Solar cost & savings

There's no single price for solar — it depends on how big a system you need, your roof, your region, and which incentives you qualify for. Here's how to think about it.

What drives the price

Installers often quote a price per watt so you can compare systems of different sizes. The all-in number you care about is the net cost after incentives.

Payback period

Your payback period is how long the energy savings take to equal what you paid. It depends on your electricity rate, how much sun your roof gets, your usage, and your incentives. In areas with high power prices and good sun, payback is faster; in cheap-power, low-sun areas it's slower. After payback, the remaining years of the system's life (panels are typically warrantied 25 years) are largely savings. Read the full payback guide →

Ways to pay

Cash purchase

Highest lifetime savings and you own the system (and claim the tax credit), but the largest upfront cost.

Solar loan

Spread the cost over time while still owning the system and keeping the incentives. Watch the interest rate and any “dealer fees” baked into the price.

Lease / Power Purchase Agreement (PPA)

A third party owns the system on your roof; you pay a fixed monthly lease or buy the power it produces (PPA). Little-to-no upfront cost, but you don't own the system and you don't get the tax credit — the company does. Lifetime savings are usually lower, and a lease can complicate a future home sale.

Rule of thumb: if you can use the tax credit and afford it, owning (cash or loan) almost always beats leasing on lifetime savings. Always get more than one quote and compare the net price per watt.
Prices and incentives change over time and by location. Treat any number you see online as a ballpark and verify with current local quotes and official incentive sources.

Next: how the incentives and tax credits work →