The Top 5 Uses for a 5000 Watt Inverter in an Off-Grid Home

I get asked for quotes on 5kW systems daily. The final price often surprises clients, but it’s an investment that pays off.

A complete 5kW solar system with a usable 10kWh battery backup typically costs between $15,000 and $25,000 before incentives. The final price depends heavily on your location, the quality of components (like Tier 1 panels vs. generic), and the complexity of your installation.

This range covers a professional-grade system designed for reliability. Let’s break down where every dollar goes.

What is the cost breakdown of a 5kW solar and battery system?

When I prepare a B2B quote, I itemize everything. Transparency builds trust with procurement managers like Jeff.

The cost breakdown typically allocates 50-60% to equipment (panels, inverter, batteries) and 40-50% to “soft costs” like labor, permits, and engineering. For a $20,000 system, that’s roughly $11,000 for hardware and $9,000 for installation and services.

Understanding this split is crucial. The hardware cost is fairly fixed, but the soft costs can vary wildly by installer and region.

Let’s dive into a detailed line-item breakdown for a typical commercial-quality 5kW system with a 10kWh lithium battery. This is the level of detail I provide to my B2B clients.

1. Solar Panels (∼$4,000 – $6,000): A 5kW system usually requires about 12-14 panels. You pay a premium for high-efficiency, Tier-1 monocrystalline panels from brands like LG, SunPower, or Panasonic. These offer better performance and longer warranties. More economical options can reduce this cost significantly.

2. Inverter System (∼$2,000 – $4,000): This is the brain of the operation. For a system with batteries, you need a hybrid inverter or a standard inverter paired with a separate battery inverter. More advanced inverters with smart energy management features will be at the higher end of this range.

3. Battery Storage (∼$6,000 – $12,000): This is the most variable cost. A 10kWh lithium (LiFePO4) battery bank is the standard for meaningful backup. We manufacture these at ChuShang, and pricing is competitive. The cost depends on the brand (e.g., Tesla Powerwall, LG Chem) and the battery’s depth of discharge and cycle life.

• ChuShang Note: Our B2B clients often choose our battery packs for their project management ease and quality control, which helps manage this cost.

4. Balance of System (BOS) & Hardware (∼$1,000 – $2,000): This includes all the crucial but less glamorous parts: racking, mounting systems, wiring, connectors, and critical safety components like disconnect switches.

5. Soft Costs (∼$5,000 – $8,000): This is where installer quotes differ most.

• Labor: Costs for the certified electricians and installers.
• Permits & Fees: Fees paid to your local city and utility company for interconnection approval.
• Engineering: Work required to ensure your roof structure can handle the load and the system is designed correctly.
• Sales & Marketing: Cost of customer acquisition for the installer.
• Profit: The installer’s business profit margin.

How do battery choices impact the total system price?

Choosing a battery is the biggest factor in your final cost. Not all storage is created equal.

The battery’s chemistry, brand, and capacity are the primary price drivers. A premium 10kWh Tesla Powerwall 2 can cost over $10,000 installed, while a comparable capacity using stacked, generic lithium batteries might start at $6,000. Long-term performance and warranty justify the higher initial investment.

For a business, the decision hinges on reliability and total cost of ownership, not just the sticker price.

The battery is an investment in resilience. Here’s how different choices impact the bottom line:

Battery Chemistry: Lead-Acid vs. Lithium-Ion

• Lead-Acid: Seems cheaper upfront ($3,000-$5,000 for 10kWh). However, they have a very short lifespan (4-7 years), require regular maintenance, and can only be discharged to about 50% of their capacity without damage. This means you need to buy a 20kWh bank to get 10kWh of usable power, making them less cost-effective over time.
• Lithium-Ion (LiFePO4): Higher upfront cost but superior economics. They last 10-15 years, require zero maintenance, and have a 90%+ Depth of Discharge (DoD). This means a 10kWh battery provides nearly 10kWh of usable energy. Their efficiency is also higher, meaning less energy is lost when storing and releasing power.

Capacity and Scalability

The “10kWh” size is a common starting point because it can cover critical loads (lights, fridge, modem) for overnight. If you need to power air conditioning or heavy machinery for extended periods, you’ll need a 20kWh or larger bank, which can double the battery portion of your cost. Some systems are easier to expand later than others, a key factor for growing businesses.

Brand and Integration

• AC-Coupled (e.g., Tesla Powerwall): These are often easier to install as they work with any existing solar system. They tend to have a higher “all-in-one” cost per kWh.
• DC-Coupled (e.g., many generic brands): Often more efficient and can be more cost-effective, especially for new installations. This is where ChuShang’s offerings provide significant value, especially for B2B projects where we integrate directly with system designers.

What financial incentives can reduce the upfront cost?

No savvy buyer pays full price. Incentives are a crucial part of the procurement calculation.

The federal Investment Tax Credit (ITC) is the most significant incentive, currently reducing your system cost by 30%. Additional state-level rebates, net metering programs, and local utility incentives can further lower the final price, sometimes by an additional 10-20%.