Price per watt ($/W)

Price per watt ($/W) is one of the most useful metrics for comparing solar panel system pricing, especially if you’re comparing quotes with a variety of solar panel sizes.

Like evaluating dollars per square foot when shopping for a home, $/W is an indicator of how much the system costs per watt of power. Naturally, a larger solar panel system will cost more money – but $/W, regardless of system size, helps determine whether you’re getting enough bang for your buck from one system to the next.

On EnergySage, we automatically calculate and display the $/W of each quote. However, if you’re comparing offline proposals, you can easily calculate this yourself by taking costs (not including incentives) and dividing it by the system size in watts.

Factors that influence $/W

Why do some quotes come in at a higher $/W than others? Consider:

• System size: smaller systems often have higher $/W because fixed solar installation fees–like permitting–make up a larger portion of the costs.
• Location: solar pricing varies by state
• Equipment quality: systems with top-notch equipment typically come at a price premium.
• Installation company: some companies have higher overhead costs than others.
• Type of system: ground-mounted or carport solar arrays tend to have a higher $/W because they require more equipment.

Average $/W

On the EnergySage Marketplace, the average $/W in 2022 is $2.77/W.  For a 10 kilowatt (kW) system, that comes out to $27,700 before any incentives.

Learn more about average solar costs by state and system size