Average Cost of Solar Panel Installation in 2015

2015 Solar Installation Costs at a Glance

In 2015, the average cost to install a residential solar photovoltaic (PV) system ranged from $13,000 to $20,000 before federal tax credits. After the 30% federal investment tax credit (ITC), the out‑of‑pocket expense typically fell to $9,100–$14,000. Prices varied by system size, local labor rates, permitting fees, and whether the installer offered a full‑service package.

Components That Drive the Price

• Equipment (panels & inverters) – Solar panels cost roughly $2.50–$3.50 per watt in 2015. Inverters ranged from $0.15 to $0.25 per watt, depending on brand and technology.
• Installation labor – Labor costs averaged $1.00–$1.50 per watt, influenced by roof type, mounting system, and regional wage differences.
• Permitting and inspection – Fees varied widely, from $200 in low‑cost jurisdictions to over $1,000 in states with strict codes.
• Additional equipment – Batteries, monitoring systems, and backup generators added $2,000–$5,000 to the total.

Regional Variations

Impact of Incentives

The 2015 federal ITC was the primary driver of affordability. States with additional rebates—such as California's Self‑Generation Incentive Program—could reduce the net cost by another 5–10%. Local utility rebates and net‑metering policies also influenced overall savings.

Long‑Term Return on Investment

With an average system producing 4–5 kWh per day in 2015, homeowners typically reached payback in 6–8 years, assuming stable electricity rates and no major equipment failures. Over a 25‑year lifespan, the total savings could exceed $30,000 in many markets.

Key Takeaways

• Average pre‑tax cost: $13,000–$20,000.
• Average post‑ITC cost: $9,100–$14,000.
• Prices vary by region, labor, and incentives.
• Payback period: 6–8 years.
• Long‑term savings: $20,000–$40,000.