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Average system costs = $95 per square foot. Average solar panel output = 10.6 watts per square foot. Average solar energy system costs = $8.95 per watt. In order to compare the solar energy costs to conventional hydrocarbon fuels, we must covert the $8.95 per into KWH.
Capital costs. A kilowatt is a unit of electrical power capacity. According to a U.S. Energy Information Administration, or EIA, report published in April 2013, the cost of building a utility-gradeâgreater than 150 MW (megawatt)âsolar power plant was $3,873 per KW (kilowatt). solar power plant is one of the cheapest to operate because there are no fuel costs involved. A solar PV (photovoltaic) power plant requires fixed expenses of $11.40 per megawatt hour, or just 1.14 cents per unit.