How much does a home solar power system cost

The typical cost of a solar panel system is between $15,000 to $25,000, depending on system size and complexity. Furthermore, as demand for how much do solar panels cost grows, market prices are influenced by global factors such as supply chain disruptions and material costs.

Commercial solar installations are a great way for companies to lower energy costs. Generally, installing solar panels on businesses costs a bit less per watt because the systems are larger, but the total costs will be higher. In 2025, the average cost for commercial solar panels is just about $2.00 per watt.

Below is a breakdown of pricing for different home sizes to help you plan your investment. A 5KW solar panel system is typically sufficient for modest households with minimal energy requirements. The average cost for such a system is between $12,000 and $16,000.

For reference, the national average cost of solar panels is $3.03 per watt. Solar rebates help make solar more affordable by directly lowering the upfront cost of a solar installation. If you have access to solar rebates, consider yourself lucky! They are few and far between these days.

Solar panel costs are usually measured in the cost per watt of solar installed. However, solar system sizes are measured in kilowatts (kW). To calculate the total price of installing a home solar system, you'll need the system size to be in watts. To convert kilowatts to watts, all you need to do is multiply the system size in kW by 1,000.

Depending on the project, an electrical panel upgrade for solar could cost between $2,000 and $3,000. If your solar system uses a string inverter, it may need to be replaced. String inverters generally last between 10 and 12 years, while solar panels last for 25 years or more. Getting a new string inverter could cost about $1,500.