A Comprehensive Guide for Homeowners

As we all strive to be more environmentally conscious and reduce our carbon footprint, investing in solar energy has become increasingly popular among homeowners. Solar panels provide a sustainable and reliable source of energy that can save you tons of money on utility bills in the long run.

As you consider whether going solar makes sense for your home, one important factor you’ll need to consider is cost. How much does a solar system cost? In this blog post, we’ll answer that question and help you understand the factors that can impact the price of a residential solar system.


Size of the system - One of the most significant factors that determine the cost of a solar system is its size, measured in kilowatts (kW). Homeowners with larger homes or high energy usage will require larger systems to meet their electricity needs. The more kilowatts required, the higher the cost of a solar system. On average, a 5-kW solar system will cost anywhere from $15,000 to $25,000 before incentives.

Type of panels - Different types of solar panels have different efficiencies and costs. For example, premium panels may provide a higher energy output but come with a higher price tag. Standard panels, on the other hand, may be more affordable but come with a lower energy output. Another factor to consider when selecting solar panels is their lifespan and warranty.

Location - The location of your home is another important factor in determining the cost of your solar system. Depending on your state, there are different incentives and rebates available, which can greatly reduce the overall cost of the system. Additionally, the amount of sunlight your home receives can impact the number of panels required and the overall output of the system.

Mounting system - The way in which solar panels are mounted can significantly impact the cost of the system. For example, roof-mounted systems are generally more affordable or considering a ground-mounted system that may be more expensive but requires less maintenance or improvements.

Installation costs - The cost of solar installation varies depending on the complexity of the project. The costs include the installation of the mounting system and wiring, as well as any necessary electrical work. Make sure to obtain several quotes from reputable contractors in your area to ensure you are getting the best price for your solar installation.


Investing in solar energy may seem like a significant upfront expense, but over time, saving on utility bills, providing energy independence, and supporting the environment, all make it a smart decision. Understanding the costs associated with solar systems can help you make an informed decision and ensure that you get the best value for your investment. With the right financing options, solar energy can fit into just about any homeowner’s budget. So, whether you're looking to save money on your electricity bills or reduce your carbon footprint, installing solar panels can be a great investment for you and the planet.

This article was updated on April 29, 2023