How much does a 3.5 kW solar panel system cost in 2024?

A 3.5 kW solar panel system is enough to power a tiny home—but it'll cost you about $9,625.

Updated Dec 23, 2024
4 min read
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3.5 kW solar panel cost

Installing a solar panel system can save you thousands of dollars over time, but the upfront costs aren’t exactly chump change. In 2024, the average cost for a 3.5 kilowatt (kW) solar panel system hovers around $9,625 before incentives, though actual prices vary depending on your location and installation specifics.

In most cases, solar is a worthwhile investment. You’ll just want to ensure you’re getting the best deal possible—and that starts with a clear understanding of what drives the total cost. Let’s take a closer look at the key factors shaping solar panel system pricing this year.

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Key takeaways

  • A 3.5 kW solar panel system costs $9,625 in 2024 before incentives. 

  • A 3.5 kW solar panel system produces about 5,082 kWh of electricity annually, but the exact amount depends on where you live and how much sun you get. 

  • DIYing a 3.5 kW solar panel system usually isn't your best bet: You're much better off hiring a professional solar company for optimal results.

On average, a 3.5 kW solar panel system costs $9,625, according to real-world quotes on the EnergySage Marketplace from the first half of 2024. However, your price may differ; solar costs can vary significantly from state to state. 

The table below should give you an idea of what you can expect to pay for a 3.5 kW solar panel system in your state. Before you go into sticker shock, remember that the federal solar tax credit will give you 30% back if you have a big enough tax bill. State and local solar rebates and incentives can cut those out-of-pocket solar costs even further. 

How much does a 3.5 kW solar system cost in my state?

State
Average price for a 3.5 kW solar panel system
Arizona $7,490
California $8,540
Colorado $10,675
Florida $7,910
Massachusetts $11,725
Maryland $10,150
New Jersey $9,800
New York $11,060
Texas $7,805
Washington$9,520

In the end, your total bill depends on a bunch of different factors. Here are a few to keep in mind: 

  • Brand and quality of equipment: High-efficiency solar panels generally cost more than their less-efficient counterparts. Likewise, some premium brands can get away with charging more than others. 

  • Special accommodations: Some properties are better suited for solar than others. Your system will probably cost more if you have a particularly complicated roof. 

  • Permits and inspections: You’ll need certain permits to install a solar panel system at your home. Sometimes these come at a cost. 

  • Labor costs: Installing solar is a specialized skill, thus labor drives construction costs.  

  • Supply chain constraints & market fluctuations: Like any industry, the solar market has faced its fair share of ups and downs. Most recently, we experienced an ebb in the early 2020s, with solar prices rising for the first time in years. Fortunately, the cost of solar is falling as of 2024

  • Incentives: As we mentioned earlier, financial incentives can drastically reduce the cost of solar. The federal solar tax credit is available nationwide, and additional state and local incentive and rebate programs may also be available to you.

Received a quote that’s way off?

Ask the installer how they got their numbers.

Cost isn't the only thing that varies from state to state: You'll also see fluctuations in electricity production. The average 3.5 kW solar panel system in almost-always-sunny Phoenix, Arizona produces about 35% more electricity than that same system installed in seasonally-sunny Boston, Massachusetts. (That said, you don’t have to live in Arizona for solar to be a good option for your home. Solar is a smart investment wherever electricity rates are high). 

With the help of PV Watts, we estimated the solar energy production of a 3.5 kW solar panel system in cities across the country: 

Solar electricity output of a 3.5 kW solar panel system in U.S. cities

City
Average Daily KWH
Average Monthly KWH
Average Annual KWH
Austin, TX 14.2 kWh 431 kWh 5,172 kWh
Boston, MA 12.6 kWh 382 kWh 4,585 kWh
Cleveland, OH 12.2 kWh 371 kWh 4,452 kWh
Denver, CO 15.3 kWh 466 kWh 5,593 kWh
Hartford, CT 12.1 kWh 368 kWh 4,415 kWh
Las Vegas, NV 16.9 kWh 513 kWh 6,158 kWh
Los Angeles, CA 16.2 kWh 491 kWh 5,897 kWh
Miami, FL 14.9 kWh 453 kWh 5,432 kWh
New York City, NY 12.4 kWh 376 kWh 4,517 kWh
Philadelphia, PA 13.0 kWh 396 kWh 4,753 kWh
Phoenix, AZ 16.9 kWh 515 kWh 6,177 kWh
Seattle, WA 10.5 kWh 319 kWh 3,828 kWh
U.S. Average13.9 kWh423 kWh5,082 kWh

What can you power with a 3.5 kW solar system?

We generally don’t recommend a do-it-yourself solar installation. Installing solar panels involves skilled work across multiple trades. Attempting to install a system yourself increases the likelihood of costly mistakes, potential safety and electrical hazards, and even damage to your home, especially if you intend to install your system on a roof. That said, if you’ve made up your mind about DIYing your solar panel system, a small-scale project like a 3.5 kW system might be doable.

DIY solar panel systems can be practical for powering small, off-grid setups like cabins, RVs, boats, or tiny homes. A few things to consider as you explore do-it-yourself solar:

The answer? It depends. While this guide offers a helpful starting point, determining whether a 3.5 kW solar panel system is the right fit for you requires professional input and analysis. Connect with qualified solar installers in your area on the EnergySage Marketplace to design a solar panel system that’s just right for your energy needs and budget.

Find out what solar panels cost in your area in 2025
  • 100% free to use, 100% online
  • Access the lowest prices from installers near you
  • Unbiased Energy Advisors ready to help
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