Pros and cons of solar panels: What’s the verdict?

Key Takeaways

• If your house gets good sunlight, the pros often outweigh the cons of installing solar panels.

• The main benefit of solar is using a renewable energy source to lower your electricity bill.

• The main downside to solar panels is the upfront cost, though the cost is steadily decreasing.

Solar panels get a lot of hype, and for good reason. But it’s important to consider the pros and cons of solar panels clearly before installation. Solar panels offer significant long-term electricity savings and environmental benefits, with a typical 5 kW system saving around $16,367 over 20 years while reducing your carbon footprint. 

That said, you'll face upfront costs averaging $17,823 for installation (before incentives), and system performance depends heavily on weather conditions. We’ll break down the benefits and downsides of home solar panels in this guide.

Overall pros and cons of solar panels

Here’s a quick look at the main pros and cons of solar panels:

Pros of solar panels for your home

Now we’ll take a closer look at the benefits of home solar panels.

1. You can use renewable energy for your home

What’s cooler than harnessing the sun for power? Solar panels let you use a truly renewable power source that will remain available for billions of years. After installation, solar energy creates zero carbon emissions while providing clean, reliable power for your family. Many people prefer using solar energy vs. fossil fuels for this reason.

2. Installing solar panels reduces your electricity bills

Another benefit of solar power is saving on electricity costs. You can avoid rate hikes when fossil fuel costs rise and save money over time. And with net metering, you could pay $0 if your system generates more than you use.

How much you save depends on a few things:

• System size: You’ll save more with a larger system that covers 100% or more of your energy usage.

• Electricity rates: If you're in an area with higher electricity rates, you'll save more. If your electricity rates are already low, you might not save much.

• Net metering: In states with net metering, you'll receive bill credits for the excess energy your system produces, potentially eliminating your monthly electricity costs.

Over a 20-year period, a 5 kW system can save you $16,367 after savings pay for installation costs. Our data also shows solar panel systems pay for themselves in an average of 10 years. These figures don’t include the 30% federal tax credit. 

3. A solar power system has low maintenance costs

Solar panel systems virtually run themselves after installation. Solar system maintenance is pretty simple and includes annual cleanings and occasional inspections. You might pay $300 to $700 per year on average for solar panel maintenance.

4. You can lower your carbon footprint

Another perk to solar panels is they reduce your carbon footprint. While manufacturing gives off some CO2, panels offset their manufacturing emissions within a few years of operation. After that, you really reduce the amount of emissions you contribute.

Your solar installation will help preserve natural resources by:

• Eliminating harmful air pollutants

• Reducing dependence on finite fossil fuels

• Conserving water resources typically used in traditional power generation

• Contributing to cleaner air quality in your community

5. You can move toward energy independence

Solar panels let you generate your own electricity and reduce reliance on traditional power grids.

Here’s how solar panels can improve your energy autonomy:

1. You'll protect yourself against rising utility rates and unpredictable energy costs.

2. You can maintain power during grid outages with battery storage systems.

3. You'll reduce your dependence on foreign energy imports.

4. You'll contribute to local economic growth by keeping energy dollars in your community.

6. Solar panels may increase your home value

Installing photovoltaic panels has the potential to boost your property's market value.

Research from Fannie Mae and the Lawrence Berkeley National Laboratory shows solar homes fetch prices about 1% higher than non-solar homes. For a $500,000 home, this would mean a price increase of $5,000. This average covers many years and states, so there can be instances in local markets where having solar boosts your home value much more than 1%. 

You'll get the most benefit if you own rather than lease your system. You’ll also benefit more if the solar system is relatively new. Buyers can be turned off by systems that are 20 years old or older.

7. Incentives and rebates make installation easier

The financial incentives available for residential solar installations make the upfront investment more manageable. You'll find multiple programs at federal, state, and local levels that can notably reduce your costs.

Here are some examples:

1. A 30% federal renewable energy tax credit on your total installation costs

2. State-specific tax credits and rebates that stack with federal incentives

3. Utility company cash refunds that vary by location

4. Performance-based incentives that reward you based on your system's energy production

Many utilities offer additional rebates, and some states provide special programs for low-income households, making solar adoption even more accessible.

Cons of solar panels for your home

Now let’s consider some of the main drawbacks of solar panels.

1. High initial cost requiring cash or financing

While you can usually save substantially over the long term, solar panel installation requires an upfront investment. We found the average 5 kW system costs $17,823 before tax credits or other incentives. You’ll save the most over time if you can pay with cash. Taking out a loan is the next best option, while we don’t recommend solar leases or power purchase agreements since you don’t own the panels.

While federal tax credits can offset 30% of your initial investment through 2032, you'll need to carefully consider your long-term residency plans to maximize the return on investment through electricity savings.

2. Energy output is weather-dependent

Because solar panels rely heavily on sunlight exposure, their energy production fluctuates based on weather conditions and seasonal changes. Your panels don’t output energy at night, of course. This is why most solar homes are grid-tied. You use solar energy during the day and grid energy at night.

Cloudy days and snow accumulation both reduce energy output, too. You can lessen the impact of the weather by installing battery storage systems and maintaining regular panel cleaning schedules.

3. Not all roof types work or have enough space

Installing solar panels requires roof space. For example, a 7 kW system needs about 23 panels and 495 square feet of roof area. The average residential roof is 1,700 square feet, but not all roof space is good for solar. South-facing roofs are best, and your roof should be clear of shade for most of the day. 

If you're dealing with limited roof space, you might need to weigh ground-mounted options or high-efficiency panels that produce more power in a smaller area. But sometimes your roof just isn't the best for solar, and it’s good to realize this before pouring money into an installation.

4. Adding energy storage can be expensive

Energy storage is necessary if you want security during outages. You'll need to budget between about $7,000 and $20,000 for a typical home battery system. Installation costs about $1,300 per kWh of storage before tax credits. So, you might pay up to $13,000 for 10 kWh of storage or $26,000 for 20 kWh.

5. Negative impacts of solar manufacturing

Solar panel manufacturing has some environmental drawbacks that can be overlooked in discussions about renewable energy. This includes:

1. High energy consumption from coal-powered manufacturing facilities

2. Extensive water usage for cooling and cleaning processes

3. Possible release of hazardous chemicals like hydrofluoric acid and sodium hydroxide

4. Mining operations that generate pollution and greenhouse gases

These manufacturing challenges contribute to both local and global environmental concerns. Worker safety is also a concern, as exposure to silicon particles can cause Silicosis, requiring strict safety protocols in production facilities.

6. Solar panels change the look of your home

Solar panels do alter your home's appearance, and that can be a downside for some. Standard panels are about three by five feet and come in dark blue or black colors. Other options like solar roof tiles can integrate with your roof aesthetic better. However, these usually cost more and might not perform as well.

Solar panels can also give off glare when the sun is at a low angle. Maybe the sun hits it just right at a certain time of day and the glare bothers your neighbor. You can’t control this. Just bake your neighbor some cookies and ask them to close their curtains.

7. Solar panels wear out (over decades)

Solar panels experience a gradual performance decline over time. Panels lose up to 2% efficiency in the first year and 0.3% to 0.8% efficiency per year after that. After 20 years, panels are about 85% to 92% efficient.

Here’s what affects solar panel longevity:

1. Light-induced degradation within the first week of installation.

2. Temperature fluctuations accelerate aging.

3. UV exposure breaks down cells.

4. Moisture infiltration through microcracks compromises internal components.

Your solar panel manufacturer will guarantee minimum performance levels for 20 to 40 years depending on the brand.

Bottom line: Are solar panels worth it?

Overall, we think solar energy's benefits outweigh its downsides for most homeowners. With an average payback period of 10 years before incentives and tax credits, installing solar panels is usually worth it if you live in an area with enough sun. That said, it’s important to have a solar company assess your property to see how viable it is for your location.

Solar pros and cons FAQ

Below are a few frequently asked questions about the benefits and downsides of solar panels.

What are the downsides of solar panels?

Downsides of solar panels are that they require a high initial investment and are a weather-dependent energy source. Solar panels provide intermittent power, so you’ll have to pair a system with a battery backup if you want security in outages.

Is it harder to sell a house with solar panels?

It can actually be easier to sell a house with solar panels if the system is relatively new and it provides energy savings. That said, it can be harder to sell a house with a 15- or 20-year-old solar installation.

What happens when I pay off my solar panels?

Once you pay off your panels, you can enjoy energy from the sun without a monthly bill (except for minimum utility charges). And if you have a battery backup, you don’t need to use grid electricity.