Another measure of the relative cost of solar energy is its price per kilowatt-hour (kWh). Whereas the price per watt considers the solar system's size, the price per kWh shows the price of the solar system per unit of energy it produces over a given period of time. Net cost of the system / lifetime output = cost per kilowatt hour
After applying the 30% federal tax credit, net costs typically range from $10,500 to $24,500. Understanding solar costs requires grasping two key metrics: cost per watt and cost per kilowatt-hour (kWh).
Cost per kWh shows the lifetime cost of solar electricity by dividing your net system cost by total expected energy production over 25 years. This typically ranges from 6-8 cents per kWh, compared to current grid electricity averaging 16.44 cents per kWh nationally.
These benchmarks help measure progress toward goals for reducing solar electricity costs and guide SETO research and development programs. Read more to find out how these cost benchmarks are modeled and download the data and cost modeling program below.
We assume the solar technology is photovoltaic (PV) with single-axis tracking. A solar PV-battery (PV-battery) hybrid system is a single-axis PV system coupled with a four-hour battery storage system.
Historic Low Pricing: Solar costs have reached unprecedented lows in 2025, with systems ranging from $2.50-$3.50 per watt installed, making the technology more accessible than ever before.
Solar Pricing and Price Charts. Solar prices across the world''s most active residential, utility, and commercial PV (Photovoltaics) markets.
NLR analyzes the total costs associated with installing photovoltaic (PV) systems for residential rooftop, commercial rooftop, and utility-scale ground-mount systems. This work has grown
These benchmarks help measure progress toward goals for reducing solar electricity costs and guide SETO research and development programs. Read more to find out how these cost benchmarks are
Due to limited data availability, we use the Global Price Index series reported by IRENA, based on pvXchange benchmark prices for modules sold in Europe. Historical prices have been
Higher retail electricity prices following the energy crisis, along with strong policy support, have encouraged individuals and businesses to install solar PV systems with the aim of reducing their
The latest cost analysis from IRENA shows that renewables continued to represent the most cost-competitive source of new electricity generation in 2024.
The falling cost of solar panels, coupled with the recent spike in grid electricity prices, have made home solar a reliable means of reducing your essential energy costs.
Lawrence Berkeley National Laboratory compiled and synthesized empirical data on the U.S. utility-scale solar sector.
Historic Low Pricing: Solar costs have reached unprecedented lows in 2025, with systems ranging from $2.50-$3.50 per watt installed, making the
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