The Best Cheap Solar Panels of 2024

Compare the cost and efficiency of our top-rated solar panel brands and see which one of our trusted installation companies can help you complete your solar project.

*Our list of installers is based on our research into the best solar providers nationwide and not exhaustive. There may be additional solar providers in your area that offer the above panels.

Here’s our list of the best affordable solar panels:

• Silfab: Best for warranties
• Panasonic: Best for premium panels
• Q Cells: Best for innovation
• Canadian Solar: Best for colder climates
• Trina Solar: Best for affordability

Factors like where you live and how much energy you use will influence the overall cost of your solar panel installation. According to our 2023 survey of 1,000 homeowners with solar, it typically costs between $15,000 and $22,500 to install a 6 kW to 8 kW solar power system. The Solar Energy Industries Association (SEIA) estimates that solar panels can cost around $25,000. Keep in mind that these figures do not include any solar incentives, like the 30% federal solar tax credit.

System Size and Equipment

The type of solar panels you select and how many you need will significantly affect your system price. A smaller home that consumes less energy may only need a 5 kW system, while larger homes with higher energy needs may require closer to a 10 kW system. Solar installations are typically priced by capacity, so the more energy you need your panels to generate, the more you’ll pay for your system.

Home solar systems also require an inverter to convert solar energy into usable power. You can also add a solar battery to store energy outside sunlight hours. Most solar companies will design your solar system with these components included, but selecting specific inverters or batteries, such as a Tesla Powerwall, may increase your overall cost.

Here is a chart that shows how much you can expect to pay for different sizes of a solar panel system:

Tier 1 vs. Tier 2 Panels

Solar panel tiers are criteria set by the Bloomberg New Energy Finance Report. To be considered Tier 1, a manufacturer must have provided solar products to six different projects under specific financing guidelines within the last two years. Any manufacturer that does not meet this criteria is considered Tier 2.

These guidelines do not consider or measure a panel’s efficiency rate or durability. Instead, these labels refer to a solar manufacturer’s bankability and standing in the industry.

Premium vs. Value Panels

A value solar panel refers to a solar panel designed to last around 20 to 25 years. Value panels are typically backed by a 10- to 12-year warranty and feature high-quality, reliable materials. In short, these panels are great value for your money. You may find that most thin-film and polycrystalline solar panels are value panels.

On the other hand, premium panels feature higher-quality materials and have a lifespan of 25 to 40 years. These panels usually feature higher efficiency rates and lower temperature coefficients, with 25-year performance warranties. Premium panels tend to be manufactured by big-name companies confident in their quality, performance and durability. Most often, premium panels are monocrystalline solar panels.

You can save money on solar panels by taking advantage of solar incentives, comparing solar panel prices and quotes, and installing panels yourself (if you have the expertise and equipment).

Take Advantage of Solar Incentives

All U.S. residents are eligible for the 30% federal solar tax credit when they purchase residential solar panels. Additionally, many state governments and utility companies offer local incentives including net metering, solar rebates and tax exemptions that can further reduce your cost. Use the dropdown below to discover the incentives offered in your state.

Compare Quotes from Installation Companies

Get several quotes from local solar companies and compare costs between providers. Although solar panel installation costs vary vastly by project, our 2023 poll of 1,000 homeowners with solar found that Palmetto Solar and Sunrun tend to be on the lower cost end of solar providers. Discover the top solar companies near you using the tool below.

Install Panels Yourself

Installing solar equipment requires electrical expertise, specialized equipment and special permitting that make it difficult to install panels yourself. Not to mention, DIY installation poses risks due to the height of your roof and electric wiring. Additionally, since the majority of your cost comes from equipment, your savings when installing panels yourself may not be as much as you think.

According to Jesse Solomon, the co-founder of NCSolarNow, installation and labor costs only make up about 12% of the total cost of your solar system. In most cases, you’re better off going with a professional. Plus, your solar installer will help you apply for solar incentives you’re eligible for, which helps maximize your savings.

A variety of financing options can make solar power more accessible, with options that include a cash purchase, solar loan, solar lease and power purchase agreement (PPA). Each payment model has its own set of pros and cons. We recommend purchasing your system in cash for maximum savings, but if you wish to avoid a large upfront payment, a solar loan is the second best option, followed by solar leases and power purchase agreements.

Cash Purchase

A cash purchase is when the customer pays the entire cost of the system upfront. With a cash purchase, you have immediate ownership of the system and can claim solar incentives to lower your return on investment. However, since most solar systems cost $15,000 and $22,500 on average, a cash purchase may not be realistic for everyone.

Solar Loan

As the name suggests, a solar loan allows homeowners to purchase a system by borrowing money from a lending agency, such as a bank. Solar loans combine the benefits of both cash purchase and solar leases — homeowners own the system and become eligible for incentives, while also having a comfortable payment structure.

A large variety of lenders offer solar loans in the U.S., with interest rates typically ranging between 4% and 8% and average term lengths of around 20 years. This means that for a system costing around $15,000, homeowners can expect to pay an additional $6,815 to $15,111 in interest when paying with a loan.

Solar Leasing

A solar lease allows customers to rent a solar system to use on their property instead of purchasing the panels outright. With a lease, homeowners typically pay an agreed monthly amount to the installer in exchange for the energy generated by the system. Leases never result in system ownership, which means you cannot claim certain solar incentives like the federal solar tax credit.

Solar leases are attractive as they offer financing with no upfront cost. Homeowners pay $0 down, followed by monthly payments ranging from $50 to $250, based on system size and other factors. Ideally, the lease payment is lower than the home’s monthly electricity bill. 

For instance, a family paying $150 each month on grid power could lease a system for $100 per month, which saves $50. However, if the lease runs for 25 years, they would save about $12,000 over the contract period, which is significantly lower than our estimated savings with a cash purchase or even a loan. Use the chart below to find out how much solar can help you save.

Power Purchase Agreement (PPA)

A power purchase agreement is a contract between an installer and a customer in which the customer pays a fixed amount for every unit of energy used, similar to traditional grid power consumption. While often confused with a solar lease, PPA payments vary based on a system’s energy generation, offering a more balanced solution to the homeowner.

The rate per kilowatt-hour for a PPA depends on the system size, location and other factors. However, it is almost always lower than the price of grid electricity. For example, if you pay 16 cents per kWh to your utility company, a solar PPA may charge you 12 to 14 cents per kWh. This allows homeowners to save on power bills. 

However, customers should note that the cumulative savings from a solar PPA are always lower than a cash purchase. For this reason, our team recommends paying in cash or with a solar loan instead of signing a PPA.

Solar energy offers various benefits to homeowners, including lower utility bills, increased home value and a lower environmental impact.

Lower Utility Bills

The typical household in the U.S. spends about $1,500 per year on electricity, according to the Energy Information Administration. Solar photovoltaic (PV) panels can provide long-term savings by lowering your reliance on grid power and offsetting electricity costs with renewable energy.

While the upfront cost of solar panels can be hefty — about $15,000 to $22,500 on average — incentives like the federal solar credit, net metering programs and state tax breaks can help offset the price. Although you will see the most immediate savings by purchasing your system in cash, many installers offer solar loans, leases and power purchase agreements (PPA) so you can finance your system over time.

Here are some of the most significant factors that influence the actual savings you receive from a solar system:

• The incentive programs in your state
• The amount of electricity your household consumes
• The size of your solar panel system
• How you pay for your system (you cannot claim federal and state tax credits with leases and PPAs)
• Direct hours of daily sunlight
• Size and angle of roof

A solar professional can survey your home and give you an estimate of how much you can save when you switch to solar.

Increased Home Value

A solar energy system can increase your overall property value. According to a study by the Lawrence Berkeley National Laboratory, solar panels increased the value of a home by an average of $15,000. A Zillow study reported that homebuyers were willing to pay 4.1% more for a home with solar panels, an average of $9,274.

Lowered Environmental Impact

Each kilowatt-hour of solar power generated reduces greenhouse gas emissions, such as carbon dioxide and other pollutants like sulfur oxides, nitrogen oxides and particulate matter. According to the National Renewable Energy Laboratory, you save 1,400 pounds of carbon dioxide emissions from traditional energy sources for every 1,000 kWh of clean electricity your solar panels generate.

Solar panels also reduce the water consumption needed by power plants to generate electricity.