How much does a 10kW solar power system cost? – Updated

Before deciding to install a solar power system, people will normally ask a lot of questions. For sure, the most frequent one is this – how much does a solar power system cost?

For this example, we will consider a very common system size for residential or commercial installation. And, that is an on-grid 10kW solar system. In this article, we will answer this very interesting question in detail. We will demystify it as much as the solar salespeople don’t want you to know.

How much does a 10kW solar system cost?

As of the year 2020, a quality 10,000 Watts solar system can cost between US$10,000 to US$14,000.

This is the price range of a system of this size.  You will be able to confirm it when you know the real costs of each component from the suppliers. Know more about the cost breakdown, details and information below.

What is a 10kW solar power system?

A 10kW solar power system has at least 25 to 40 solar panels. It can take up a space between 55 to 70 square meters. However, the number of solar panels and space required depends on the module efficiency.

The system can generate up to 16,400 kWh of electrical energy every year or up to 45kWh daily. But, this depends on the tilt angle, orientation and geographical position of the solar power system.

Timelapse Video for Solar Power System Installation

What is in a 10kW solar power system?

To have an idea about the cost, we need to breakdown the whole system into its basic components. By doing so, we will determine the bill of quantity or BOQ of the 10kW solar power system.

A solar power system consists of four basic components. These are the solar panels, the inverters, the mounting structures and the balance of system (BOS).

The quantity of each component will base on the total capacity of the system. This means as the kW increases, the quantity of materials for each component will also increase.

Considering a 10kW or 10,000-watt system, we can break it down into its basic parts as follows:

Solar Panels

Solar panels’ cost usually falls between 45% to 60% of the total system spending.

Now, for a 10,000-watt solar power system, you will need at least 25 solar modules. However, consider only the power capacity of solar panels available in the market. You can choose from 250-watt up to 410-watt module capacity.

Choose modules with high power capacity as much as possible. It reduces the number of solar panels that your system will require. By doing so, you will be able to optimize your budget in the long run. Although the price of solar panels will be based on USD/watt, reducing the number of modules will be beneficial for you. It’s because, it reduces the length of your cables, number of racks or supports and even the cost of maintenance.

Solar Panel Selection

For this system, the most effective option is to use a 400-watt solar module. So, what you need to do next is to divide the total solar power of the system by the solar panel capacity. Then, you will determine the total number of modules to buy.

10,000-watt / 400-watt = 25 units

For a 10kW solar power system, you will need 25 units of 400-watt solar panels. You may want to check out our article about solar panels for homes, to learn more about this.

Solar Inverters

For a 10kW solar power system, you will need at least one solar inverter unit. As for the cost percentage, this component will amount between 15% up to 25% of the total system cost.

What is a solar inverter?

One of the major components of a solar power system is the inverter. It comes in different shapes and sizes. Sometimes, it is installed outdoors or in the field together with the solar arrays. But, most of the time, it can be found under the shade or even indoors.

The inverter is the heart of the solar power system. Its main purpose is to transform DC power from solar arrays into useful AC electricity. This will then be used for homes or other establishments.

What are the different types of solar inverters for a 10kw solar system?

There are many types of inverters that are available right now. But, we will just focus on the inverters which will apply to a 10,000-watt solar power system. We can consider these two types:

Micro Inverters

A micro inverter is the type of inverter which is directly connected to a single solar panel. It is installed just underneath the solar module. It also means, the number of modules will determine exactly how many micro inverters you need.

Its output is AC power. In most cases, it has almost the same capacity of the panel it is connected to. Since the output is relatively small, you will need to have a combiner or collector. This will combine all the smaller AC outputs from the micro inverters into an electrical panel. It will have an output power relatively closer to the total capacity of the system.

Advantages of Micro Inverter over String Inverter

Here is the list of advantages of micro inverters.

  • By using micro inverters, the effects of partial shading to the system will make less impact.
  • If the solar panels are facing in different tilt angles, micro inverters will be of great use.
  • Micro inverters will let you monitor the performance of each solar panel.
Disadvantages of Micro Inverter over String Inverter

Here is the list of disadvantages of micro inverters.

  • The system will be costlier with micro inverters.
  • Operation and maintenance will be more complicated.
String Inverters

A string inverter is a device that requires several solar panels connected in series as an input. When you connect about 5 to 18 solar panels in series, it is already called a solar string. Thus, the name of the inverter comes from that concept.

Most string inverters convert DC power from the solar strings into AC using MPPT or maximum power point tracking.

MPPT is an algorithm that string inverters use to sample the output power from the solar panel strings. It then applies the proper resistance (load) to get maximum power. This allows the string inverter to maximize the extraction of power from the solar modules. Thus, making them convert sunlight into useful electricity efficiently.

Advantages of String Inverter over Micro Inverter

Here is the list of advantages of string inverters.

  • Most of the time, you will only use 1 string inverter for small to medium size installation.
  • String inverters are cheaper compared to buying multiple micro inverters.
  • The operation and maintenance of the string inverter is simple.
  • Installation of string inverter is quicker and easier.
Disadvantages of String Inverter over Micro Inverter

Here is the list of disadvantages of string inverters.

  • There will be no individual solar panel monitoring.
  • There could be some string mismatch when there is partial shading or difference in the inclination angle between solar panels.

Why choose string inverters

Considering a 10kw solar system, it will be best to use a string inverter. Why? It’s because the cost-effectiveness of a string inverter outweighs the advantages that micro inverters have. Besides, not everyone needs to monitor each solar panel.

Additionally, one string inverter will be enough for a 10,000-watt system. Thus, it will help in optimizing the budget.

String Inverter Oversizing

Sizing of the inverter is not as difficult as it sounds. Once you have the total size of the system (in kilowatt peak), choosing inverter size will be straight forward.

However, one thing you need to know is that string inverters can be oversized. It is a practice recommended by solar designers and consultants. Why? It’s because it significantly lowers the cost of the system. Additionally, it maximizes the inverter efficiency considering the peak capacity of solar panels won’t be reached all the time.

Inverter oversizing means you can choose an inverter that has a lower output power capacity than the solar panels. However, you should always refer to the inverter’s datasheet to know the limitations.

In general, the recommended oversizing ratio is up to 130% (DC to AC ratio). To simplify, DC to AC ratio refers to the total solar power (DC) over the inverter output power (AC).

How to choose string inverter for 10kW solar power system

  • Check all the available string inverters in the market that has a rating that will satisfy up to 120% DC to AC ratio.
  • Considering a 10,000-watt of solar array, inverter rating from 7.7kW to 9kW will be the best choice.
  • Get the datasheet for each inverter and read them carefully. Always check how much power it can take as an input.
  • Since we consider 25 nos. 400-watt solar panels, choose a string inverter with at least 2 MPPT inputs.

Solar Panel Mounting Structures

Mounting structures are the supporting structures that hold the solar panels to the roof or ground. This can be made out of GI steel or aluminum materials. Usually, it has a combination of the railings, end clamps, mid-clamps, mounting brackets, and other supporting structures. It’s application ranges from ground mount, flat roofs, sloped roofs, tiled roofs, and others.

In general, the component amounts between 8% to 15% of the total solar power system cost. The cost will vary depending on the application of the solar mounting structure.

For a 10kW solar power system, we will consider a common sloped roof installation. This system will require 5 sets of 1×5 mounting structure for this type of application.

Balance-of-System (BOS) for a 10kW Solar System

Balance-of-system for a solar power plant includes cables, wiring accessories, metering equipment, breakers, and switches. It usually sums up to 10-20% of the system’s total cost.

AC Power Cables

For a 10kW solar power system, it is recommended to use an AC cable with at least size. This is the case when we decide to use a string inverter. The cable should be a  4-core copper armored cable that will connect the inverter to the 3-phase main distribution board.

DC Cables

For this system, you have to consider a DC cable with at least size. This should be a single core copper solar cable that will connect the solar strings to the inverter.

Breakers and Switches

Proper sizing of the breakers to be installed on the AC Main distribution board is very important. Always check the maximum output current of the inverter. From there, you can determine the size of the breaker you will need.

Usually, for a 10kW solar power system, you need to use between 20A to 30A 3-phase breaker.

Metering Panel

The metering panel is the enclosure where you or your electric utility will install the solar meter. Its main purpose is to measure how much your system has generated in kWh or kilowatt-hour.

BOQ for a 10kW solar power system

BOQ or bill of quantities is a document used to itemize the materials you will use in constructing a project. Here, we will show you what a 10kW solar power system BOQ will look like.

Item Description Quantity
Solar Panels 400Wp Mono Crystalline 25 pcs.
Solar String Inverter 8kW capacity 1 no.
Solar Structure 1×5 Sloped Roof Mounting Structure 5 sets
Connectors Male and Female MC4 Connectors 4 pairs
DC Cables + Earthing Cable 4 copper solar cable 150 meters
AC Cables 4-Core Copper Armoured Cable 20 meters
Earthing Cables 1-Core Copper PVC Cable 20 meters
Cable Management System Cable trays, conduits, and accessories 1 lot
AC Breakers 20A 4-pole AC Breaker 2 nos.
DC Disconnects 2-pole 800V 20A DC Breaker 2 nos.
Metering Panel Bi-directional meter enclosure 1 no.
Fixings and Accessories Screws, nuts, bolts, etc. 1 lot

Cost Breakdown of a 10kW solar power system

Now, here is the cost breakdown of the system. This will base on the actual average cost from direct suppliers. However, brands will not be mentioned here. If you want to see the quotation for this system, click the button below to subscribe to our email list.

Item Quantity Price per Unit (USD) Price (USD)
Solar Panels 25 pcs. USD 192 USD 4,800
Solar String Inverter 1 no. USD 1,520 USD 1,520
Solar Structure 5 sets USD 250 USD 1,250
Connectors 4 pairs USD 3 USD 12
DC Cables + Earthing Cable 150 meters USD 5 USD 750
AC Cables 20 meters USD 10 USD 200
Earthing Cables 20 meters USD 5 USD 100
Cable Management System 1 lot USD 200 USD 200
AC Breakers 2 nos. USD 110 USD 220
DC Disconnects 2 nos. USD 160 USD 320
Metering Panel 1 no. USD 550 USD 550
Fixings and Accessories 1 lot USD 50 USD 50
Materials Total Cost USD 9,972

From the table above, you will see the materials cost will be around $10,000 only. If you are going to hire a contractor to build your system, additional charges for labor, permit fees, and others are expected. On top of that, they might also add their margin for the materials. The final cost might go up to $20,000 or even more.

However, always look for professional solar contractors to do the job. This way, you will avoid headaches and delays on the project.

How much energy will a 10kW solar power system produce?

The graph above shows an actual yield of a 10kW-peak solar PV system in the whole year of 2019. This system is installed in a residential rooftop located in the United Arab Emirates.

In a year, a 10kW system will produce 12,000 kWh up to 16,400 kWh. However, it all depends on the solar plant location, site condition, inclination angle, shading, and maintenance of the system.

How long will a 10kW solar system last?

Usually, a 10kW solar system last between 20 to 30 years. Depending on the level of maintenance being carried out, solar panels, inverters and the other components of the system will outlast their warranty years.

How long is the payback period for a 10kW solar system?

The payback period of a 10kW solar system is between 5 to 8 years. Again, it depends on the initial cost of the system and kWh rate from electric utility. Additionally, net metering, feed-in tariff arrangement of local utility and system maintenance also need to be taken into consideration.

After the payback period, everything you get from the system is free energy!


In this article, we have presented to you an example of a 10kW-peak solar PV system with the actual data of its kilowatt-hour yield in a year.

From here, you will be able to calculate how much you will save on your electricity bills depending on the kWh tariff imposed by your utility. The breakdown of the system cost is also discussed here as a guide for you along with the materials you will need to build the system.

Now, you have the idea on how a solar PV system will cost you, particularly for a 10kW capacity. The decision is yours whether to invest on solar energy now or later, depending on your budget.

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How much does 10kW solar power system cost?
Learn how much a 10kW or 10,000-watt solar power system really costs, how to break down materials cost for each components, how much energy it will produce.
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Super Human

He loves to read news and articles about renewable energy and technology. He is experienced in the solar energy industry. He loves to write articles, guides and tutorials about solar PV technology.

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