Is it cheaper to buy your own solar panels?
Buying and installing your own solar panels is usually cheaper up front, but most of the savings come from skipping the installer's labor, sales and overhead, not from the panels themselves. Panels cost installers only about $0.17 to $0.28 per watt, out of a typical installed price of $2.32 to $3.25 per watt. You still pay for permits, an inspection and, in many places, a licensed electrician.
Where an installed system's price goes
Here's NLR's 2025 benchmark for a residential rooftop system, broken out per watt:
| Cost item | Per watt | Can DIY skip it? |
|---|---|---|
| Solar panels (installer's cost) | $0.17 – $0.28 | No, and you'll pay retail |
| Sales, site assessment, design, permits and logistics | $0.66 – $1.09 | Mostly, but permit fees remain |
| Distributor markup, management, profit and sales tax | $0.56 – $0.76 | Partly: you still pay retail markup and sales tax |
| Whole installed system | $2.32 – $3.25 | — |
Inverters, racking, wiring and roof labor make up the rest. Installers pay wholesale for panels, which a homeowner usually can't get (see what panels cost without installation).
What DIY doesn't save you
- Permits and inspection. Your town and utility still have to approve the system before you can connect it.
- The electrical tie-in. Many jurisdictions require a licensed electrician for this.
- A tax credit. No federal credit is available for DIY or installer-built systems bought in 2026.
If "buy" means buy vs. lease
Owning usually costs less over the system's life than leasing. But in 2026, only leases and PPAs still carry a federal credit, which the leasing company claims under Section 48E and may pass through as lower payments. Compare both using our 2026 financing guide, and see the full price picture in our solar panel cost 2026 guide.
Facts verified
- Cost breakdown: NLR Q1 2025 PV System Cost Benchmark, residential model file "RPV 2025Q1.txt", PV-only modeled market price ranges (2024 dollars). Rows are converted to per-watt from NLR's per-kW figures. Hardware rows not shown are listed in other units in the model.
- No federal credit for purchased systems: IRS, Residential Clean Energy Credit ("not available for any property placed in service after December 31, 2025").
- Lease/PPA federal credit: Section 48E clean electricity investment credit, claimed by the system owner. See our 2026 tax credit guide for sources.
- Electrician and permit rules vary by state and town. Check with your local building department.
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?
- How much do solar panels cost without installation?
- How much do solar panels cost per month?