Are solar panels really worth it? Absolutely! For most homeowners, they can be a game-changer. With energy costs on the rise, many people are turning to solar to help lower their monthly bills. Going solar not only saves you money but also gives you more control over your energy use and reduces your impact on the environment. That said, switching to solar might not be the best choice for everyone. If you have low electricity bills, rent your home, face high installation costs, or live in an area with lots of bad weather, it might not make sense for you. In the end, the decision to install solar depends on your individual circumstances.
During the last three years, the U.S. added roughly 55.9 GW of solar power- some 2.1 million solar installations. Digging deeper, it has recorded about 12.5 GW in the year 2021, 10.4 GW in 2022, and a record-high 33 GW which are expected this 2023. This surge really shows how quickly solar energy is growing, especially in the utility-scale sector.
What makes solar an excellent choice is that they’re built to last and require little upkeep once installed. In this article, we’ll explore whether solar power is worth it for you by examining your home energy usage, installation options, associated costs, and the pros and cons of solar panels.
Solar Panels Pros and Cons
| Pros | Cons |
| Cost Saving On Energy Bills
Solar panels can significantly reduce monthly electricity expenses by harnessing free energy from the sun. |
High Initial Costs
The upfront cost for purchasing and installing solar panels can be substantial, making it a big financial decision for many people. |
| Environmental Benefit
Solar energy is renewable and reduces reliance on fossil fuels, leading to lower greenhouse gas emissions. |
Weather Dependent
Although it is a renewable energy source, it relies on sunlight, which can be affected by weather conditions. |
| Increased Property Value
Properties with solar installations have seen up to a 4% increase in value due to lower energy costs and sustainable features. |
Space Requirements
Solar panels need adequate roof or ground space for installation, which may not be available in all properties. |
| Low Maintenance & Long Lasting
Solar panels require minimal upkeep and can last over 25 years, providing long-term benefits. |
Intermittent Energy Production
Solar energy is sometimes limited to daylight and seasonal changes. |
| Job Creation
One of the most significant benefits that no one is talking about is the large number of jobs being generated by the solar industry. |
Aesthetic Concerns
Some homeowners may find solar panels unattractive, but new designs like building-integrated photovoltaics (BIPV) blend seamlessly with home architecture. |
| Energy Independence
A complete off-grid or hybrid solar system can help you achieve energy independence from the grid and eliminate energy bills. |
Energy Storage Costs
Energy storage costs can be a drawback, as expensive batteries and maintenance can inflate the overall system price. |
How To Check If They’re Worth It For You?
Before installing a solar system, it’s best to assess whether it’s a worthwhile investment for you. Here are a few steps you can take to determine if it’s right for you.
Your Home Energy Usage
If your property consumes little energy and your electricity bill is manageable, solar energy may not be necessary. However, for homes with high energy consumption and rising bills, installing a solar system can be a wise investment. The average U.S. electricity bill was about $115 per month in 2021, with increases of 3% to 5% annually. By switching to solar, homeowners can save an average of $20,000 over 20 years, especially as solar panel prices have dropped by over 70% since 2010.
Space Availability
It takes more than just a decision to go solar; you also need to ensure that your property has enough space for installation. Ideally, you would want to have solar panels installed on a south-facing roof because it can gather about 30% more sunlight compared to an east- or west-facing roof. If your space is limited or is shaded, don’t be discouraged as even solar carports or ground-mounted systems could help.
Power Outages
When installing solar panels, do not just think about your consumption of energy; find out how many times the power went out in your area. The average person in the United States goes through about one outage in a year that lasts for about 2.5 hours. If the outages occur often, then you are great at changing to solar energy. And battery storage. Well, now you can use this power when the sun isn’t shining and during a grid outage, keeping your lights on and your family safe. Many homeowners just can’t live without that reliability, making solar not only a smart choice for the planet but for your wallet, too.
Installation Cost
Installing these solar panels definitely is an expensive step, but the good news is that there are many incentives and rebates to help lessen the load. For example, the solar tax credit that the federal government avails lets you take 30% off the cost of your system directly off your taxes. In fact, even many states and utilities have their own packages to save you even more. It is very important that you have a proper estimate of the cost of your complete solar system before deciding on it. It will include all savings till then; after that, you will be aware of what you are investing in and how much you will save on electric bills subsequently.
Solar Installation Or Solar Lease
Here’s a streamlined comparison table focusing on the essential differences between solar installation (ownership) and solar lease.
| Feature | Solar Installation (Ownership) | Solar Lease |
| Ownership | Homeowner owns the solar system. | Solar company retains ownership. |
| Upfront Costs | Higher initial investment. | Minimal or no upfront costs. |
| Monthly Payments | No monthly payments (or loan payments). | Fixed monthly lease payments. |
| Incentives | Eligible for tax credits and incentives. | Typically not eligible for tax credits. |
| Maintenance | Responsible for maintenance and repairs. | Maintenance is usually covered by the leasing company. |
| Electricity Savings | Potential for significant savings over time. | Savings depend on lease terms; usually less than ownership. |
| End of Term Options | System remains with the homeowner. | Options to buy, renew, or remove systems. |
These points will help you decide whether to buy a solar system or lease one from a solar company.
Solar Incentives and Rebates
1. Federal Investment Tax Credit (ITC)
This incentive covers 30% of the total solar system installation cost, which is a significant amount. It applies to both residential and commercial solar systems and has been extended through 2032. After that, it will be reduced to 26% in 2034, so it’s a good time to go solar now.
2. State Tax Credits
Many states offer additional tax credits for solar installations, which vary depending on the state. These credits usually allow homeowners to deduct a portion of their solar system costs from their state income tax. States such as California, New York, and Massachusetts provide some of the most generous incentives, making solar systems more affordable overall.
3. Rebates from Local Utilities
Some utility companies offer rebates in cash to help people go solar, which can really cut down on some of the upfront costs from installing a system. These rebates may be available depending upon the location. As such, it is a good idea for the homeowners to reach out to their local utility company and ask them if they have any rebate programs available and what the details are.
4. Net Metering
It’s available all around the USA allows property owners with hybrid and grid-tied solar systems to receive credits for the electricity generated and sent back to the public grid. This means that during sunny months, when solar panels produce more energy than needed, homeowners can offset their electricity bills, effectively earning credit for future energy use during less sunny periods.
5. Property Assessed Clean Energy (PACE) Financing
This financing program helps the property owners to finance their solar system installation through a property tax assessment. Which means no upfront cost and they can pay for the system in over several years. PACE programs vary by state and are often available for both residential and commercial properties.
6. Sales Tax Exemptions
Several states offer sales tax exemptions on solar energy equipment, helping homeowners save big on installation costs. With sales tax adding up to thousands of dollars, these exemptions can make a real difference. States like Florida, New Jersey, and Massachusetts have rolled out these benefits to encourage more people to go solar.
7. Solar Renewable Energy Certificates (SRECs)
SRECs (Solar Renewable Energy Certificates) are tradable certificates homeowners earn for every megawatt-hour of solar power their system produces. In states with renewable energy mandates, utilities are required to buy a certain number of these certificates, creating a market for them. Homeowners can sell their SRECs to utilities, giving them an extra source of income from their solar panels.
8. Local Incentives and Grants
To encourage solar adoption in the country. Local government is offering additional incentives and grants. Which may include direct financial assistance, reduced permit fees, or other forms of support for homeowners looking forward to installing solar panel systems. How to get these incentives and grants? Check with local government websites to get specific information about incentive’s availability.
FAQs
- What is the downside of getting solar panels?
Ans. Solar panels have downsides such as high upfront costs, the need for sufficient space, and reliance on sunlight, which reduces efficiency on cloudy days. They may require maintenance and might not significantly boost property value, with some buyers seeing them as a liability if tied to loans or leases.
- How long does solar panels need to pay for themselves?
Ans. Solar panels usually pay for themselves in about 5 to 15 years, influenced by factors like installation costs, energy savings, and local incentives. Once this payback period is over, you can enjoy free electricity for many years, as solar panels often last 25 years or more, making them a smart long-term investment for your home.
- How much tax do I have to pay on solar panels?
Ans. You can deduct 30% of the installation costs of solar panels from your federal taxes due to the federal tax credit. State and local taxes may vary, and some states offer additional incentives or exemptions. Consult a tax professional for specific advice.
- Do solar panels actually increase the value of your home?
Ans. Yes, solar panels can increase your home’s value, typically by 3% to 4%. Buyers are increasingly attracted to energy-efficient features, and homes with solar panels often receive more offers. However, the value boost can vary based on location, local energy prices, and the system’s age and size.
