The cost of a typical system can be broken down into 2 areas: components and installation. In the solar industry, this cost is tracked by dollars per watt.
Residential Grid-Tie systems can start as low as $5,000 (installed) for a starter system, all the way to $50,000 or more.
$2.50 per watt. This includes all the components including panels, inverters, mountings and electrical accessories.
$1.00 per watt. This usually includes the physical installation of the system and connection to the grid.
Example: A 3 kW system is 3000 watts. So the components will cost $20,000 before rebates, and the installation will cost $6,000.
A 7kw or 7,000 watt solar system will cost $24,500 completely installed before the various tax credits.
$24,500 Total Cost to Install
- 7,350 30% Federal Tax Credit
- 12,250 50% State Tax Credit
= $4,900 total out of pocket
$24,500 Total Cost to Install
- 7,350 30% Federal Tax Credit
= $17,150 total out of pocket