Solar Panel Cost Calculator

Size a home solar system from your monthly electricity use and sun hours, then estimate the installed cost before and after incentives.

kWh
%
hrs
Roughly 3.5 in the Northeast and Pacific Northwest, 4.5 for much of the country, 5.5 or more in the Southwest.
%
Wiring, inverter, soiling, and shading. 14% is the PVWatts default.
W
$ /W
Your quote divided by system watts. Quotes commonly fall between $2.50 and $3.50 per watt before incentives.
%
The federal residential credit (Section 25D) ended for systems paid for after December 31, 2025. Enter any state or utility incentive you qualify for.
System Size Needed
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Panels Needed
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Installed Cost
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Cost After Incentives
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Estimated Annual Production
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With the default inputs (Monthly electricity use 900; Share of usage to cover 100%; Peak sun hours per day 4.5; System losses 14%; Panel size 400; Installed cost $2.75; Incentives and rebates 0%), this calculator returns System Size Needed 7.65 kW, Panels Needed 20 panels and Installed Cost $21,025.80.

How monthly electricity use changes the result

Every row is computed with this page's own calculator. Change the inputs above to model your own numbers.

System Size Needed by monthly electricity use (other inputs held at: Share of usage to cover 100%; Peak sun hours per day 4.5; System losses 14%; Panel size 400; Installed cost $2.75)
Monthly electricity useSystem Size NeededCost After Incentives
500 kWh4.25 kW$11,681.00
750 kWh6.37 kW$17,521.50
900 kWh7.65 kW$21,025.80
1,200 kWh10.19 kW$28,034.41
1,500 kWh12.74 kW$35,043.01
2,000 kWh16.99 kW$46,724.01

Key Takeaways

  • Electricity use, sunlight, and system losses determine the required solar capacity.
  • Panel wattage converts required system capacity into a whole-number panel count.
  • Cost per watt estimates installed cost before the entered incentives and rebates.
  • Default inputs require 7.65 kW and produce an estimate of 20 panels.

How to Use This Solar Panel Cost Calculator

Enter the household's average monthly electricity use in kilowatt-hours. Choose the share of that usage the solar system should cover, from partial offset to full offset. Then enter the site's average peak sun hours per day and an allowance for system losses.

Provide the rated wattage of one panel, the installed cost per watt, and a combined percentage for applicable incentives and rebates. The calculator estimates the system capacity, number of panels, annual production, installed cost, and cost after incentives. Residential panels are commonly rated at 400 to 450 watts each.

How the Math Works

Annual kWh needed = monthly kWh × 12 × offset. Production per kW = sun hours × 365 × (1 minus losses). System kW = annual kWh needed ÷ production per kW. Panels = system watts ÷ panel watts, rounded up. Installed cost = system watts × cost per watt. Net cost = installed cost × (1 minus incentive).
  • Monthly kWh is the household's average monthly electricity consumption.
  • Offset is the share of electricity use the system is intended to cover.
  • Sun hours means average daily peak sun hours at the property.
  • Losses account for production reductions within the modeled system.
  • System watts is the required system capacity in kilowatts multiplied by 1,000.
  • Panel watts is the nameplate power rating of one panel.
  • Incentive is the combined rebate or incentive percentage entered by the user.

Example Calculation

Using the shipped defaults, monthly electricity use is 900 kWh and the target offset is 100%. Peak sun hours are 4.5 per day, with system losses of 14%. The panel size is 400 watts, installed cost is $2.75 per watt, and incentives and rebates are 0%.

The annual electricity requirement is based on twelve months of consumption. Production capacity is adjusted for the entered sunlight and losses. PVWatts, the NREL production model, also uses 14% as its default for system losses. The resulting panel requirement is rounded up because a fraction of a panel cannot be installed.

The displayed results are System Size Needed: 7.65 kW, Panels Needed: 20 panels, Installed Cost: $21,025.80, Cost After Incentives: $21,025.80, and Estimated Annual Production: 10,800 kWh/yr.

Tips for Getting the Most From This Calculator

  • Use twelve months of utility bills to calculate representative monthly electricity consumption.
  • Use location-specific sun-hour data rather than assuming every roof receives equal sunlight.
  • Enter a panel wattage that matches the equipment included in a contractor's proposal.
  • Compare the calculated capacity with installer estimates that consider roof direction, shade, and layout.
  • Enter only incentives reasonably available for the property, ownership structure, and installation date.

Important Considerations

This is a planning estimate, not a roof design or contractor quote. Roof geometry, shade, panel orientation, equipment selection, labor, permitting, and electrical work can affect feasible capacity and final pricing. Rounding the panel count upward can also make the panel total's nameplate capacity slightly larger than the calculated requirement.

The 30% federal Residential Clean Energy Credit ended for expenditures after December 31, 2025. A homeowner-purchased system placed in service in 2026 receives no federal residential credit. State, utility, and local incentives may still apply and vary widely. Third-party-owned systems may qualify for a commercial credit through the installer for systems placed in service by the end of 2027, but the installer claims that credit.

Use the Solar Savings Calculator to project savings and payback from a system. Use the Solar Financing Calculator to examine payments and financing costs.

Frequently Asked Questions

How many solar panels does a house need?
The required count depends on electricity use, the target usage offset, local peak sun hours, system losses, and panel wattage. This calculator first estimates required system capacity, divides that capacity by the wattage of one panel, and rounds the result up to a whole panel.
What percentage should I use for solar system losses?
PVWatts, the NREL production model, uses 14% as its default system-loss assumption. Actual losses depend on system conditions and equipment. The input can be changed when a site assessment or installer proposal provides a more suitable assumption for the planned installation.
Does the estimate include solar incentives?
The calculator applies the single incentive percentage entered by the user. State, utility, and local programs vary by location. The federal Residential Clean Energy Credit ended for expenditures after December 31, 2025, so a homeowner-purchased system placed in service in 2026 receives no federal residential credit.
Why is the number of panels rounded up?
Solar panels are installed as whole units, so a calculated fraction cannot be purchased as part of the array. Rounding up helps the modeled panel capacity meet or exceed the calculated system requirement, although roof space and equipment constraints can change the final design.
Is cost per watt based on panel capacity or annual production?
Installed cost is calculated from the required system wattage multiplied by the entered cost per watt. It is not multiplied by annual kilowatt-hour production. Annual production is estimated separately from system capacity, peak sun hours, and the system-loss assumption.