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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.
Based on these assumptions, the levelized cost of solar today â without any incentives â varies from around $0.19 per kilowatt-hour (kWh) in Los Angeles to $0.29 per kWh in Seattle. For more discussion on the cost of solar, see the Appendix or for some context, see the Sensitivity Analysis.he levelized cost of solar is calculated with the following assumptions. First, we use an installed cost for residential solar power of $4.00 per Watt. This number may seem low, as the average cost of residential solar installations in mid-2011 was $6.40.