At SolarGroup, we help homeowners and businesses across the country take control of their energy costs with high-quality, affordable solar systems. One of the most common questions we receive is, “How much does solar really cost?” The answer depends on several factors, but the savings and long-term value make it one of the smartest investments in 2025.
Understanding Solar Costs in 2025
The average cost of a rooftop solar system in 2025 varies based on location, system size, and energy usage. For residential properties, installation typically ranges between $2.30 and $3.20 per watt. A standard 7-kilowatt home system costs around $16,000 to $22,000 before incentives. For commercial properties, costs average between $1.70 and $2.40 per watt, depending on system scale and structural complexity.
At SolarGroup, we tailor every project to meet specific energy goals. Larger systems often benefit from economies of scale, which can lower the cost per watt. Whether you’re a homeowner or a business owner, the goal is the same: to reduce energy expenses and achieve long-term financial and environmental benefits.
Factors That Influence Solar Pricing
Several key elements determine the final cost of a solar system. Roof size and condition, energy demand, equipment quality, and installation type all play a role. Properties with more complex rooflines or shading may require additional engineering or mounting equipment.
Our team performs detailed site assessments to ensure your system is designed for maximum efficiency. We also guide you through selecting components such as inverters, panels, and monitoring systems that fit your budget and goals. Learn more about how our Rooftop Solar services help clients nationwide achieve reliable performance and significant energy savings.
Incentives and Tax Credits
The cost of going solar in 2025 continues to be offset by strong federal and state incentives. The federal Investment Tax Credit (ITC) still allows property owners to claim 30 percent of their system cost as a tax credit. Some states and utilities offer additional rebates or performance-based incentives that further reduce upfront costs.
Our team monitors these programs closely to help every client maximize their financial return. For businesses in particular, solar also offers accelerated depreciation through the Modified Accelerated Cost Recovery System (MACRS), which can dramatically improve project payback timelines. To explore how financial options can make your project more affordable, visit our Financing Options page.
Residential vs Commercial Solar
Residential systems are typically smaller and designed to offset household consumption, while commercial systems aim to reduce large-scale operational costs. Homeowners often focus on energy independence and reducing utility bills. Businesses, on the other hand, look to improve cash flow, hedge against future rate increases, and strengthen sustainability credentials.
Our Commercial Solar Solutions for Hotels highlight how large properties can save thousands of dollars annually through solar installations. For companies with parking space, we also design
Solar Parking Structures for Airports and other facilities that generate clean power while adding shade and supporting EV charging.
Long-Term Value and Payback
A well-designed solar system typically pays for itself within five to seven years through energy savings. After that, you continue to enjoy decades of free, renewable energy. Most solar panels come with 25-year production warranties, ensuring consistent performance over time.
Beyond the financial benefits, solar systems increase property value and reduce carbon emissions. They are also a powerful way to demonstrate a commitment to sustainability, which matters more than ever to consumers and investors.
If you’re not sure whether your property is ready for solar, read our article Is Your Commercial Property Solar Ready? for helpful tips before getting started.
Partner With SolarGroup
At SolarGroup, we make the process of switching to solar simple, transparent, and cost-effective. Our nationwide expertise, combined with a focus on Arizona’s ideal solar conditions, allows us to deliver solutions that maximize both performance and savings. Visit our About Us page to learn how we’re helping businesses and homeowners nationwide achieve their renewable energy goals.
