Solar panel costs can vary depending on factors like the type of panels, installation fees, and your location. On average, solar panels cost between $2.50 and $4 per watt, meaning a typical residential system could range from $15,000 to $24,000 before any incentives. The cost of using solar energy is further reduced by federal tax credits, which can lower the overall price by 30%. In addition to the upfront cost, there are long-term benefits, including energy savings and increased home value. The investment in solar panels often pays for itself within 6 to 10 years, making it a viable option for homeowners looking to reduce their electricity bills and carbon footprint.