Solar panel installation: cost & ROI
Installing rooftop solar. The resale uplift varies widely by market and whether the system is owned (not leased), but owned solar can add value and strongly appeals to energy-conscious buyers.
“Net cost after resale” = project cost − resale value added. It's the part you don't recoup at sale, not a loss — most renovations cost more than they return, with the difference buying you the use and enjoyment of the upgrade.
How much does a solar panel installation cost in 2026?
Installing rooftop solar shifts a home's electricity from the grid to the sun, cutting or eliminating power bills and appealing to energy-conscious buyers. In 2026 a residential solar system averages around $25,000 nationally before incentives, ranging from roughly $15,000 for a small system to $40,000+ for a large system with battery storage. It recoups about 65% of its cost in resale value — and the running-cost savings plus the 30% federal tax credit change the real economics substantially.
Solar is unusual because resale ROI understates the total return: the monthly energy savings accrue to you while you live there, and owned systems (not leased) transfer clean value to a buyer. Cost is driven by system size (kilowatts), panel and inverter quality, roof complexity, and whether you add battery storage. Crucially, owning the system matters for resale — a leased system can complicate a sale, whereas an owned, paid-off array is a clear asset.
| System | Typical installed cost | Notes |
|---|---|---|
| Small system (4–6 kW) | $15,000–$20,000 | Partial offset, simple roof, no battery. |
| Standard system (national avg) | $22,000–$30,000 | ~8–10 kW, covers most of a typical home's use. |
| Large system (12+ kW) | $30,000–$40,000 | High-usage home or full offset, premium panels. |
| System + battery storage | $35,000–$55,000+ | Adds one or more home batteries for backup/independence. |
Ranges are 2026 US market figures compiled from industry cost guides; your local quote depends on size, finish and labour rates.
What a solar panel installation typically includes
- System design and permitting
- Panels, inverter and mounting
- Electrical tie-in and metering
- Inspection and commissioning
Pro tip: Owned systems add resale value; leased ones can complicate a sale. Buy, don't lease, if resale matters to you.
How solar panel installation compares
Ranked by share of cost recouped at resale, solar panel installation is #22 of 32 projects we track.
What affects the cost
- System size (kW)
- The number of panels needed to offset your usage is the primary cost driver — priced roughly per watt installed.
- Battery storage
- Adding batteries for backup power or self-consumption is a large optional cost, often $10,000–$20,000+.
- Roof complexity
- Steep, multi-plane, shaded or older roofs raise installation cost and may need reinforcement or a re-roof first.
- Incentives
- The 30% federal tax credit plus state and utility rebates can cut the net cost sharply — always model the after-incentive figure.
Solar panel installation cost by region
Costs vary by market. These are midrange estimates adjusted for regional price levels — always confirm with local quotes.
Full cost-by-location table (with ROI)
| Location | Estimated cost | Recouped |
|---|---|---|
| US National Average | $25,000 | 65% |
| New York, NY | $32,500 | 65% |
| Los Angeles, CA | $30,500 | 65% |
| Chicago, IL | $27,500 | 65% |
| Houston, TX | $24,500 | 65% |
| Phoenix, AZ | $24,300 | 65% |
| Miami, FL | $27,000 | 65% |
| Seattle, WA | $30,500 | 65% |
| Denver, CO | $27,000 | 65% |
| Atlanta, GA | $24,500 | 65% |
| Boston, MA | $31,500 | 65% |
| San Francisco, CA | $34,500 | 65% |
| London, UK | £20,700 | 65% |
| Manchester, UK | £17,800 | 65% |
| Birmingham, UK | £17,400 | 65% |
| Edinburgh, UK | £19,400 | 65% |
| Dublin, IE | €24,800 | 65% |
| Toronto, CA | C$36,000 | 65% |
| Vancouver, CA | C$38,400 | 65% |
| Sydney, AU | A$41,800 | 65% |
| Melbourne, AU | A$38,800 | 65% |
| Auckland, NZ | NZ$44,600 | 65% |
| Washington, DC | $28,200 | 65% |
| Philadelphia, PA | $28,700 | 65% |
| Minneapolis, MN | $26,800 | 65% |
| Austin, TX | $22,300 | 65% |
| Dallas, TX | $21,800 | 65% |
| Glasgow, UK | £17,600 | 65% |
| Bristol, UK | £18,800 | 65% |
| Calgary, CA | C$33,200 | 65% |
| Montreal, CA | C$30,800 | 65% |
| Brisbane, AU | A$39,900 | 65% |
| San Diego, CA | $29,500 | 65% |
| Portland, OR | $28,200 | 65% |
| Nashville, TN | $23,800 | 65% |
| Charlotte, NC | $23,000 | 65% |
| Tampa, FL | $24,500 | 65% |
| Leeds, UK | £17,400 | 65% |
| Perth, AU | A$40,700 | 65% |
| Adelaide, AU | A$34,200 | 65% |
| Wellington, NZ | NZ$42,500 | 65% |
| Christchurch, NZ | NZ$40,000 | 65% |
Before you spend
- Get 3 written quotes from licensed local contractors before committing
- Match finishes to what's normal for your neighbourhood, not above it
- Keep a 10–15% contingency for surprises once work starts
- Avoid overcapitalising — check what comparable homes nearby actually sell for
- If you're selling soon, weigh resale timing against how long the project will take
Frequently asked questions
How much do solar panels cost in 2026?
About $25,000 before incentives for a typical system, from roughly $15,000 for a small array to $40,000+ for a large system with storage.
Do solar panels add home value?
Owned systems recoup around 65% of their cost in resale value and add ongoing energy savings; leased systems can complicate a sale, so ownership matters.
Is the federal solar tax credit still available?
A 30% federal tax credit has applied to residential solar; because incentive programs change, confirm the current credit and any state/utility rebates before committing.
Should I add a battery?
Batteries add backup power and let you use more of your own solar, but they're a significant extra cost — worth it mainly where outages or time-of-use rates are common.
Related cost guides
Estimate your own solar panel installation
Adjust the finish level, scope and currency to get a figure for your situation.
Adjusts benchmark costs to your currency and regional cost level.
How it compares
Every project ranked by how much of its cost you recoup at resale, at your settings. Your pick is highlighted.
Methodology
Figures are national midrange “Cost vs. Value” averages adjusted for finish, scope and region. They are planning estimates, not quotes or appraisals, and lean toward US/UK/Canada/Australia mid-markets. Reviewed June 2026. See our full methodology →
Get your own solar panel installation numbers
See how the solar panel installation stacks up against 31 other renovations, or take the numbers with you.