Installing home solar panels can unlock decades of energy savings, but it’s still a big decision that requires careful thought. And, while solar panels can be a perfect fit for many homes, it’s not a slam dunk for everyone.
If you’re thinking about going solar, here are the potential benefits and downsides of solar panels. Before you take a step toward clean and cheap energy at home, make sure you’re confident in your decision.
See how much you can save by going solar with Palmetto
Solar Energy Pros
Solar is the fastest growing energy source around right now. Paired with batteries, it’s expected to make up 81% of generating capacity added to the grid in 2025.
That’s thanks to it being reliable and cheap. Those benefits and more apply to solar energy at home, too.
1. Solar can reduce or eliminate your utility bill
While there are plenty of good reasons to go solar, the biggest motivation for most people is saving money. Solar panels supply some of the electricity you use at home, reducing your energy bills. While solar panels cost a chunk of money to install, in many places they can pay for themselves in a matter of years.
Because solar panels have multi-decade lifespans, the benefits of lower energy bills are long-term ones.
2. Solar keeps getting more affordable
Utility-scale solar panels are the cheapest form of new electricity generation in most of the world. They’ve gotten much cheaper on rooftops, too.
Solar prices have fallen 40% in the last decade and incentives can take them even lower. Most notably, the federal tax credit can return 30% your cost of going solar as a credit on your taxes. Some states offer tax credits, like Arizona and Massachusetts, that can bring the cost down further. Cities, utilities, or other entities might offer rebates or discounts, too.
3. 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. But utility bills come every month and can really add up.
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.
Many states have property tax exemptions and exclusions for solar energy systems, meaning solar panels will raise your property value but not your property taxes.
4. Home solar combats rising energy costs
Electricity prices rose sharply in places over the last few years. According to a US Energy Information Administration (EIA) report, residential electricity prices will continue to rise in coming years.
While those electricity rate increases have typically been gradual, they’ve been more severe in some places recently.
Solar panels, which do have an upfront installation cost, can help guard against rising electricity costs. The less electricity you buy, the less an increase in price will affect you. The lifetime of modern panels is 25 years or longer.
5. Earn SRECs (in some places)
Solar renewable energy credits represent the fact the electricity generated from your solar panels was, in fact, generated by solar panels. Buying SRECs from you lets other entities, like utility companies, make a claim to that electricity. They do this to meet legal clean energy requirements they get from the states they operate in.
Not all states have those requirements, so not all states have opportunities to sell SRECs. In states that do, selling SRECs can earn you a modest amount of money whenever you generate one megawatt of electricity. SREC values vary by location and supply and demand, so they may be worth more or less over time.
6. Solar benefits are long term
When you have solar panels installed, you can lower your energy bill for decades to come. Solar panels are often under warranty for 25 years, and they can produce energy past that date.
7. Solar can make your home cleaner and safer
Solar panels produce electricity without the climate-warming carbon emissions of other sources. That’s good for the planet, but can also make your home a healthier place to live. Solar panels, as part of a home electrification project, can help remove natural gas from your home. Natural gas can contain harmful compounds that, when leaked, can damage human health.
See how much you can save by going solar with Palmetto
Solar Energy Cons
For many people, the many benefits of solar outweigh the few drawbacks. Here’s what to consider as you’re shopping for solar.
1. The cost of installation 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.
Luckily, 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 power is a long-term commitment
Solar panels’ longevity is a clear benefit, since it means you can enjoy their benefits for years to come. But if that long lifespan is also giving you pause, here’s how you can ease your concern.
Work with a reputable solar company that will install your solar panels well and be around to service them should they need it. Make sure your roof is in good condition.
If the length of a lease concerns you, find one that offers you the opportunity to purchase the panels after a few years, like the LightReach Energy Plan.
3. Solar doesn’t work on all roof types
Not all roofing is compatible with solar panels. Your roof must be able to hold the panels firmly in place and support the weight of technicians during installation. It also needs to be big enough to hold the panels and made of a compatible material.
The Truth About Rooftop Solar Panels
Solar panels can help a huge number of people access clean, affordable energy that lowers their electric bill and insulates them against rising energy costs. Even so, a few misconceptions persist.
A few of the most common misconceptions about a solar system include:
- Required maintenance: Solar energy systems require very little maintenance throughout their lifetime.
- HOA blocking: In many states, it is illegal for a Homeowners Association to deny a solar energy installation.
- Roof damage: When installed by a certified professional like Palmetto, solar panel installations do not create leaks or roof damage.
There are about 4.85 million homes with rooftop solar panels in the United States. That number is expected to reach 10 million by 2030.
If you want to see what solar panels can save you at your home, use Palmetto’s free solar savings calculator or contact a solar advisor today.
Solar Pros and Cons FAQs
How do I know if solar is right for me?
There are several factors that determine if solar is a good fit for your needs, including roof space, home energy usage, and eligibility for incentives. Start by calculating a savings estimate based on your home, location, and current electricity costs.
Are solar panels a fit for all properties?
No. Properties that are heavily shaded or that can’t save with solar panels won’t be good fits.
What is an advantage of solar energy?
Saving money on your monthly energy bill is one clear advantage.
Can solar panels save you money?
In the vast majority of cases, yes, solar panels can save you money. Factors that affect the savings of a solar panel 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.
See what solar can do for you:
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.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
