What Is an Off-Grid Solar System?
Off-grid solar systems can generate your home or business’ electrical needs without relying on the electrical grid. To go completely off-grid, you’ll need a system that is large enough to support your home’s energy consumption needs, along with a battery to store the energy and a solar charge controller that can help smooth out energy production and usage so that the battery doesn’t become overwhelmed quickly. If you live in a cold or particularly cloudy environment, there’s a chance you might even need a backup plan as well, like using wind power to harness additional energy.
An off-grid solar system pulls energy from the sun and its rays through solar panels, which most often are mounted to the roof of a home, cabin or RV.
The energy the panels collect is then routed to a battery that stores the energy until you need it, when an inverter converts it into electricity. All this allows you to run your home without having to rely on your town or city’s electrical grid. If you are intent on solely relying on your own sources of energy, you may want to consider a back-up system of some sort as well.
| Average Off-Grid Solar System Cost | ||
|---|---|---|
| Average Cost | $55,000 | |
| Highest Cost | $100,000 | |
| Lowest Cost | $20,000 | |
Cost by Type
When considering the cost of an off-grid solar system, it’s important to know that there are a few different types of systems you can consider. Each has unique features and functionality, and this can inform the price you’ll pay. Below, we’ll take a look at some of the more common off-grid solar systems.
DC Solar System
A DC solar system is the simplest type of solar system. It’s best suited to the most basic energy needs, such as for a one-bedroom cabin or RV. Since the DC solar system doesn’t rely on a battery or an inverter, you’ll only have electricity on sunny days; there’s no stored energy with this type of system. The off-the-grid solar system cost of a DC system averages about $6,000 to $10,000, and consists of nothing more than a few solar panels that provide power to just a few appliances.
Mixed DC and AC System
Similar to a simple DC solar system, but with a battery backup to store electricity for cloudy days, a mixed DC and AC system costs between $10,000 and $50,000. The price depends on the size of your system. A mixed DC and AC system is suitable for a small-scale off-grid solar system, and typically involves solar panels along with an inverter (to convert energy from DC to AC) and a backup battery to store energy.
AC System With Wind
You can think of this type of off-grid solar system as one that functions on solar energy with wind energy as a backup. If you live in an area with lots of wind, but inconsistent sunshine, this type of system might be the best option for your energy needs. The cost for an off-grid solar system that functions on sun and wind is between $20,000 and $80,000.
AC Solar System
Whether you’re looking for an off-grid power system or one that stores energy on your city’s grid in order to get energy credits, an AC solar system is a popular option. The cost of this off-grid solar system is between $30,000 to $60,000, a price that includes several solar panels, a few backup batteries and a DC/AC inverter to convert energy into a usable form.
AC System With a Back-Up Generator
This comprehensive system is the best option if you’re looking for completely off-grid solar systems. The average cost for this type of system ranges from $40,000 to $70,000. An AC system with a back-up generator is typically designed to handle all of your home’s energy needs; as such, the size will vary based on the size of your home and your energy consumption.
| Average Off-Grid Solar System Cost by Type | ||
|---|---|---|
| DC solar system | $6,000 - $10,000 | |
| Mixed DC and AC system | $10,000 - $50,000 | |
| AC system with wind | $20,000 - $80,000 | |
| AC solar system | $30,000 - $60,000 | |
| AC system with a backup generator | $40,000 - $70,000 | |
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Cost by Component
Another way to price out an off-grid solar system is to consider the cost of each different component. Of course, this will differ based on the type of solar energy system you’d like to set up, but the following will give you an idea of how much you’re likely to spend on the parts that you need.
Solar Panels
The most important component of any solar energy system is the solar panels. The price for solar panels will vary based on the size of your home’s solar system. But in general, the price of solar panels is about $2.76 per watt and most solar panels have between 250 and 400 watts each.
Solar Charge Controller
A solar charge controller is a device that regulates the energy produced by the solar panels so that it doesn’t overload the battery. This is an important component of any solar energy system. You can expect to pay between $500 and $600 for a basic solar charge controller, with more advanced models (featuring LCD displays and more functionality) costing as much as $2,000. Each backup battery requires its own solar charge controller.
Alternative Energy Source
If your location has insufficient sunlight and you want to remain completely off the grid, you’ll need to have an alternative source of energy, such as wind power. Wind turbines generally cost between $6,000 and $11,000, while a backup generator costs between $10,000 to $20,000.
Solar Battery Bank
Unless you’re installing a small DC solar system, you’ll need a backup battery for your solar energy system. Despite the high price tag—between $4,000 and $14,000—a battery is a critical component that stores the energy collected by the solar panels and transmits it to your home or RV. A battery allows your solar system to sustain itself through cloudy or bad weather without interrupting your energy stream.
Inverter
An inverter works to change the energy coming from the solar panels (DC energy) into energy that you can use in your home (AC energy). The average cost of an inverter is $3,000 to $13,000, based on how advanced the inverter is.
| Average Off-Grid Solar System Cost by Component | ||
|---|---|---|
| Solar panels | $2.76 per watt | |
| Solar charge controller | $500 - $600 | |
| Wind turbines | $6,000 - $11,000 | |
| Backup generator | $10,000 - $20,000 | |
| Solar battery bank | $4,000 - $14,000 | |
| Inverter | $3,000 - $13,000 | |
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Solar Tax Credits
A solar energy system is a large investment, costing several thousands of dollars to install. That’s why the federal government enacted the Solar Investment Tax Credit (ITC) in 2006. This credit allows you to write off part of your solar expenditures on your taxes in any given year. You can qualify for the ITC in the tax year that you installed your solar panels.
From tax years 2022 through 2032, the ITC will offer a 30% benefit for installed systems.
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Factors Affecting the Cost of an Off-Grid Solar Power System
An off-grid system is a solar power system that doesn’t connect to a utility grid. Typically, these types of systems are used in locations that don’t have access to power lines or where the cost of connecting to the grid is prohibitive. If you’re considering installing an off-grid solar power system, you’ll want to know its cost.
System Size
The size of your solar power system, measured in kilowatts (kW) or megawatts (MW), directly impacts its cost. Larger systems with higher capacity generally require more solar panels, batteries and other components, increasing upfront expenses. However, you can offset these costs by taking advantage of tax credits and other incentives.
| Off-Grid System Labor Costs by Size | ||
|---|---|---|
| 5 kW | $3,000 | |
| 6 kW | $4,500 | |
| 8 kW | $5,000 | |
| 10 kW | $6,000 | |
| 12 kW | $9,000 | |
Location
The geographic location of the off-grid site plays a crucial role in determining the cost. Sunlight availability and the average number of peak sun hours influence the number of solar panels needed to generate sufficient electricity. Remote areas might also cause higher installation and maintenance costs, impacting overall expenses.
Mounting and Wiring
In order to determine how much you’ll pay for an off-grid solar power system, you’ll need to consider the type of mounting structure (i.e., ground-mounted or rooftop) and the length of wiring required to connect the components. More complex installations may lead to higher labor expenses.
Maintenance
Although an off-grid solar power system comes with initial installation costs, it is also important to consider ongoing maintenance costs. This regular maintenance typically includes periodic inspection, cleaning and potential replacement of components over time.
Labor Costs to Install an Off-Grid System
It’s projected that labor expenditures for a solar energy system are around $0.59 per watt, which comes to roughly 10% of the total system cost. As an example, you could expect to pay about $3,000 in labor costs for a 5kW solar energy system, a common size for a residential system.
How Many Solar Panels Are Needed to Run a House Off-Grid?
It can be difficult to estimate how many solar panels you might need to run your home strictly on solar power. But in general, there are three major factors to consider: your home’s annual electricity usage, the wattage of the solar panels and the production ratio (the estimated amount of kWh/year your system will produce, divided by the total wattage). An industry estimate is 20 to 24 solar panels to fully support an average-sized household.
To arrive at the average costs in this article, a range of providers were surveyed on national and local levels. All averaged figures were correct at the time of publication and may be subject to change.
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On-Grid Solar System vs. Off-Grid Solar System
The terms “on-grid” and “off-grid” refer to the connection of a solar system to a power grid. On-grid systems are connected directly to a power grid, while off-grid systems are not connected to any power source at all.
As mentioned, an on-grid system is connected to the utility grid, so you can use it when the sun isn’t shining. This means that you can get electricity anytime, even during a bad storm or at night. It also means that you’ll be able to sell any excess power back to your utility provider. However, it’s important to consider the more upfront investment, costing between$15,000 to $26,000.
If you’re looking for an energy system that does not rely on utility grids, then an off-grid system is the way to go. An off-grid system is not connected to the utility grid, so it only works when there is sun available for it to capture and convert into electricity. This type of system is ideal if you live in an area where there’s no access to utilities like gas or electricity or if you want to reduce your reliance on utilities by using renewable energy sources like solar panels instead. However, it’s important to note that off-grid systems typically cost more than on-grid systems, costing around$32,000 to $70,000.
Frequently Asked Questions (FAQs)
How much does a 10kW off-grid solar system cost?
Taking into consideration the average cost of solar, the cost for an off-grid solar system with 10kW of solar energy will be about $30,000. Because of the federal tax credit, this cost could be lower; around $21,000.
How many batteries do I need for off-grid solar?
It depends on what your goals are for your solar energy system, and how you’re using it. If your goal is to simply maintain a small system to reduce your energy bills or provide energy for a small cabin or RV, you may only need one battery (remember – they can be costly, so you may want to have only the minimum number of batteries possible).
But if you’re looking to store as much energy as you can from your solar panels, two to three might be more reasonable. And if you’re hoping to go completely off the grid, you could need as many as eight to 12 backup batteries in order to ensure you’re storing all the energy your home will need in order to continue running.
Is an off-grid solar system worth it?
Off-grid solar systems are worth it if you’re interested in living a sustainable lifestyle where you don’t need to rely on any source of energy except your own. This can be valuable in times of economic instability, war, or even during catastrophic weather events.
Can a house run on solar power alone?
Yes. Even large-sized homes can run completely off the power grid thanks to today’s advanced solar technology. Large solar energy systems require many solar panels, which can be housed on a roof or even on a ground-level platform (assuming there’s enough space). Several backup batteries can be purchased and wired to ensure energy levels remain consistent, even in poor weather conditions. And with the federal solar tax credit, homeowners are finding they can save money on solar energy systems, which make them a better investment.
