8 Reasons not to get solar panels

Key Takeaways

• Solar panel installation can require $10,000 to $20,000 in cash or even more by the time you finish paying a loan.

• Solar installations provide minimal financial benefits for homes with low electricity bills or usage.

• Environmental factors like temperature extremes and cloud cover reduce solar panel efficiency and energy output.

While solar panels let you harness “free” energy from the sun, they require a significant investment. Your electricity usage needs to be high enough to justify installation, while local climate conditions and HOA restrictions can limit system efficiency. Decreasing solar incentives and potential technical challenges also impact long-term value. Understanding these limitations can help you decide if home solar panels are worth it.

1. You can’t afford the cost or get a good loan

The point of having solar panels is to save money, not dig yourself into a hole of debt and despair. Our data shows the average 5 kW system in the U.S. costs $17,823 before incentives or tax credits, and not everyone can afford an expense like that.

Of course, many homeowners choose to finance solar panels instead. Take a good look at the total interest to see how much you’ll pay in the end. Here are a few simple examples of how interest rates affect the total cost of a $15,000 solar loan over 15 years:

You can see that a 10% interest rate nearly doubles the total cost over the life of the loan. This also means it would take twice as long to recuperate the cost with savings from your energy bill.

You need to know your break-even point and how long solar panel savings would take to get you there. If you know you’ll have to wait 15 years, is that worth it to you? Maybe it is, considering other benefits like using clean energy.

And if your only option right now is to start a solar lease or power purchase agreement (PPA), we recommend skipping solar altogether. These arrangements provide less savings and come with complications like early termination fees and can make it hard to sell your house.

Solution: Save up the cash or wait to get a good interest rate on a loan.

2. Your electricity bill isn't high enough to warrant solar

Solar panels might not be worth it if you have modest electricity consumption and costs relative to installation costs. Our data shows the average electricity bill in the country is about $142 with an average price of 16.5 cents per kWh. If you’re already paying below this amount, it might take a long time for you to see the financial benefits of solar panels. 

You might have a low electricity bill because your home is well-insulated, you use energy-efficient appliances, and you manage your usage. This can reduce the financial impact of going solar. Your payback period could even exceed the solar panel system’s life if your current energy costs are low enough.

3. Solar incentives like net metering are decreasing

Fewer states offer full net metering nowadays, so don’t expect to make a side income from your solar panels. While the federal Inflation Reduction Act gave new life to the Residential Clean Energy tax credit, state-level policy shifts and utility company adjustments can make it a bit harder to go solar. These changes can affect your installation costs, payback periods, and overall return.

Homeowners in today’s market are seeing:

• Declining state-level incentives and net metering rates

• Uncertain long-term savings as utilities revise their solar compensation structures

• Variable incentive availability depending on location and state regulations

Full net metering provides a one-to-one credit for the excess energy your system produces. So, if you pay 16 cents per kWh, you get 16 cents for each kWh you provide. But some states have pulled back from that. Notably, California is in its Net Metering (NEM) 3.0 phase, which gives you about 25% back in excess energy credits. If you have a battery, you can use stored energy during peak hours to reduce your payback period in California.

4. You live in a bad climate for solar

Not all locations are the best fit for solar. The best climate is relatively cool with plenty of sun. However, a warmer and sunny climate is better than a cooler one that’s overcast all the time. The bottom half of the U.S. has better solar potential than the top half, geographically speaking.

Atmospheric conditions and seasonal variations affect how well solar panels convert sunlight into usable electricity. Panels can degrade a bit faster in consistently hot areas or places with large temperature swings, too. 

The optimal temperature for solar panel efficiency is around 25 degrees Celsius or 77 degrees Fahrenheit. Temperatures outside this optimal range can slightly affect output even on a sunny day.

Here are a few more things to consider:

• Heavy cloud cover and rain substantially reduce energy production

• Seasonal temperature fluctuations impact year-round performance

• Solar irradiance varies by geographic location

• Cold regions, while better for efficiency, face snow coverage issues in winter

Solution: Use a solar power calculator like the PVWatts calculator to see how much power your home could produce.

5. Your roof might not work for solar

The best roofs for solar are asphalt, metal, tar, gravel, and tile. But even if you have one of these roof types, factors like load capacity, age, and available space can rule out your roof.

Roof age is a major factor since you don’t want a roof to wear out before the solar panels do. Asphalt shingle roofs older than 15 years typically require replacement before solar panel mounting.

Specialty materials like wood shake, clay tile, or slate can be challenging for solar. A solar installer can let you know if your roof would be a good candidate or not.

In the case of cedar roofs, most cedar shingles are installed directly on skip sheathing. This means there are wood boards with gaps right under the cedar. This doesn’t work for solar panels, and you’d have to resheath your roof with plywood before installing.

You should consider space requirements, too. A standard solar installation needs about 250-350 square feet of clear, unobstructed roof area. Preferably, this exposed roof faces the south if you live in North America. Northern-facing roofs or roofs with tree coverage or building shade put a damper on energy production.

Solution: You can remove tree limbs if your roof sits in the shade. And if you have a large yard or field, you could consider ground-mounted solar as an alternative.

6. Your HOA has complicated solar panel rules

If your neighborhood has a strict HOA, you might have to pay more to get a certain type of solar panel or install fewer panels overall. 

Common HOA restrictions include:

• Mandatory approval processes for installation plans

• Strict placement requirements that limit ideal sun exposure

• Color and style specifications for maintaining neighborhood aesthetics

• Size limitations affecting overall energy production

Specific placement mandates often force panels into suboptimal positions, reducing energy generation potential and your system’s efficiency. Requiring specific panel colors, styles, or mounting configurations typically increases equipment and labor expenses. The approval process itself can extend project timelines and add administrative costs. 

Many states have solar access laws to protect your right to add solar panels, but not all states do. Even in jurisdictions with solar access protection laws, you have to carefully document compliance with HOA guidelines throughout the process.

7. You don’t like how solar panels look

Maybe it’s not your HOA but it’s you who has an issue with solar panel aesthetics. Even though technology advances, solar panels can still stick out. Here are a few things to consider:

• Panel appearance: Traditional polycrystalline panels have a distinctive blue color with silver frames that may clash with your roof's design. Monocrystalline panels are closer to black and some brands offer true black panels with black frames.

• Cost vs. looks: More aesthetically pleasing options like solar shingles come at a premium price.

• Efficiency trade-offs: Choosing panels based on looks may result in slightly reduced energy production.

Solution: Look into solar shingles, as these panels have a seamless appearance. But be ready to accept slightly worse efficiency and a higher price.

8. You would need storage for blackout security

If your main concern is energy security during blackouts, you’ll need a battery storage system.

Installing rooftop solar panels alone can't guarantee continuous power during blackouts since most grid-connected systems automatically deactivate when utility power fails. This is to protect utility workers from injury since your grid-tied system normally sends excess power back through the power lines.

Battery backup systems require a sizeable investment from $10,000 to $15,000 for a medium-sized home. They also require regular maintenance, including periodic testing, cleaning, and eventual replacement. After doing the math, you might find this increases the payback period of a solar system too much.

Bottom line: Going solar isn’t for everyone, but it can be worth it

Before going solar, make sure you weigh the costs, efficiency, and potential restrictions. Taking the time to evaluate these factors will help you make the best decision for your home and budget.

FAQ on going solar

Below are a few frequently asked questions about going solar.

Why is solar power so expensive upfront?

Solar panel systems require a significant initial investment, including equipment, installation, and permits, which can total over $20,000 before incentives. While leases and PPA’s have low upfront costs, the savings are also lower and it can be hard to sell your home or end the agreement early.

How long does it take to break even on solar panels?

The payback period varies based on electricity usage, incentives, and location but is typically about 10 years (without incentives or tax credits).

Is solar worth it if my electricity bill is low?

If your monthly bill is under $75, the savings may not be enough to justify the installation costs.

Do solar panels work well in all climates?

Cloudy, rainy, or heavily shaded areas can reduce efficiency, making solar less effective in some regions.

Can homeowners associations prevent solar panel installation?

Some HOAs have restrictions on panel placement and visibility. They can even prohibit them entirely depending on local laws.

What maintenance or technical issues should I consider?

Solar panel maintenance includes bi-annual cleaning, inspections, and monitoring for efficiency losses, which can add to long-term costs. You can also expect to replace your inverter(s) once during the system's lifetime.