Solar Panel Installation Cost: What's Included and What's Not

What Every Solar Installation Quote Should Include

A complete, full-service quote should cover the solar panels, the inverter or microinverters, racking and mounting hardware, electrical wiring and conduit, installation labor, and permitting and interconnection. If any of these are missing, ask why before you sign.

Solar panels should be listed by exact make, model, wattage and efficiency rating, not just a brand name. Inverters convert the DC power your panels produce into AC power for your home. Microinverters and optimizers cost a few thousand dollars more than a string inverter, but they are usually worth it on complex or shaded roofs. Your quote should say which technology you are getting.

Permitting and interconnection should be included. On EnergySage’s 12 kW example they average about 8% of the total, roughly $2,491, and your installer should handle the paperwork. Warranties also belong in the quote: the best panel brands offer 25-year warranties, and the installer’s workmanship warranty should be stated separately.

Chart summary: The orange bar marks solar panels, which are only about 12% of what a homeowner pays. Sales and marketing is the largest single line at 18%, and overhead and profit together add another 22%. Installation labor is only about 7%. That is why a quote that looks cheap or expensive often reflects the installer’s business model and not the hardware, and why comparing several quotes pays off.

What Is Not Included in a Solar Quote — And Who Pays for It

Some costs sit entirely outside a standard solar contract. Knowing them in advance prevents billing surprises.

Battery storage is quoted and contracted separately. On EnergySage quotes, a Tesla Powerwall 3 (13.5 kWh usable) averages about $13,473 installed, or about $998 per kWh, roughly 13% below the average battery on that marketplace. The federal credit for home batteries ended along with the solar credit, so budget for the full price unless your state or utility offers a rebate.

EV charger installation is a separate electrical project. Get a separate quote from your installer or an electrician, and do not assume the solar contract covers it.

HOA approvals can add weeks to the process. Your installer may handle the paperwork, but cannot guarantee approval, and required design changes can alter your system size and cost. Landscaping repairs after trenching or conduit work are also rarely covered.

Local rules change the economics as well. In California, the NEM 3.0 tariff that took effect in April 2023 pays less for exported solar power, which makes battery storage a bigger part of the financial picture for new systems. Texas has no statewide net-metering mandate, so what you earn for exported power depends on your electricity retailer. Hawaii has the highest average residential electricity rates in the country, which shortens payback even though installation is costly. The true cost of going solar requires a state-by-state look, not just a national average. To see how your state compares, our guide to Solar Panel Payback Period by State has the full data.

How to Read a Solar Quote and Spot What’s Missing

A professional quote should be itemized. If an installer hands you a single-line total, ask for a detailed proposal. At minimum, it should list:

• panel make, model and total system wattage;
• inverter type and brand;
• racking system type;
• estimated annual production in kWh;
• permit and interconnection costs;
• warranty terms for panels, inverter and workmanship; and
• a clear statement of what is and is not included.

Red flags include vague wording such as “standard electrical upgrades included” without a definition, missing production estimates, requests for full payment before work begins, and absent workmanship warranty terms. Pressure tactics tied to incentive deadlines also deserve skepticism, especially now that the federal homeowner credit no longer exists for purchased systems.

Get at least three quotes. Comparing proposals lets installers compete on price, and EnergySage notes that its marketplace prices run lower for exactly that reason. Compare cost per watt, equipment, production estimates, warranties and exclusions side by side, not just the bottom line.

Compare financing by total repayment. The loan can matter more than a few hundred dollars of upfront price. These figures use standard loan amortization and are illustrative:

Chart summary: The $20,000 system on a longer, higher-rate loan costs about $13,200 more in total repayment than the $19,000 system on a shorter, lower-rate loan, even though the monthly payments are only about $11 apart. Always ask for the loan’s APR, term, any dealer fees and the total repayment amount.