Avoiding bad deals
Is your solar quote overpriced? (The 4 numbers that decide it)
6 min read
A $32,000 solar quote could be a great deal or a terrible one. The total dollar figure tells you almost nothing on its own. The four numbers that actually matter — per-watt cost, system size, panel tier, and dealer markup — make overpricing obvious in about 60 seconds once you know the ranges.
Texas residential solar in 2026 ranges from roughly $2.50 to $3.50 per installed watt for a typical home. Below is what each number should be, what raises it legitimately, and what raises it as a markup.
The 4 numbers that actually matter
| Number | Healthy range | Where to find it |
|---|---|---|
| All-in price per watt | $2.50–$3.50/W | Total price ÷ system kW × 1000 |
| System size | 8–14 kW for typical home | kW or 'system size' on proposal |
| Panel tier + manufacturer | Mission Solar / Q CELLS / REC / LONGi / Silfab | Equipment list |
| Inverter architecture | Microinverters or string | Equipment list |
What legitimately raises the price
- Battery storage — adds $10-18k per Powerwall or 3 Enphase IQ modules.
- Complex roof — multiple pitches, tile or metal roofing, two-story homes, valleys around the array.
- Service-panel upgrade — older homes with 100A panels often need an upgrade to 200A. $2-4k.
- Trenching for ground-mounted arrays.
- Higher-tier panels with longer warranties (REC Alpha, LONGi Hi-MO 6) — adds 10-15% to panel line item.
- Microinverters vs. string inverter — adds 8-12% to inverter line item.
What's just markup
- Dealer fees from sales orgs — 'platform fees' or 'origination fees' that show up as 10-25% of the total without explanation.
- Financing markup — some installers raise the cash price 15-20% before applying the loan, then call it $0-down.
- Permit + interconnection 'service fees' — actual permit costs are $300-1500 in most Texas cities. Anything above $2k on this line is markup.
- Vague 'design and engineering' lines — Aurora design is essentially free for the installer; charging $2-3k for it is markup.
60-second overpricing check
- Convert to per-watt cost: total price ÷ kW × 1000.
- If above $4/W with no clear premium reason (battery, complex roof, service-panel upgrade), it's overpriced.
- If between $3.50-$4.00/W, ask for the line-item breakdown — markup is hidden somewhere.
- If below $2.50/W, verify the panel tier and warranty length — extreme low pricing is usually achieved by switching to off-brand panels or 5-year workmanship.
What to ask the installer directly
- What's the all-in price per watt installed?
- Can you send the line-item breakdown by component?
- Are there any dealer fees, platform fees, or origination fees?
- If I pay cash, is the price the same as the financed quote?
- What's the per-panel wattage and which manufacturer?
Common questions
Frequently asked
- What's a fair price for solar in Texas?
- $2.50-$3.50 per installed watt for a typical residential system in 2026, before any incentives. A 10 kW system at $3.00/W is $30,000 — middle of the range. Battery adds $10-18k; complex roofs and service-panel upgrades push the price up legitimately.
- Why are some solar quotes 30% higher than others for the same system size?
- Almost always dealer markup. Sales-org installers (where the rep at your door is from a separate company than the install crew) add 10-25% on top of what a vertically-integrated installer would charge for the same hardware and labor.
- Should I always pick the cheapest quote?
- No. Below $2.50/W in Texas usually means off-brand panels, 5-year workmanship warranty, or a missing component. Compare per-watt prices in the $2.75-$3.25 range — that's the sweet spot for tier-1 hardware + 25-year workmanship.