Data approachEIA rates · NREL sun hours · 2026 federal policy · methodology
Get at least three solar quotes before you sign. Berkeley Lab’s Tracking the Sun data shows that median prices among the 100 largest U.S. residential installers ranged from about $2.6 to $5.9 per watt for systems installed in 2023. On an 8 kW system, every $1 per watt is an $8,000 difference, so the quote you accept matters far more than most homeowners expect.
That spread is not just noise. Installers differ in overhead, equipment sourcing, sales costs and financing fees, and the same house can receive very different proposals. This guide explains why three quotes is the right number, what to compare, how the 2026 incentive picture has changed, and which red flags mean you should walk away.
Last updated October 1, 2026.
🔧 Installer Tips
Why Three Quotes — Not Two, Not Five
Two quotes give you a comparison but not a market read. You may pick the cheaper of two and still overpay. Three quotes let you triangulate: you can spot the outlier, see where the middle of the market sits, and negotiate with real numbers.
Beyond three, returns diminish for most homeowners. A fourth or fifth proposal means more site visits, more sales calls and more delay, usually without new information. If your first three quotes are widely different, it is reasonable to add one more to understand why.
Choose three different kinds of installers, each with local experience and verifiable reviews: for example, a national company, a regional specialist and a smaller local installer. Different business models produce different price structures and service terms.
Request all quotes within the same two-week window. Equipment pricing, utility rates and financing offers change, and quotes collected months apart are not a fair comparison.
Before the quotes arrive, run a quick estimate with a solar savings calculator so you know roughly what size system your roof and electricity use support. For state-specific context, see our pages for California, Texas and Florida.
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📊 Price Comparison
What to Compare Across Your Three Quotes
Price per watt (total price divided by system size in watts) is the most useful single number because it lets you compare systems of different sizes. Berkeley Lab reports that for systems installed in 2023, the 20th-to-80th percentile range for residential systems was $3.2 to $5.5 per watt before incentives. Treat that as a reference band, not a rule: your state, roof, system size and equipment all shift the number.
Data visualization
Residential solar prices vary widely between installers. Installer median prices ran from $2.6 to $5.9 per watt in 2023, and the 20th to 80th percentile band was $3.2 to $5.5 per watt, before incentives. Source: Berkeley Lab Tracking the Sun, 2024 edition.
Chart summary: In 2023, the median prices of the top-100 residential installers ranged from $2.6 to $5.9 per watt, and the middle 60% of all residential systems fell between $3.2 and $5.5 per watt. On a hypothetical 8 kW system, that is the difference between roughly $25,600 and $44,000 at the 20th and 80th percentile bounds (8,000 W × $3.2 and × $5.5), before incentives. Because installers can differ this much, quotes from three companies are a practical way to see where your offers sit in the market.
Price is only the starting point. Every quote should also be checked on the following:
Panel quality and datasheet. Ask for the exact panel model and read its datasheet: efficiency, power warranty, and the temperature coefficient, which shows how much output drops in heat. Compare independent track records rather than relying on a brand list.
Inverter type. String inverters are generally cheaper, but shading on one panel can reduce output for the whole string. Microinverters and DC optimizers handle shading better and add module-level monitoring, usually at a higher cost. The right choice depends on your roof’s orientation and shading.
Production estimate method. Ask which tool produced the annual kWh estimate, such as NREL’s free PVWatts or a design tool like Aurora Solar, and what shading and degradation assumptions were used. Compare it with your past utility bills. An optimistic estimate inflates the payback you are shown.
Warranty structure. Look for a long panel performance warranty and a workmanship warranty that covers roof penetrations and electrical connections, since that is where installation problems tend to appear. Ask who backs each warranty and what happens if the installer goes out of business.
Financing. A cash price, a loan and a lease can look very different. Berkeley Lab’s 2025 data update notes that loan fees are often rolled into the up-front price, so compare the full cost of financing, not just the monthly payment.
Modeled Case Study: Does the Production Estimate Hold Up?
A production estimate is the number a payback claim rests on, so we modeled one. The home is a 2,100 sq ft, two-story house in Greensboro, NC with a south-facing roof plane at a 25° tilt and 18 panels rated 400 W each (7.2 kW DC). Greensboro is in Duke Energy Carolinas territory. We valued output at a flat 14.13¢/kWh, the 2024 average North Carolina residential price in the EIA Electric Power Annual. That flat rate is a simplification: Duke’s actual solar billing and export credits depend on the rate plan, so check yours.
Modeled Case Study — Greensboro, NCSouth-facing roof, 7.2 kW DC (18 × 400 W), 25° tilt, typical meteorological year
Month
Production (kWh)
Bill Savings ($)
Jan
649
$92
Feb
680
$96
Mar
889
$126
Apr
972
$137
May
965
$136
Jun
981
$139
Jul
986
$139
Aug
969
$137
Sep
826
$117
Oct
790
$112
Nov
593
$84
Dec
633
$89
Total
9,934 kWh
$1,404
Modeled output, not measured customer data. Method: the PVWatts calculation model (14.08% system losses, 96% inverter efficiency, 1.2 DC-to-AC ratio, −0.47%/°C temperature coefficient) implemented in the open-source pvlib library and run on the NREL TMY3 weather file for Greensboro Piedmont Triad International Airport. This is not an output of the web tool at NREL PVWatts, so confirm your own site there. Utility: Duke Energy Carolinas. Rate: $0.1413/kWh.
Production peaks at 986 kWh in July and falls to 593 kWh in November, so a quote that shows the same savings every month is a simplification. The modeled system produces about 1,380 kWh per installed kW per year. A proposal projecting far above that for a similar roof should explain its shading and weather assumptions.
The payback is the sobering part. At the Berkeley Lab 20th-to-80th percentile prices of $3.2 to $5.5 per watt, a 7.2 kW system costs about $23,040 to $39,600 before incentives. Divided by $1,404 in annual savings, that is a simple payback of roughly 16 to 28 years, assuming a flat electricity rate, no panel degradation and no incentive. Because the federal credit ended after 2025, the quote price you negotiate drives this number more than anything else, and rising electricity rates, a verified state or utility incentive, or a lower price would shorten it.
Same modeling method as the case study. Savings use a flat rate and ignore time-of-use pricing.
In this model, a southwest roof gives up only about 1.3% of the south-facing output, while an east roof loses about 18%. Tilt matters less: annual output at 10°, 25°, 35° and 45° was 94.8%, 100%, 100.7% and 99.2% of the 25° result. When quotes assume different roof planes or tilts, ask each installer to state them, or the production numbers are not comparable.
Solar Incentives in 2026: What Changed and What Is Left
The federal homeowner credit has ended. The Section 25D Residential Clean Energy Credit, which gave homeowners 30% of system cost, does not apply to expenditures made after December 31, 2025. The One Big Beautiful Bill Act, signed July 4, 2025, ended it early, and the IRS has confirmed the cutoff. Under the IRS guidance, an expenditure is treated as made when installation is completed, so paying in 2025 for a system finished in 2026 does not qualify. Any 2026 quote that subtracts a 30% federal credit from an owned system is out of date.
Leases and PPAs are different. Third-party-owned systems may still be eligible for the business Section 48E credit, which the installer or financier claims, subject to ownership, timing and other requirements. Whether any of that benefit reaches you depends on the contract. If an installer offers a lease or PPA, ask exactly how the incentive affects your payments, what happens at the end of the term, and how the agreement affects a future home sale.
State and local incentives still exist. Examples:
New York: a personal income tax credit of 25% of qualified solar expenditures, limited to $5,000, claimed on Form IT-255 (non-refundable, with a five-year carryover).
Arizona: a credit of 25% of cost, up to $1,000, per the Arizona Department of Revenue.
Utility rebates, property tax treatment and net-metering rules also vary by state and change often. Check your state in the DSIRE database and confirm each program with the administering agency before relying on it. Ask every installer to list which incentives they included in the quote and to show the net price both with and without them.
📋 Key Insights
Red Flags That Tell You to Walk Away From a Solar Bid
High-pressure same-day signing. A deadline that disappears if you do not sign tonight is a sales tactic. Any real incentive deadline can be verified on the IRS or state agency website. Walk away from false urgency on a purchase this large.
Unrealistic production estimates. If a proposal claims the system will cover well over 100% of your annual usage, ask for the shading analysis, the weather data source and the assumptions behind the estimate. A trustworthy installer can explain both a conservative and a best-case figure.
Vague ownership or financing terms. Loans, leases and PPAs affect who owns the system, who can claim any tax benefit, and how a home sale works. Read the full agreement, not the summary page.
No local presence or license. Confirm a valid contractor license in your state, a real local address, and reviews on platforms the installer does not control. If the installer disappears, a workmanship warranty is hard to enforce.
Equipment-substitution clauses. Some contracts let the installer swap in “equivalent” equipment without your approval. Strike the clause, or do not sign.
📋 Key Insights
Making Your Final Decision After Comparing Solar Bids
Line up the three quotes on the same basis: system size, net price per watt, equipment, warranties, financing cost and timeline. The best choice is often not the cheapest. An unusually low bid deserves a question about what has been left out, and an unusually high one should explain what you are getting for the premium.
Use competing quotes to negotiate. Showing an installer a rival proposal is normal practice, and a reputable company will not penalize you for it.
Before signing, confirm that the contract lists the panel and inverter model numbers, the first-year production estimate, all warranties and who backs them, the installation timeline, and any incentive assumptions. Verbal promises that are not in the contract are hard to enforce.
Some states, including Texas and Florida, have property tax or sales tax provisions for solar. Confirm the current rules with your state or county tax office, and ask the installer to state in writing how any such benefit applies to your purchase. Finally, check the installer’s savings claims with a solar ROI calculator using your own utility rate.
Sources
Data sources: Berkeley Lab Tracking the Sun (2024 edition) and 2025 Data Update for installer price ranges; NREL TMY3 weather data for Greensboro, NC modeled with the PVWatts calculation method; EIA Electric Power Annual (2024 data) for the 14.13¢/kWh North Carolina residential price; IRS FAQs on the One Big Beautiful Bill Act for the Section 25D cutoff; NY Department of Taxation and Finance and Arizona Department of Revenue for state credits. Check DSIRE (dsireusa.org) for current state programs.
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Get three. One quote gives you no benchmark, and two can still leave you comparing a high price with a higher one. Three lets you spot the outlier, see the middle of the market, and negotiate with evidence. Berkeley Lab's Tracking the Sun data shows median prices among the top 100 residential installers ranged from $2.6 to $5.9 per watt in 2023, so the spread is large enough to justify the extra effort. Collect all three within the same two weeks so the pricing and financing offers are comparable.
Not for homeowners who buy a system. The Section 25D residential clean energy credit ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act signed July 4, 2025. Third-party-owned systems (leases and power purchase agreements) may still benefit through the business Section 48E credit, subject to ownership, timing and other rules, so ask each installer whether any savings are passed on to you. Some states still offer credits, such as New York's 25% credit up to $5,000.
For systems installed in 2023, Berkeley Lab reported a 20th-to-80th percentile range of $3.2 to $5.5 per watt before incentives, with larger residential systems costing about $1.0 per watt less than the smallest ones. Newer data from the lab's 2025 update shows roughly half of the top 100 installers had median prices below $4 per watt in 2024, and almost 20% were above $5. A quote far above the range is worth questioning, and one far below it is worth checking for cut corners. Prices also vary by state, system size and equipment.
Requesting a quote does not normally require a credit check. A credit pull usually happens when you apply for financing, and some lenders use a soft inquiry while others use a hard one. Ask the lender which type they use before you apply, and apply for financing only with the installer you are seriously considering.
Compare price per watt, panel brand and datasheet, inverter type, warranty terms, the tool used for the production estimate (such as NREL's PVWatts or Aurora Solar), and the financing structure. Ask for the net price after any incentives that apply to you and put the model numbers, warranties and installation timeline in the contract.
18.19¢/kWh — US average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production
4.5 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price
$3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit
$0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering
National blend — solar assumed to offset 75% of the bill (87% in full-retail net-metering states, 55–70% elsewhere).
Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.