How much does a 5 kW solar panel system cost in 2024?

A 5 kW solar panel system is enough to power a small home—but it'll cost you about $13,750.

Updated Dec 11, 2024
5 min read
5kw solar energy system

Installing a solar panel system can save you tens of thousands of dollars over time, but the upfront costs aren’t exactly chump change. In 2024, the average cost for a 5 kilowatt (kW) solar panel system hovers around  $13,750 before incentives, though actual prices vary depending on your location and installation specifics.

In most cases, solar is a worthwhile investment. You’ll just want to ensure you’re getting the best deal possible—and that starts with a clear understanding of what drives the total cost. Let’s take a closer look at the key factors shaping solar panel system pricing this year.

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Key takeaways

  • A 5 kW solar panel system costs $13,750 in 2024 before incentives. 

  • A 5 kW solar panel system produces about 7,260 kWh of electricity annually, but the exact amount depends on where you live and how much sun you get. 

  • DIYing a 5 kW solar panel system usually isn't your best bet: You're much better off hiring a professional solar company for optimal results.

On average, a 5 kW solar panel system costs $13,750, according to real-world quotes on the EnergySage Marketplace from the first half of 2024. However, your price may differ; solar costs can vary significantly from state to state. 

The table below should give you an idea of what you can expect to pay for a 5 kW solar panel system in your state. Before you go into sticker shock, remember that the federal solar tax credit will give you 30% back if you have a big enough tax bill. State and local solar rebates and incentives can cut those out-of-pocket solar costs even further.

How much does a 5 kW solar system cost in my state?

State
Average Price For A 5 K W Solar Panel System
Arizona $10,700
California $12,200
Colorado $15,250
Florida $11,300
Massachusetts $16,750
Maryland $14,500
New Jersey $14,000
New York $15,800
Texas $11,150
Washington$13,600

In the end, your total bill depends on a bunch of different factors. Here are a few to keep in mind: 

  • Brand and quality of equipment: High-efficiency solar panels generally cost more than their less-efficient counterparts. Likewise, some premium brands can get away with charging more than others. 

  • Special accommodations: Some properties are better suited for solar than others. Your system will probably cost more if you have a particularly complicated roof. 

  • Permits and inspections: You’ll need certain permits to install a solar panel system at your home. Sometimes these come at a cost. 

  • Labor costs: Installing solar is a specialized skill, thus labor drives construction costs.  

  • Supply chain constraints & market fluctuations: Like any industry, the solar market has faced its fair share of ups and downs. Most recently, we experienced an ebb in the early 2020s, with solar prices rising for the first time in years. Fortunately, the cost of solar is falling as of 2024

  • Incentives: As we mentioned earlier, financial incentives can drastically reduce the cost of solar. The federal solar tax credit is available nationwide, and additional state and local incentive and rebate programs may also be available to you.

Cost isn't the only thing that varies from state to state: You'll also see fluctuations in electricity production. The average 5 kW solar panel system in almost-always-sunny Phoenix, Arizona produces about 35% more electricity than that same system installed in seasonally-sunny Boston, Massachusetts. (That said, you don’t have to live in Arizona for solar to be a good option for your home. Solar is a smart investment wherever electricity rates are high). 

With the help of PV Watts, we estimated the solar energy production of a 5 kW solar panel system in cities across the country: 

Solar electricity output of a 5 kW solar panel system in U.S. cities

City
Average Daily KWH
Average Monthly KWH
Average Annual KWH
Austin, TX 20.2 kWh 616 kWh 7,391 kWh
Boston, MA 18.0 kWh 546 kWh 6,553 kWh
Cleveland, OH 17.4 kWh 530 kWh 6,361 kWh
Denver, CO 21.9 kWh 666 kWh 7,991 kWh
Hartford, CT 17.3 kWh 526 kWh 6,308 kWh
Las Vegas, NV 24.1 kWh 733 kWh 8,796 kWh
Los Angeles, CA 23.1 kWh 702 kWh 8,423 kWh
Miami, FL 21.3 kWh 647 kWh 7,763 kWh
New York City, NY 17.7 kWh 538 kWh 6,453 kWh
Philadelphia, PA 18.6 kWh 566 kWh 6,788 kWh
Phoenix, AZ 24.2 kWh 735 kWh 8,824 kWh
Seattle, WA 15.0 kWh 456 kWh 5,467 kWh
U.S. Average19.9 kWh605 kWh7,260 kWh

Hiring a professional solar installer almost always makes for a better return on investment than doing it yourself. Installing solar panels involves skilled work across multiple trades, including electrical and roofing expertise. Attempting to install a system yourself increases the likelihood of costly mistakes, potential safety hazards, and even damage to your home. 

We recommend comparing quotes from vetted local installers on the EnergySage Marketplace. From there, you can connect with one of our unbiased Energy Advisors, who will guide you through the entire process and ensure you go solar with confidence. 

But if you’re set on a DIY solar panel installation, here’s what to consider:

The answer? It depends. While this guide offers a helpful starting point, determining whether a 5 kW solar panel system is the right fit for you requires professional input and analysis. Connect with qualified solar installers in your area on the EnergySage Marketplace to design a solar panel system that’s just right for your energy needs and budget.

Find out what solar panels cost in your area in 2024
Please enter a five-digit zip code.
  • 100% free to use, 100% online
  • Access the lowest prices from installers near you
  • Unbiased Energy Advisors ready to help
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