Solar Panel Costs Explained
The total cost of a solar installation depends on system size, equipment quality, and local labor rates. Here's what to expect.
Cost Breakdown
A typical residential solar installation includes:
| Component | % of Total Cost |
|---|---|
| Solar panels | 30–35% |
| Inverter | 10–15% |
| Mounting & racking | 10% |
| Electrical components | 5–10% |
| Labor & installation | 20–25% |
| Permits & connection | 5–10% |
Price Ranges by System Size
Typical residential pricing (2026, before subsidies):
- 3 kWp (small home): €3,500–€5,500
- 5 kWp (average home): €5,000–€8,000
- 8 kWp (large home): €7,500–€12,000
- 10 kWp (large home + EV): €9,500–€15,000
Prices vary significantly by region. Western Europe, North America, and Australia tend to be 20–40% more expensive than emerging markets due to higher labor and permitting costs.
What Affects Price?
Panel brand and efficiency — Premium brands (SunPower, REC) cost more but produce more per square meter.
Inverter type — String inverters are cheapest. Microinverters cost 20–30% more but optimize each panel individually.
Roof complexity — Flat roofs need tilt frames. Tile roofs require more careful mounting. Both add cost.
Grid connection — Some countries charge connection fees or require specific meters.
The Price is Dropping
Solar costs have fallen 90% since 2010 and continue to drop 5–8% per year. Waiting another year saves a little on equipment but costs you a year of electricity savings.
How to Compare Quotes
When comparing installer quotes, always look at:
- Cost per watt (€/Wp) — the best apples-to-apples comparison
- Total system output — not just panel count, but expected kWh/year
- Warranty terms — panels (25 years), inverter (10–15 years), workmanship (5–10 years)
- What's included — some quotes exclude permits, grid connection, or monitoring
Get quotes from multiple installers through our directory to compare fairly.