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For the cost of installed solar power, size matters. For residential and commercial systems smaller than 10 kilowatts (kW), the installed cost was $6.10 per watt in 2011. For commercial systems of 100 or more kW, the cost was only $4.90 per watt.
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.he $9,000 per KW for solar is not very helpful in comparing electric generation costs to other fuels like coal or gas. Since coal, oil, and gas can be measured on a cost per KWH, we should measure solar costs on a KWH basis.