Calculators and tools

Solar Cost per Watt Calculator: Compare Installer Quotes Fairly

Compare up to three solar quotes on the same basis: price per watt and lifetime cost per kWh. Quotes for different system sizes are hard to compare by total price alone; this tool puts them side by side.

Solar Cost per Watt Calculator

Quote A
Quote B
Quote C (optional)

Fills in typical rates and sunshine for your state. You can change any value.

kWh a 1 kW system makes in a year where you live (NREL PVWatts is the best free source).

NREL studies put the median near 0.5% a year.

Your result

Lowest price per watt $3.00

Quote A per watt
$3.00
Quote B per watt
$3.36
Quote C per watt
—
Its lifetime cost per kWh
9.4¢

Quote A is the lowest at $3.00 per watt, which works out to about 9.4¢ per kWh over 25 years. Compare equipment, warranties and the installer’s record before choosing on price.

QuotePriceSize$/W¢/kWh (25 yrs)
A$23,1007.7 kW$3.009.4¢
B$25,5007.6 kW$3.3610.6¢

Educational estimate only. Not financial, tax or legal advice.

Price per watt by quote
$0.00$1.00$2.00$3.00$4.00AABBQuoteA · $ per watt: $3.00$3.00B · $ per watt: $3.36$3.36
  • $ per watt
View as table
Quote$ per watt
A$3.00
B$3.36
Lifetime cost per kWh by quote
02.557.51012.5AABBQuoteA · ¢ per kWh (25 yrs): 9.4¢9.4B · ¢ per kWh (25 yrs): 10.6¢10.6
  • ¢ per kWh (25 yrs)
View as table
Quote¢ per kWh (25 yrs)
A9.4¢
B10.6¢

Results update as you type. Without JavaScript you see the worked example below.

How to use it

  1. Enter the total price and system size in kW for Quote A and Quote B from the written proposals.
  2. Add Quote C if you have a third bid, or leave it at 0.
  3. Pick your state, or enter the yearly output per kW from PVWatts for your roof.
  4. Adjust the panel output loss per year if a quote's warranty suggests a different rate.
  5. Compare price per watt and lifetime cost per kWh for each quote in the two charts.

A solar cost per watt calculator divides each quote's price by its size in watts, so systems of different sizes compare fairly, then spreads the price over 25 years of output to get a cost per kWh. With the defaults, Quote A is $3.00 per watt, about 9.4¢ per kWh over 25 years, and Quote B is $3.36 per watt.

How to use the solar cost per watt calculator

  1. Quote A and Quote B. Enter each proposal's total price and system size in kW. Defaults: $23,100 for 7.7 kW and $25,500 for 7.6 kW.
  2. Quote C (optional). A third bid, or leave the price and size at 0 to skip it.
  3. Your state. Fills a typical Yearly output per kW.
  4. Yearly output per kW. Default 1,350 kWh per kW. For your roof, use PVWatts (opens in a new tab) or each quote's own production estimate divided by its kW.
  5. Panel output loss per year. Default 0.5%.

The results show the lowest price per watt, each quote's price per watt and the lowest quote's lifetime cost per kWh. Two bar charts compare the quotes: one on dollars per watt, one on cents per kWh over 25 years. This tool has no schedule or scenario table, because the quotes you enter are the comparison.

How the calculation works

Price per watt   = price ÷ (kW × 1,000)
Lifetime kWh     = Σ over 25 years of kW × yearly output per kW × (1 − degradation)^(year−1)
Cost per kWh     = price ÷ lifetime kWh
Best quote       = lowest price per watt

Assumptions that match the code:

  • All quotes use the same yearly output per kW unless you adjust it, so the per-kWh ranking matches the per-watt ranking.
  • Price is what you enter: no tax credit, rebates, financing or upkeep.
  • 25-year life with 0.5% yearly degradation, the median from NREL's field review (Jordan and Kurtz, 2012 (opens in a new tab)).
  • Blank quotes are skipped; a quote needs both a price and a size.

Worked example

Default inputs: Quote A $23,100 for 7.7 kW, Quote B $25,500 for 7.6 kW, no Quote C, 1,350 kWh per kW, 0.5% degradation.

  • Quote A per watt: $23,100 ÷ 7,700 W = $3.00. Quote B per watt: $25,500 ÷ 7,600 W = $3.36. Quote C: —.
  • Lowest price per watt: $3.00 (Quote A). Lifetime output for A: about 244,900 kWh, so its lifetime cost per kWh is 9.4¢. Quote B works out to about 10.6¢.

Second example, three Florida bids: yearly output 1,568 kWh per kW (PVWatts for Tampa).

QuotePriceSizePrice per watt25-year cost per kWh
A$26,0008.0 kW$3.258.8¢
B$24,5006.8 kW$3.609.8¢
C$31,0009.2 kW$3.379.1¢

Quote B has the lowest total price but the highest price per watt. Quote A buys 18% more capacity for 6% more money.

What your result means

A low price per watt means you are paying less for each unit of capacity. It does not mean the system is right for you. If one quote is far below the others, ask what is missing: permits, a main panel upgrade, roof work, monitoring or a workmanship warranty. If one is far above, ask what extra equipment or service it includes and whether a cash price is available. Check the size against your use with how many solar panels do I need, and check the price against national benchmarks in the solar panel cost calculator and our guide to how much solar panels cost.

2025 price benchmarks (LBNL)

BenchmarkPrice per watt
Cash purchase median$3.00
All host-owned median$3.60
Loan-financed median (includes dealer fees)$4.50
Solar plus storage median (per PV watt)$4.90

Values are from LBNL's 2026 data update as read from its charts (LBNL (opens in a new tab)).

Rules that change the answer

  • Same basis. Compare cash prices with cash prices. Financed prices often include dealer fees of 10% to 30% (CFPB (opens in a new tab)); check them in the solar loan calculator.
  • No 25D credit for 2026 installs. A quote that nets out a 30% credit for a system finishing in 2026 is overstating savings.
  • Batteries. Remove the battery line before comparing solar price per watt, or compare solar-plus-storage quotes against the $4.90 benchmark.
  • Get several bids. The FTC (opens in a new tab) recommends written bids and warns against pressure to sign. See solar sales red flags.

Common mistakes

  • Comparing total prices for different system sizes.
  • Using AC kW for one quote and DC kW for another.
  • Comparing a cash price with a financed price.
  • Ignoring warranties, equipment and installer record for a few cents per watt.
  • Accepting a production estimate without checking it against PVWatts.

Limits of this calculator

This is an educational comparison. It does not judge equipment quality, warranty terms, roof work, permits or the installer's reliability, and its cost per kWh ignores financing, upkeep and incentives. Use it to narrow your choices, then read each proposal in full. Our guide on how to choose a solar installer covers the checks that price cannot.

Frequently asked questions

What is a good price per watt for solar in 2026?

As a reference point, LBNL's 2026 data update reports 2025 medians of about $3.00 per watt for cash purchases and $3.60 for all host-owned home systems, with loan-financed systems near $4.50 because of dealer fees. About 60 percent of large installers had medians under $4 per watt. Local prices vary, so compare several written bids.

How do I calculate price per watt?

Divide the total price by the system size in watts. A $23,100 quote for 7.7 kW is $23,100 ÷ 7,700 W = $3.00 per watt. Use the DC size from the quote, and use the cash price, not a financed price that includes a dealer fee.

Why compare cost per kWh as well as per watt?

Cost per watt tells you what you pay for capacity; cost per kWh tells you what you pay for energy over the system's life. If two quotes put panels on different roof faces, or one uses a different design, their expected output per kW can differ. Enter each quote's own production estimate divided by its kW to compare on energy.

The cheapest quote by total price is the most expensive per watt. Which is better?

Often the one with the lower price per watt, as long as you need the extra capacity. In our Florida example, a $24,500 quote for 6.8 kW costs $3.60 per watt, while a $26,000 quote for 8.0 kW costs $3.25. Check that the larger system fits your use and your utility's export rules before paying for more panels.

Should I just pick the lowest price per watt?

No. Compare equipment, warranties on panels, inverters, workmanship and roof penetrations, the installer's licensing and record, and whether the price includes permits and any electrical upgrades. NABCEP certification is a widely recognized credential for installers, according to DOE.

Does the calculator include the federal tax credit or rebates?

No. It uses the price you enter. As of October 2026, systems completed after December 31, 2025 do not get the 25D homeowner credit, so a quote that subtracts a 30 percent federal credit for a 2026 install should be questioned.

What is a lifetime cost per kWh good for?

It lets you compare solar with buying power from the utility. With the defaults, Quote A works out to about 9.4 cents per kWh over 25 years, against a 2025 US average residential price of 17.30 cents per kWh. It excludes financing costs, upkeep and the value of exports, so treat it as a rough benchmark.

Sources

Checked against these sources. Dates show when each was last reviewed.

  1. U.S. Distributed Solar and Storage: 2026 Data Update (opens in a new tab), Lawrence Berkeley National Laboratory (as ofOctober 2026)
  2. Solar Power for Your Home (opens in a new tab), Federal Trade Commission (as ofOctober 2026)
  3. Homeowner's Guide to Going Solar (opens in a new tab), U.S. Department of Energy (as ofOctober 2026)
  4. Issue Spotlight: Solar Financing (opens in a new tab), Consumer Financial Protection Bureau (as ofOctober 2026)
  5. PVWatts Calculator (opens in a new tab), National Laboratory of the Rockies (formerly NREL) (as ofOctober 2026)
  6. Electric Power Monthly, Table 5.6.B (opens in a new tab), U.S. Energy Information Administration (as ofOctober 2026)
  7. NABCEP PV Installation Professional certification (opens in a new tab), North American Board of Certified Energy Practitioners (as ofOctober 2026)
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