Solar Panel Cost by State in 2026: Complete Pricing Guide

Last updated: October 2026

The question every homeowner asks first: how much do solar panels actually cost?

In 2026, the honest answer is: it depends on your state and, even more, on your installer. Lawrence Berkeley National Laboratory's data on 2024 installations show state medians about $1.10/watt apart among states with enough data, while median prices across the 100 largest residential installers ranged from about $2.70 to $6.50/watt.

With the residential federal solar Investment Tax Credit (Section 25D) having expired on December 31, 2025, state-level incentives have never been more important. This guide breaks down exactly what you'll pay in the top 15 solar markets, what's driving those costs, and how to determine whether solar still makes financial sense in your state.

What You're Actually Paying For

The "cost of solar" isn't mostly the panels. Lawrence Berkeley National Laboratory estimates that soft costs and other balance-of-system costs (customer acquisition, installation labor, permitting and interconnection, financing fees, taxes, profit, racking, and wiring) make up roughly 80% of the installed price of a residential system. Modules and inverters are the smaller share.

That soft-cost share is why prices vary so much between states and installers. Permitting and interconnection timelines also vary widely by city and utility, and longer timelines add cost.

National Average Cost in 2026

Lawrence Berkeley National Laboratory's Tracking the Sun data put the median installed price of host-owned residential systems installed in 2024 at about $3.98/watt before incentives (the lab reports it as $4.0/W). For an 8 kW system that is about $31,800; for 10 kW, about $39,800.

How you pay matters: nationally, LBNL found cash-purchased systems had a median of about $3.5/watt, while loan-financed systems were about $4.7/watt, partly because dealer fees are rolled into the price. The most common price level for cash purchases was below $3/watt, so a competitive quote can come in well under the median.

State-by-State Installed Prices (LBNL, 2024 Installations)

The medians below come from Lawrence Berkeley National Laboratory's Tracking the Sun 2025 public data file. We computed them using LBNL's installed-price sample: residential, host-owned (not leased or PPA), solar without a battery, not self-installed, installed in 2024. The national result, $3.98/W, matches LBNL's published $4.0/W. A state median is shown only where at least 20 priced systems exist, which is LBNL's own reporting threshold.

Other states do not have enough priced 2024 systems in LBNL's public data for a reliable state median, so our calculators and state pages use the national median for them. Colorado's figure rests on a small sample. For state incentives, net metering rules, and electricity rates, see each state guide.

Source: LBNL Tracking the Sun, 2025 public data file (2024 installations) and October 2025 data update. Prices are before incentives and include loan-financed systems.

What Drives Cost Differences Between States

1. Labor Market Costs

Installation labor is part of the soft costs that make up most of the installed price, so local wage levels and labor availability feed directly into what installers charge.

2. Permitting Complexity

California's SB 379 requires most cities and counties to offer automated online permitting for residential solar, but local processes and timelines still vary.

3. Market Competition

Texas has one of the most competitive solar installation markets in the country, with hundreds of licensed installers competing for business. That competition is consistent with Texas having the lowest median price among the states in LBNL's 2024 data ($3.25/W).

4. Roof and Site Complexity

A simple south-facing roof with minimal shading in Phoenix costs less to install than a complex multi-directional roof in Seattle. Shading analysis, roof penetration requirements for tile roofs (common in California and Florida), and ground-mount vs. rooftop differences all add to final costs.

5. System Configuration

Microinverter systems and power optimizers usually cost more than a single string inverter but can perform better on shaded or multi-direction roofs. Premium high-efficiency panels also add cost; compare itemized quotes to see what each option adds.

State Rules That Still Matter in 2026

Without the federal residential credit, two state-level factors now decide most of the math: how your exported solar is credited and what state incentives you can actually claim.

Net metering. In states such as New York, Massachusetts, New Jersey, Maryland, Pennsylvania, and Colorado, solar is credited at or near the retail rate up to your own use. In others, exports earn much less: California's Net Billing Tariff averages about 4¢/kWh for a typical rooftop system, Arizona's largest utility pays about 6.2¢/kWh, and Nevada pays 75% of retail for excess energy. Our 2026 state ranking lists the rule and source for each state.

State incentives. A few incentives apply at a known rate, such as New York's 25% solar income tax credit (up to $5,000) and Massachusetts' 15% residential energy credit (up to $1,000). Others, including New Jersey's and DC's solar certificate markets, Massachusetts SMART, NY-Sun, and Illinois Shines, pay amounts that change with program blocks and market prices. Check the current value with the program administrator before counting on it.

When Is Solar Worth It in 2026 Without the Federal ITC?

Using our state planning model (an 8 kW system at LBNL's installed prices and EIA's June 2026 rates, with no federal credit), simple payback in states with retail-rate net metering ranges from about 9.6 years in New York and Massachusetts to about 17 years in Florida, and longer still in lower-rate states. Three things move the result the most:

• Electricity rate. At about 29–30¢/kWh (New York, Massachusetts, Maine, Rhode Island), each kWh of solar is worth roughly twice as much as in states near 15¢/kWh.
• Export credit. A high rate does not guarantee fast payback if exports are credited far below it; California's modeled payback is about 15.9 years despite a 34.7¢/kWh rate.
• Installed price. The spread between installers is larger than the spread between states, so a competitive quote can change your payback by years.

Factors That Can Reduce Your Net Cost

Even without the federal residential ITC, there are legitimate ways to reduce your effective out-of-pocket cost:

Utility programs: Some utilities offer solar or battery incentives; availability changes often, so check your utility's current offerings and DSIRE.

Solar renewable energy certificates (SRECs): In markets such as New Jersey, DC, Maryland, and Pennsylvania, solar certificates can provide ongoing revenue; Massachusetts now uses its SMART program instead.

Financing: Solar loans at 5–8% interest allow you to preserve cash while building equity in your system. Compare loan terms carefully: LBNL found the median price of loan-financed systems in 2024 was about $1.20/watt higher than for cash purchases, partly because dealer fees are rolled into the up-front price.

Comparative bidding: LBNL's data show median prices across the 100 largest residential installers ranging from about $2.70 to $6.50/watt in 2024. On an 8 kW system, that spread is more than $25,000, so getting several itemized quotes is the single most effective way to lower your cost.

The Bottom Line

Lawrence Berkeley National Laboratory's data put the 2024 median installed price at about $3.98/watt nationally, with state medians from $3.25 (Texas) to $4.39 (New Mexico) where enough data exist, and cash purchases lower than loan-financed ones. The expiration of the residential federal tax credit has raised the bar for solar economics. The strongest cases are in high-rate states that still credit solar at retail, led by New York and Massachusetts in our model; where exports are credited far below retail, using your solar on-site matters more than the headline rate.

In mid-rate states, the math requires more careful analysis that accounts for your specific roof, local sun hours, utility rate trajectory, and available financing. Use the calculators below to model your specific situation before committing to a purchase.

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Data sources: LBNL Tracking the Sun 2025 public data file and October 2025 data update (installed prices); EIA Electric Power Monthly (electricity rates); DSIRE and state program pages (incentives)