EconomicsUp to date · Jan 15, 2026
Cost Per Watt ($/W)
The standard metric for comparing solar system prices: total installed cost divided by system size in watts DC. National residential average: $2.50-$3.50/W before incentives (2025-2026).
Why It Matters
Cost per watt normalizes solar pricing across different system sizes. A $25,000 system at 10 kW = $2.50/W. Compare quotes on a $/W basis, not total cost alone — system sizes may differ.
Related Topics
Related Terms
Levelized Cost of Energy (LCOE)
The total cost of generating electricity from a system divided by its lifetime energy production. Used to compare energy sources.
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.