Costs. There is an upfront cost to solar panels. While there is a solar tax credit you can apply for after installing the system that can offset the cost, you must be ready to pay a significant amount for the system. The average home system costs about $11,000 to $14,500. A small system that produces around 2KW is $6,100 before tax credits while a large system that produces 10KW is $30,500 before tax credits. Installing the system yourself means that you don’t have to pay for installation, but most companies only charge about 10 to 15 percent on top of the equipment.