Before we go any further, we highly recommend that you choose a pure sine wave inverter. This type of inverter delivers high-quality electricity, similar to your utility company. Inverters convert the solar power harvested by photovoltaic modules like solar panels into usable household electricity. With the global solar market expected to grow at a compound annual growth rate (CAGR) of. . This guide breaks down what size solar inverter you actually need—so your setup runs smooth, efficient, and stress-free from day one. In this blog, I'll share some tips on. .
[PDF Version]
As of 2026, the average cost of residential solar panels in the U. This typically translates to about $2. 50 per watt of installed capacity (more on price per watt below). Global estimates are used before 2010; European market benchmarks thereafter due to limited data availability. Department of Energy (DOE) Solar Energy Technologies Office (SETO) and its national laboratory partners analyze cost data for U. solar photovoltaic (PV) systems to develop cost benchmarks. These benchmarks help measure progress toward goals for reducing solar electricity costs. . For most homeowners, a full residential solar setup, panels, inverters, mounting hardware, permitting, and professional installation, runs between $15,000 and $30,000 before incentives. This range reflects the average 6 kW to 10 kW system needed to power a standard American home.
[PDF Version]
Market analysts routinely monitor and report the average cost of PV systems and components, but more detail is needed to understand the impact of recent and future technology developments on cost. Consequently, benchmark systems in the utility-scale, commercial, and residential PV market sectors are evaluated each year.
Most residential installations use monocrystalline photovoltaics (PV) panels, which offer up to 24% efficiency and perform better in limited space and extreme temperatures. Polycrystalline panels are cheaper but less efficient (15% to 20%), making them better for homes with ample roof space.
Photovoltaic cost data between 1975 and 2003 has been taken from Nemet (2009), between 2004 and 2009 from Farmer & Lafond (2016), and since 2010 from IRENA. Prices from Nemet (2009) and Farmer & Lafond (2016) have been converted to 2024 US$ using the US GDP deflator, to account for the effects of inflation.
Each module has an area (with frame) of 1.9 m 2 and a rated power of 400 watts, corresponding to an efficiency of 21.1%. The monofacial modules were assembled in the United States in a plant producing 1.5 GW dc per year, using n-type crystalline silicon solar cells produced in Southeast Asia.