Here’s some off grid math for your homestead. Buying Versus Building Comparison. People complain that solar is “expensive”
They say silly things like “I’d rather just spend $150-$200/month on electricity from the city, I’ll save way more money than spending $25k on a solar system!”
So here a quick easy breakdown of the costs between staying on grid, versus building your own homestead.
Buying Your Home:
American Home Average: $450k (includes land)
Budget Home Average: $250 (includes land)
Traditional Building:
Buy land: $25k to $100k for 1-10 acres (low end)
Taxes, Insurance, Closing Costs, Permits etc.: $5k to $10k (low end)
Builder/Contractor House Cost: $150k-$200k (average 1200sqft)
City Water 20 years: $8400 ($35/month average more if you have large family)
Electric 20 years: $36k to $48k (we’re already over the cost of solar)
(we’ll stop there for costs to build, there’s more but this is enough)
TOTAL COST TO BUILD TRADTIONAL HOME: $224k to $366k (still below national average of the SALE price of homes at $450k)
NOW FOR OFF GRID HOMESTEAD: DIY AS MUCH AS POSSIBLE
LAND: $25k to $100k (no subdivisions, HOA or restrictions)
Taxes, Insurance, Closing Costs, Permits etc.: $5k to $10k (same)
Owner Builder House Cost: $35k-$100k (average 500-1000sqft)
Well Water Forever: $10k (average) one time well drilling fee
Solar Power 20 years: $10k to $25k
TOTAL COST TO BUILD OFF GRID HOMESTEAD: $85k to $245k
These are realistic numbers based on national averages and average costs of permits, taxes, insurance, well, solar, batteries, etc.
TOTAL SAVINGS ON POWER ALONE:
Low Estimate:
$36,000 (grid) – $25,000 (solar) = $11,000 saved
High Estimate:
$48,000 (grid) – $10,000 (solar) = $38,000 saved
Total range of savings just on electricity over 20 years:
$11,000 to $38,000
OVERLAP EXPLAINED:
High-end Off-Grid Build: $245,000
Low-end Traditional Build: $224,400
So yes, there’s a $20,600 overlap, meaning:
Someone who goes all-out on an off-grid homestead (big solar, higher-end cabin, deep well, etc.) could still end up spending about the same or just a bit more than someone who builds a basic on-grid home, but with radically more freedom, no utility bills, no reliance on the system.
So…just divide that overage by $20.6k to see what your annual and monthly cost would be for FREEDOM!
Let’s see. That’s $1030/year more ON THE HIGH END
That’s about $85.83/month more… (but keep in mind, that’s ALL upfront costs. Once it’s built you don’t have any monthly bills save for taxes and insurance, and your modern luxuries.
Freedom is worth that isn’t it?
But here’s the kicker
Once both are built:
On-grid has permanent bills forever ($200–$400+/mo combined water/electric/garbage)
Off-grid has almost no monthly utility expenses (no water or electric bills, maybe just maintenance)
Off grid has more freedom. And most folks that move off grid aren’t going to build a $25k solar power system or a large modern home. They’ll likely build a modest medium size home. So it would be reasonable and logical to reduce the total cost of the off grid home by about 25% overall
That’s $63.75k for the low end and only $183.75k high end total! For everything. For 20 years.
That’s reasonable. That’s affordable. That’s doable. That’s realistic.
Adjusted Off-Grid Cost:
- Low end: $85k – 25% = $63.75k
- High end: $245k – 25% = $183.75k
That’s your total cost — for everything — for 20 years.
I don’t know about you but that sounds much better than paying a utility company and the city for 20 years.
And you own it all. From the get go! From the beginning. No rent. No grid. No monthly bills. Just peace, autonomy, and real security. THAT’S OFF GRID FREEDOM!
