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How Much Does an Off-Grid Solar System Cost? ( Guide)

By Jessica Wimmer

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The national average cost of an off-grid system is $55,000*, though your investment could range from $20,000 to $100,000 based on your system design and energy needs. Going off-grid reduces your energy usage, lowers your carbon footprint, and enables you to live more independently. However, it requires a substantial up-front investment.

Learn what you&#;ll need to start your off-grid solar system and how much the required components cost below.

*Unless otherwise noted, all cost data is based on figures from EnergySage and Fixr.

The listings that appear are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This listing does not include all companies or all available offers and products.

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What Is an Off-Grid Solar System?

Most people who choose solar panels as their energy source remain grid-tied. This provides backup power when the solar panels don&#;t generate enough energy, such as on cloudy days or at night. As the name suggests, an off-grid solar panel system doesn&#;t connect to a power grid. That means what it generates is the only energy available to fulfill your electrical needs.

People choose this route for a few reasons. Many homeowners who opt for an off-grid system live in remote areas without electric service. Some want to be completely off-grid as a lifestyle choice geared toward sustainability. Off-grid systems can also be ideal for those who have detached workshops or sheds they want to power and those who frequently travel via a recreational vehicle (RV).

Off-Grid Solar Benefits

Some of the top benefits of not connecting your solar energy system to the grid include:

• Cost savings:

  Having an off-grid system means you&#;re not paying anyone for electricity.

• Design flexibility:

  Forgoing interconnection with the grid and the permitting that goes along with it allows you more freedom in the design of your system. You can tailor the components, brands, and production levels to your preferences.

• Energy efficiency:

  A desire for environmental sustainability motivates many

  homeowners

  to install

  solar panels

  . Sourcing electricity from

  solar energy

  alone reduces your carbon footprint, greenhouse gas emissions, and dependency on fossil fuels. Plus, when the only electricity you have is what your system generates, you&#;re likely to be more mindful and conservative with usage.

 

 

What Are the Parts of an Off-Grid System?

To understand the cost of an off-grid system, you must first know all the components required to go off-grid and how they&#;ll add to your total cost. Necessary system components include:

• Charge controllers:

  Solar charge controllers

  help you manage the electricity generated. They regulate the current that flows from your panels to your battery so there&#;s no overcharge or discharge. You&#;ll need one for each battery to protect its

  life span

  .

• Inverters:

  A solar system generates

  direct current

  (DC)

  power, but your home uses AC (

  alternating current

  ) power. An

  inverter

  converts DC power to AC power.

• Solar batteries:

  One of your biggest costs will be the

  solar battery

  . You&#;ll need at least one battery to store the energy your system generates. Adequate

  battery storage

  prevents you from

  blackouts

  . Remember, you won&#;t have the

  electrical grid

  as a backup at night or during cloud coverage like you would with an

  on-grid

  system.

• Solar panels:

  Solar panels

  are the basis of the system. They absorb

  solar energy

  and use it to generate DC power. The type of panels you get and how many will have the biggest impact on overall system cost. You&#;ll need enough panels to power your needs during the day and charge your

  solar battery

  for nighttime usage.

These are the basics of an off-grid solar power system, but many people decide to expand their setup with equipment such as generators or wind turbines. The company you get your panels from may offer a mobile app to monitor system performance or ongoing maintenance services you might want to invest in.

 

 

Off-Grid Solar System Costs

The average off-grid solar system costs $55,000 for a 7-kilowatt (kW) system. Smaller properties with low energy needs, such as an RV or shed, can get by with a smaller system and may require an investment as low as $20,000. Larger properties, those with high energy needs, or those in cloudy climates that require more panels and backup energy storage may need a system closer to $100,000.

Price LevelYou&#;ll Pay

National average

$55,000 (Avg. range: $45,000 to $65,000)

Low end

$20,000

High end

$100,000

See average price breakdown by component:

Component Average Price

Solar battery

$4,000 to $14,000 each

Solar charge controller

$550 to $600 each

Solar inverter

$7,000 to $8,000 each

Solar panels

$10,000 to $18,000

Payment Options

Most solar companies offer a combination of the following solar financing options:

• Full cash purchase:

  Paying in full up-front is the easiest option since you don&#;t have to enter a contract and will own your system from day one.

• Solar loan:

  A loan gives you the financial cushion to make monthly payments while still owning your system.

• Solar lease or power purchase agreement (PPA):

  Leases and PPAs work similarly in that a third party owns your system and sells you the electricity it produces at a predetermined rate. We don&#;t recommend these options because not owning your system disqualifies you from many solar

  incentives

  .

Solar Incentives

Solar incentives are available at the state and federal levels to help you save money when you invest in renewable energy. Incentives vary by state, but common ones include:

• Federal tax credit:

  You can dramatically lower your total solar expense using the

  federal solar tax credit

  .

  This allows you to take 30% of your solar investment off what you owe on your federal income taxes the following tax season. You must own your system to qualify.

• Sales and property tax exemptions:

  Many states waive sales tax on solar equipment. Many also don&#;t increase your property tax if installing

  solar panels

  increases your home value

  .
• State tax credits:

  States often provide a tax credit that reduces your state tax bill by a percentage of your overall solar expense.

  If you want to learn more, please visit our website Off Grid Power Solutions.

 

 

Cost Considerations

Solar power system costs vary greatly depending on several factors, so it&#;s best to speak with reputable solar companies in your area and get a few estimates to compare.

Energy Consumption and System Size

The more energy you use, the bigger the system you&#;ll need. If you need to power many appliances or run electricity all day and night, you&#;ll need a system designed to meet this capacity. You&#;ll also need more batteries to store energy during low-sun hours. With panels and batteries being the biggest factors in total system cost, going bigger means investing thousands more dollars.

Your solar installation company should analyze how much energy you need and what system size and number of batteries will suit you.

Equipment Quality

The brand and off-grid home features you choose affect the price. Some solar companies are more expensive than others due to their reputation, years in business, or inventory performance. Not all panels or batteries are the same, either. The design and degree of energy efficiency will increase the price.

Labor

Don&#;t forget that you&#;ll need a team to design and install the system. The National Renewable Energy Laboratory (NREL) estimates labor to be around 7% of the total solar cost. Using the average system cost of $55,000, that&#;s $3,850. You can forgo labor costs by installing your system using a DIY solar panel kit. However, we don&#;t recommend this option because it requires extensive skill and disqualifies you from solar incentives.

Solar Exposure

Since off-grid systems supply 100% of your electricity, you need one that can soak up plenty of sun. You&#;re in luck if you live in an area with abundant year-round sun exposure. If not, you&#;ll need more panels, increasing the price. Your solar installer can assess your solar exposure, how to make the most of it, and what system size you&#;ll need to cover your electricity needs.

System Type

You have several options when choosing an off-grid system. Common types include:

• AC systems:

  AC systems are the most popular option and come with a higher cost. They use panels, batteries, and an

  inverter

  to convert DC to AC power so you have electricity for everything in your home.

• AC systems with a backup generator:

  With this option, you have a generator as an electricity backup. Purchasing a generator in combination with a solar system is often quite pricey.

• AC systems with wind:

  This is an option for those who live in areas with lots of wind but inconsistent sun exposure. Wind energy serves as a backup source. Setting up a

  wind turbine

  and a solar array is often the most expensive route.

• DC systems:

  DC systems are the most cost-effective and limited option.

  They don&#;t rely on a battery or

  inverter

  , so you only have the energy generated on sunny days, which isn&#;t super reliable.

• Mixed DC and AC systems:

  Mixed systems are best for small-scale

  energy needs

  since they lack a battery and

  inverter

  capacity to power an entire home&#;s appliances, lights, etc. They have a more midrange cost.

 

 

Is an Off-Grid Solar System Worth It?

Whether an off-grid system is worth it depends mainly on your energy needs and budget. If your home uses excessive electricity to power many appliances throughout the day, then installing solar panels and backup batteries may be too expensive to justify leaving the grid.

On the other hand, if your energy needs are more conservative, then you may need only one battery and fewer panels, lowering the cost. The lower your cost, the shorter your payback period, and the quicker you&#;ll enjoy no electricity fees. A solar company can assess your electricity needs and help you determine if going off-grid will make sense for you based on what you&#;ll spend and save.

 

 

Our Recommendation

Going off-grid isn&#;t right for everyone. However, if you think it&#;s right for you, you can spare yourself a lifetime of high electricity bills. You&#;ll also reduce your carbon footprint and usage of fossil fuels by relying solely on clean energy.

We recommend starting with a reputable solar company to analyze your electricity usage and advise you on the best setup for your needs. We suggest looking at different solar providers&#; warranty coverage, customer reviews, and reputation before deciding. It&#;s also a good idea to get price estimates from at least three companies to compare.

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Off-Grid Solar System Cost FAQ

How big of a solar system do I need off-grid?

The system size you need depends on how much electricity you require to power your home. A large home with multiple floors, numerous appliances, and frequent overhead lighting requires a much more powerful system than a small home with a few appliances.

How much do off-grid solar batteries cost?

Solar batteries typically cost between $4,000 and $14,000. The Tesla Powerwall, the industry&#;s most popular solar battery, starts at $8,700.

How long do off-grid systems last?

The Department of Energy estimates that most panels last between 30 and 35 years. Solar batteries and charge controllers typically last 5 to 10 years, while inverters can last as long as 25.

What components do you need for an off-grid solar system?

An off-grid solar system requires solar panels, at least one solar battery, a solar inverter, and solar charge controllers.

Read more: Our Methodology

Are you considering taking the plunge into renewable energy and going off-grid with a solar power system? You're not alone! As more people become environmentally conscious and seek to reduce their carbon footprint, off-grid solar systems are becoming increasingly popular. But, before you make the switch, it's essential to understand the costs associated with this investment. In this article, we'll discuss off-grid solar system cost, and its key components, provide you with an estimated costs table, and delve into a complete costs breakdown to help you make an informed decision. Get ready to utilize the power of the sun and embark on a sustainable, eco-friendly journey!

Components of an Off-Grid Solar Power System

An off-grid solar power system is designed to generate and store electricity without relying on the utility grid. This type of system is best for remote locations, emergency battery backup power, or for those who want to be independent of the grid. Here are the main components of an off-grid solar power system:

1. Solar Modules/Panels

Solar modules, commonly known as solar panels, are the primary component of an off-grid solar power system. Their job is to convert sunlight into direct current (DC) electricity through the photovoltaic effect. Solar modules/panels are made up of individual solar cells connected in series or parallel configurations to achieve the desired voltage and current output. The efficiency, size, and cost of solar panels may vary primarily based on the specific type of solar cells used (monocrystalline, polycrystalline, or thin-film).

2. Charge Controllers

Charge controllers, also called solar regulators, are vital for maintaining the health & longevity of the battery bank in an off-grid solar power system. Their job is to regulate the voltage and current coming from the solar panels to ensure that the batteries are charged at the proper rate. Charge controllers also prevent overcharging, which can damage the batteries. There are 2 primary types of charge controllers: Pulse Width Modulation (PWM) and Maximum Power Point Tracking (MPPT). MPPT controllers are more efficient and can extract more power from solar panels; however, they are also more expensive than PWM controllers.

3. Batteries

Batteries stock/store the electricity generated by the solar panels for later use. They are a crucial component of an off-grid solar power system, as they allow the system to provide power during periods of low sunlight or at night. Lead-acid and lithium-ion batteries are the most typical types of batteries used in off-grid solar systems. The capacity and number of batteries needed depend on the system's energy requirements and desired autonomy.

The Anker PowerHouse 767 is an ideal option for a lithium battery in off-grid solar systems, offering a massive Wh output to easily power essential appliances during power outages or off-grid adventures. Its LiFePO4 battery can be expanded by combining it with an additional battery, doubling the capacity to Wh. The Power Station has 3 output ports with a capacity of W (W peak load), making it compatible with most devices. Additionally, it features three 100W USB-C PD ports, 2 USB ports, and two 12V outputs for extra charging options.

Incorporating GaNPrime technology, the Anker 767 PowerHouse charges faster, manages power more efficiently, and can be fully recharged within 2 hours via the AC charging cable. Its smart temperature control system ensures near-silent operation, making it perfect for use in campers or caravans. Designed with a retractable handle and wheels, it's easily transportable and can also function as a portable home battery during blackouts with its integrated UPS feature.

4. Inverters

Inverters convert the DC electricity produced by the solar panels and then stored in the batteries into alternating current (AC) electricity, which is used by most household appliances and devices. There are two primary types of inverters: modified sine wave and pure sine wave. Pure sine wave inverters provide a cleaner and more stable output, making them more suitable for sensitive electronics. The inverter's capacity should match the power requirements of the appliances and devices being used in the off-grid system.

Estimated Costs Table for Off-Grid Solar Systems

Here's the estimated costs table for off-grid solar systems:

Component

Estimated Cost Range

Notes

Solar Panels

$3,500 to $35,000

The cost varies depending on the panel's wattage and efficiency.

Charge Controller

$140 to $500

The cost depends on the type (PWM or MPPT) and capacity.

Inverter

$3,000 to $13,000

The cost depends on the inverter's capacity and features.

Battery Bank

$2,000 to $16,000

The cost varies depending on the battery type and capacity.

Please take note that these costs are rough estimates and can vary based on the specific components, location, and system size. It's essential to get quotes from multiple solar installers to get the best deal for your off-grid solar system.

Complete Costs Table for Off-Grid Solar Systems

The price of a complete off-grid solar system, which includes batteries, for a residential property can vary significantly. For a 4kW system, the cost starts at around $10,000, while a more powerful 16kW system can reach up to $30,000. The price includes not only the installation process but also all the essential components needed to power your home. These components encompass solar panels, solar inverters, solar batteries, supporting structures, and any required accessories for a fully functional solar system.

Here are the complete costs for off-grid solar systems:

System size

Number of solar panels

Average Cost Per Watt

Average Total Cost

4 kW

11

$3.25

$10,100

6 kW

16

$2.95

$13,390

8 kW

22

$2.85

$16,960

10 kW

27

$2.75

$20,180

12 kW

32

$2.75

$24,100

14 kW

39

$2.60

$27,936

16 kW

43

$2.60

$30,860

 

Conclusion

In conclusion, understanding the cost of an off-grid solar system is crucial for anyone considering a sustainable and independent energy solution. This comprehensive price guide has provided valuable insights into the various factors that influence the overall cost, including the components, system size, and battery storage. While the initial investment may seem significant, it is essential to recognize the long-term benefits and savings that an off-grid solar system can offer.

By carefully assessing your energy needs, working with reputable suppliers or installers, and exploring available incentives or financing options, you can embark on a sustainable and cost-effective off-grid solar journey that provides energy independence while minimizing your environmental footprint.

FAQ

Here are some commonly asked queries about an off-grid solar system cost.

Is off-grid solar expensive?

Yes. The typical price for installing solar panels in a residential setting falls between $18,000 and $20,000 prior to considering any tax credits or local incentives that might be applicable. This translates to a cost of $2.75 to $3.35 per watt of solar capacity, which varies based on your geographical location and the specific solar equipment brands utilized.

Does solar increase home value?

Yes, solar panels can increase a home's value. According to National Renewable Energy Laboratory (NREL), every dollar that a solar panel saves you on your electrical bills raises the value of your home by $20. In fact, one study confirmed that solar installations could actually boost a home's resale value by up to $5,911 for each kW of solar panels installed, and another estimated an increase of 4.1% of the home's value. On average, solar panels raise a home's value by 4.1% across the U.S., which is a boost of $9,274 on a $226,300 home.

How much does a 100kW solar system cost?

The cost of a solar power system differs depending on various factors such as location, equipment, and installation costs. However, on average, a 100kW solar system costs around $88,800. This includes the cost of solar panels, inverters, mounting equipment, and other necessary components for a complete solar power system.

Contact us to discuss your requirements of Best Batteries for off Grid Solar Power. Our experienced sales team can help you identify the options that best suit your needs.