How much does solar cost per watt in the US?

US solar installation costs range from about $2.50-3.50/watt depending on state. The national average is around $2.85/watt before incentives. After the 30% federal ITC, the effective cost is around $2.00/watt.

Which state has the cheapest solar?

Florida, Texas, Arizona, and Louisiana typically have the lowest solar installation costs ($2.50-2.65/watt). Northeast states (NY, MA, CT) tend to be most expensive ($3.00-3.25/watt) due to higher labor costs and permitting complexity.

Solar Panel Cost by State

How much does solar cost in your state? Select your state and system size — see gross cost, all incentives, and net cost after credits.

Your location and system

State?

System size?

Solar in California — 8 kW system

$17,080 net cost

Gross cost$24,400

$/watt avg$3.05/W

Federal ITC (30%)-$7,320

Avg peak sun hrs5.7 hrs/day

Est. annual production14,314 kWh

🏷 California offers a sales tax exemption on solar equipment — reducing the gross cost above.

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How to Use This Calculator

Select your state

Choose your state from the dropdown. Each state has its own average installed cost per watt based on local labor markets, permit requirements, and competition among installers. States like California and New York tend to have higher costs due to more complex permitting; southern states with lower labor costs tend to be cheaper.

Choose your system size

Select the system size that matches your home's energy needs. Not sure what size you need? Use our Solar Panel Calculator first — it calculates the right kW based on your electricity bill. System sizes range from 4 kW for small homes to 20+ kW for large homes or light commercial use.

Read your results

The calculator shows the gross cost, all applicable incentives (federal ITC, state tax credit, state rebate), estimated net cost, and projected annual production. State incentives vary widely — some states offer no state-level credits while others add significant savings on top of the 30% federal ITC.

The Formula

Gross cost = System kW × 1,000 × $/watt (state average) Federal ITC = Gross cost × 30% State credit = Gross cost × State credit % (capped at max) Net cost = Gross cost − Federal ITC − State credit − Rebates Annual production (kWh) = kW × Peak sun hours × 0.86 × 365

The $/watt figures are state averages from 2026 installer data. Actual quotes may be 10-20% higher or lower depending on your installer, roof type, panel brand, and local competition. Always get 3+ quotes before committing.

State Incentives at a Glance

These states have notable solar incentives beyond the federal 30% ITC:

New York25% credit (up to $5,000) + sales tax exemption

Hawaii35% credit (up to $5,000)

Arizona25% credit (up to $1,000) + sales tax exemption

South Carolina25% credit (up to $35,000)

Idaho40% deduction on equipment cost (up to $5,000)

Maryland$1,000 state rebate + property tax exemption

Massachusetts15% credit (up to $1,000) + sales tax exemption

Iowa15% credit (up to $5,000) + sales tax exemption

FAQ

Why does solar cost more in some states than others? ▼

Solar installation costs vary by state for several reasons: labor costs (higher in coastal metros), permitting complexity (CA and MA have multi-stage processes), HOA restrictions, roof types (tile is more expensive than composition shingle), market maturity (more competition = lower prices), and utility interconnection requirements. California has expensive labor and permits but a mature market with many installers competing for business.

What is a sales tax exemption for solar? ▼

Many states exempt solar equipment from state sales tax (typically 4-10% of equipment cost). For a $25,000 system in a state with 7% sales tax, the exemption saves $1,750. This calculator flags which states have sales tax exemptions. Check with your installer — not all installers automatically apply the exemption, and some may require you to provide an exemption certificate.

Are property taxes affected by solar? ▼

Many states offer property tax exemptions that prevent your property taxes from increasing due to the added home value from solar. Without an exemption, a $30,000 solar system that increases home value by $24,000 could add $300-600/year to your property tax bill. Over 25 years, this adds up. States with property tax exemptions for solar include CA, FL, TX, NY, AZ, CO, MA, and many others — check your state's solar property tax rules.

Can I combine the federal ITC with state credits? ▼

Yes — federal and state incentives stack. You claim the federal ITC on your federal tax return and the state credit on your state return. Both apply to the gross system cost. A homeowner in New York with a $30,000 system could receive: $9,000 federal ITC + $5,000 NY state credit (capped) = $14,000 total in tax credits, plus sales tax exemption on equipment. The net cost could be under $16,000.