How solar panel cost is calculated

System size × cost per watt, plus fixed costs. The calculator multiplies your system size in kW by your cost per watt — $2.90 is a typical US installed figure in 2026 — then adds any fixed costs such as permits or a main-panel upgrade. An 8.4 kW system at $2.90 per watt costs about $24,360; a 4 kW system about $11,600; a 10 kW system about $29,000.

The split is roughly 60% equipment (panels, inverter, mounting, wiring) and 40% labour, permits and inspection. Premium panels, complex roofs, batteries and panel upgrades push the cost per watt up; simple roofs and competitive quotes push it down.

All figures are post-credit: the US 30% federal residential solar credit ended on 31 December 2025. If your state or utility still offers an incentive, subtract it from your total before comparing quotes.

Need the full picture? Use the solar panel calculator to size your system first, then the installation cost breakdown and the payback calculator.