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If you’re shopping for a solar energy system, one of your first questions is probably, “how much will it cost?” Prices depend on the size of your system, the type of equipment you choose, and the state that you live in, but reviewing prices for a 25 kilowatt (kW) system is a great place to start for many smaller homes. Learn more about how much a 25 kW solar system costs, how much electricity a 25 kW system will produce, and the smartest way to shop for solar.

How much does a 25 kW solar system cost? 

As of January 2022, the average cost of solar in the U.S. is $2.77 per watt – that comes out to $69,250 for a 25-kilowatt system. That means that the total 25 kW solar system cost would be $51,245 after the federal solar tax credit discount (not factoring in any additional state rebates or incentives).

25 kW solar panel system cost: what are solar shoppers paying in your state?

We looked at data from the EnergySage Solar Marketplace, the leading comparison-shopping platform for homeowners who are considering home solar panel systems, to find out just how much solar shoppers are paying for 25 kW solar energy systems in different states across the U.S.

The prices listed below have not had the federal tax credit for solar deducted. Depending on where you live, you might have additional state or local solar incentives and rebates that reduce the price even more. You may even be able to earn extra income by selling your system’s solar renewable energy certificates (SRECs).

Even if there are no other incentives where you live, comparing multiple offers from solar companies is important to ensure that you’re finding the best deal. Homeowners who register their property on EnergySage can save 10 percent or more just by shopping around for the right option for their home – the equivalent of thousands in savings on a 25 kW system.

Remember, the cost of solar depends on a lot of factors, so these numbers are just meant to be a starting point. In most cases, you should be able to find a 25 kW solar system in this price range – if you receive offers from solar companies that are much higher or lower, be sure to ask follow up questions.

How much electricity will a 25 kW solar system produce?

The amount of electricity your solar panels produce depends on many factors, including the direction and angle of your roof. The most important one is how sunny it is where you live – for example, a 25 kW system in Las Vegas makes about 30 percent more electricity in a year than one in Philadelphia. That being said, you don’t have to live in the Southwest for solar to make sense for you. The cost of electricity where you live is the biggest determinant of your solar savings.

The table below shows average estimated electricity production numbers for 25 kW solar energy systems in cities across the U.S. By comparison, the average household in the U.S. uses 893 kilowatt-hours (kWh) a month, which equals 10,715 kWh per year. We estimated these numbers using PV Watts, a tool developed by the National Renewable Energy Laboratory.

The sun has been around for more than 4.5 billion years, but we humans have only learnt to harness its PV power for the last 200 years or so ( In fact, solar PV has only been used practically since 1956. Solar power is very clean as it produces zero emissions. It is also renewable, unlimited, reliable, and sustainable without causing any adverse effect on the environment, apart from the manufacturing process and disposal of used components. When using solar, there is no risk of oil spills, smoke and carbon emission, toxic fumes, and so forth. Imagine a world in which you harness free energy without limitations or possibility of misusing it!

The sunniest states in America are Arizona and California, and California leads is adoption of solar PV energy in America, while Las Vegas runs completely on renewable energy. A household contributes nearly 500 tons of carbon in the atmosphere each year, and solar PV could reduce this by at least 100 tons. Solar PV panels are absolutely quiet, and they are mostly mounted on an otherwise unused rooftop. No floor or ground footprint is sacrificed for the installation. The solar industry employs a quarter million people in America. However, despite being the world greatest per capita consumer of energy, the U.S. trails China, Germany, France, Australia, and India in solar adoption.

How Much Do Solar Panels Cost?

Most estimates use cost per watt to determine the cost of installing a solar panel.The prices listed below have not had the federal tax credit for solar deducted. To install one watt of solar power costs anywhere from $2.90 to $8.90 according to different estimates. Panels come in different capacities but you can combine several panels to give more wattage. The average American home requires about 5 kW, which costs between $15,000 and $35,000. However, the Federal and State governments give incentives like rebates and tax credits to encourage going solar. Some utility companies also give incentives like subsidies and net metering at retail rates. All incentives benefit homeowners and make solar energy installation more affordable. Solar power also reduces pressure on overloaded grid systems.

National Cost of Solar Panels

In 2017 most homeowners paid between $2.87 and $3.85 per watt for a 5 kWh solar PV system, which was almost 10 percent lower than in 2016. The cost after tax incentives and rebates came down from a total of $16,800 to $10,000 according to EnergySage Market Place. These are the latest figures (August 2017) of the cost of 5 kW solar PV panels by state, as compiled by They compare the total cost of acquiring and installing the solar PV system through self-financing, alternative financing, and PPA/leasing.


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