Off Grid Solar System Cost (What Can You Expect to Pay?)

Taking your home completely off-grid with solar is a much more involved and expensive of a process than many people first think.

The setup requires various different components, some of which are much more complex than the more common grid-tied solar installation.

However, going completely off-grid with solar may be the only viable solution for a home that’s located in the middle of nowhere, or when the owner wants to rely solely on their own energy solutions.

If this sounds like you, you may be curious about how much off grid solar system cost?

Assuming electric consumption is that of the U.S. national average, an off-grid solar system would cost between $30,392 – $48,048. The major price fluctuation is largely due to battery bank type, with LFP batteries costing much more than flooded lead-acid.

Lastly, before we continue going into detail on each off-grid solar system component and its cost, we need to make sure you understand something.

Solar system cost is largely dictated by 3 things. Your country, peak sun hours, and electricity consumption.

The average price we gave above assumes you live in the United States. Costs in Australia for example would be much different.

What Components Are Typically Used in an Off grid Solar Power System?

off grid solar system

In this section we will outline all the different components that make up an off-grid solar system and how each will influence the overall cost of your system.

Keep in mind each component that makes up an off-grid solar system varies in cost based on its size and brand.

For example, if your home uses a lot of electricity it is going to need a larger-sized battery bank to offset your consumption on overcast days. The larger the battery bank, the higher the costs.

We will factor in location in the next section, here we want to talk about each of the main components that make up an off-grid solar system and what you can expect their costs to be.

#1 Solar Panels

Of course, there’s no solar system, without solar panels. The cost of solar panels will depend on how many you get, what type, and how you mount them.

Most homes will go with a roof-mounted solar system unless you’ve got a lot of land to install a ground-mounted system.

On average, solar panels will cost around $2,76 per watt.

  • Average Cost: $5,000 – $30,000

#2 Charge Controllers

Charge controllers regulate the rate at which electric current is added to or drawn from the electric batteries.

The type/power rating of these devices generally determines the price.

We recommend installing MPPT charge controllers, Victron is a fantastic brand.

  • Average Cost: $50 – $1000

#3 Hybrid Inverter 

Inverters are pretty much the life force behind your off-grid solar system. Without them, your setup won’t work.

They essentially transform the DC electricity from your batteries into useable AC electricity which you can use to power your appliances around the house.

  • Average cost: $3000 – $13,000

#4 Battery Bank

Perhaps the most expensive component of your entire off-grid solar system setup.

Battery banks are one of the defining components of an off-grid solar system.

They allow your home to be powered during periods of overcast conditions or at night time. 

Battery technology is still quite expensive, particularly lithium-ion technology.

  • Average cost: $10,000 – $30,000

For the most part we have covered the main components in an off-grid solar system.

However, there are of course a few more smaller components that will add to your cost. We have chosen to leave them out as they really all depend on the individual setup. 

Off Grid Solar Systems: Estimated Costs Table

off grid power systems

Solar Panels  $5,000 - $30,000
Charge Controller $50 - $1,000
Hybrid Inverter $3,000 - $13,000
Battery Bank $10,000 - $30,000
Total $18,050 - $74,000

 

The overall cost of your system really all comes down to what size you have installed. 

The larger the size the more expensive. 

The size you require all comes down to your energy consumption and your offset requirements. 

For this reason we have included averages instead of exact amounts as the cost of an off-grid solar system varies way too much person to person. 

Solar Tax Credits

One perk available to those of you who live in the U.S. is the solar tax credit. Our averages do not take into account your ability to claim solar incentives for your solar installation. 

"Congress passed an extension of the ITC, which provides a 26% tax credit for systems installed in 2020-2022, and 22% for systems installed in 2023. (Systems installed before December 31, 2019 were eligible for a 30% tax credit.) The tax credit expires starting in 2024 unless Congress renews it." - Energy.Gov

Taking these credits into consideration, our average amounts get reduced to: 

  • $13,357 - $54,740

Off Grid Solar Systems: Complete Costs Table

System Size (kW) Daily Production Estimate Approximate Price Range
(before 26% federal tax credit)
1.30 kW Daily Summer: 5.80
Daily Winter: 2.90
Price: $8,349 - $14,220
2.90 kW Daily Summer: 13.00
Daily Winter: 6.50
Price: $11,559 - $16,921
3.80 kW Daily Summer: 17.30
Daily Winter: 8.60
Price: $13,916 - $23,571
4.80 kW Daily Summer: 21.60
Daily Winter: 10.80
Price: $15,634 - $25,289
5.80 kW Daily Summer: 25.90
Daily Winter: 13.00
Price: $18,303 - $27,958
6.40 kW Daily Summer: 28.80
Daily Winter: 14.40
Price: $22,654 - $32,699
7.70 kW Daily Summer: 34.60
Daily Winter: 17.30
Price: $24,451 - $34,496
9.60 kW Daily Summer: 43.20
Daily Winter: 21.60
Price: $33,462 - $54,111
10.20 kW Daily Summer: 46.10
Daily Winter: 23.00
Price: $32,065 - $48,565
11.50 kW Daily Summer: 51.80
Daily Winter: 25.90
Price: $32,815 - $53,464
12.80 kW Daily Summer: 57.60
Daily Winter: 28.80
Price: $35,653 - $52,154
14.40 kW Daily Summer: 64.80
Daily Winter: 32.40
Price: $47,263 - $76,984
17.30 kW Daily Summer: 77.80
Daily Winter: 38.90
Price: $51,180 - $80,900

(Table courtesy of Unbound Solar)

You may use the above table to figure out your estimated costs based on your homes solar requirements.

Final Thoughts

Understanding the costs involved with your off-grid solar system is the first step in figuring out whether this is a viable option for your household.

An off-grid solar system may allow you to live in more isolated areas, ones closer to nature without grid-tied electricity supply. 

This in itself would generally reduce the overall purchase cost of your household. Perhaps this is some incentive to justify the large cost of an off-grid solar system. 

FAQ

1. Is Off Grid solar expensive?
Off-grid solar systems are expensive. A solar panel setup that supplies all the energy needs of a home tends to be very expensive. Compared to a grid-connected solar system, an off-grid solar system requires more panels, an inverter with a higher voltage capacity, and a large amount of solar battery storage.

2. Does solar increase home value?
The National Renewable Energy Laboratory (NREL) found that every dollar saved on energy through solar increases home value by $20. That's a return on investment of 20 to 1. ... According to Zillow, homes with solar panels sell for approximately 4 percent higher on average than homes without solar energy.

3. How much does a 100kW solar system cost?
The average commercial solar panel cost for 100kW solar system in the US is about $325,000 with average prices ranging from $50,000 for a 25kW system to $600,000 for a 250kW solar system.

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