How much do solar panels cost per month?
Financing a typical 8 kW solar system costs about $140 to $250 a month, based on a $20,000 to $26,000 system on a 20-year loan at 6% to 10% interest. Lease and PPA payments depend on the contract, so get them in writing. For comparison, the average U.S. home's electric bill was $144 a month in 2024.
Monthly loan payment by price, rate and term
An 8 kW system (NLR's typical home size) costs about $18,600 to $26,000 installed. Here's the monthly payment on $20,000 and $26,000 at common loan terms:
| Interest rate | 15 years | 20 years | 25 years |
|---|---|---|---|
| 6% | $169/mo | $143/mo | $129/mo |
| 8% | $191/mo | $167/mo | $154/mo |
| 10% | $215/mo | $193/mo | $182/mo |
| Interest rate | 15 years | 20 years | 25 years |
|---|---|---|---|
| 6% | $219/mo | $186/mo | $168/mo |
| 8% | $248/mo | $217/mo | $201/mo |
| 10% | $279/mo | $251/mo | $236/mo |
How to read these numbers
- Compare the payment with your bill, not with zero. Solar replaces part or all of your bill. If your payment is close to what you pay the utility today, you break even right away and come out ahead once the loan is paid off.
- Watch for dealer fees. The CFPB found that some solar lenders add hidden fees to the loan amount, which can raise it 30% or more above the cash price. Ask for the cash price and the loan amount side by side.
- No federal tax credit on purchases in 2026. The loan has to work without a credit to pay it down. Leases and PPAs can still pass through a federal credit that the leasing company claims.
Monthly cost depends on the system price first. See solarenergynerds.com/how-much-does-solar-cost-in-2026 for what sets it, and our 2026 financing guide to compare loans, leases and PPAs. Wondering what size you need? Start with solar cost for a 2,000 sq ft house.
Facts verified
- Average bill: EIA, Today in Energy, May 12, 2025: "The average electric monthly bill for U.S. residential customers was $144 in 2024."
- System price: NLR Q1 2025 PV System Cost Benchmark, residential PV-only $2,319–$3,248 per kW, applied to an 8 kW system (2024 dollars).
- Dealer fees: CFPB, Issue Spotlight: Solar Financing (August 2024).
- Assumptions: the 6%, 8% and 10% rates and 15-, 20- and 25-year terms are illustrative, not offers. Payments use standard loan amortization (our own calculation). Your rate depends on your credit and lender.
- Federal credit status: IRS, Residential Clean Energy Credit (expired for property placed in service after December 31, 2025).
More solar cost questions
- How much do solar panels cost for a 2,000 sq ft house?
- How much do solar panels cost for a 1,500 sq ft house?
- How much does solar cost for a 1,000 sq ft house?
- Is 10kW enough to run a house?
- What is the 33% rule in solar panels?
- Is it cheaper to buy your own solar panels?
- How much do solar panels cost without installation?