EconomicsUp to date · Jan 15, 2026
Cost Per Watt
The standard metric for comparing solar installation prices, calculated by dividing total system cost by its DC wattage. US average is $2.50-$3.50/W before incentives (2024).
Why It Matters
Cost per watt normalizes pricing across different system sizes, allowing apples-to-apples comparisons. A $0.25/W difference on a 10 kW system means $2,500.
Real-World Example
A 10 kW system at $3.00/W costs $30,000 before incentives. After the 30% ITC, net cost is $21,000, or effectively $2.10/W.
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Balance of System (BOS)
All solar system components beyond the panels themselves: inverter, racking, wiring, monitoring, electrical panel upgrades, and installation labor.
Soft Costs
Non-hardware expenses in a solar installation: permitting, inspection, interconnection fees, customer acquisition, labor, overhead, and profit margin. Soft costs are ~65% of US residential solar prices.