Pros and cons of solar energy: Generating power at home

Thinking about switching to solar energy? Home solar panels are a mainstream choice for millions of homeowners looking to cut electricity costs with over five million solar installations across the country.

But, going solar isn't a one-size-fits-all decision, so we’ve broken down residential solar’s pros and cons. Read on to discover how solar power works, what it costs, and how to make the best choice for your energy needs.

Solar energy pros

The main benefits of solar include cost savings, but there are plenty of others to consider.

Lower electricity bills

As our reliance on electricity increases, so does the monthly cost. In many areas, solar is the most effective way to lower your monthly bills. And unlike other strategies, you don’t have to give anything up. Same energy, just a different source.

Increase the value of your home

A house with lower bills can be more valuable to potential buyers. Research by Zillow shows installing solar panels can increase your home's value by up to 4.1%.

This has been shown for solar panels you own, but leased solar panels aren’t included in appraisals, so shouldn’t raise the value of your home in a material way.

Combat 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 at least 2026. 

Installing a solar power system is one of the best ways to combat this continued rise in the price of electricity. Palmetto estimates that customers in Connecticut who lease solar panels effectively saved a collective $463,000 in additional avoided costs in 2025.

Flexible paths to solar

The upfront cost to go solar is much lower than it was previously, but the price to purchase (especially with the demise of the 30% solar tax credit) is still out of reach for some.

Solar leasing gets you solar panels on your roof without the upfront cost. Instead, you make predictable monthly payments over the lifetime of your agreement. Those payments cover the cost of the equipment and its installation and maintenance for the lifetime of the agreement. Repairs and monitoring are often included.

The Palmetto Energy Plan includes the above and a production guarantee, too.

Credit: SEIA

Support the grid

As electricity demand increases, it strains the grid. That can lead to less reliable service and higher prices.

Residential solar can help address these challenges. Palmetto recently found its installations in Florida generated enough clean energy to offset 9% of estimated data center demand in the state in 2025.

Solar panels, especially with attached battery storage systems, can provide legitimate relief to the grid. 

Long lifespan

Solar panels can deliver reliable service and savings for 25 years and more.

Even with a gradual, but natural, reduction in efficiency, solar panels can still produce electricity beyond 25 years. It may be worth it to install a new system at that point, but old panels will still be able to generate electricity.

Solar energy cons

While the numerous benefits of solar power are exciting, it may not be the right fit for all cases.

Cost

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

Solar leases and power purchase agreements (PPAs) can deliver savings without the upfront 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 Palmetto Energy Plan, offers proactive monitoring and buy-out opportunities, includes service and maintenance, and extends a performance guarantee.

Confusion about the process and benefits

The solar industry has earned a reputation for dishonest sales practices, including some that have resulted in lawsuits. From overpromising savings to poor installations, homeowners haven’t always had a good experience.

It’s understandable if someone’s skeptical. It’s a shame if it keeps them from legitimately reducing their energy bills with solar.

Best practices: Get multiple quotes. Ask your installer a lot of questions. Know what happens if you sell your house with solar panels. Move forward when you fully understand what it means for you to go solar. 

Savings confusion

File this as a subset of the above point.

A solar lease requires a slightly deeper understanding of how your savings works. Since you’re introducing an additional bill (your lease payment), you need to pay attention to more than just your energy bill reduction. The real savings story is whether the reduction in your electric bill is greater than your lease payment.

If your old bill was $150, your new bill $25, and your lease payment $75: that’s a savings of $50.

If your old bill was $150, your new bill $25, and your lease payment $175: that’s a loss of $50.

Make a quote from Palmetto one of the several you get. Talk to an energy advisor about whether solar panels at your home will benefit you. Or, get a free quote today.

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. Getting a quote for solar panels at your home is the best way to gauge. 

Can solar panels save you money?

Solar panels can save homeowners money. The local cost of solar panels and retail electricity, as well as what incentives are available to you, help determine solar savings in a particular area.

What are the downsides of solar panels?

For some people, the upfront cost remains a barrier, though leases and power purchase agreements offer a way around that. Some consumers may be confused or misled about what solar panels can actually deliver.

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.