System size guide
How much does a 5 kW solar system cost?
A 5 kW residential system — about 12 × 425-watt panels — costs roughly $12,500–$16,750 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 7,000 kWh per year in typical US conditions, worth roughly $1,038 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.
5 kW system cost by state
| State | 5 kW cost | Est. annual production | Est. payback |
|---|---|---|---|
| Alabama | $11,500–$15,250 | 7,000 kWh | 12–17 yrs |
| Alaska | $14,500–$19,500 | 4,750 kWh | 15–20 yrs |
| Arizona | $11,750–$15,500 | 8,600 kWh | 10–14 yrs |
| Arkansas | $12,000–$15,750 | 6,800 kWh | 16–22 yrs |
| California | $12,750–$16,750 | 7,550 kWh | 7–9 yrs |
| Colorado | $12,750–$16,500 | 7,450 kWh | 13–17 yrs |
| Connecticut | $14,000–$18,000 | 6,100 kWh | 10–12 yrs |
| Delaware | $13,000–$17,000 | 6,600 kWh | 14–18 yrs |
| Florida | $11,750–$15,500 | 7,400 kWh | 13–17 yrs |
| Georgia | $11,750–$15,500 | 7,000 kWh | 15–19 yrs |
| Hawaii | $14,500–$19,500 | 7,900 kWh | 5–7 yrs |
| Idaho | $12,250–$16,000 | 6,900 kWh | 20–26 yrs |
| Illinois | $13,000–$17,000 | 6,350 kWh | 16–20 yrs |
| Indiana | $12,250–$16,000 | 6,400 kWh | 15–20 yrs |
| Iowa | $12,500–$16,250 | 6,500 kWh | 17–22 yrs |
| Kansas | $12,250–$16,000 | 7,250 kWh | 15–19 yrs |
| Kentucky | $12,000–$15,750 | 6,500 kWh | 17–23 yrs |
| Louisiana | $11,750–$15,500 | 6,900 kWh | 17–23 yrs |
| Maine | $14,000–$18,000 | 5,950 kWh | 11–14 yrs |
| Maryland | $13,000–$17,000 | 6,500 kWh | 13–18 yrs |
| Massachusetts | $14,000–$18,000 | 5,800 kWh | 10–13 yrs |
| Michigan | $12,750–$16,750 | 5,800 kWh | 14–18 yrs |
| Minnesota | $13,000–$17,000 | 6,250 kWh | 17–22 yrs |
| Mississippi | $11,750–$15,500 | 6,900 kWh | 15–19 yrs |
| Missouri | $12,000–$15,750 | 6,750 kWh | 17–22 yrs |
| Montana | $12,750–$16,750 | 6,650 kWh | 19–25 yrs |
| Nebraska | $12,000–$15,750 | 6,900 kWh | 18–23 yrs |
| Nevada | $12,000–$15,750 | 8,350 kWh | 12–15 yrs |
| New Hampshire | $14,000–$18,000 | 5,900 kWh | 10–13 yrs |
| New Jersey | $13,250–$17,250 | 6,300 kWh | 13–17 yrs |
| New Mexico | $12,000–$15,750 | 8,500 kWh | 11–15 yrs |
| New York | $13,750–$17,750 | 5,900 kWh | 11–15 yrs |
| North Carolina | $12,000–$15,750 | 6,900 kWh | 16–21 yrs |
| North Dakota | $12,500–$16,500 | 6,600 kWh | 21–28 yrs |
| Ohio | $12,250–$16,000 | 6,000 kWh | 15–20 yrs |
| Oklahoma | $11,750–$15,500 | 7,350 kWh | 16–21 yrs |
| Oregon | $13,000–$17,000 | 5,800 kWh | 19–25 yrs |
| Pennsylvania | $12,500–$16,500 | 6,100 kWh | 14–18 yrs |
| Rhode Island | $14,000–$18,000 | 6,150 kWh | 10–13 yrs |
| South Carolina | $12,000–$15,750 | 7,000 kWh | 15–20 yrs |
| South Dakota | $12,250–$16,250 | 6,850 kWh | 17–22 yrs |
| Tennessee | $12,000–$15,750 | 6,700 kWh | 17–22 yrs |
| Texas | $11,750–$15,250 | 7,575 kWh | 12–15 yrs |
| Utah | $12,000–$15,750 | 7,250 kWh | 17–22 yrs |
| Vermont | $14,000–$18,000 | 5,750 kWh | 14–18 yrs |
| Virginia | $12,500–$16,500 | 6,650 kWh | 16–22 yrs |
| Washington | $13,000–$17,000 | 5,250 kWh | 25–33 yrs |
| Washington, D.C. | $13,500–$17,750 | 6,500 kWh | 14–18 yrs |
| West Virginia | $12,250–$16,250 | 6,250 kWh | 17–23 yrs |
| Wisconsin | $12,750–$16,750 | 6,100 kWh | 15–20 yrs |
| Wyoming | $12,500–$16,500 | 7,100 kWh | 18–24 yrs |
Assumptions last reviewed September 2026. Broad estimates before incentives — not quotes. See methodology.
Frequently asked questions
How much does a 5 kW solar system cost installed?
At a national assumed range of $2.50–$3.35 per watt, a 5 kW system costs roughly $12,500–$16,750 before incentives. State markets range meaningfully in both directions — see the table on this page.
How many panels is a 5 kW system?
About 12 panels at a typical 425 watts each. Higher-wattage panels reduce the count; smaller panels increase it.
How much electricity does a 5 kW system produce?
Around 7,000 kWh per year at a typical US production factor of 1,400 kWh per installed kW — enough to offset roughly a $110/month electric bill at average rates. Sunnier states produce 10–25% more, cloudier states less.
Is there a federal tax credit for a 5 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 5 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.