If you’re an environmentally conscious homeowner seeking a balance between energy efficiency and cost-effectiveness, you may wonder if solar panels are the solution to your energy needs.
Solar energy has emerged as a promising renewable energy source solution, but is it worth the high upfront cost? From increased home value to concerns over environmental impact, we’ll delve into solar panels’ real pros and cons.
Key takeaways
Solar panels have a high initial cost and varied efficiency. Not everyone will see a quick ROI on solar panels.
Solar panels are more worth it if you live in a sunny state with solar incentives like net metering.
Due to the manufacturing process, solar panels are not 100% environmentally friendly.
Advantages of solar panels
Solar panels are more than just a way to save money on energy costs — they are an environmentally friendly renewable energy source that can increase the value of your home and provide off-grid capability.
Energy independence
Under the right conditions and when paired with solar battery systems, solar panels can generate enough energy to power your home, day and night. The same solar systems can store enough power to keep your home running during power outages, making you independent of the power grid.
Increased home value
Solar panels can increase the value of your home by up to 4.1%, according to a 2019 study by Zillow. This increased value depends highly on where you live, and homeowners in New York City, San Francisco and Orlando stand to gain the most.
Increasingly affordable options
The average cost for solar panels is about $2.82 per watt or $19,026 for a 6-kilowatt (kW) solar system. This price may seem high, but the cost of solar panels has decreased significantly in the past 10 years, making them more affordable for the average homeowner. According to Chris Stevenson, a professional roofer, this is due to more efficient manufacturing, skilled solar installers and increased competition in the solar market.
Low maintenance and upkeep costs
Once your panels are installed, you don’t have to do much to maintain them. As long as your panels are free of debris and aren’t damaged by environmental factors like storms or tree branches, your warranty plan should cover most problems with solar panel function.
If you need your solar panels cleaned or serviced, you can expect to pay between? $140 and $700, depending on the number of panels you need serviced, your location, and the severity of the damage.
Long-term savings
Solar panels are designed to offset energy costs, which means they will save you money every day they operate. You can save approximately $137 on your electricity per month, which comes out to about $1,644 per year if you switch to solar.
Reduced electricity bill
According to the U.S. Energy Information Administration (EIA), electricity costs have increased 13% since 2021 and continue to rise. Using the electricity produced by solar panels, you won’t have to purchase as much energy from the power grid (or any if you have an off-grid system), ultimately reducing the amount you pay on your monthly energy bill.
Renewable energy source
Cost-savings aside, environmental friendliness is why many homeowners convert to solar energy. Solar energy is a clean and renewable energy source, meaning supply is not an issue as it is with fossil fuels. Solar power doesn’t produce greenhouse gases; by converting, you do your part to decrease humankind’s environmental impact.
Tax incentives
It’s no secret that solar panels are expensive upfront, but luckily, state and federal tax incentives make that cost more affordable. If you take advantage of the federal solar tax incentive (ITC), you can save up to 30% on your solar panels. Depending on what’s available in your state, you may also be eligible for state tax incentives that can save you more money.
Disadvantages of solar panels
Solar panels reduce your carbon footprint and can save you money monthly, but they also have certain disadvantages. If you live in a cloudy state, plan to move or don’t qualify for a solar tax exemption, the cons may outweigh the pros of solar panels.
Can increase your property taxes
If you live in one of the 35 states that offer solar tax exemptions, you won’t have to worry about solar panels increasing your property tax. However, if you live elsewhere in the United States, solar panel installation may increase the value of your home and the amount you owe in property tax.
Dependent on sun exposure
To produce solar energy, you need sunlight, which depends heavily on where you live. The more sunlight you can access, the more electricity your panels produce. But the same is true vice versa.
If you live somewhere with access to abundant sunlight year-round — like Arizona or California — you’ll have a better chance of offsetting energy costs. But if you live in a northern region that doesn’t get as much sun, such as Washington or Maine, you may want to rethink your choice for solar installation.
Efficiency can vary
Solar panel efficiency is impacted by the amount of sunlight, type of panel, temperature and more. So, while some types of solar panels can reach efficiencies of 20% or more, you may never reach such high efficiency.
Environmental impact of manufacturing
Solar panel production facilities use large land areas, and greenhouse gases are released during manufacturing. These facilities do what they can to decrease their emissions and environmental impact, but they cannot eliminate their impact.
Moreover, solar panels typically last around 30 years. When you are ready to replace them at the end of their lifespans, they will likely require specialty disposal because of the heavy metals and hazardous chemicals they may contain.
High initial investment
The average cost to install a 6 kW solar panel system is between $13,620 and $26,686; not every homeowner can afford that out of pocket. This cost may be even higher if you need a larger solar system to offset your energy usage.
Long payback period
It takes an average of six to 12 years for a solar panel investment to return its value. So, unless you plan to stay in your home for at least that length of time, you may not save money in the long run.
May require a new homeowners insurance policy
Most homeowners insurance policies cover solar panels attached to your roof as dwelling coverage, but not all cover ground-mounted solar panels. Additionally, your insurance policy may only cover certain types of damage to your panels, and hail and wind damage are not often included.
You may need to update your insurance policy to include the panels or adjust it to cover more types of damage. This change may increase your monthly premiums or claim limit or, in some cases, cause your insurance provider to drop you altogether.
Solar storage is an additional cost
While solar panels cost a hefty fee, if you want to store extra energy to use during low sun hours, you’ll need to buy additional solar storage in the form of solar batteries. You can expect to pay an additional $7,000 to $14,000 per solar battery before tax credits, which may be outside your budget.
What’s the environmental impact of solar panels?
Solar panels are a clean and renewable energy source, making them an environmentally friendly way to produce energy. Unlike fossil fuels, which have a definite supply and are harmful to the environment, solar panels can harness endless solar energy and don’t emit harmful gases.
However, greenhouse gases are released during the solar panel manufacturing process, and the facilities that make solar panels take up a significant amount of land and natural resources. These manufacturing facilities can follow the required regulations to remain as green as possible, but they will always have some environmental impact.
What is the return on investment for solar panels?
Your return on investment (ROI) depends on how much your solar system costs and how much energy your panels produce. Less efficient solar panels are cheaper, and homeowners in regions with daily, year-round sunlight can often get away with installing these panels over their pricey, more efficient counterparts. You may even produce enough energy to participate in net-metering programs and sell excess power back to your utility company.
But just because you don’t live in a sunny state like Arizona, California or Florida doesn’t mean solar isn’t worth it. Dr. Joshua Pierce, a solar expert with more than 20 years of solar field experience, conducted a study in Michigan and found that everyone saved at least some money after they installed solar panels. You’ll still see some benefits if you get a solar system that’s big enough to offset your energy costs and invest in more efficient solar panels. But if you only produce enough energy to cover part of your electric bill, it may take up to 12 years or more for your panels to pay for themselves.
Bottom line
In many cases, the benefits of solar panels outweigh the cons, but that doesn’t mean every homeowner should go solar. The potential for increased home value, long-term energy savings, and a greener home is balanced by the high upfront cost, geographical impacts, and long payback periods.
As solar technology advances and becomes more affordable for the average homeowner, you’ll have to consider whether solar panels are right for you.
