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Solar Energy Pros and Cons: How to Decide if Solar Is Right For You

The words "advantages of solar energy" within a blue border on top of hundreds of solar panels with a sunrise in the background
PublishedApril 3, 2024
UpdatedSeptember 28, 2024
AuthorCory O'Brien HeadshotCory O'BrienSenior Director - Growth MarketingEditorRyan Barnett HeadshotRyan BarnettSVP, Policy & New Market Development
In this article
01.
Solar Energy Pros
02.
Solar Energy Cons
03.
Common Misconceptions about Solar Energy
04.
Key Takeaways of Solar Energy’s Pros and Cons
05.
Solar Pros and Cons FAQs

You weigh the pros and cons of what to do for lunch. If you’re considering a decision as big as installing home solar panels, it’s worth a lot more info and thought than sandwich or tacos.

Solar is gaining usage and popularity at the same time that the tech, incentives, solar companies, and cost are all changing. A lot of this is good news for current and new solar users. At the same time, it can be complicated. 

You should know the whole spectrum, the pros and the cons, before making a major investment, so you can make the right decision for your needs. 

If you’re thinking about powering your home with 100% clean, 100% renewable energy, it pays to get your questions answered. This article will cover solar energy pros and cons for wherever you are on a home energy journey. 

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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 a reduced carbon footprint.

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 cars. 

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 to the rescue

Solar energy can reduce your electricity costs. You can use a smaller system to cover part of your power needs, or meet them all with a large enough system. In either case, you’re reducing your monthly electricity costs.

Many people go solar and realize savings without changing their lifestyle. When looking at the pros and cons of solar panels, the ability to reduce or even eliminate your utility bill is often one of the biggest benefits.

Joining the movement

It’s important to work with a reliable residential solar power installation company and invest in the equipment necessary to meet your electricity needs. Your usage will be offset by the electricity generated by your solar panels, and you can earn credits to cover your utility bill by sending excess electricity to the grid. Moreover, installing solar power panels can save you money through tax credits offered by the federal and state governments.

Pros and cons of solar energy

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 a US Energy Information Administration (EIA) report, residential electricity prices will continue to rise in coming years

Yes, such increases are gradual, but they 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 lifetime of modern panels is 25 years or longer.  

4. Solar helps reduce your carbon footprint

Global warming is arguably the most significant threat the world faces, and human activity is the primary contributor. When greenhouse gases such as carbon dioxide, methane, chlorofluorocarbons (CFCs), and nitrous oxides are released into the environment, they prevent heat from Earth from escaping into space. As a result, the temperature of Earth's atmosphere continues to rise, causing climate change.

While Earth has always had greenhouse gases, the amount entering the atmosphere has increased exponentially over the last century. If left unchecked, these gases pose a significant threat to the survival of human beings.

The Data 

While we know most of the emissions come from the commercial activities of a handful of companies, many homeowners still worry about their individual contribution to global warming. At a global level, the average carbon footprint per person is 4 tons. However, in the United States of America, this average rises to 16 tons.

Current data indicates we must reduce the global annual carbon footprint to under 2 tons per person by 2050 to prevent a planet-wide rise in temperature of 2 degrees Celsius. Per the current climate science, an increase of 2 degrees Celsius could result in severe weather events, water shortages, rising sea levels, and more that would be catastrophic to human, plant, and animal life. This is not an easy feat, but we can achieve it through conscious, deliberate, and concerted efforts.

If you want to reduce your personal carbon footprint and do your part for the planet, consider using solar power for your electricity needs. Since the technology does not rely on fossil fuels, it significantly reduces your carbon consumption.

Use Renewable Energy

Fossil fuels seem like an endless source of energy, but they are finite. If we continue to use them without moderation, we could exhaust them.

That possibility fuels the international push for renewable sources of energy as a long-term solution. Choosing sustainable resources reduces our reliance on fossil fuels.

A chart showing the estimated lifetime emissions for different generation sources.

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

Solar power is the epitome of a renewable energy source. As long as the sun continues to shine, 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. 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. Some programs aim to reduce the entry cost of purchasing a solar power system. Some give consumers additional savings and cash back after installation.

The solar tax credit 

One of the biggest incentives is the federal solar tax credit, also known as the Residential Clean Energy Credit. It applies to both commercial and residential solar power installations, allowing 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. If you’re interested in learning more, here’s Everything You Need To Know About The Solar Tax Credit.

Net metering 

In some areas, you can be recognized as an energy producer via net energy metering (NEM). With net metering, when the surplus energy your system produces goes to the grid, you earn credits on your electricity bill.

Solar renewable energy certificates (SRECs)

Depending on where you live, you can capitalize on solar renewable energy certificates (SRECs). This program incentivizes homeowners to install a solar power system and sell certificates to utility companies, as SRECs let the utilities prove their renewable energy is from solar sources. 

For every 1,000 kilowatt-hours (kWhs) of electricity your system produces, you can earn one SREC through a “solar carve-out” program. In states with such a system, SRECs can be an important part of your solar savings.

See how much you can save by going solar with Palmetto

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6. Solar is a proven technology

For most consumers, lower power bills and being greener sound appealing. One more concern, though, is the reliability of solar energy. Though home solar power may seem to be a new concept, it has been in use for over three decades. It’s currently used by millions of homes across the US and the technology is constantly being improved.

Solar power works in many climates

If you live in a relatively cold area or one with harsh winters, electricity is essential for heating the home. You may be skeptical of solar panels' efficacy in such environments, as 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 local climate conditions. The goal is to deliver a custom solar power solution that addresses your specific needs.

Solar panels vs. winter weather 

While solar panels cannot produce electricity when covered with snow, it’s less of a hindrance than you’d imagine. Since panels absorb heat from the sun, the snow melts faster than it does on the ground and considering the panels are mounted in a slanting position, it slides off easily.

Despite those supposed obstacles to producing electricity in winter, solar panels are actually more effective when it's cold. When temperatures are low, the photovoltaic (PV) components in the panels convert sunlight to electricity more efficiently. In addition, they also catch the sunlight reflecting from snow, offsetting some of the reduced sun exposure.

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, photovoltaic (PV) solar is the cheapest form of new electricity in most countries around the world—and that’s compared to fossil fuels and other renewable energies like wind and hydropower. 

With solar power, you incur the bulk of your costs during installation. The price of solar panels can be a big obstacle for many families. However, data indicates costs have come down significantly over the past decade, thanks to factors such as improved solar technology, new financing options, and various incentives. Thus, many homeowners are surprised to learn exactly how affordable it can be to go solar.

A graph showing the amount of solar installed and the average price for solar installations over time.

Credit: SEIA

Financing solar to curb project costs  

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.

Once the solar power system has been paid off, you’ll enjoy many more years of clean energy generation without any additional payments, increasing your overall savings even more. 

On average, solar panels can pay for themselves in 6-10 years, depending on the local price of electricity, total project costs, and system performance. 

Modern solar panels should last at least 25 years and come with warranties that guarantee they’ll be at least 80-90% efficient at that time. 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.

Solar equipment has low maintenance cost

Compared to other home-related equipment such as furnaces, generators, or HVAC systems, solar panels are primarily non-mechanized. Once put in position, they absorb solar energy and power your house without any moving parts. Thus, panels have little risk of wear and tear, so maintenance requirements are low.

In the right environment, a solar power system can function for 25 years or more without requiring significant maintenance. For example, if you live in a dry and dusty area, you may only need to wash your solar panels from time to time to keep them in top condition.

When to call in a solar pro

To ensure your panels remain in the best possible shape, your system should get an annual checkup from a solar maintenance professional, such as the one offered with Palmetto Protect. For everything you need to know about solar power upkeep, check out our Solar Power Maintenance And Service Guide.

8. Solar benefits the whole electricity grid

As electricity demand increases, it strains electricity grids because of the fixed capacity of the transmission and distribution components. To address this rising demand, utility companies must invest in new infrastructure, but it takes time for new construction to go online and help the grid.

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 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. Luckily, one of the primary benefits of solar panels is the long-term health of their physical components. With regular maintenance, you can expect reliable service and financial savings from your system for 25 years and more.

Even better, your solar panels won't be totally ineffective after that point. Even with a gradual reduction in efficiency, your 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 and keep saving over time.

Solar warranty terms are getting better

As solar technology improves and systems’ lifespans increase, manufacturers can offer better warranties and guarantees in relation to product and power output. In fact, many major companies now guarantee a minimum level of solar panel output for 25+ years, and their warranties have fewer exclusions than ever.

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 is a non-partisan energy source

Unlike issues that can feel contaminated by politics, the promotion of solar power as a renewable energy source is increasingly non-partisan. Thanks to rising support from both parties, solar power adoption continues to grow, and the thriving industry creates well-paying jobs and savings on electricity costs.

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Solar Energy Cons

While the numerous benefits of solar power are exciting, it’s important to acknowledge the concerns with the technology. By reviewing all the solar energy pros and cons and recognizing the potential advantages and disadvantages of solar, you can reach the right decision for your family and home. 

1. Initial solar investment can be high

In the long run, solar power is cheaper than electricity from the grid. However, it can require a substantial initial investment, depending on your needs.

On average, the cost of a residential solar power system is $3.24 per watt. The total costs can be higher if you add battery backup for energy storage to your system. 

Different factors determine the cost of installation. They include:

  • The solar potential of your roof
  • Your average energy consumption
  • Cost of equipment
  • Labor costs in your area
  • Incentives offered by your state government

Fortunately, the cost of installing solar panel systems has decreased over the years and continues to do so. Yes, it can seem like the initial investment is high, but if you’re comparing the pros and cons of solar panels, you likely have options which may reduce costs. Specifically, you can seek financing to spread out the payments over time, making it more affordable over the long run.

2. Solar doesn’t generate power at night

Obviously, solar needs the sun to generate power. As such, one of the chief problems with solar energy is the panels don’t work at night. Fortunately, there are different solutions to this challenge.

To begin with, many companies offer batteries capable of storing surplus electricity created during the day. Therefore, even though your panels don’t generate electricity at night, you can store enough power to meet your needs.

Alternatively, in some states and areas, you can capitalize on net metering, which allows you to get credit for surplus power. You can use this credit to offset your electricity costs in the evening.

Rooftop solar panels at sunset. Credit: Giorgio Trovato

3. Solar doesn’t work on all roof types

Unfortunately, not everyone can install solar panels on their house. 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 is typically more expensive. Steep or odd angles, small sections, and/or skylights may cause panels to have to be installed in multiple smaller arrays rather than one or two large arrays, and this could increase cost.

4. Solar panels take up a lot of roof space

Compared to power sources like fossil fuels, solar panels have a low power density. This refers to the amount of power an energy source can produce within a certain area, measured in watts per square meter (W/m2). As a result, space is a factor in solar installation. In other words, the more electricity you need for your home, the more roof space you’ll need for solar panels. Fortunately, the average roof offers ample space to install enough solar panels to meet your home electricity needs. 

Solar aesthetics aren't for everyone

Your solar power system may affect the aesthetics of your house. Because most solar panels are black rectangles, you don’t have many options to match the appearance of your roof, so if you don't like that look, solar might not be for you.

Solar installation options are limited by your surroundings

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. 

A home out in the ‘burbs isn’t an answer all the time, either. You may not be able to start with solar power if you live on a property with a lot of trees. Trees can block sunlight from solar panels, which reduces the electricity your panels can generate.

5. 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.

Additionally, unlike a refrigerator or car, you can’t simply return your solar panels to the store if you decide you don’t like them. This is especially true if you’re locked into a financing agreement for the cost of the panels.

Solar panels are hard to move

One of the most significant drawbacks of solar power systems is that they aren’t portable like other household appliances. Though technically possible, removing, transporting, and re-installing your solar panel system onto a new home is difficult and expensive. Additionally, any net metering agreement you signed with your utility company is fixed to that property, so you’d have to reapply or lose that benefit altogether. Fortunately, solar panels typically boost the value of your home, so if you do move, you’ll likely sell your home for more with the panels on the roof.

6. Solar installation isn't immediate

You may think once you say yes to going solar, you’ll have the panels up, the system running, and your own power in just a few days. Unfortunately, the process of designing, permitting, installing, and getting a solar power system approved by local jurisdictions can take some time. 

The advantage of working with an established solar company such as Palmetto is our experts streamline and simplify the process. We work hard to communicate what’s happening during the whole process, so there are no surprises or unexpected hiccups.

Barring the time it can take to get the necessary permits, which varies by city and state, you could be enjoying solar benefits in as little as a month.

7. Solar power is difficult to DIY

If DIY projects are your thing, kudos. And, installing solar panels yourself has become easier in recent years. However, home improvement and electrical experts advise DIYers not to install solar panels themselves. Here are the main reasons why:

  • Wiring your system requires specialized training and electrical expertise.
  • A tricky roofline requires special panel layouts and equipment, which increases the difficulty of a project.
  • Aligning your panels to maximize your energy generation can require advanced modeling and design work.
  • Installation requires permitting and approvals from your Authority Having Jurisdiction (AHJ) that can be complex to request and schedule.
  • Most homeowners don’t own the necessary safety equipment to work on a roof without risk of injury.

Though the internet has information about DIY solar installation, you may want to reconsider such a project. If you’re planning on connecting your system to the grid, installing your panels yourself may not be allowed, or may be too onerous to do without the specialized expertise of a certified installer. Poorly installed electrical equipment is a fire risk, too. Working with someone qualified to complete that work can protect your from costly and dangerous malfunctions down the road.

8. Solar panel production is not 100% environmentally friendly

Besides the potential savings they can deliver, one of solar panels’ biggest selling points is that they’re environmentally friendly. Solar panels produce some climate-warming carbon when they’re produced and may contain some toxic chemicals, like lead, though some researchers suggest the risk to health and environment are overstated.

Then again,  the lifetime emissions of solar panels, which includes manufacturing, is about 12 times less than the lifetime emissions from a natural gas plant and about 20 times less than from a coal plant. 

Solar manufacturing faces a scarcity of materials

Solar energy is a vast resource with the potential to meet the world's energy needs. For this to be achieved, the industry must address its biggest challenge: the shortage of raw materials.

To be clear: The issue is the mismatch of current production to future demand, not a lack of known reserves. In fact, many of the more uncommon materials used in solar panel technology aren’t even found in nature - they are created as byproducts of other manufacturing processes. Unfortunately, manufacturers may have to navigate shortages in the future, which could translate to price increases.Thus, solar researchers are investigating the potential of recycled photovoltaic material and advances in nanotechnology that could increase the efficiency of solar cells to improve energy production and lower costs.

9. Tough to find quality solar companies

Unfortunately, some solar companies don’t have their customers’ best interest in mind, and some others have recently faced legal problems or bankruptcy. 

It can also be hard to compare solar companies by looking at reviews, because most people work with a single solar company, so they can’t offer a review that compares different options and helps find the best one.

Before deciding on a solar company, you should perform some due diligence to find out if its products and services are reliable, by considering factors such as:

  • Number of years in the industry
  • Customer reviews and ratings
  • Ease of speaking with customer service
  • Quality of solar panels and other equipment
  • 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.

10. Calculating the financial benefits of solar can be challenging

Reducing or eliminating utility costs is a key aspect of evaluating solar power pros and cons. However, translating those promises into actual savings is not easy. The high initial cost of installation can feel steep, even as you hope the long-term savings will offset them and lower your electricity bills. You need to locate a solar company that wants to explain the math and details in everyday language so you understand the full extent of your benefits—and how to ensure you enjoy them.

That’s the benefit of using the Palmetto Savings Estimate tool.

It automatically takes into account the most important variables to help you get a better idea of the financial benefits solar power can bring to your home.

Common Misconceptions about Solar Energy

When reading through the potential cons of solar panels, you may be quick to rule out your home as a candidate for solar. Although solar panels are suited for certain properties better than others, solar savings are still obtainable all over the country on a wide variety of roof types, home shapes, and local climates.   

A few of the most common misconceptions about a solar system include:

  • 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 blocking: 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 different solar energy pros and cons to consider, 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 true, 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 or cash back from your utility company because of the surplus power your system produces.

Solar is the future of clean energy

As the impact of global warming becomes more apparent by the day, we are increasingly aware of the need to use more environmentally-friendly energy sources. Fossil fuels are detrimental to the environment, both during production and after use, so we need to move away from them as quickly as possible.

Though there are several options in the renewable energy space, solar power remains an ideal solution because it’s more scalable and homeowner friendly, compared to solutions like wind, hydro, or geothermal. (It's hard to put a giant wind turbine or dam in your backyard!)

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, as well as achieve the greatest cost savings when going solar.

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 local solar power experts who can guide you through the process and answer any questions you might have.

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. 

Are there any risks to solar energy?

There are risks, or potential drawbacks, with solar. It’s not a fit for some properties, and for some circumstances, such as for people who are likely moving soon. For many other possible risks, Palmetto’s experts can help you with your questions and likely find customized solutions.

What is an advantage of solar energy?

Among the many advantages of going solar, saving money on your monthly energy bill is one pro. 

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.

See what solar can do for you:

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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.

About the AuthorCory O'Brien HeadshotCory O'BrienSenior Director - Growth Marketing

Cory brings over 8 years of solar expertise to Palmetto, and enjoys sharing that knowledge with others looking to improve their carbon footprint. A dog lover residing in Asheville, NC with his wife, Cory graduated from UCSB. If you run into him, ask him about the company he founded to rate and review beer!

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