Pros and cons of solar panels: They're usually worth it

For most homeowners, going solar is a smart financial move. For starters, it lowers your electric bills and reduces your carbon footprint. It also often boosts your home value and can protect you from blackouts if you pair solar panels with an energy storage system. And if you finance your solar panel installation with a zero-down loan, you can even start saving right away.

However, solar energy doesn’t benefit everyone in exactly the same way; solar savings generally depend on roof orientation, budget, and electricity costs. For example, if your roof faces north or it's angled too steeply, solar panels won’t produce as much electricity as they would on an ideal south-facing roof. Plan to move soon? Given that it takes about seven years to recoup the cost of installing your solar energy system, you likely won’t recover the upfront cost of a solar installation if you move before then. 

There’s much to consider when deciding whether or not to go solar. Before you take the plunge, we'll help you decide if solar is worth it for your home.

Going solar is a great choice whether you want to combat rising electricity costs, reduce your carbon footprint, or raise your home value. Specifically, a solar panel system provides energy independence and often pays for itself in electric bill savings. 

Incentives like the federal solar tax credit also help reduce your upfront cost and increase your return on investment—though this benefit expires at the end of 2025.

On the other hand, solar energy doesn't work for every roof, it's not ideal if you're about to move, and the upfront cost can be expensive.

Here are the primary pros and cons of solar energy you should weigh before deciding if it's right for you:

Top pros and cons of solar energy

You can reap many benefits by installing a solar panel system at your home or business:

1. Solar drastically reduces—or even eliminates—your electric bills

When you install solar panels at your home, you generate your own electricity—which means you become less reliant on your electric utility company and reduce your monthly electric bill. A solar panel system typically has a 25- to 30-year lifespan, so you can cut your electricity costs for decades by going solar.

Most homeowners will save between $31,000 to $120,000 over 25 years with solar, depending on their location and electricity usage.

2. Solar often increases your home value

Recent studies indicate that installing a solar panel system can increase your home's value by about 4%. Even if you're not in your forever home, you could earn back your solar panel investment and then some when you sell your house. 

3. Solar reduces carbon emissions

When you go solar, you lessen your carbon footprint. Solar is a renewable energy source that helps reduce carbon dioxide and other greenhouse gas emissions. Unlike traditional fossil fuels like coal, oil, and natural gas, solar energy doesn't directly release pollutants into the atmosphere and water supply.

4. Solar protects against rising energy costs

A reduced reliance on your utility company shields you from those skyrocketing electricity rates. Once you recover the initial cost of your system in bill savings, you'll generate your own electricity for free. 

5. Solar panels typically require very little maintenance

As long as you choose a quality solar company to properly install your solar panels, they should require very little maintenance compared to other forms of energy production. With no moving parts, your panels might only need an occasional cleaning after snow or inclement weather.

Solar isn't perfect. You'll want to understand solar's disadvantages before deciding if it's right for you:

1. Solar panels don't work for every roof

If you have a south-facing roof sloped between 15 and 40 degrees, you're in great shape for solar. Even with an east- or west-facing roof, or one that's flat, solar is likely still worth it. But if you can only install solar panels on the north side of your roof, we don't recommend it.

Similarly, solar works well with asphalt shingles or metal roofs. However, certain roofing materials used in older or historical homes—such as slate or cedar tiles—can be challenging for solar installers to work with. Some homes have skylights or rooftop additions like roof decks, which can also make installing solar panels expensive or difficult.

If your home doesn't qualify for a rooftop solar installation, you still have options:

• Ground-mounted solar panels work great if you have enough open space.

• Subscribe to a local community solar farm if your state has open projects.

2. Solar isn't ideal if you're about to move

It takes time to break even on a solar panel system. The average solar panel payback period in the U.S. is around seven years. Even though going solar will likely increase your home's value, it's probably not worth it if you plan to move in the next few years.

3. If your electricity costs are low, your solar savings will be too

The ultimate benefit of solar energy is that it saves you money every month. If you live in a state where the cost of electricity is significantly lower than the national average, it’ll take a long time to save with solar. On the other hand, installing a solar panel system in Hawaii—where electricity costs are more than double the national average—makes a lot of sense.

4. If you can't access financing, upfront solar costs can be intimidating

Your upfront cost of solar depends on tax credits, rebates, and the terms of your financing agreement. If you don't qualify for a zero-down solar loan, the disadvantage of solar energy here is clear: Not everyone has the cash to purchase solar upfront.

Several solar financing options can help, such as state-backed loan programs, leases, and power purchase agreements. To understand what solar will cost you, get a quick estimate of the average cost of solar in your state or even a personalized estimate for your home.

5. Solar panels can contain toxic materials that require proper disposal

Most modern solar panels are made up of silicon solar cells, a metal frame, and a glass sheet. However, depending on the brand and model, they can also contain heavy metals like lead, cadmium, and silver. While these metals are safely encapsulated during normal operation, and some solar panel manufacturers are starting to phase out these heavy metals, proper disposal is essential when panels reach the end of their 25-30 year lifespan.

If sustainable solar panels are important to you, make sure to let your installer know so they only include models without heavy metals in your quotes. These panels may cost a bit more, but are better for the environment. Additionally, recycling programs are expanding to handle end-of-life solar panels responsibly.

Going solar is worth it for most homeowners with eligible properties. It reduces greenhouse gas emissions and saves you considerable money on your electric bills.

As you consider investing in solar energy, weigh the pros and cons related to your home, geography and climate, and unique needs. If your roof isn't a good fit, you plan to move soon, or your electricity costs are already low, you may want to hold off on installing solar panels.

But if you've been considering solar, the elimination of the federal tax credit makes timing critical. Speaking with installers sooner rather than later can help ensure your project is completed in time to qualify for the 30% tax credit while it's still available.