How much does solar cost a year?

If solar cuts $150 off your monthly bill, that’s $1,800 a year. Add another $200 in credits for power you export, and your annual savings is $2,000. Payback period is simply the system cost divided by annual savings. Using the numbers above: $12,000 ÷ $2,000 = 6 years. That means in six years your system has paid for itself.

Why are rooftop solar panels more affordable?

For homeowners, these global cost trends translate into more affordable rooftop solar installations. As utility-scale solar prices fall, residential systems also benefit from cheaper panels, lower installation costs, and more competitive financing.

How much does solar cost per kilowatt-hour?

The best way to measure such costs is called the levelized cost of electricity, which is essentially the lifetime cost per unit of electricity generated. The global weighted average LCOE stabilized at $0.043 per kilowatt-hour for utility-scale solar PV. This made solar 41% cheaper than the least-cost fossil fuel option.

Is rooftop solar cost-competitive?

However, according to a 2025 McKinsey article, rooftop solar remains cost-competitive in many markets, with the lifetime cost of electricity generated often cheaper than grid power.