2025 Solar Panel Costs: More Affordable Than You Might Expect
In the United States, the average cost to install a solar panel system is around $20,000. While this may seem high, available rebates and incentives significantly lower the upfront expense, making solar not only affordable but also one of the best long-term investments with substantial returns.
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How much solar power system cost?
For most homeowners in the U.S., an 11-kilowatt (kW) solar system is sufficient to offset average electricity consumption. In 2024 homeowners installing a system of this size typically paid around customers $20.000 after applying federal tax incentives.
Opting for a solar loan will increase the total expense due to added interest charges. However, regardless of payment method, solar installations generally deliver significant long-term financial benefits. In most cases, the savings on electricity bills will eventually cover the upfront cost—and in many scenarios, the system may pay for itself multiple times over its lifespan.
Average Solar Panel Costs in 2025
Investing in solar energy is a significant decision for homeowners and businesses alike. Understanding the costs involved is crucial to making an informed choice. At Simple Solar Assist, we aim to provide transparent and comprehensive information to guide you through this process.
Average Solar Panel Costs in 2025
As of 2025, the average cost of solar panels has become more affordable due to technological advancements and increased market competition. Prices can vary based on factors such as system size, location, and equipment quality. For instance, a typical residential solar panel system may range from $15,000 to $25,000 before applying any incentives or rebates.
Factors Influencing Solar Panel Costs
Several elements contribute to the overall cost of installing solar panels:
-
System Size: Larger systems generate more electricity but come with higher upfront costs.
-
Location: Geographical location affects sunlight exposure and, consequently, energy production efficiency.
-
Equipment Quality: High-quality panels and inverters may have a higher initial cost but offer better performance and longevity.
-
Labor and Installation: Professional installation ensures system reliability and safety, contributing to the overall expense.
Maximizing Savings Through Incentives
To offset the initial investment, various incentives are available:
- Federal Tax Credit: A 30% credit on the system cost is available to eligible homeowners.
- State and Local Rebates: Many states offer additional incentives that can further reduce costs.
- Net Metering Programs: These allow you to sell excess energy back to the grid, providing ongoing savings.
Understanding the Payback Period for Solar Panels
One of the biggest questions homeowners and business owners have when considering solar energy is: “How long will it take for my solar system to pay for itself?” This is known as the solar payback period, which refers to the amount of time it takes for the savings on electricity bills to cover the initial cost of the solar installation. Once you reach this point, your solar energy is essentially free for the remainder of the system’s lifespan, which typically lasts 25 to 30 years.
How to Calculate the Solar Payback Period
To determine the payback period, follow this simple formula:
One of the most important factors when considering solar energy is understanding how long it will take for your investment to pay for itself.
This is known as the solar payback period, which measures the time it takes for the savings on electricity bills to equal the total cost of your solar installation.
Payback Period Formula:
Payback Period (Years) = (Total Cost of System – Incentives and Rebates) ÷ Annual Savings on Electricity Bills
Example Calculation:
- Total Solar System Cost: $20,000
- Federal Tax Credit (30%): -$6,000
- State & Local Incentives: -$2,000
- Final Cost After Incentives: $12,000
- Annual Electricity Bill Savings: $1,500
Payback Period Calculation:
$12,000 ÷ $1,500 = 8 years
After 8 years, the system pays for itself, and the remaining 17+ years of electricity production generate pure savings.
Factors That Affect the Payback Period:
- System Cost & Size: Larger systems have higher upfront costs but generate more savings.
- Electricity Rates: Higher utility rates lead to faster returns on investment.
- Incentives & Rebates: Federal, state, and local incentives can significantly shorten the payback period.
- Location & Sunlight Exposure: Areas with more sunlight hours generate more electricity, reducing the time to break even.
Use Our Solar Savings Calculator
Want to see how fast your solar system will pay for itself? Use our Solar Savings Calculator to get a personalized estimate of your payback period and long-term savings.
Solar Panels Price
How Much Does Solar Cost in Your State?
The cost of solar panels varies depending on where you live, with factors like climate, energy demand, and local installer competition influencing prices. If you live in a hotter state and rely heavily on air conditioning, you’ll likely need a larger solar system to offset your electricity usage.
Most solar installers offer lower pricing per watt ($/W) for larger systems, meaning that while your total system cost may be higher, the unit cost of solar power is lower. This trend is often seen across the U.S., where warmer states tend to have lower per-watt pricing, while colder states typically see higher costs per watt due to lower energy demand and smaller system sizes.
For example, California has some of the lowest solar costs per watt, while states like West Virginia and Alabama have some of the highest. However, because homes in states like Arizona require larger solar systems compared to states like Maine or New Hampshire, the total system price may end up being similar despite regional differences in cost per watt.
Understanding how pricing trends impact your state can help you determine the most cost-effective way to go solar. Use our Solar Pricing Calculator to compare prices in your area and find the best deal for your home!
| State | Average Cost per Watt ($) | Average System Size (kW) | Average Cost Before Incentives ($) | Federal Tax Credit (30%) ($) | Average Cost After Incentives ($) | Average 25-Year Savings ($) |
|---|---|---|---|---|---|---|
|
Alabama
|
3.2
|
7.2
|
23040.0
|
6912.0
|
16128.0
|
58007.0
|
|
Alaska
|
3.5
|
7.2
|
25200.0
|
7560.0
|
17640.0
|
62000.0
|
|
Arizona
|
2.03
|
7.2
|
14616.0
|
4385.0
|
10231.0
|
32637.0
|
|
Arkansas
|
2.51
|
7.2
|
18072.0
|
5422.0
|
12650.0
|
36226.0
|
|
California
|
2.31
|
7.2
|
16632.0
|
4990.0
|
11642.0
|
120971.0
|
|
Colorado
|
2.94
|
7.2
|
21168.0
|
6350.0
|
14818.0
|
30356.0
|
|
Connecticut
|
2.87
|
7.2
|
20664.0
|
6199.0
|
14465.0
|
126270.0
|
|
Delaware
|
3.05
|
7.2
|
21960.0
|
6588.0
|
15372.0
|
65000.0
|
|
Florida
|
2.19
|
7.2
|
15768.0
|
4730.0
|
11038.0
|
71192.0
|
|
Georgia
|
2.6
|
7.2
|
18792.0
|
5638.0
|
13154.0
|
27468.0
|
|
Hawaii
|
3.38
|
7.2
|
24336.0
|
7301.0
|
17035.0
|
131446.0
|
|
Idaho
|
2.85
|
7.2
|
20520.0
|
6156.0
|
14364.0
|
60000.0
|
|
Illinois
|
3.15
|
7.2
|
22680.0
|
6804.0
|
15876.0
|
74117.0
|
|
Indiana
|
3.24
|
7.2
|
23328.0
|
6998.0
|
16330.0
|
31218.0
|
|
Iowa
|
3.22
|
7.2
|
23184.0
|
6955.0
|
16229.0
|
30662.0
|
|
Kansas
|
3.18
|
7.2
|
22896.0
|
6869.0
|
16027.0
|
29137.0
|
|
Kentucky
|
2.72
|
7.2
|
19584.0
|
5875.0
|
13709.0
|
34016.0
|
|
Louisiana
|
2.6
|
7.2
|
18720.0
|
5616.0
|
13104.0
|
21840.0
|
|
Maine
|
3.4
|
7.2
|
24480.0
|
7344.0
|
17136.0
|
135000.0
|
|
Maryland
|
2.72
|
7.2
|
19584.0
|
5875.0
|
13709.0
|
61239.0
|
|
Massachusetts
|
3.18
|
7.2
|
22896.0
|
6869.0
|
16027.0
|
172723.0
|
|
Michigan
|
3.14
|
7.2
|
22608.0
|
6782.0
|
15826.0
|
30400.0
|
|
Minnesota
|
3.03
|
7.2
|
21816.0
|
6545.0
|
15271.0
|
38502.0
|
|
Mississippi
|
2.88
|
7.2
|
20736.0
|
6221.0
|
14515.0
|
33216.0
|
|
Missouri
|
2.84
|
7.2
|
20448.0
|
6134.0
|
14314.0
|
26615.0
|
|
Montana
|
2.69
|
7.2
|
19368.0
|
5810.0
|
13558.0
|
26209.0
|
|
Nebraska
|
2.27
|
7.2
|
16344.0
|
4903.0
|
11441.0
|
37197.0
|
|
Nevada
|
2.23
|
7.2
|
16056.0
|
4817.0
|
11239.0
|
24669.0
|
|
New Hampshire
|
3.21
|
7.2
|
23112.0
|
6934.0
|
16178.0
|
94592.0
|
|
New Jersey
|
2.61
|
7.2
|
18792.0
|
5638.0
|
13154.0
|
65643.0
|
|
New Mexico
|
2.97
|
7.2
|
21384.0
|
6415.0
|
14969.0
|
30462.0
|
|
New York
|
2.95
|
7.2
|
21240.0
|
6372.0
|
14868.0
|
46733.0
|
|
North Carolina
|
2.7
|
7.2
|
19440.0
|
5832.0
|
13608.0
|
40000.0
|
|
North Dakota
|
2.62
|
7.2
|
18864.0
|
5659.0
|
13205.0
|
61372.0
|
|
Ohio
|
2.26
|
7.2
|
16272.0
|
4882.0
|
11390.0
|
48892.0
|
|
Oklahoma
|
2.62
|
7.2
|
18864.0
|
5659.0
|
13205.0
|
47614.0
|
|
Oregon
|
2.9
|
7.2
|
20880.0
|
6264.0
|
14616.0
|
55000.0
|
|
Pennsylvania
|
2.69
|
7.2
|
19368.0
|
5810.0
|
13558.0
|
75525.0
|
|
Rhode Island
|
3.29
|
7.2
|
23688.0
|
7106.0
|
16581.0
|
124912.0
|
|
South Carolina
|
2.53
|
7.2
|
18216.0
|
5465.0
|
12751.0
|
47260.0
|
|
South Dakota
|
2.85
|
7.2
|
20520.0
|
6156.0
|
14364.0
|
60000.0
|
|
Tennessee
|
2.1
|
7.2
|
15120.0
|
4536.0
|
10584.0
|
45000.0
|
|
Texas
|
2.6
|
7.2
|
18720.0
|
5616.0
|
13104.0
|
50000.0
|
|
Utah
|
3.0
|
7.2
|
21600.0
|
6480.0
|
15120.0
|
70000.0
|
|
Vermont
|
2.95
|
7.2
|
21240.0
|
6372.0
|
14868.0
|
46733.0
|
|
Virginia
|
2.7
|
7.2
|
19440.0
|
5832.0
|
13608.0
|
40000.0
|
|
Washington
|
3.4
|
7.2
|
24480.0
|
7344.0
|
17136.0
|
135000.0
|
|
West Virginia
|
3.1
|
7.2
|
22320.0
|
6696.0
|
15624.0
|
90000.0
|
|
Wisconsin
|
3.5
|
7.2
|
25200.0
|
7560.0
|
17640.0
|
62000.0
|
|
Wyoming
|
2.85
|
7.2
|
20520.0
|
6156.0
|
14364.0
|
60000.0
|
|
National Average
|
2.85
|
7.2
|
20495.52
|
6148.64
|
14346.86
|
60501.42
|
Understanding the True Cost of Solar
The price a solar installer quotes you includes more than just the panels, it's a combination of multiple factors. Beyond the equipment, costs also cover essential business operations, ensuring the installer can deliver quality service while remaining financially sustainable. Knowing these cost components helps you make an informed decision when investing in solar energy.
Based on the data from the National Renewable Energy Laboratory (NREL), here’s a breakdown of the average costs associated with installing a 10.8 kW residential solar photovoltaic (PV) system in the United States:
| Component | Average Cost ($) | Percentage of Total Cost (%) |
|---|---|---|
|
Solar panels
|
3656
|
12
|
|
Solar inverter(s)
|
2991
|
10
|
|
Racking equipment
|
997
|
3
|
|
Electrical wiring
|
2548
|
9
|
|
Supply chain costs
|
2659
|
9
|
|
Sales tax
|
665
|
2
|
|
Installation labor
|
1994
|
7
|
|
Sales & marketing
|
5318
|
18
|
|
Overhead costs
|
3102
|
11
|
|
Solar installer profit
|
3102
|
11
|
|
Permitting & interconnection
|
2327
|
8
|
|
Total
|
29359
|
100
|
Note: These figures are based on a 2021 study by NREL and represent averages across the U.S. Actual costs can vary depending on location, system specifications, and market conditions.
For a more detailed analysis, you can refer to NREL’s report:
Breaking Down Solar Equipment Costs: What You Need to Know
When considering solar for your home, solar panels are just one part of the total system cost accounting for less than a third of the total price. On average, all required solar equipment, including supply chain expenses and sales tax, amounts to around $13,517, making up approximately 46% of the total system cost.
Choosing the Right Solar Equipment: Cost vs. Quality
The brand and quality of solar components directly impact both the upfront investment and long-term savings. While premium panels come with higher price tags, they often provide superior durability and efficiency, maximizing energy production over time. However, the most expensive option isn’t always the best choice there are plenty of high-performance panels at competitive prices that balance quality and affordability.
Types of Solar Panels: Efficiency vs. Affordability
Your choice of solar panel technology affects both efficiency and overall installation cost:
- Monocrystalline panels: The most efficient and widely used option for homes, offering superior power output. Though they are more expensive than polycrystalline panels, they require fewer panels to generate the same amount of electricity.
Polycrystalline panels: A more budget-friendly alternative, but less efficient than monocrystalline. While the panels cost less individually, homeowners may need to purchase more to meet energy demands.
Thin-film panels: The least expensive option, but not commonly used for residential installations due to lower energy production. These panels are ideal for RVs, campers, and small DIY solar projects.
Solar Inverters: A Key Factor in System Performance
A solar inverter converts the direct current (DC) power from your panels into usable alternating current (AC) electricity for your home. Depending on your system design, inverter costs can almost match the price of the panels themselves.
- String inverters are the most affordable option but may not be ideal for homes with shading or multiple roof angles.
- Microinverters and power optimizers are pricier but improve energy output, making them worth the investment for complex roof layouts.
Mounting, Wiring & Other Essential Equipment
Solar panels require racking and mounting equipment to secure them to your roof this is one of the lower-cost components of an installation. Additionally, wiring and electrical connections are essential to linking your solar system to both your electrical panel and the power grid. While these expenses are relatively minor, they can still add a few thousand dollars to the final installation cost.
Understanding these cost components helps homeowners make informed decisions about their solar investment. By balancing quality, efficiency, and affordability, you can maximize energy savings while keeping installation costs in check.
Understanding Solar Installer Costs:
What You’re Really Paying For
Beyond the cost of solar panels and equipment, the company installing your system plays a major role in the total price. Solar installation companies charge varying rates based on experience, warranty coverage, and operational efficiency. Reputable installers with strong track records and premium warranties often charge higher fees—but in many cases, the added reliability and long-term service make the investment worthwhile.
Breaking Down Solar Installer Expenses
On average, installer costs account for around $13,517, making up approximately 46% of the total system price, comparable to the cost of equipment. But what exactly goes into this expense?
Labor Costs (7%): Skilled technicians handle the system installation, ensuring safety, efficiency, and compliance with local regulations.
Company Profit (11%): Solar providers need to maintain a sustainable business model while covering post-installation services like system monitoring and customer support.
Sales, Marketing & Overhead (28%): A significant portion of installer costs goes toward customer acquisition, advertising, office operations, and general business expenses.
While labor makes up a relatively small percentage of installation costs, sales and operational overhead remain major cost drivers in the industry. Choosing a reputable solar company with a fair pricing structure, strong warranties, and solid customer service ensures your investment pays off in long-term energy savings.
Permitting & Interconnection: Navigating the Final Steps of Solar Installation
Before your solar panels can start generating electricity, your system must go through permitting and interconnection, which adds about 8% to the total installation cost. These steps ensure your solar system meets local regulations and can safely connect to the power grid.
What Goes Into Permitting & Interconnection Costs?
- Permit Fees: Most jurisdictions require multiple solar permits, including electrical and structural permits, to ensure your system is installed correctly and safely.
- Interconnection Fees: This covers the cost of linking your solar system to the utility grid, allowing you to send excess energy back and benefit from net metering.
Typically, your solar installer manages the permitting process, making it hassle-free for homeowners. However, these fees can add a few thousand dollars to your total solar investment.
Efforts to Reduce Solar Permitting Costs
The industry is working to streamline and lower permitting and interconnection expenses. One major initiative is the Department of Energy’s SolarAPP+, a platform designed to automate and accelerate the permitting process, helping homeowners save money and reduce wait times.
With continued advancements in permitting and interconnection, going solar is becoming faster, easier, and more cost-effective than ever before.
How System Size Affects Solar Costs
When it comes to solar, bigger systems generate more electricity and cost more overall, but they also tend to have a lower cost per watt ($/W). Think of it like buying in bulk, the total price is higher, but the per-unit cost decreases.
Why Larger Solar Systems Have a Lower Cost Per Watt
- Economies of Scale – Larger installations require similar labor and permitting costs as smaller systems, spreading fixed costs over more panels.
- Better Equipment Pricing – Many solar providers offer discounts for bulk purchases of panels and inverters.
- Maximized Energy Savings – A bigger system reduces long-term electricity costs, leading to higher lifetime savings.
Solar System Pricing Breakdown
- Smaller systems (3-6 kW): Higher cost per watt but lower upfront investment.
- Medium systems (7-10 kW): Balanced efficiency and cost, suitable for most homes.
- Larger systems (11-13 kW): Lower cost per watt and greater savings over time.
By understanding how system size influences pricing, homeowners can optimize their solar investment for the best value. If you’re considering going solar, analyzing your energy needs and available incentives can help determine the ideal system size for your home.
| System Size (kW) | Average $/W | Cost Before Federal Tax Credit ($) | Cost After Federal Tax Credit ($) |
|---|---|---|---|
|
3
|
3.1
|
9300
|
6510
|
|
4
|
3.26
|
13040
|
9128
|
|
5
|
2.97
|
14850
|
10395
|
|
6
|
2.89
|
17340
|
12138
|
|
7
|
2.81
|
19670
|
13769
|
|
8
|
2.77
|
22160
|
15512
|
|
9
|
2.79
|
25110
|
17577
|
|
10
|
2.73
|
27300
|
19110
|
|
11
|
2.71
|
29810
|
20867
|
|
12
|
2.65
|
31800
|
22260
|
|
13
|
2.6
|
33800
|
23660
|
Investing in a larger solar system that meets all your energy needs is a smart move, as it maximizes savings by significantly reducing or eliminating your utility bill. With the rise of zero-down, low-interest solar loans, financing a system that fully offsets your electricity costs has never been easier allowing you to start enjoying energy savings right away.
Funfact
Did you know?
Here are the four most important subjects related to United States solar panel statistics, along with key data and trends:
Solar Energy Capacity Growth
Project Complete
Economic Impact and Job Creation
Environmental Impact
Total Installed Solar Capacity (2023):
Over 155 gigawatts (GW) of solar capacity is installed in the U.S., enough to power 27 million homes.
Residential Solar:
Accounts for 30% of total solar capacity, with over 3.5 million homes equipped with solar panels.
Jobs in Solar Industry:
The solar industry employs over 250,000 workers in the U.S., making it one of the fastest-growing job sectors.
Carbon Emissions Avoided:
Solar energy in the U.S. offsets over 100 million metric tons of CO2 annually, equivalent to taking 22 million cars off the road.
Annual Growth Rate:
Solar energy has grown at an average annual rate of 24% over the past decade.
Utility-Scale Solar:
Represents 60% of total capacity, with large-scale solar farms leading the growth.
Cost Decline:
The cost of solar panels has dropped by 70% since 2010, making solar energy more accessible.
Renewable Energy Share:
Solar accounts for 4.5% of total U.S. electricity generation, up from less than 1% in 2015.
Projections:
The U.S. is expected to reach 375 GW of solar capacity by 2030, driven by federal incentives and declining costs.
Commercial Solar:
Makes up 10%, with businesses increasingly adopting solar to reduce energy costs.
Investment:
Solar energy attracted $35 billion in private investment in 2022, driven by federal tax credits and state-level incentives.
Land Use:
Solar farms occupy approximately 2.5 million acres of land, but innovations like agrivoltaics (combining agriculture with solar) are reducing land-use conflicts.
How Location Affects Solar Installation Costs
Your geographic location plays a major role in determining the overall cost and efficiency of a solar installation. Several key factors influence pricing, from sunlight availability to energy consumption needs and state-level incentives.
Key Location-Based Factors That Impact Solar Costs
- Sunlight Exposure & System Size – Homes in sunny regions require smaller systems to generate the same amount of energy as those in areas with fewer peak sunlight hours. Conversely, homes in cloudier or less sunny states may need larger solar arrays to meet their energy needs.
- Energy Consumption & Climate – In areas with extreme temperatures, whether hot summers or freezing winters, electricity consumption tends to be higher due to increased HVAC usage, often requiring larger solar systems to offset energy costs.
- State & Local Incentives – Certain states offer rebates, tax credits, and solar buyback programs that significantly reduce the upfront cost of solar installation, making solar more affordable in some locations than others.
Understanding how your location affects system size, pricing, and available incentives can help you make a well-informed decision when investing in solar energy. Checking state-specific rebates and solar policies is crucial to maximizing savings and lowering installation costs.
How Your Roof & Home Affect Solar Installation Costs
The design and condition of your home significantly influence the cost and efficiency of a solar installation. If your roof has ample direct sunlight, minimal obstructions, and a south-facing orientation with a 30-degree slope, your system will require fewer panels, making installation easier and more cost-effective.
Factors That Can Increase Solar Installation Costs
- Roof Complexity – If your roof has multiple angles, dormers, skylights, or an irregular shape, installation requires additional mounting equipment and labor, increasing costs.
- Shading from Trees – Excessive shade reduces solar efficiency. If tree removal or trimming is necessary, expect to pay between $300 and $1,500 to clear the area for optimal sunlight exposure.
- Electrical Panel Upgrades – Your electrical panel plays a crucial role in supporting a solar system. If your panel is below 200 amps, an upgrade may be required, adding a few thousand dollars to your installation expenses.
By understanding how roof orientation, shading, and electrical infrastructure impact solar installation costs, homeowners can make informed decisions to maximize efficiency, reduce expenses, and ensure a smooth transition to solar energy.
Understanding the Recurring Costs of Solar Panels
One of the biggest advantages of going solar is minimal maintenance requirements, making long-term ownership low-cost and hassle-free. Once installed, solar panels require little to no upkeep, and high-quality brands offer 25-year warranties that cover most potential issues.
Maximizing Your Savings: The Best Solar Incentives Available
Investing in solar energy becomes even more cost-effective when you take advantage of various solar incentives, which can reduce upfront costs and accelerate your return on investment. Depending on your state, city, and utility provider, you may qualify for tax credits, cash rebates, net metering benefits, performance-based incentives (PBIs), and solar renewable energy credits (SRECs)—all designed to help you save more.
The federal solar tax credit, also known as the Investment Tax Credit (ITC), is one of the most impactful incentives available. Unlike state or local programs, this credit applies nationwide, allowing homeowners to claim 30% of their total solar installation cost as a dollar-for-dollar reduction on their federal tax bill.
- No cap on the credit amount – the bigger your system, the bigger your savings.
- Applicable to both residential and commercial solar installations.
- Carryover option – if your tax liability isn’t high enough in one year, you can roll over unused credits to the following year.
Example: Installing a 10.8 kW solar system costing $29,926 qualifies for a $8,978 tax credit directly reducing what you owe in taxes.
Some states provide generous financial incentives that make going solar a no-brainer, even if your electricity bill is relatively low. If you live in any of these states, you can benefit from high-value solar rebates, tax exemptions, and net metering programs:
- Maryland – Offers state tax credits and grants through the Maryland Energy Administration.
- New York – Home to the NY-Sun Initiative, which provides upfront rebates and performance-based incentives.
- Rhode Island – Features the Renewable Energy Fund (REF), which helps offset system costs.
- South Carolina – Allows homeowners to claim a 25% state solar tax credit, making solar extremely affordable.
- Washington, D.C. – One of the best markets for SRECs, allowing homeowners to sell their solar energy credits for additional income.
Many utilities, cities, and states offer additional rebates, tax credits, and net metering programs that provide ongoing financial benefits. These vary by location, so checking with your state’s energy office or local utility provider can help you uncover even more savings.
Best Ways to Pay for Solar: Choosing the Right Financing Option
How you finance your solar panel system directly impacts your total cost, monthly payments, and long-term savings. There are three primary ways to go solar: cash purchase, solar loan, or solar lease/PPA. Each option has distinct advantages depending on your budget, financial goals, and tax situation.
If you have the financial flexibility to pay upfront, purchasing your system with cash provides the highest return on investment (ROI). Here’s why:
✅ Eliminates interest payments — you own your system outright.
✅ Maximizes long-term savings—you save the most on electricity over time.
✅ Qualifies for the Federal Solar Tax Credit (ITC) — if you have a large enough tax bill, you can claim 30% of your system cost as a dollar-for-dollar tax credit.
Best for homeowners who want the highest savings and have the funds to invest upfront.
A solar loan is ideal for homeowners who want to own their system but prefer to spread payments over time.
Many solar loans offer:
✅ Zero-down financing — start saving on energy costs immediately.
✅ Fixed monthly payments — easier budgeting with predictable costs.
✅ Ownership benefits — you still qualify for tax credits, incentives, and net metering.
Best for homeowners who want to invest in solar without paying upfront and still benefit from ownership.
If you’d rather not deal with system maintenance, repairs, or upfront costs, a solar lease or power purchase agreement (PPA) might be a good option. However, it’s important to know that:
⚠️ You won’t own the system — the solar provider retains ownership.
⚠️ Limited savings — you’ll pay a monthly fee for electricity rather than building equity in your system.
⚠️ No tax credit eligibility — since you don’t own the panels, you won’t qualify for the 30% ITC or other incentives.
Best for homeowners who want solar with no upfront costs but don’t mind lower long-term savings.
Which Solar Payment Option Is Right for You?
- Want the biggest savings? → Paying cash is best.
- Prefer to finance and still own? → A solar loan makes sense.
- Want the lowest upfront cost with no maintenance? → A solar lease or PPA may be the right choice.
Choosing the right financing option depends on your budget, energy goals, and ability to claim tax incentives. By selecting the best approach for your situation, you can maximize your savings and get the most out of your solar investment.
Why work with Simple Solar Assist?
At Simple Solar Assist, we simplify the transition to solar energy by offering:
Tailored evaluations to determine the most cost-effective system for your needs.
Assistance in navigating available incentives and financing options.
Partnerships with reputable installers to ensure high-quality installations.
DFY - Doing it all for you, including designing your solar system, navigating best finance options, negotiating with installers, providing you with ready to sign best deals!
We're changing the game!
At Simple Solar Assist, we offer two tailored services to make your solar journey seamless: DFY (Done For You) and DIY (Do It Yourself).
With our DFY service, we handle everything for you—from designing your custom solar system to shopping for competitive quotes from our network of prequalified solar installers. We negotiate the best pricing and present you with ready-to-sign quotes, saving you time and effort. For those who prefer more control, our DIY service allows you to use our intuitive solar pricing widget to estimate costs and access our database of vetted installers. Whether you want us to do the heavy lifting or take charge yourself, we’ve got you covered with trustworthy, hassle-free solutions.
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