Florida | $2.58 | $20,640 | $14,448 | 5.9yr | $46,741 |
| Arizona | $2.61 | $20,880 | $14,616 | 5yr | $58,077 |
| Nevada | $2.61 | $20,880 | $14,616 | 6.1yr | $44,901 |
| Texas | $2.62 | $20,960 | $14,672 | 5.9yr | $47,440 |
| Utah | $2.65 | $21,200 | $14,840 | 7.1yr | $37,636 |
| Ohio | $2.67 | $21,360 | $14,952 | 7.5yr | $34,571 |
| North Carolina | $2.68 | $21,440 | $15,008 | 7.6yr | $34,118 |
| South Carolina | $2.68 | $21,440 | $15,008 | 7yr | $38,504 |
| Kentucky | $2.71 | $21,680 | $15,176 | 9.3yr | $25,418 |
| Georgia | $2.72 | $21,760 | $15,232 | 7.2yr | $37,457 |
| New Mexico | $2.72 | $21,760 | $15,232 | 5.7yr | $51,919 |
| Kansas | $2.73 | $21,840 | $15,288 | 7.2yr | $37,856 |
| Tennessee | $2.73 | $21,840 | $15,288 | 8.8yr | $28,008 |
| Washington | $2.73 | $21,840 | $15,288 | 10.8yr | $20,122 |
| Wyoming | $2.74 | $21,920 | $15,344 | 7.6yr | $35,446 |
| Colorado | $2.75 | $22,000 | $15,400 | 6yr | $48,238 |
| Idaho | $2.75 | $22,000 | $15,400 | 9.5yr | $25,154 |
| Missouri | $2.75 | $22,000 | $15,400 | 8.7yr | $28,915 |
| Oklahoma | $2.75 | $22,000 | $15,400 | 7.7yr | $34,404 |
| Louisiana | $2.77 | $22,160 | $15,512 | 8.8yr | $28,533 |
| Alabama | $2.78 | $22,240 | $15,568 | 7yr | $39,671 |
| North Dakota | $2.78 | $22,240 | $15,568 | 10yr | $23,228 |
| South Dakota | $2.78 | $22,240 | $15,568 | 8.3yr | $31,316 |
| West Virginia | $2.78 | $22,240 | $15,568 | 8.9yr | $28,304 |
| Arkansas | $2.79 | $22,320 | $15,624 | 8.9yr | $28,430 |
| Montana | $2.79 | $22,320 | $15,624 | 9yr | $27,963 |
| Virginia | $2.79 | $22,320 | $15,624 | 7.8yr | $34,571 |
| Delaware | $2.8 | $22,400 | $15,680 | 7.3yr | $38,091 |
| Iowa | $2.8 | $22,400 | $15,680 | 8.9yr | $28,389 |
| Oregon | $2.8 | $22,400 | $15,680 | 8.7yr | $29,200 |
| Mississippi | $2.81 | $22,480 | $15,736 | 8.2yr | $32,401 |
| California | $2.82 | $22,560 | $15,792 | 2.9yr | $121,982 |
| Indiana | $2.82 | $22,560 | $15,792 | 7.9yr | $33,969 |
| Nebraska | $2.82 | $22,560 | $15,792 | 9.3yr | $26,547 |
| Pennsylvania | $2.82 | $22,560 | $15,792 | 7yr | $40,564 |
| Maryland | $2.85 | $22,800 | $15,960 | 6.2yr | $48,032 |
| New Jersey | $2.85 | $22,800 | $15,960 | 5.8yr | $53,424 |
| Illinois | $2.86 | $22,880 | $16,016 | 7.4yr | $38,222 |
| Wisconsin | $2.87 | $22,960 | $16,072 | 7.6yr | $36,955 |
| Maine | $2.88 | $23,040 | $16,128 | 4.8yr | $67,018 |
| Michigan | $2.88 | $23,040 | $16,128 | 7.3yr | $39,380 |
| Minnesota | $2.88 | $23,040 | $16,128 | 8.3yr | $32,376 |
| Alaska | $2.92 | $23,360 | $16,352 | 7.2yr | $40,785 |
| Connecticut | $2.93 | $23,440 | $16,408 | 4.6yr | $73,671 |
| Vermont | $2.95 | $23,600 | $16,520 | 6.3yr | $48,733 |
| New York | $2.96 | $23,680 | $16,576 | 5.5yr | $58,556 |
| Rhode Island | $2.97 | $23,760 | $16,632 | 4.7yr | $71,542 |
| New Hampshire | $3 | $24,000 | $16,800 | 5.7yr | $56,708 |
| Hawaii | $3.01 | $24,080 | $16,856 | 2.4yr | $157,965 |
| Massachusetts | $3.09 | $24,720 | $17,304 | 4.7yr | $73,923 |
Understanding Solar Panel Costs
Solar panel costs in 2026 average $2.75 per watt across the United States, though prices vary significantly by state. The cost per watt includes solar panels, inverters, mounting hardware, wiring, labor, permitting, and overhead. The most affordable states for solar tend to have highly competitive installer markets and favorable conditions for large-scale deployment.
The most important factor in reducing your solar cost is the 30% federal Investment Tax Credit (ITC). This credit directly reduces your tax liability by 30% of your total system cost. For a typical 8kW system at $22,000, the ITC saves you $6,600, bringing the net cost to approximately $15,400.
Beyond the federal credit, many states offer additional incentives that further reduce costs. State tax credits, utility rebates, and SREC programs can knock thousands more off your final price. In states like New York, homeowners can combine the 30% federal ITC with a 25% state tax credit (up to $5,000) for exceptional value.
When comparing solar quotes, always look at the total installed cost (not just panel price), the equipment being used, warranty terms, and the installer's track record. The cheapest quote isn't always the best value — quality equipment and experienced installation pay dividends over the 25+ year life of your system.
Frequently Asked Questions
How much do solar panels cost in 2026?▼
The average cost of solar panels in 2026 is $2.75 per watt before incentives. For a typical 8kW residential system, that translates to $22,000 before the 30% federal tax credit and approximately $15,400 after. Costs vary by state, with the cheapest states like Florida and Arizona averaging $2.58-$2.61/W and the most expensive states like Massachusetts at $3.09/W.
What factors affect solar panel cost?▼
Solar panel costs depend on several factors: your state and local market, system size (larger systems have lower per-watt costs), equipment choice (premium panels like SunPower cost more than budget options), roof complexity (steep roofs, multiple planes, or old roofs requiring replacement), and installer pricing. Getting multiple quotes is the best way to ensure competitive pricing.
Are solar panels getting cheaper?▼
Yes, solar panel prices have dropped approximately 70% over the past decade and continue to decline. However, the rate of decrease has slowed as the technology matures. Current prices represent excellent value, especially combined with the 30% federal tax credit available through 2032. Waiting for further price drops may result in missing current incentive levels.
How does the 30% tax credit work with solar costs?▼
The federal Investment Tax Credit (ITC) allows you to deduct 30% of your total solar system cost from your federal income taxes. This includes equipment, labor, permitting, and even sales tax in some cases. For a $22,000 system, the credit is $6,600, reducing your net cost to $15,400. The credit applies in the tax year your system is placed in service.
Should I pay cash or finance solar panels?▼
Both options have advantages. Cash purchase offers the best total savings with no interest payments and full ownership of the system and incentives. Solar loans allow you to go solar with $0 down while still claiming the tax credit, with monthly loan payments often less than your current electricity bill. Solar leases/PPAs offer the lowest upfront commitment but provide smaller total savings over time.
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