Solar Energy Pros, Cons and When Solar Is Right for You

Home solar panels are growing in usage throughout the US. The United States surpassed five million solar installations in 2024, with about 97% of those installations being residential solar panels. That’s a lot of homes where solar panels were a good fit.

But is solar power right for your home? We can help you make the right decision by looking at the pros and cons. If you’re thinking about going to clean and independent solar energy, we want to help you make the best decision.

Solar Energy Pros

With solar being the fastest-growing energy source, you might have heard about some of the benefits of going solar. The main pros include cost savings, economic incentives, earnings through surplus power, and helping our environment.

1. Solar can reduce or eliminate your utility bill

Electricity is inextricable from modern life. We now use electricity to cook, cool our living spaces, and power critical devices, including necessary health devices and vehicles. 

As our reliance on electricity increases, so do the monthly costs. Reducing electricity consumption to lower your monthly bills is a fine idea, but it’s very difficult to change habits and you can’t cut real needs.

Solar energy can reduce your electricity costs by meeting all or part of your electricity needs. In either case, you’re reducing your monthly electricity costs.

Many people go solar and realize savings without changing their lifestyle. Reducing or even eliminating your utility bill is often one of the biggest benefits.

2. Solar power can increase the value of your home

Millions of Americans buy houses each year and, while they may consider location, size, and layout of the house, many don’t stop to consider its cost in utility bills. By examining recent energy bills, homebuyers can get a peek into the long-term health of the home and how it impacts their budget.

A house with solar panels is more appealing to buyers and typically sells for more. Research by Zillow shows installing solar panels can increase your home's value by up to 4.1%.

“Between the incentives and the monthly savings, the installation will be paid off in no time, and the panels increase the value of my house by $15,000! Can’t ask for better than that.”---A 5-star customer review of Palmetto Solar 

Industry research indicates buyers will pay more for a house with solar energy for two key reasons. First, it allows them to take advantage of work that’s already been done to enjoy a solar power system that suits the home’s needs. Second, solar power helps keep monthly utility bills low after they move in.

3. Home solar combats rising energy costs

Electricity prices rose sharply in places over the last few years. According to the US Energy Information Administration (EIA), residential electricity prices are projected to rise through 2026. 

Such increases add up and can put a strain on your finances over time. Installing a solar power system is one of the best ways to combat this continued rise in the price of electricity.

Other than the initial price of installation, you will typically incur only a few other costs during the lifetime of your panels for things like routine annual maintenance. The expected lifetime of solar panels is 25 years or longer.  

4. Solar helps reduce your carbon footprint

Greenhouse gases (mostly from burning fossil fuels) are causing global warming and climate change. To avoid the worst effects of climate change, we need to reduce greenhouse gas emissions. Replacing much of the electricity you buy from the grid with electricity from solar panels can reduce your carbon footprint. 

On a larger scale, solar electricity has one of the lowest carbon intensities of any energy source.

Lifetime greenhouse gas emissions by electricity generation source. Credit: NREL

Solar power is a renewable energy source. As long as we have the sun, solar power is inexhaustible. The bright side is solar power has the potential to meet the world's energy needs if it's harnessed well.

5. Save and get paid for solar power production

Homeowners have incentives to use residential solar energy. Most of these financial perks are at the federal government level. Some states and localities also have incentives. 

The federal solar tax credit: Officially titled the Residential Clean Energy Credit, the federal solar tax credit applies to commercial and residential solar power installations. It allows you to deduct up to 30% of the total cost of installing or adding to a solar energy system from your federal taxes. Since there is no cap on how much you can deduct, the Residential Clean Energy Credit can save you tens of thousands of dollars.

Net metering: In some areas net energy metering (NEM) earns you credits on your electricity bill when you send power from your panels to the grid.

Solar renewable energy certificates: Depending on where you live, you can earn one solar renewable energy certificate (SREC) for every 1,000 kilowatt-hours (kWhs) of electricity your system produces, which you can sell on an SREC marketplace. This can be an important part of your solar savings.

6. Solar is a proven technology

Silicon solar panels have been used since the 1950s. They’re currently used by millions of homes across the US and the technology is constantly being improved.

Solar power works in many climates. Yes, shorter days, increased cloud cover, and snow can reduce sun exposure, and thus, electricity production. However, modern solar panels can endure bad weather, and the technology is designed to produce the maximum amount of electricity with a minimal amount of sun exposure.

Solar power professionals use complex modeling strategies to determine the amount of solar energy your roof receives based on your local climate. You will get a custom solar power system built to your specific needs and pinpointed down to your property.

7. Solar power is surprisingly affordable

When looking at solar panels, a decision usually comes down to one metric: Are the benefits of going solar worth the cost?

For starters, solar power is the cheapest form of new electricity in most countries around the world compared to fossil fuels and other renewable energies like wind and hydropower. 

When you purchase solar panels, you incur the bulk of your costs during installation. Costs have come down significantly over the past decade, thanks to factors such as improved solar technology, new financing options, and various incentives, and savings can be significant. Thus, many homeowners are surprised to learn exactly how affordable it can be to go solar.

With a solar lease, you incur zero upfront costs and can start saving as soon as your panels are switched on.

Credit: SEIA

Thanks to new financing options, it’s possible to reduce or eliminate the upfront costs of solar power installation. You can spread payments out over time, and match the cost of your solar payment with the savings from the energy those solar panels generate.

On average, solar panels can pay for themselves in 6-10 years. Once the solar power system has been paid off, you’ll enjoy years of clean energy generation with no additional payments. 

Modern solar panels should last at least 25 years and come with warranties that guarantee they’ll be at least 80% efficient at the 25-year mark. Some new panels can last longer than that. So, if your payback period is 10 years, you are still looking at about 15 years of additional savings on your electrical costs.

8. Solar benefits the whole electricity grid

As electricity demand increases, it strains grids. To address this rising demand, utility companies must invest in new infrastructure, but it takes time for new construction to go online.

If more people install solar power systems, it will reduce reliance and load on the grid. This decrease in load is enhanced through net metering, as solar customers can add electricity to the grid.

When considering the innovation in today’s renewable energy industry, things are only getting better as solar grows. With increased panel efficiency, dramatically reduced costs of batteries, and smart grid integration opportunities, solar power and battery storage systems continue to make more sense for property owners to help power our society with dispersed green energy. 

9. Solar power systems have a long lifespan

Because a solar power system is a considerable investment, consumers worry about life expectancy. With regular maintenance, you can expect reliable service and financial savings from your system for 25 years and more.

Panels have no moving parts and little risk of wear and tear, so maintenance requirements are typically low. 

Even better, your solar panels won't be totally ineffective in their third or fourth decade. Even with a gradual reduction in efficiency, solar panels can still produce electricity beyond 30 years. They might not provide 100% of your electricity needs, but your solar power system can continue to offset some of your electricity demands.

10. Solar supports the local economy

According to the Interstate Renewable Energy Council, the solar energy sector employs over 275,000 people in the US. Even if you purchase your system from a national provider, it’s typically installed by a local crew, and most of the maintenance can be done by local solar professionals. By investing in solar panels for your home, you support your local economy.

Solar Energy Cons

While the numerous benefits of solar power are exciting, it’s important to acknowledge the concerns with the technology, or how it may not be the right fit for all cases.

1. Initial solar investment can be high

Solar panels often save more money than they cost over their lifetime, sometimes tens of thousands of dollars. Still, the cost of purchasing and installing them can be a barrier for some people.

On average, the cost of a residential solar power system is $3.36 per watt. The total costs can be higher if you add battery backup for energy storage to your system. 

Solar leases and power purchase agreements (PPAs) offer an alternative to buying solar that still can deliver savings. Both options see you get solar panels installed at your home for no cost. Instead, you pay a monthly fee for the equipment or the power it produces. When those payments are less than the amount you save on your electricity bill, you save money overall.

Palmetto’s lease and PPA offering, the LightReach Energy Plan, offers proactive monitoring and buy-out opportunities, includes service and maintenance, and extends a performance guarantee.

2. Solar doesn’t work on all roof types

Not all roofing is compatible with solar panels. For example, your roof must be able to hold the panels firmly in place and support the weight of technicians during installation. 

Depending upon a roof’s physical design, you may also incur a higher-than-normal cost to install solar panels. If your roof has a complex design, installation may be more expensive. 

Roof space can also be a factor in a solar installation. Fortunately, the average roof offers ample space to install enough solar panels to meet your home electricity needs.

3. Solar panels need space

A key factor limiting people’s ability to go solar is space for panels, especially in dense, urban environments. Townhouses and condos typically have less space for solar panels, and not everyone has the room to install them. You may not be able to start with solar power if you live on a property with a lot of trees or shade. 

4. Solar power is a long-term commitment

Even if you have the finances ready and your house is suitable for a solar power system, it's important to evaluate your future plans because a solar power system is a long-term commitment. If you are planning to move in the near future, you may want to reconsider the decision as you will not have time to enjoy the savings solar energy offers.

Fortunately, solar panels typically boost the value of your home, so if you move, you’ll likely sell your home for more with the panels on the roof.

5. The process can be confusing

Most people aren’t experts in residential solar installation. That makes finding the right company to partner with very important. Look for: 

• Experience in the industry
• Customer reviews and ratings
• Ease of speaking with customer service
• Quality of solar panels and components
• Length of product and workmanship warranties

Don’t base your choice on pricing alone, as you’re often better off paying a little more to work with a reliable company.

6. Calculating the financial benefits of solar can be challenging

Reducing or eliminating utility costs is a key part of deciding if you should go solar. The high initial cost of installation can feel steep, even as you estimate long-term savings will offset them and lower your electricity bills. 

That’s the benefit of using the Palmetto Solar Savings Calculator. It automatically uses the most important variables to give you a good estimate of your savings with solar power.

Common Misconceptions About Solar Energy

Solar panels can help you access clean, affordable energy that can lower your electric bill and insulate you against rising energy costs. Even so, a few misconceptions persist.  

• Required maintenance: In reality, solar energy systems require very little maintenance throughout the lifetime of the equipment, especially when compared to other fuel sources.
• HOA restrictions: In many states, it is illegal for a Homeowners Association to deny a solar energy installation due to local aesthetic concerns.
• Roof damage: When installed by a certified professional like Palmetto, solar panel installations do not create leaks or roof damage.

Key Takeaways of Solar Energy’s Pros and Cons

Without a doubt, there are compelling reasons for people to use solar energy, and most of the cons can be overcome by working with a trusted, professional solar company like Palmetto. We’ve reviewed a lot of considerations, what are a few of the main takeaways?

Solar isn't for everyone

Just because you want to reduce your carbon footprint and lower your utility bills doesn’t mean solar power is right for you and your home. Your house or property might not be ideal for solar panels, and that’s okay. There are many other ways you can lower your utility bills, improve your energy efficiency, and be eco-friendly.

Think of solar like an investment

With the usual upfront costs of installing a solar power system, it can be tough to see the long-term value. After installation, your utility bills will be lower, and you can avoid rising electricity costs, so the benefits increase over time. You may be able to earn credits from your utility company with surplus power your system produces.

Professional maintenance

Annual maintenance, such as that offered with Palmetto Protect, can keep your panels performing at their best.

Solar is the future of clean energy

At Palmetto, our goal is to help people take part in a clean energy future. We accomplish this by accentuating the pros and reducing the cons of going solar. We are committed to helping consumers find the best solar power system for their needs.

With our free solar savings calculator, you can find out how much you would save with a solar power system. If you like what you see, we’ll connect you with one of our solar power experts.

Solar Pros and Cons FAQs

How do I know if solar is right for me?

There are several factors we look at to determine if solar is likely a good solution for your needs, including roof space, home energy usage, credit health, and eligibility for incentives. At Palmetto, we start by calculating a savings estimate based on your home, location, and current electricity costs. We can then outline options based on your goals and specifics. 

Can solar panels save you money?

In the vast majority of cases, yes, solar panels will save you money. Factors that go into the short- and long-term savings of a new system are incentives or other savings programs, your current energy usage, if you decide to include battery storage, and if your state or area has programs such as SRECs or net metering.

Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.