Solar panel cost in 2026: It may be lower than you think
Understanding solar costs means looking beyond sticker prices. Right now, systems average about $2.58 per watt before incentives. But this
Another measure of the relative cost of solar energy is its price per kilowatt-hour (kWh). Whereas the price per watt considers the solar system's size, the price per kWh shows the price of the solar system per unit of energy it produces over a given period of time. Net cost of the system / lifetime output = cost per kilowatt hour
Residential solar costs remain higher due to smaller scale and soft costs, typically ranging from $117-282 per MWh. However, residential installations benefit from avoided retail electricity rates, improving their economic proposition for homeowners. Key factors influencing solar costs include:
These benchmarks help measure progress toward goals for reducing solar electricity costs and guide SETO research and development programs. Read more to find out how these cost benchmarks are modeled and download the data and cost modeling program below.
NLR's solar technology cost analysis examines the technology costs and supply chain issues for solar photovoltaic (PV) technologies. This work informs research and development by identifying drivers of cost and competitiveness for solar technologies.
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