Solar pricing is quoted in dollars per watt, which makes two proposals hard to compare until you normalize them. Here is how the math works before incentives and after.
Start with dollars per watt
Divide the total system price by the system size in watts. A 7 kW system quoted at $21,000 is $3.00 per watt. Most residential quotes land between $2.50 and $3.75 per watt before incentives, with higher-efficiency panels, complex roofs and battery storage pushing that up.
The federal tax credit
The residential clean energy credit reduces your federal tax liability by 30% of qualifying system cost. It is a credit, not a rebate, so it depends on you owing federal tax; unused amounts can generally roll forward. State, utility and local incentives can stack on top. Confirm current eligibility with a tax professional before budgeting around it.
Cash, loan, lease or PPA
A cash purchase has the lowest lifetime cost. A solar loan spreads it but adds interest and sometimes a dealer fee baked into the price. Leases and power purchase agreements mean a third party owns the system and claims the credit; you buy the power instead. Ask which structure each quote assumes before comparing headline numbers.
- Is the tax credit already deducted from the price shown?
- What is the dealer fee on the loan option?
- Who owns the system and the incentives?
- What happens if you sell the home?
Pickwise is an independent consumer matching and referral service. We do not manufacture, sell or install home improvement products, and we do not provide quotes or pricing. Information you submit is used to identify participating windows, solar, roofing and HVAC professionals serving your area, where available. Matching depends on your location, your project requirements and participating professional availability, and is not guaranteed. There is no obligation to purchase anything.