System size guide
How much does a 12 kW solar system cost?
A 12 kW residential system — about 29 × 425-watt panels — costs roughly $30,000–$40,200 installed in 2026 at a national assumed range of $2.50–$3.35 per watt, before any state or utility incentives. It would produce around 16,800 kWh per year in typical US conditions, worth roughly $2,492 in first-year savings at average rates — a simple payback of about 12–16 years.
There is no federal tax credit in these figures: the Section 25D residential credit ended for systems installed after December 31, 2025.
12 kW system cost by state
| State | 12 kW cost | Est. annual production | Est. payback |
|---|---|---|---|
| Alabama | $27,600–$36,600 | 16,800 kWh | 12–17 yrs |
| Alaska | $34,800–$46,800 | 11,400 kWh | 15–20 yrs |
| Arizona | $28,200–$37,200 | 20,640 kWh | 10–14 yrs |
| Arkansas | $28,800–$37,800 | 16,320 kWh | 16–22 yrs |
| California | $30,600–$40,200 | 18,120 kWh | 7–9 yrs |
| Colorado | $30,600–$39,600 | 17,880 kWh | 13–17 yrs |
| Connecticut | $33,600–$43,200 | 14,640 kWh | 10–12 yrs |
| Delaware | $31,200–$40,800 | 15,840 kWh | 14–18 yrs |
| Florida | $28,200–$37,200 | 17,760 kWh | 13–17 yrs |
| Georgia | $28,200–$37,200 | 16,800 kWh | 15–19 yrs |
| Hawaii | $34,800–$46,800 | 18,960 kWh | 5–7 yrs |
| Idaho | $29,400–$38,400 | 16,560 kWh | 20–26 yrs |
| Illinois | $31,200–$40,800 | 15,240 kWh | 16–20 yrs |
| Indiana | $29,400–$38,400 | 15,360 kWh | 15–20 yrs |
| Iowa | $30,000–$39,000 | 15,600 kWh | 17–22 yrs |
| Kansas | $29,400–$38,400 | 17,400 kWh | 15–19 yrs |
| Kentucky | $28,800–$37,800 | 15,600 kWh | 17–23 yrs |
| Louisiana | $28,200–$37,200 | 16,560 kWh | 17–23 yrs |
| Maine | $33,600–$43,200 | 14,280 kWh | 11–14 yrs |
| Maryland | $31,200–$40,800 | 15,600 kWh | 13–18 yrs |
| Massachusetts | $33,600–$43,200 | 13,920 kWh | 10–13 yrs |
| Michigan | $30,600–$40,200 | 13,920 kWh | 14–18 yrs |
| Minnesota | $31,200–$40,800 | 15,000 kWh | 17–22 yrs |
| Mississippi | $28,200–$37,200 | 16,560 kWh | 15–19 yrs |
| Missouri | $28,800–$37,800 | 16,200 kWh | 17–22 yrs |
| Montana | $30,600–$40,200 | 15,960 kWh | 19–25 yrs |
| Nebraska | $28,800–$37,800 | 16,560 kWh | 18–23 yrs |
| Nevada | $28,800–$37,800 | 20,040 kWh | 12–15 yrs |
| New Hampshire | $33,600–$43,200 | 14,160 kWh | 10–13 yrs |
| New Jersey | $31,800–$41,400 | 15,120 kWh | 13–17 yrs |
| New Mexico | $28,800–$37,800 | 20,400 kWh | 11–15 yrs |
| New York | $33,000–$42,600 | 14,160 kWh | 11–15 yrs |
| North Carolina | $28,800–$37,800 | 16,560 kWh | 16–21 yrs |
| North Dakota | $30,000–$39,600 | 15,840 kWh | 21–28 yrs |
| Ohio | $29,400–$38,400 | 14,400 kWh | 15–20 yrs |
| Oklahoma | $28,200–$37,200 | 17,640 kWh | 16–21 yrs |
| Oregon | $31,200–$40,800 | 13,920 kWh | 19–25 yrs |
| Pennsylvania | $30,000–$39,600 | 14,640 kWh | 14–18 yrs |
| Rhode Island | $33,600–$43,200 | 14,760 kWh | 10–13 yrs |
| South Carolina | $28,800–$37,800 | 16,800 kWh | 15–20 yrs |
| South Dakota | $29,400–$39,000 | 16,440 kWh | 17–22 yrs |
| Tennessee | $28,800–$37,800 | 16,080 kWh | 17–22 yrs |
| Texas | $28,200–$36,600 | 18,180 kWh | 12–15 yrs |
| Utah | $28,800–$37,800 | 17,400 kWh | 17–22 yrs |
| Vermont | $33,600–$43,200 | 13,800 kWh | 14–18 yrs |
| Virginia | $30,000–$39,600 | 15,960 kWh | 16–22 yrs |
| Washington | $31,200–$40,800 | 12,600 kWh | 25–33 yrs |
| Washington, D.C. | $32,400–$42,600 | 15,600 kWh | 14–18 yrs |
| West Virginia | $29,400–$39,000 | 15,000 kWh | 17–23 yrs |
| Wisconsin | $30,600–$40,200 | 14,640 kWh | 15–20 yrs |
| Wyoming | $30,000–$39,600 | 17,040 kWh | 18–24 yrs |
Assumptions last reviewed September 2026. Broad estimates before incentives — not quotes. See methodology.
Frequently asked questions
How much does a 12 kW solar system cost installed?
At a national assumed range of $2.50–$3.35 per watt, a 12 kW system costs roughly $30,000–$40,200 before incentives. State markets range meaningfully in both directions — see the table on this page.
How many panels is a 12 kW system?
About 29 panels at a typical 425 watts each. Higher-wattage panels reduce the count; smaller panels increase it.
How much electricity does a 12 kW system produce?
Around 16,800 kWh per year at a typical US production factor of 1,400 kWh per installed kW — enough to offset roughly a $250/month electric bill at average rates. Sunnier states produce 10–25% more, cloudier states less.
Is there a federal tax credit for a 12 kW system in 2026?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. Leased or PPA systems may still benefit indirectly through the commercial 48E credit through 2027, and some states offer their own incentives.
Is a 12 kW system the right size for my home?
Size should follow your actual usage, roof space, and your utility’s export rules — not a round number. Our calculator sizes a system from your monthly bill and location in about a minute, with no contact details required.