Solar Panel Costs Price History
2000–2025 · NREL / SEIA
The average installed cost of residential solar panels in the United States, tracked annually from 2000 through 2025. This is one of the most dramatic price collapses in modern energy history. A technology that cost homeowners over $10 per watt at the turn of the millennium has plunged below $1.30 — an 88% drop that has turned rooftop solar from a wealthy environmentalist's hobby into a straightforward financial decision for millions of ordinary households.
Price in 2000
$10.50
Price in 2025
$1.28
Total Change
-87.8%
Years Tracked
25
Solar Panel Costs Over Time
Compare to inflation: The chart above shows nominal (not inflation-adjusted) prices. Use the toggle to switch to inflation-adjusted values when available, or try the inflation calculator to convert any amount between years.
Key Insights
- Solar costs dropped from $10.50 per watt in 2000 to $1.28 in 2025 — an 88% decline that outpaced virtually every prediction made by energy analysts at the start of the century.
- The steepest single-year drop came between 2010 and 2011, when Chinese manufacturing scaled up massively and flooded the global market with cheap panels, cutting costs by nearly a dollar per watt.
- At today's prices, a typical 8-kilowatt home system costs around $10,200 before tax credits — down from roughly $84,000 in 2000, which explains why installations have grown over 200-fold.
- Despite panels getting cheaper every year, "soft costs" like permitting, inspection, and customer acquisition now make up more than half the total installed price, which is why the U.S. still lags behind Australia and Germany on per-watt pricing.
Year-by-Year Data
| Year | Price (USD per watt) | YoY Change |
|---|---|---|
| 2000 | $10.50 | — |
| 2001 | $10.10 | -3.8% |
| 2002 | $9.80 | -3.0% |
| 2003 | $9.50 | -3.1% |
| 2004 | $9.00 | -5.3% |
| 2005 | $8.50 | -5.6% |
| 2006 | $8.20 | -3.5% |
| 2007 | $7.80 | -4.9% |
| 2008 | $7.50 | -3.8% |
| 2009 | $6.80 | -9.3% |
| 2010 | $5.70 | -16.2% |
| 2011 | $4.70 | -17.5% |
| 2012 | $3.80 | -19.1% |
| 2013 | $3.30 | -13.2% |
| 2014 | $3.00 | -9.1% |
| 2015 | $2.70 | -10.0% |
| 2016 | $2.40 | -11.1% |
| 2017 | $2.20 | -8.3% |
| 2018 | $2.00 | -9.1% |
| 2019 | $1.85 | -7.5% |
| 2020 | $1.70 | -8.1% |
| 2021 | $1.60 | -5.9% |
| 2022 | $1.55 | -3.1% |
| 2023 | $1.45 | -6.5% |
| 2024 | $1.35 | -6.9% |
| 2025 | $1.28 | -5.2% |
Sources & Methodology
Median installed cost per watt for residential rooftop solar systems, based on NREL benchmarking studies and SEIA market reports. Includes hardware, labor, permitting, and installer margins.
Primary source: NREL / SEIA
For a full explanation of how we collect and adjust data, see our methodology page.