Installing small solar energy systems entails multiple costs that usually encompass both materials and labor. The typical price range for the average homeowner can be between $15,000 and $30,000, depending on the size and technology of the system. Different methods of electricity generation can incur a variety of different costs, which can be divided into three general categories: 1) wholesale costs, or all costs paid by utilities associated with acquiring and distributing electricity to consumers, 2) retail costs paid by consumers, and 3). The cost to generate electricity from a small solar power plant varies significantly based on several factors, including geographical location, system size, financing options, and installation specifics. Renewable Energy Has Achieved Cost Parity: Utility-scale solar ($28-117/MWh) and onshore wind ($23-139/MWh) now consistently outcompete fossil fuels, with coal costing $68-166/MWh and natural gas $77-130/MWh, making renewables the most economical choice for new electricity generation in 2025. The size of the system is typically measured in kilowatts (kW), and installations generally range from 1 kW to 10 kW for. Average price of solar modules, expressed in US dollars per watt, adjusted for inflation. Data source: IRENA (2025); Nemet (2009); Farmer and Lafond (2016) – Learn more about this data Note: Costs are expressed in constant 2024 US$ per watt.
