[SAMPLE] What does home solar cost? A plain-English breakdown

The main factors behind a solar quote — system size, equipment, your roof and local labor — and how to compare quotes using cost per watt.

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There’s no single price for “solar.” A quote reflects your home, your energy use and the equipment you choose. Here’s what drives the number and how to compare quotes fairly.

The big cost drivers

  • System size (kW). Bigger systems cost more in total but usually less per watt. Size is based on how much electricity you use (look at 12 months of bills, in kWh) and how much roof space gets good sun.
  • Equipment. Panel brand and efficiency, inverter type (string vs. microinverters) and racking all affect price.
  • Your roof. Steep, complex or tile roofs take more labor. If your roof needs replacing soon, it’s usually cheaper to do it before solar goes on.
  • Electrical upgrades. Some homes need a main panel upgrade to handle solar or a battery.
  • Permits, inspection and interconnection. Local fees and utility requirements vary.
  • Labor and overhead. Installer pricing varies by market and company.
  • Add-ons. Batteries, critter guards, monitoring and extended warranties add cost.

Compare quotes by cost per watt

Divide the total price (before incentives) by the system size in watts. A $21,000 quote for a 7 kW (7,000 W) system is $3.00/W. This lets you compare quotes of different sizes on equal footing. (That example is arithmetic only, not a market price.)

[Verify] Add a current national/state average cost per watt here with a cited source, such as Lawrence Berkeley National Lab’s Tracking the Sun report.

Upfront cost vs. lifetime value

What you pay is only half the picture. Also compare:

  1. Estimated annual production (kWh) — ask how it was calculated.
  2. Your utility’s rates and export credits — see net metering.
  3. Warranties — panel product and performance warranties, inverter warranty and workmanship warranty.
  4. Payment method — cash, loan, lease or PPA change the total cost a lot. See choosing a plan.
  5. Incentives — what still applies in your area. See incentives.

Questions to ask every installer

  • What size system, which exact panel and inverter models, and why?
  • What’s the estimated first-year production, and what shading/orientation assumptions did you use?
  • What’s the total price, the cost per watt, and what’s not included?
  • Who handles permits and utility interconnection?
  • What happens if production falls short of the estimate?

Get at least three written quotes, and don’t feel pressured to sign the same day.

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