To calculate how much solar panel systems cost, it is easier to determine how much solar panels cost per kilowatt. A 30-panel, 8.7kW solar panel system can cost between $3 and $5 per watt. That works out to somewhere between $26,100 to $43,500. Keep in mind that if you have a 30-panel 8.7kW solar panel system on your home, you should have all of your energy needs completely covered by solar. In some cases, you may even be able to sell any leftover power that you are producing back to utility companies for a small profit. If $26,100 to $43,500 worth of solar panels seems like a bit overkill and too expensive for you to consider, there are plenty of smaller systems that may suffice for half the price. Not everyone needs that much solar power for their home. Using the same math we used before, the average residential solar project is closer to 5kW in size. That would result in an overall upfront cost of somewhere between $15,000 to $25,000. You can also consider hybrid systems that use solar combined with other power systems coming in from the main electrical grid in your area that typically cost less as well. Keep in mind that all of the figures discussed above do not include any rebates or tax incentives.The government offers homeowners who are considering solar panel installation projects many significant incentives to encourage them to commit. For example, any new solar installation that is completed and placed into service before December 31st, 2022, will receive a federal tax credit of 26% of the total cost of the solar panel purchase, installation, and costs associated with getting the solar project up and running. That same credit drops to 22% in 2023 and is set to expire in 2024. The tax credit is not a tax refund. The government will not send you a check for your solar project costs, instead, you can use the final amount as a credit toward any taxes you may owe in the same year. For example, your property tax. Though the tax credit is set to expire in 2024, there are talks that congress could vote to extend the incentive program as the United States is starting to wean off of unrenewable energy sources.