What is a good price per watt for solar in 2024?

A good residential solar price in 2024 is $2.50–$3.20/W (gross, before ITC). Under $2.50/W warrants scrutiny of equipment quality and warranty. $3.20–$3.80/W is above average but may be justified by premium equipment, complex rooftop, or labor costs. Over $3.80/W requires a clear explanation from the installer.

How much should a 10 kW solar system cost?

A 10 kW residential solar system typically costs $25,000–$35,000 before the 30% ITC, or $17,500–$24,500 net after the credit. Prices vary by state — California tends to run higher, Texas and Florida lower. Always get 3 quotes and compare on $/W, not total price, since quoted system sizes may differ.

How many kWh should a solar panel produce per year?

Expected production depends heavily on location. In Arizona and Nevada (high sun), expect 1,700–2,000 kWh per kW installed per year. In the average US (Colorado, Texas, Georgia), expect 1,300–1,600 kWh/kW/yr. In low-sun states (Washington, Oregon), expect 1,000–1,300 kWh/kW/yr. Ask installers if their production estimate is AC or DC — AC is what actually powers your home.

What is a good solar payback period?

A good solar payback period (after the 30% ITC) is 6–10 years. Arizona, California, and Massachusetts tend to have 6–8 year paybacks. The Midwest and Pacific Northwest typically run 11–15 years. With 25-year panel warranties, even a 14-year payback yields 11 years of free electricity after break-even.

Solar Quote Sanity Check Calculator

60-second quote review — enter your quote details and see green/yellow/red checks for price, production, payback, and ITC against market benchmarks.

Scenario

Enter Quote Details

Quoted system size?

Quoted total price?

State?

Monthly electric bill?

$/W Price Check

Near national average. Acceptable for premium equipment or difficult installs.

$3.00/W

✓

Production/kW Check

Expected production for Colorado: 1,500 kWh/kW/yr (12,000 kWh total). This is within the normal range for your location.

1,500 kWh/kW/yr

✓

Payback Period

Good payback. Well within the typical 6–12 year range.

10.0 years

✓

ITC (30% Credit)

Your ITC is $7,200 (30% of gross price). This reduces your net cost to $16,800. Confirm you have sufficient tax liability to use the full credit — unused ITC can be carried forward 1 year.

$7,200

Net Price After 30% ITC

$16,800

Gross price$24,000

ITC (30%)-$7,200

Net $/W$2.10/W

Est. payback10.0 yrs

How to Use This Calculator

Enter quote details

Pull up your solar quote and enter the system size in kW, the total gross price (before any incentives), your state, and your current monthly electric bill. Use the scenario buttons to load realistic examples for major markets.

Read the 4 checks

The calculator evaluates your quote against 4 benchmarks: price per watt (most important), expected production per kW for your location, estimated payback period, and your ITC value. Each check shows green, yellow, or red with an explanation.

Review red flags

If any check triggers a red flag, the calculator explains exactly what question to ask your installer. Red doesn't automatically mean the quote is bad — a rooftop with complex shading work or premium equipment can justify higher prices — but it means you should understand why.

Compare multiple quotes

Run this calculator for each quote you receive. A key insight: the lowest $/W quote isn't always the best quote. Compare estimated annual kWh production (not just system size) and warranty terms across installers.

Solar Quote Benchmarks by Region (2024–2025)

Region	Avg $/W	kWh/kW/yr	Avg Payback
California	$2.60–$3.40	1,500–1,800	7–10 yrs
Texas	$2.50–$3.20	1,400–1,700	8–11 yrs
Florida	$2.50–$3.20	1,500–1,700	8–11 yrs
Arizona / Nevada	$2.40–$3.10	1,700–2,000	6–9 yrs
Colorado	$2.80–$3.50	1,400–1,600	9–12 yrs
Northeast (MA/NJ/NY)	$3.00–$4.00	1,100–1,400	7–10 yrs
Mid-Atlantic (VA/MD/DC)	$2.80–$3.60	1,200–1,500	8–11 yrs
Southeast (GA/NC/SC)	$2.60–$3.30	1,300–1,600	9–12 yrs
Midwest (IL/OH/MN)	$2.70–$3.40	1,100–1,400	11–15 yrs
Pacific Northwest (WA/OR)	$2.90–$3.70	1,000–1,200	13–17 yrs

Source: EnergySage Market Data 2024, NREL PV Watts estimates. Payback assumes 30% ITC, average local electricity rates.

Red Flags to Watch For in Solar Quotes

Price per watt benchmarks (gross, before ITC): GREEN: Under $3.00/W — competitive, ask what's included YELLOW: $3.00–$3.80/W — near average, verify equipment quality RED: Over $3.80/W — premium territory, understand why Production benchmarks (kWh/kW/yr): Low sun states (WA, OR, AK): 1,000–1,300 kWh/kW/yr Average US: 1,300–1,500 kWh/kW/yr High sun states (AZ, NV, TX): 1,500–2,000 kWh/kW/yr Quotes that use DC production (not AC) overstate by 14–20% Always ask: "Is this annual kWh estimate DC or AC production?"

Additional red flags not captured by numbers: pressure to sign the same day ("this price expires tonight"), unusually low panel wattage for the quoted system size (e.g., 300W panels when 400W is standard), no mention of permit and interconnection timeline, unclear warranty coverage for labor vs. equipment.

FAQ

How many solar quotes should I get? ▼

Get at least 3 quotes — ideally from a mix of national installers (Sunrun, SunPower, Freedom Solar), regional companies, and local installers. National companies often have higher prices but strong warranties. Local installers often have lower prices but varying quality. EnergySage (an online marketplace) is useful for getting multiple quotes without a salesperson visit. Compare quotes on $/W, estimated annual kWh, panel brand and wattage, inverter type, and warranty terms — not just total price.

Why do quotes for the same home differ by $10,000 or more? ▼

Several factors create wide quote variation: (1) System size — installers sometimes quote different kW for the same home based on their design assumptions. (2) Equipment grade — budget vs. premium panels and inverters vary $0.40–$0.80/W. (3) Installer overhead — large national companies have higher marketing costs built into pricing. (4) Profit margin — some installers pad margins significantly. (5) Labor cost — complex roofs, tall buildings, or poor attic access add labor. Normalize quotes to $/W and compare estimated annual kWh production, not just total price.

Is a very low $/W quote a red flag too? ▼

Yes. Below $2.40/W is unusual in 2024 and warrants scrutiny. Questions to ask: Are they using very low-watt budget panels? Is the inverter a no-name brand with no US support? Does the price include permit, interconnection, and inspection fees, or are those extra? Is the labor warranty only 1 year? Extremely low quotes sometimes indicate a company cutting corners on equipment, permitting, or labor that will cost you more in maintenance and repairs over 25 years.

What questions should I ask about production estimates? ▼

Ask: (1) "Is this AC or DC production?" — AC is what your home actually uses. (2) "What tool did you use?" — PVWatts, Helioscope, and Aurora are industry-standard. Avoid vague "our proprietary model." (3) "What shading analysis was included?" — aerial tools like Google Sunroof or LiDAR shading analysis should be mentioned. (4) "What efficiency assumption are you using?" — 80% or 86% are reasonable; over 90% is optimistic. (5) "Does this include degradation?" — a 1.0% vs. 0.5%/yr degradation assumption makes a measurable difference over 25 years.

How does the ITC affect what I actually pay? ▼

The 30% federal Investment Tax Credit reduces your federal income tax bill by 30% of your total system cost (including labor, permits, and battery if added simultaneously). On a $25,000 system, that's $7,500 off your taxes. If you finance the system, many homeowners use the ITC refund (received when filing taxes the following year) to pay down their solar loan, reducing monthly payments. The ITC does not directly reduce your installation invoice — you pay the full price and recoup 30% via your tax return.