In 2025, a 1kW solar system in the U. typically costs between $2,500 and $3,500 before any discounts, with prices averaging $2. This covers the panels and installation. Costs can differ depending on where you live, the type of panels . Leverage the intricate breakdown of costs involved in producing 1 kilowatt of solar energy to understand the multifaceted nature of solar energy expenses. Department of Energy (DOE) Solar Energy Technologies Office (SETO) and its national laboratory partners analyze cost data for U. These benchmarks help measure progress toward goals for reducing solar electricity costs. The average cost of solar panels ranges from $2. Typical expenses can range anywhere from $1,000 to $5,000 or more, depending primarily on the power capacity desired. Your actual cost depends on your home's energy needs, roof characteristics, location and other factors, all of which we'll break down in. On average, a 1kW solar system can save homeowners up to $310 per year.