Cost of Solar Power

There are two options for going solar - purchasing a system and solar PPA/leasing.

Purchasing a Solar System

Typically, home solar systems are sized around 3 kW to 7 kW and can cost anywhere from $18,000 to $40,000. Around half of these costs are from the equipment; the other half is from labor, permitting, and other operational costs.

All of these costs will vary depending on the size and design of your system.

Equipment Costs

  • Solar panels: About a third of the cost of a residential photovoltaic system comes from the cost of solar panels, which can cost around $4,500-$10,000.
  • Power inverter: The inverter, which converts DC to AC so you can connect to the grid, will cost $1,000-$3,000.
  • Mounting hardware: Depending on your home, you may need standoffs, rails, clips, etc., which cost around $800-$2,000.
  • Wiring: Wires and wiring boxes, disconnects, conduit, and other electrical components can total to around $1,000-$2,000.

Installation and Permitting Costs

  • System Installation: Even before your system is up and running, you’ll need to pay for the cost of installation, which ranges from $2,000-$4,000.
  • Permits & Fees: Local permitting and inspection fees can add over $2,500 to your solar costs. With other solar permitting fees, costs can total to around $3,000-$6,000. 

Sales, Marketing, and Operational Costs

  • Monitoring: Monitoring equipment and/or services can cost up to a couple thousand dollars
  • Maintenance/Repairs: These costs will vary, depending on the situation, and include the cost of replacing the power inverter. Inverters typically need to be replaced one or two times during the life of your system.
  • Additional operational and overhead costs can total around $4,000-$9,000 per installation.

Incentives can help lower the cost of solar power systems. As a homeowner, you’re eligible to receive 30% off the total cost of your photovoltaic system from the federal government in the form of a Federal Solar Tax Credit. If you purchase a home solar system, you may end up having to wait as long as 16 months to receive the benefit of the tax credit.

Solar PPA / Lease

Getting solar doesn't have to be expensive – or confusing.

Sunrun offers a new approach to home solar. We buy your solar system, get it installed, and take care of it for 20 years. We cover the high upfront cost of panels, inverter, hardware, installation, monitoring, and repairs – you just pay for the electricity you generate. Sunrun takes the guesswork out of the cost of solar power. 

Sunrun is also an expert at locating and monetizing government incentives. Sunrun handles all the paperwork and passes the savings on to you immediately in the lower upfront cost and long-term savings.

Join over 20,000 homeowners who have switched to solar with Sunrun.

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Resources

  • Open PV project - a collaborative project between the U.S. government, solar industry, and public that keeps track of the real-time status of U.S. solar PV market. This includes the average cost per watt of a solar photovoltaic install in the U.S., but not post-installation maintenance and insurance costs.

  • DSIRE - The Database of State Incentives for Renewables & Efficiency has comprehensive information on local and federal incentives for solar power.