Definition
The total installed cost of a solar system divided by its rated capacity in watts. The national average is $2.50-$3.50 per watt before incentives. After the 30% federal tax credit, effective cost is $1.75-$2.45 per watt. Lower cost per watt means better value.
Related Solar Terms
- Photovoltaic (PV)
The technology that converts sunlight directly into electricity using semiconduc...
- Kilowatt (kW)
A unit of electrical power equal to 1,000 watts. Residential solar systems are t...
- Kilowatt-Hour (kWh)
A unit of electrical energy equal to one kilowatt of power sustained for one hou...
- Net Metering
A billing arrangement where excess solar electricity sent to the grid earns cred...
- Inverter
A device that converts the DC (direct current) electricity produced by solar pan...
Understanding solar terminology helps you communicate more effectively with installers and evaluate quotes accurately. Use our solar cost database to find fair prices for any solar service.