Solar Panel Cost Guide in Philadelphia, PA (2025 Update)
- Philadelphia Solar Installation Cost: $16,250
- 25-Year Savings: $14,973
- Payback Period: 15.2 Years
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Average Cost of Solar Panels in Philadelphia
Let’s have a look at the average cost of solar in Philadelphia.
Currently, the national average cost of solar panels is $2.66 per watt. However, in Philadelphia, the average cost of solar panels is 4 per watt.The average Philadelphia homeowner needs a 6.5-kilowatt system, which would cost about $16,250 with the federal tax credit, or $23,238 before the 0 tax credit is applied.
The true price you pay can be above or below the average in Philadelphia based on a variety of factors, such as the brand of solar panels you choose and the solar company you hire.With typical savings of about $15,000 on utility bills over 20 years, many homeowners in Philadelphia find going solar has a decent ROI.
To see your potential savings and connect with a local solar company, click the button below.
Solar savings over time in Philadelphia
| Year | Return on Investment |
|---|---|
| 1 years | $-14,960 |
| 3 years | $-12,379 |
| 5 years | $-9,799 |
| 7 years | $-7,218 |
| 9 years | $-4,638 |
| 11 years | $-2,057 |
| 13 years | $523 |
| 15 years | $3,104 |
| 17 years | $5,684 |
| 19 years | $8,265 |
| 21 years | $10,845 |
| 23 years | $13,426 |
| 25 years | $16,007 |
Top Solar Installers in Philadelphia
Many homeowners decide to hire a solar installation company since trying to install solar panels by yourself can be a labor-intensive endeavor. A solar company can also help save you money over time by providing warranties, repairs and component replacements.
If you're searching for a solar installer in Philadelphia, we've put together a list of our top suggestions here:
See all of the solar companies in Philadelphia
Factors that Affect Solar Panel Costs in Philadelphia
For many Philadelphia homeowners, the decision to adopt solar energy comes down to cost. However, the range of solar installation costs can be quite wide in Philadelphia, with typical prices between $20,000 to $40,000. There are several factors that greatly influence the price you’ll pay, which we'll go over below.
Solar Equipment
When it comes to estimating the cost of a solar energy system in Philadelphia, one of the most crucial factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are largely based on your home’s energy consumption, which you can gauge by looking at past energy bills. Your overall cost can increase by around $3,550 for each additional kilowatt you need.There are a lot of different solar panel brands and the one you pick also affects the cost. In general, the brands that are more efficient tend to also be more expensive. Plus, the type of equipment you want to install can affect your total cost. If you just need panels, your system will be far less expensive than if you also need solar batteries or an electric vehicle charger.
Solar Financing Terms
Many homeowners find the average cost of solar in Philadelphia to be too steep, even if the investment pays off over time. Thankfully, nearly every solar company in the area offers financing options. Solar loans remarkably decrease upfront costs for most homeowners, but they also result in a higher cost over time due to interest.However, the interest on solar loans also increases your overall costs, so it’s crucial to consider that as well. You can always reduce the total you pay in interest and possibly even your APR by putting more money down.
Solar Panel Installation Company
The solar company you go with to handle your switch to sustainable energy can play a role in your total costs. There are about 3 solar panel companies operating throughout Philadelphia, and each can charge varying amounts for labor and equipment.You may come across national solar installers that have lower prices because of their bigger brand name and access to bulk equipment prices, or you might see small, local installation companies offering deals or promotions to compete with those major players.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $3.69 | $15,506 | $8,941 | 15.9 years |
| 8 kW | $3.62 | $20,278 | $12,319 | 15.6 years |
| 10 kW | $3.55 | $24,850 | $15,896 | 15.2 years |
| 12 kW | $3.48 | $29,224 | $19,672 | 14.9 years |
| 14 kW | $3.41 | $33,398 | $23,646 | 14.6 years |
| 16 kW | $3.34 | $37,374 | $27,819 | 14.3 years |
| 18 kW | $3.27 | $41,152 | $32,191 | 14.0 years |
| 20 kW | $3.19 | $44,730 | $36,762 | 13.7 years |
How to Save on Solar Panels
The company that does your system installation will affect the warranties and brands you have access to, and it will also have an impact on your total cost. Because selecting a company can be difficult, we have some tips to help you, such as:
- Reputation: The North American Board of Certified Energy Practitioners (NABCEP) is a well-established certification organization for sustainable energy professionals. If your solar panel installer is NABCEP-certified, it likely has a solid reputation and is qualified to get the job done well. Another way you can look into your installer’s reputation is by reading reviews.
- Warranty: A quality company stands out from other companies by offering the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
- Installation Process: When going solar, it’s important to keep an open line of communication with your solar panel company. Confirm that you understand how the installation process works and the project timeline.
- Contract: Review the contract terms carefully to make sure you understand the cost breakdown, completion timeline incentives and warranties.
EcoWatch's Philadelphia, PA Solar Cost FAQs
What is the average cost of installing solar panels in Philadelphia?
This is a hard question to answer exactly, because the cost depends on a variety of factors. Generally speaking, it costs about $17,750 for a 5-kW system and $35,500 for a 10-kW system after the ITC is applied. You can expect to pay more if you want additional solar equipment or more efficient panels, or if you have higher-than-average energy usage. On the other hand, you can spend less if you go with a smaller solar panel system or cheaper solar panels.
Are solar panels free in Philadelphia?
You can’t get solar panels for free in Philadelphia. However, you may still be able to afford them on a lower budget. You can lease solar panels for a low upfront cost or, if you want to own your solar panels, you can finance them with a solar loan.
How much can I save on power bills after switching to solar?
It is possible to erase your electricity bills with solar panels, but for most homeowners throughout Philadelphia, that will require at least a 10-kW system. Not all homes can accommodate that size system, so you’ll want to check with a local solar installer to see how many panels can fit on your roof.
How many solar panels do I need to power my home?
To figure out how many solar panels you need, you need to know how much energy your home uses and how much sunlight your home gets. For a general estimate, however, since each panel can typically produce about 250 to 400 watt-hours per hour, the average house will need 20 to 35 panels.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.