Are Solar Panels Worth It? (2023 Guide)

byAdmin -September 21, 2023

When are solar modules useful?

Several factors can play a role in determining whether solar panels are worth using, including:

Weather and climate where you live
Slope, shade and roof size.
Solar incentives available in your area
How much energy does your family use?

For example, if you live in a state with lots of sun, lots of solar power sources, and a large south-facing roof, you will see very significant savings from solar energy. On the other hand, if you live in a place with less sunlight, less solar stimulation and a steep roof, solar energy may still benefit you, but the overall energy savings will likely be less.

How much do solar panels cost?

According to our survey of 1,500 homeowners using solar panels in 2023, respondents reported paying an average of $15,000 to $20,000 for their solar panel systems. However, every solar system is unique, and the Solar Energy Industries Association (SEIA) reports that a solar system can cost upwards of $25,000.

The total cost of your solar system can vary depending on where you live and the solar provider you choose. Below you can compare the average prices of some of the best solar providers in the US. The cost information represents the total cost of the solar system, including installation.

*Cost information based on our survey of 1,500 solar homeowners in 2023. Costs may vary based on individual factors.

The state you live in can also affect the cost of installing a solar panel:

In addition to your location and the supplier you choose, other factors can affect the cost of your solar system, including:

The only way to know for sure how much your solar system will cost is to get a quote from a reputable solar installer in your area. To find a leading provider, click here to get a solar quote today.

How much can you save with solar power?

The average payback period for a solar system in the United States is about 8.5 years. By paying for a solar system, you can save a lot by significantly reducing or eliminating your energy bills. Considering that the average lifespan of a solar system is 25 years or more, this equates to a net savings of over 16 years. Most people who install solar panels on their homes will save thousands of dollars in energy costs over the life of their solar system.

However, there are times when solar panels do not produce the desired output. Local energy rates, the overall cost of your system, and whether you pay upfront, take out a loan or lease your system can affect your return on investment (ROI), says Nielsen. A change in billing patterns at your local utility or an unexpected drop in your system's performance may result in a longer payback period.

In these rare cases, Nilsen recommends contacting your solar installer about expected system performance and any deviations from current specifications.

A solar power system with storage not only protects against rising electricity prices, but also provides valuable protection in the event of power outages. If you live in an area that is prone to severe weather or power outages, it may be worth installing solar panels with battery backup.

Benefits of switching to solar power

The three main benefits of using solar energy include reducing carbon emissions, saving energy costs and harnessing solar energy.

Reduce your carbon footprint

When you install a photovoltaic (PV) system, your panels generate electricity from the sun, reducing your dependence on fossil fuels. The National Renewable Energy Laboratory (NREL) estimates that for every 1,000 kWh of clean electricity generated by solar panels, 1,400 pounds of carbon dioxide emissions are saved from conventional energy sources. This equates to an annual savings of nearly 17,000 pounds of carbon emissions for the average American household.

Save on energy costs

Although the initial cost of solar panels can be high, the long-term benefits can far outweigh the initial investment. Since you generate your own electricity, you can reduce your monthly energy costs or even save completely. As the cost of switching to solar power has dropped significantly over the past decade, the return on investment that homeowners receive when they install a solar power system has also increased.

Additionally, installing solar panels can increase the value of your home and protect you from fluctuating energy rates, allowing you to save even more money over time.

Make use of solar energy

Both the federal and state governments offer solar incentives such as tax credits or exemptions, net metering, rebates and more to encourage solar adoption. As mentioned above, all US residents are eligible for a federal solar tax credit equal to 30% of the total cost of their solar system. Most states and utility companies offer additional incentives that can help you save even more by installing a solar system on your home.

Disadvantages of switching to solar power

High upfront costs, sensitivity to weather conditions and home aesthetics are three reasons why homeowners may be reluctant to embrace solar energy.

High initial cost

Although most homeowners use solar energy to save money in the long term by significantly reducing or eliminating their energy bills, solar energy is still an expensive investment. According to our survey of 1,500 solar homeowners, most respondents reported paying between $15,000 and $20,000 for their system in 2023. While paying the entire cost of the system up front offers the biggest savings, many installers offer multiple financing options, including solar loans and leases.

Dependence on time and climate

Clouds, seasonal changes and obstructions such as trees can cause solar panels to produce less energy. In addition, solar panels do not produce energy at night when the sun is not shining. All of these factors can lead to inconsistencies in the efficiency of solar panels.

Energy storage solutions such as solar panels can help reduce these problems by allowing energy to be stored for later use. Most states also offer net metering, which allows you to sell excess energy generated by solar panels back to the grid to receive a credit toward your electric bill. Net credits can offset the cost of energy purchased at night when panels are not working.

aesthetics

Some people like the look of a traditional roof and don't like the look of solar panels on the roof of their home. To solve this problem, several solar panel manufacturers have developed solar shingles that blend into the roof and solve problems related to the appearance of the solar panel. However, solar shingles are typically more expensive and not offered by many solar installers.

Factors to consider before going solar

There are several factors to consider before deciding to install solar panels. By discussing the following questions with your solar installer, you can determine the payback period of your solar panels and decide if they are worth it.

Do I live in an area that gets regular sunshine all year round?
Does my roof face south, southwest or west?
Is my roof unshaded or poorly shaded?
Is my roof big enough for a solar system?
Will my roof last as long as my solar system or even longer?
Are there reliable and trustworthy solar companies in my area?
Does my company or local government offer tax credits and rebates for solar energy?

We recommend that you speak with a solar expert to decide if solar energy makes sense for your home.

Conclusion: Are solar modules really worth it?

A solar power system is not right for every homeowner. But if your home has the right location, roof and state tax incentives, and you have high energy bills, you can save big with solar. For the right home, solar energy is an investment that will pay off over time. So make sure you take the time to consider the factors listed in this guide and determine if solar panels are worth what you need.

We recommend using our tool below to find local solar installation companies in your zip code. These companies will consult to provide accurate information and estimates of potential solar energy savings.

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Faith Wakefield is a writer from North Carolina. He earned degrees in economics and English from the University of North Carolina at Chapel Hill, and his work has appeared in EcoWatch, the World Economic Forum, and Today's Homeowner magazine. In her spare time, she enjoys watching personal finance videos on YouTube, collecting books and spending time in nature.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. His experience includes communications and marketing work in the non-profit, government and academic sectors. A journalist by profession, he began his career covering politics and news in New York's Hudson Valley. His work included reporting on local and state budgets, federal financial regulations and health care laws.

Carsten Neumeister is an experienced energy specialist with expertise in energy policy as well as the solar energy sector and energy trading. He currently works as the Communications Manager for the Retail Energy Development League and has experience writing and editing content for EcoWatch. Prior to EcoWatch, Karsten worked at Solar Alternatives, curating content, advocating for local renewable energy policies, and supporting solar design and installation teams. Throughout his career, his work has been featured in various media such as NPR, SEIA, Bankrate, PV Mag and the World Economic Forum.