Compare Solar Quotes: What Homeowners Pay Across the US in 2026
$26,000 — that's the national average cost of a residential solar installation in 2026 before applying the federal Investment Tax Credit, which reduces the out-of-pocket cost by 30 percent to approximately $18,200. The range across the country runs from $15,000 to $45,000 for residential systems, with the wide spread driven by system size, equipment tier, installation complexity, and significant regional differences in labor costs and market competition. Comparing solar quotes is the single most impactful action a homeowner can take to reduce their solar installation cost — solar pricing is among the least standardized in the home improvement market.
The federal solar Investment Tax Credit (ITC) currently allows homeowners to deduct 30 percent of the total solar installation cost from their federal income tax liability. This credit applies to the full installed cost — equipment, labor, permits, and any battery storage added at the time of installation. The ITC applies as a credit (reducing taxes owed dollar for dollar), not a deduction. A homeowner with $20,000 in solar installation costs gets a $6,000 federal tax credit.
Solar Installation Costs by City
Solar pricing varies meaningfully across US cities due to local labor costs, permit fees, utility policy, and market competition. Cities with more solar installers have more competitive pricing; cities with high demand and fewer installers see higher prices.
**San Jose, CA** — California solar installations run among the highest in the country at $22,000 to $38,000 for a typical 7-9 kW system. California has strong solar incentives beyond the federal ITC (the SGIP battery storage incentive, NEM 3.0 net metering), but installation costs reflect high California labor rates and permit fees. Despite higher upfront costs, California homeowners typically see faster payback due to high utility rates.
**Phoenix, AZ** — Phoenix solar costs run $17,000 to $28,000 for a typical system. Arizona's high sun hours (Phoenix averages 299 sunny days per year) mean Phoenix systems produce more energy per installed watt than most US markets, which improves the economics. The Arizona solar market is competitive with many installers, keeping prices reasonable.
**Austin, TX** — Austin solar installation costs $16,000 to $27,000. Texas has no state income tax (so state solar tax incentives are limited), but Austin Energy offers local solar rebates that reduce upfront costs. Texas's deregulated electricity market makes solar economics variable depending on your retail electricity provider.
**Raleigh, NC** — North Carolina solar runs $17,000 to $28,000 for a typical system. NC offers a state tax credit of 15 percent in addition to the federal credit, making North Carolina one of the better financial environments for solar in the Southeast.
| City | 6 kW System | 8 kW System | 10 kW System | Avg Payback |
|---|---|---|---|---|
| San Jose, CA | $18,000-$27,000 | $23,000-$34,000 | $27,000-$40,000 | 7-10 years |
| Phoenix, AZ | $13,000-$20,000 | $17,000-$25,000 | $20,000-$30,000 | 6-9 years |
| Austin, TX | $12,000-$19,000 | $16,000-$24,000 | $19,000-$29,000 | 7-10 years |
| Raleigh, NC | $13,000-$20,000 | $17,000-$25,000 | $20,000-$30,000 | 7-11 years |
*Costs shown before federal ITC (30% credit). After ITC, subtract 30% from total.*
What Drives the Difference Between Solar Quotes
Comparing solar quotes without understanding what's in each quote is like comparing apples to oranges. Several factors create legitimate cost differences between competing quotes:
Panel brand and efficiency tier. There are three main solar panel quality tiers. Budget tier panels (Astronergy, Canadian Solar, Longi) cost $0.20 to $0.35 per watt and carry standard warranties. Mid-tier panels (REC, Silfab, Qcells) cost $0.30 to $0.45 per watt with better efficiency and temperature coefficients. Premium panels (SunPower, Maxeon, Panasonic EverVolt) cost $0.40 to $0.60 per watt with the best efficiency ratings and comprehensive warranties.
Inverter technology. String inverters are the lowest-cost option but don't optimize panel-by-panel production. Microinverters (Enphase) and DC power optimizers (SolarEdge) are more expensive but produce more energy in partial shading and provide panel-level monitoring. Microinverter and optimizer systems cost $1,500 to $4,000 more than string inverter systems.
Battery storage. Adding a home battery (Tesla Powerwall, Enphase IQ, Franklin WH) adds $8,000 to $15,000 to the project cost. Battery storage is increasingly common in California (grid stability) and hurricane-prone regions (backup power).
Installation company overhead. National solar companies (Sunrun, SunPower, Tesla Energy) typically price 15 to 30 percent higher than local installers for comparable equipment. Local installers have lower overhead and sometimes better local market knowledge. The risk with local installers is business continuity — you want a company likely to honor a 25-year panel warranty.
How to Compare Solar Quotes Effectively
Get at least three quotes from different installers for the same system size. When comparing quotes, look at: price per watt (total installed cost divided by system size in watts), panel brand and model, inverter brand and model, production estimate (first-year kWh), and warranty terms.
Production estimates are the key number. A cheaper system that produces less energy has a worse payback. Ask each installer for their production estimate methodology — the best installers use PVWatts or similar modeling tools with your specific address and roof orientation.
Don't make decisions based on monthly payment quotes from financed proposals without understanding the full cash cost and the total interest paid over the loan term. Solar loan interest paid over 20 years can add $5,000 to $15,000 to the real cost of the system.
Frequently Asked Questions
How much can I save by comparing multiple solar quotes? Homeowners who compare three or more quotes save an average of $3,000 to $8,000 compared to accepting the first quote received. Solar pricing is highly variable across installers for the same system.
What's included in a solar installation quote? A complete solar quote includes: panels (quantity, brand, wattage), inverter or microinverters, racking and mounting hardware, electrical work (disconnect, wiring), permit fees, interconnection application, and labor. Battery storage, if included, should be itemized separately.
How long do solar panels last? Quality solar panels degrade at about 0.5 percent per year. Most panels carry a production warranty guaranteeing at least 80 percent of rated output at 25 years. Practical lifespan is 30 to 40 years. Inverters typically need replacement at 10 to 15 years ($1,000 to $3,000).
Is solar worth it if I plan to sell my house in a few years? Studies consistently show that solar adds home value. The National Renewable Energy Lab found buyers pay a premium of approximately $4 per watt of installed solar — meaning a 7 kW system adds approximately $28,000 in home value. If you're selling soon, the value add can recoup the cost.
What happens to my solar system during a power outage? Standard grid-tied solar systems shut off during power outages for safety reasons. If you want backup power during outages, you need battery storage in addition to your solar panels. Battery-backed solar systems can power selected circuits during a grid outage.
Compare free solar quotes from licensed local installers at havequote.com/solar.
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Sandra Okafor has covered the home improvement industry for over 12 years, with a focus on helping homeowners understand contractor pricing, licensing requirements, and project timelines. She holds a certification in residential remodeling and has contributed research to several national contractor trade publications. At HaveQuote, she leads editorial research and cost analysis.