The average cost of a residential solar panel system in the United States ranges from $15,000 to $35,000 before incentives, depending on system size, equipment quality, and where you live. After the 30% federal solar tax credit, most homeowners pay between $10,500 and $24,500 out of pocket.
But “average cost” only tells part of the story. The real question is: what will solar panels cost for your home? That depends on your electricity usage, roof characteristics, local utility rates, and the installer you choose.
This guide breaks down every factor that affects solar panel pricing so you can walk into a consultation informed and confident.
Get a free, personalized solar quote from Gold Path Solar – no pressure, no hidden fees.
What Is the Average Cost of Solar Panels?
Solar panel system pricing is typically measured in cost per watt ($/W), which allows you to compare systems of different sizes on equal footing. In 2026, the national average cost per watt for residential solar is approximately $2.50 to $3.50 per watt before incentives.
Here is what that looks like for common system sizes:
| System Size | Cost Before Tax Credit | Federal Tax Credit (30%) | Net Cost After Tax Credit | Typical Home Size |
|---|---|---|---|---|
| 5 kW | $12,500 – $17,500 | $3,750 – $5,250 | $8,750 – $12,250 | Small home, 1–2 people |
| 8 kW | $20,000 – $28,000 | $6,000 – $8,400 | $14,000 – $19,600 | Average home, 2–3 people |
| 10 kW | $25,000 – $35,000 | $7,500 – $10,500 | $17,500 – $24,500 | Larger home, 3–4 people |
| 12 kW | $30,000 – $42,000 | $9,000 – $12,600 | $21,000 – $29,400 | Large home or high usage |
| 15 kW+ | $37,500 – $52,500 | $11,250 – $15,750 | $26,250 – $36,750 | Very large home, pool, EV |
These ranges account for differences in equipment quality, labor costs, and regional pricing. The actual cost for your home will depend on several factors we cover below.
What Factors Affect Solar Panel Cost?
No two solar installations are exactly alike. Here are the primary factors that determine your final price.
How Does System Size Affect Solar Panel Pricing?
System size is the single biggest factor in your total cost. A larger system costs more upfront but produces more electricity, which means greater savings over time. Your system size is determined by how much electricity you use each month and how much of that usage you want to offset with solar.
Most residential systems in Ohio, Kentucky, and South Carolina range from 6 kW to 15 kW. Your Gold Path Solar Advocate will analyze your actual electricity bills to recommend the right system size – not an oversized system designed to inflate the sale price.
How Does Equipment Quality Affect the Cost of Solar Panels?
Solar equipment is not all created equal. The two main components that affect cost are solar panels and inverters.
Solar panels: Tier-1 manufacturers like Silfab and QCell produce panels with higher efficiency ratings, better degradation warranties, and longer lifespans than budget panels. Higher-efficiency panels may cost more per unit, but you may need fewer of them to achieve the same output – potentially saving money on racking, labor, and roof space.
Inverters: Microinverters (like those made by Enphase) cost more than string inverters, but they offer panel-level monitoring, better performance in partial shade, and independent operation – if one panel has an issue, the rest keep producing. For most residential installations, microinverters are worth the premium.
At Gold Path Solar, we use Tier-1 equipment from manufacturers we trust – not whatever is cheapest in the warehouse. Our vendor-agnostic approach means we recommend the best-fit equipment for your specific roof and energy goals, not the brand that pays us the highest margin.
Request a free quote to see which equipment is right for your home →
[INSERT IMAGE: Side-by-side comparison of Tier-1 vs budget solar panels with key spec differences]
Does Your Roof Type Affect Solar Installation Cost?
Yes. The type, condition, and layout of your roof directly impact installation complexity and cost.
- Asphalt shingle roofs are the most common and typically the least expensive to install on. Standard racking and flashing systems are designed for shingle roofs.
- Metal roofs (especially standing seam) are excellent for solar. Clamp-on mounting systems require no roof penetrations, which can reduce labor time and eliminate leak risk.
- Tile roofs (clay or concrete) require specialized mounting hardware and more careful handling during installation, which can add $500–$2,000 to the project.
- Flat roofs need ballasted or tilt-up racking systems to angle panels for optimal sun exposure, adding some cost but often providing easy access for maintenance.
Roof condition matters too. If your roof needs replacement within the next 5–10 years, it makes sense to do it before or during the solar installation. Gold Path Solar can coordinate roof work so your panels go on a roof that will last the full 25+ year lifespan of your system.
How Does Your Location Affect Solar Panel Cost?
Where you live affects solar pricing in several ways:
- Local labor rates vary between markets. Installation costs in major metro areas tend to be higher than in suburban or rural areas.
- Permitting requirements differ by municipality. Some jurisdictions have streamlined solar permitting, while others require multiple inspections and additional fees.
- Utility interconnection policies determine how your system connects to the grid and how you get credited for excess energy. Ohio, Kentucky, and South Carolina each have different rules that can affect system design and overall economics.
- Sun exposure varies by region. Homes in Greenville, SC receive more annual sunlight than homes in Columbus, OH, which can affect system sizing and per-kWh savings.
How Do Permitting and Interconnection Fees Affect Solar Cost?
Every solar installation requires permits from your local building department and an interconnection agreement with your utility company. These fees typically add $500 to $2,000 to your total project cost, depending on your municipality and utility.
A reputable installer handles all permitting and interconnection paperwork on your behalf. At Gold Path Solar, this is included in your project – your dedicated Solar Advocate manages the entire process from permit application through final utility approval, so you never have to sit on hold with your utility company.
What Is the True Cost of Solar Panels After Incentives?
The sticker price of a solar panel system is not what you actually pay. Federal, state, and local incentives can reduce your net cost by 30% or more.
How Does the Federal Solar Tax Credit Reduce Cost?
The federal Investment Tax Credit (ITC) allows you to deduct 30% of your total solar installation cost from your federal income taxes. This includes equipment, labor, permitting, and even battery storage if installed with your solar system.
For a $25,000 system, the ITC saves you $7,500 – bringing your net cost to $17,500. This credit is available through 2032, after which it is scheduled to step down. For a detailed breakdown of all available incentives, see our guide on solar financing, tax credits, and incentives.
Are There State and Local Solar Incentives in Ohio, Kentucky, and South Carolina?
Beyond the federal tax credit, additional savings may be available depending on your state and utility:
- Ohio: Net metering allows you to receive credits for excess energy sent back to the grid. Some Ohio utilities offer additional rebate programs. Property tax exemptions may apply to the added home value from solar.
- Kentucky: Net metering is available through most utilities. Kentucky also offers a sales tax exemption on solar equipment.
- South Carolina: One of the most solar-friendly states in the Southeast, with a state tax credit of up to 25% on top of the federal credit, plus net metering and property tax exemptions.
Your Gold Path Solar Advocate will walk you through every incentive you qualify for during your free consultation – no guessing, no surprises.
Find out exactly what incentives are available in your area →
[INSERT IMAGE: Map graphic showing OH, KY, SC with key incentive highlights for each state]
How Much Do Solar Panels Cost Per Month with Financing?
Most Gold Path Solar customers use $0-down solar financing – meaning no upfront cost and no closing fees. With a solar loan, your monthly payment often comes in lower than your current electric bill, so you start saving from day one.
Here is a simplified example:
| Scenario | Monthly Electric Bill | Monthly Solar Loan Payment | Monthly Savings |
|---|---|---|---|
| Average Ohio homeowner | $150 – $200 | $120 – $160 | $30 – $40 |
| After applying tax credit to loan | $150 – $200 | $85 – $115 | $65 – $85 |
This does not account for rising utility rates. If your electric company raises rates by 3–5% per year (as most have historically), your savings grow each year while your solar payment stays the same.
Gold Path Solar offers zero-closing-cost financing, which means every dollar you finance goes toward your solar system – not bank fees. This is a critical distinction that many solar companies do not offer. For a deeper dive into your options, visit our solar financing guide.
Why Do Solar Panel Prices Vary Between Installers?
You will notice significant price differences when getting quotes from multiple solar companies. Here is why:
What Is the Real Cost of “Cheap” Solar?
The lowest-priced quote is rarely the best value. Budget installers cut costs by using lower-quality equipment, subcontracting labor to crews they do not directly train or supervise, and skipping the personalized system design that maximizes your long-term production.
A poorly designed or installed system can underperform by 10–20% over its lifetime – costing you thousands in lost savings that dwarf any upfront discount.
What Are You Actually Paying For?
A quality solar installation includes:
- Custom system design based on your actual electricity bills, roof layout, shading analysis, and energy goals
- Tier-1 equipment with industry-leading warranties (25–30 years on panels, 25 years on microinverters)
- In-house installation crews – not subcontracted labor
- Complete project management – permitting, inspections, utility interconnection, all handled for you
- Post-installation support – monitoring, maintenance guidance, and warranty service
Gold Path Solar is employee-owned, which means every team member has a direct stake in the quality of your installation. We do not subcontract any part of your project. Your dedicated Solar Advocate manages your installation from the first phone call through final activation and beyond. This is why our customers consistently leave 5-star reviews and refer their friends and family through our referral program.
How Do Customer Acquisition Costs Affect Solar Pricing?
One of the biggest hidden costs in solar is how the company finds its customers. Large national installers spend $3,000–$6,000 per customer on advertising, door-to-door sales teams, and purchased leads – and that cost gets baked into your price.
Gold Path Solar grows primarily through referrals from satisfied customers, which keeps our customer acquisition costs dramatically lower. That savings gets passed directly to you in the form of more competitive pricing for higher-quality work.
Get a transparent, no-pressure quote from Gold Path Solar →
[INSERT IMAGE: Cost comparison infographic showing what’s included in a GPS quote vs typical solar company quote]
How Much Do Solar Panels Save Over Time?
The cost of solar panels is a one-time investment. Your electricity bill is a forever expense that increases every year. That is the fundamental math behind solar savings.
Most Gold Path Solar customers save $1,500 or more per year on electricity, which adds up to $35,000+ over 25 years. Actual savings depend on your system size, electricity usage, local utility rates, and net metering policy.
For real-world examples of what homeowners in your area are saving, check out our Solar Spotlights case studies. These are actual Gold Path Solar customers with verified system sizes, production numbers, and savings figures.
For a detailed analysis of solar payback timelines and long-term return, see our guide on solar ROI, savings, and payback periods.
How Can You Get the Best Price on Solar Panels?
Here are practical ways to ensure you get the most value from your solar investment:
- Get multiple quotes. Compare at least 2–3 proposals, but compare apples to apples – equipment quality, warranty terms, and installer reputation matter more than the bottom-line number.
- Understand what is included. Make sure the quote covers permitting, interconnection, monitoring setup, and post-installation support. Ask about additional fees.
- Claim every incentive. The 30% federal tax credit is the biggest single savings. Make sure your installer helps you identify and claim all applicable state and local incentives too.
- Choose quality over price. A system that produces reliably for 25+ years is a far better investment than one that was $2,000 cheaper upfront but underperforms or requires expensive repairs.
- Ask about financing terms. Zero-down loans with no closing costs (like those available through Gold Path Solar) let you go solar with no upfront payment and start saving immediately.
- Check installer reviews and track record. Read reviews on Google, EnergySage, and the Better Business Bureau. Look for consistent praise around communication, installation quality, and post-sale support.
Is Solar Worth the Cost?
For most homeowners in Ohio, Kentucky, and South Carolina – yes. When you combine the 30% federal tax credit, state incentives, $0-down financing, and rising utility rates, solar panels pay for themselves within 6–10 years and then produce essentially free electricity for another 15–20 years.
The real cost of solar is not the price tag on the system. It is the price you pay by not going solar – a lifetime of increasing electric bills with zero return on your money. Every dollar you send to your utility company is gone. Every dollar you put into solar panels comes back to you in the form of savings, home equity, and energy independence.
To see exactly what solar would cost for your specific home, schedule a free consultation with Gold Path Solar. Your dedicated Solar Advocate will analyze your electricity usage, assess your roof, identify every incentive you qualify for, and present a transparent proposal – no high-pressure tactics, no hidden fees, no surprises.
Get Your Free Solar Quote Today →
Frequently Asked Questions About Solar Panel Cost
How much do solar panels cost for a 2,000 square foot house?
A 2,000 sq ft home typically needs an 8–10 kW system, which costs $20,000–$35,000 before the 30% federal tax credit. After the credit, expect to pay $14,000–$24,500. Your actual cost depends on your electricity usage, not just your home’s size. Learn how to determine the right system size for your home.
Can I get solar panels for free?
There is no such thing as truly “free” solar panels. Companies advertising “free solar” typically offer solar leases or power purchase agreements (PPAs) where you pay a monthly fee to use panels owned by someone else. With a solar loan from Gold Path Solar, you own your system outright, build equity, and qualify for the full tax credit – with zero money down.
How much do solar panels cost in Ohio?
Solar panel costs in Ohio typically range from $2.40 to $3.30 per watt, putting a typical 10 kW system between $24,000 and $33,000 before the federal tax credit. After the 30% ITC, most Ohio homeowners pay $16,800–$23,100. For a personalized estimate, visit our Columbus service area page or request a free quote.
How much do solar panels cost in Kentucky?
Kentucky solar panel systems generally cost $2.30 to $3.20 per watt. A 10 kW system runs $23,000–$32,000 before the federal tax credit. With the 30% ITC, your net cost drops to $16,100–$22,400. Kentucky’s sales tax exemption on solar equipment provides additional savings. See our Lexington or Louisville service pages for local details.
How much do solar panels cost in South Carolina?
South Carolina solar costs range from $2.50 to $3.40 per watt. However, South Carolina offers one of the best state solar tax credits in the country – up to 25% of system cost – on top of the 30% federal credit. This combination can reduce your net cost by more than half. Learn more about solar in Greenville, SC.
Are solar panels worth it if my electric bill is low?
If your electric bill is under $75/month, the financial payback period for solar will be longer. However, utility rates are rising every year. What costs you $75 today may cost $120 in five years. Solar locks in your electricity cost for 25+ years. Whether it makes sense depends on your specific situation – a free consultation with a Gold Path Solar Advocate can help you decide.
Do solar panel costs include installation?
Yes. When solar companies quote a price per watt or total system cost, that figure includes equipment and installation labor. At Gold Path Solar, our quotes also include permitting, inspections, utility interconnection, system monitoring setup, and your dedicated Solar Advocate’s project management – everything you need from start to finish.