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Rooftop solar panels used to be luxury items but that's no longer the case. Whether you want to save thousands on electric bills, lower your carbon footprint, or fully electrify your home, going solar is almost always the right decision if you own your home.
Adding solar panels is a great long-term investment. It can boost your home's value and minimize your electric bill. It's also a big purchase, so it's important to make sure it will pay off before you make a final decision.
Below, we'll explain how to decide if solar will work for your home, and how to get solar panels at the best price. It all comes down to your roof, how much you pay for electricity, and your eligibility for incentives.
You don't need to live somewhere warm or with abundant sunshine to save with solar.
Most homeowners will save tens of thousands of dollars by going solar.
Solar panels aren't free, but they do come with great incentives.
The best solar equipment for you might not be the best solar equipment for your neighbors.
There are ways to go solar without installing a single panel on your property.
The average U.S. household spends about $1,747 annually on electricity, according to electricity cost and consumption data from the Energy Information Administration (EIA). Over 25 years, that adds up to $61,520 (assuming 2.45% annual inflation). You can easily lower (and sometimes even eliminate) these costs by installing a rooftop solar panel system.
Most households need an 11 kW system to fully cover their electricity usage. In 2024, an 11 kW solar panel system costs $22,022 upfront including installation costs and the federal solar tax credit (more on that later). This is a hefty price tag, but when you consider how much you otherwise would've spent on electricity, it's easy to understand why millions of homeowners have gone solar.
Solar is a long-term investment. Shoppers on the EnergySage Marketplace typically break even in about eight years. Remember that your costs and savings will ultimately depend on several factors, including where you live, how much you spend on electricity, and your home setup.
We don't want to bore you with the nitty-gritty physics details, but at a high level, solar panels work by using sunlight to generate electricity through the photovoltaic effect. The process starts with solar cells, which absorb light, knocking electrons (aka carriers of electricity) loose. These electrons then flow, creating direct current (DC) electricity. Metal plates on the sides of each solar cell transfer the DC electricity to wires. At this point, inverters (more on these below) convert the DC electricity into alternating current (AC) electricity, which most common household appliances use. And voila – your solar panels have produced solar energy for your home!
You'll get the most out of this guide if you first understand your suitability for solar. Solar panels are an excellent investment for many homeowners but aren't right for everyone.
If you meet the following criteria, solar will probably work for your home. But, your home doesn't have to be a perfect fit for solar for you to benefit from it. Many homeowners will save money with the right installation or an alternative approach like a community solar subscription.
If you're a renter or part of an HOA, you must check with the property owner or homeowners association before making concrete plans for your solar system.
The higher your monthly electricity bill, the faster you'll save money with your new solar system.
You don't need to live somewhere where the sun is always shining for solar to be worth it – but you do need a suitable roof. The ideal roof for solar is south-facing, has a tilt between 30 and 45 degrees, has plenty of open space, experiences minimal shading throughout the day, and is in good condition. If you have an east or west-facing roof, you can still go solar and expect to save thousands, you might just lose some production.
The cost of solar panels largely depends on the value of incentives available, which varies based on where you live and your tax liability. If you live in a state with net metering and have enough tax liability to take advantage of the solar tax credit (more on this below), you'll break even on your solar investment sooner.
If you've determined that you're a good fit for solar, it's probably worth the investment. But like any major financial decision, going solar has advantages and disadvantages you should consider first.
You save on electric bills: The average homeowner saves between $20,000 and $90,000 on electric bills over the life of their solar panel system. If you electrify home appliances, like your heating & cooling system, car, or cooktop, you can often lower your other energy bills with solar.
Your home value could increase: Studies show that having a solar panel system increases home value by an average of 4%.
You lower your carbon footprint: Unlike fossil fuels such as coal, oil, and natural gas, solar doesn't directly release carbon dioxide or other greenhouse gasses into the atmosphere (which contribute to climate change).
It takes time to break even on your investment: On average, it takes EnergySage shoppers about eight years to save enough on their electric bills to cover the cost of their solar panel system. However, with some financing options, like $0-down loans, you can start saving on day one.
Solar panels don't work at night: They need sunlight to generate electricity, so they don't work in the dark! You can pair your solar panels with a battery backup system to store excess electricity produced during the day for use at night. A battery will add to the cost of the system, so you'll want to factor that into your total cost of ownership and how much savings you're hoping to achieve.
Your solar panels could (eventually) end up in a landfill: In the United States, solar panel recycling is still in its infancy, so today, most solar panels end up in landfills at the end of their lives. Some companies, like We Recycle Solar, are looking for ways to improve solar panel recycling in the future, but none of them have achieved widespread adoption yet.
While solar panels continue to become sleeker in appearance (we think they look great!), some homeowners are still concerned about aesthetics. If you fall into this category, you might consider solar shingles such as the Tesla Solar Roof. While we encourage everyone to go solar in the best way for them, there are some key factors to consider when selecting solar shingles over solar panels.
Solar shingles cost more: They are still uncommon and require much more labor to install, making them more expensive than solar panels. Some manufacturers claim they excel in durability, which would earn them points for longevity, but those claims have not yet been proven.
Solar shingles are less efficient and produce less power: Solar shingles sacrifice efficiency and energy production for their sleek aesthetics because the low profile impedes airflow. If you have a large roof and room to install many solar shingles, this won't be as big a problem.
Solar shingles make the most sense if you need to replace your roof: Many homeowners choose to go solar when they require a roof replacement. You get a brand-new, more durable roof when you select solar shingles instead of solar panels. In some cases, this can be almost as cost-effective as installing a new roof and solar panels.
In most cases, you'll spend less and produce more energy if you choose solar panels over solar shingles, but ultimately, you should select the best setup for you.
Here are some key factors to consider when choosing the right solar panels for your home:
You might have heard or seen the terms monocrystalline or polycrystalline in your solar panel research. Monocrystalline solar panels have cells made of a single silicon crystal. They're typically black in color and more efficient. Polycrystalline solar panels have cells made of multiple silicon crystals melted together. They're generally blue in color and more affordable.
Also referred to as its wattage or capacity, your solar panel's power output refers to the amount of electricity it generates under standard test conditions. The higher the power output, the more electricity your panel will produce. Solar panels generally range from 350 to 450 W in quotes provided through the EnergySage Marketplace. As of 2024, our most commonly quoted power output range is 400 to 410 W.
Efficiency measures your solar panel's ability to convert sunlight into usable electricity. The higher its efficiency, the more electricity your panel will produce. Today, solar panels quoted on EnergySage generally range from 19.7% to 21.6% efficiency. Some of the most popular brands on EnergySage have efficiency ratings above 22%. SunPower offers the most efficient solar panels from EnergySage installers at 22.8%.
Like most electronics, solar panels perform best when they're kept cool. Your solar panel's temperature coefficient or performance measures how much its power output will decrease as the surrounding temperature increases. For every degree above 25° C (77° F), your panel's solar production will fall by its temperature coefficient.
If your panel's temperature coefficient is -0.26%/°C and the surrounding temperature increases one degree from 25° C (77° F) to 26° C (79° F), its electricity production will decrease by 0.26%. The lower the temperature coefficient, the better your solar panels perform on hot, sunny days.
As with any significant investment, you'll want your solar panels to last. Most solar panels have a lifespan of about 25 to 30 years, but the best way to guarantee your panels will continue to perform well for a long time is to select a model with a great warranty.
Generally, there are two critical components to a solar panel warranty. The product or materials warranty guarantees that the manufacturer will replace your panel if it fails due to manufacturing defects within a specified warranty term. The performance or power warranty guarantees that your panels will still produce a certain percentage of their original output by the end of the fixed warranty term. Many other factors indicate the strength of a solar panel warranty, including labor coverage, shipping overage, and bankability of the company (e.g., how likely they'll be around to fulfill your warranty).
While there are many great solar panel brands, a few companies stand out above the rest. Panasonic, SunPower, and REC all offer monocrystalline panels with high power output, high efficiency, low-temperature coefficient, and strong warranties. You will generally pay more for these brands, so in some cases, selecting a slightly lower-performing panel with a better price tag can be worth it.
We've mainly focused on solar panels, but another critical component of your solar power system significantly impacts its production: the inverter. Solar inverters convert the DC electricity produced by your solar panels into usable AC electricity.
Depending on where you live and how frequently you experience power outages, batteries can also be important additions to solar power systems.
When selecting a solar inverter, there are three main categories: string inverters, microinverters, and optimized string inverters.
Generally, string inverters are best for homeowners with uncomplicated roofs with minimal shading. Homeowners choose string or central inverters due to their low cost, durability, and easy maintenance. In a system with a string inverter, each panel is wired into a "string," and multiple strings (typically up to three) connect to the inverter. All of the electricity on that string is converted at once, meaning that a drop in the performance of an individual solar panel (like from shading) will impact the output of all the panels on that string.
String inverters are typically located on the side of your house, making them reasonably easy to repair and maintain. Depending on the size of your solar power system, you could require just one or a couple of string inverters. SMA America offers one of the most popular string inverters on EnergySage.
Microinverters are best for homeowners with complicated roofs who want to maximize solar production. They're a great choice if you're willing to pay more for a high-performing system. Rather than having one inverter for multiple panels on a string, with a microinverter system, you'll have a small inverter installed at each panel. These systems convert and optimize electricity at every panel, making them an excellent option for homes with shade over a portion of the roof.
You can also monitor the output of each solar panel, which can help you diagnose any potential issues with your system. A downside of microinverters is that they can be challenging to maintain and repair because they're located on your roof. Enphase offers the most popular microinverters (and the most popular inverters overall) on EnergySage.
Optimized string inverters are best for homeowners with some roof shading who don't want to pay a premium for microinverters. Optimized string inverters compromise between string inverters and microinverters, offering panel-level optimization at a slightly lower price tag. Similar to microinverters, power optimizers operate at the individual panel level.
Systems with optimized string inverters still convert electricity via a central inverter, but like microinverters, power optimizers maximize the output of each panel to mitigate the impact of shading. A key difference is that they don't allow for panel-level monitoring. SolarEdge offers the most popular optimized string inverters on EnergySage.
Some homeowners believe they can power their homes independently from the grid once they go solar. To go off-grid with your solar panel system or power it during an outage, you must install a solar battery or a solar generator to store excess energy when the sun isn't shining.
Batteries are a great way to increase energy independence and reduce reliance on fossil fuels. They make a lot of sense if you frequently experience power outages, don't have access to net metering, or are eligible for lucrative battery incentives. Even with a battery, most homeowners still choose to maintain their connection to the grid because adding enough solar batteries to power your home is often costly.
You've decided you're a good fit for solar and are ready to move forward. Where do you start? Going solar can feel overwhelming, so we've broken down the process into five easily actionable steps:
The best way to get a great deal on your solar panel system is to compare quotes based on cost, equipment, and installer reputation. Historically, many solar shoppers only received one solar quote from a door-to-door salesperson or a cold call. But how can you feel confident in your solar decision if you only see one quote?
The free EnergySage Marketplace makes this easy by gathering up to seven custom solar quotes for you from our network of pre-screened installers. On average, solar shoppers who receive quotes on EnergySage pay 20% less for their solar systems than those who don't.
Now that you have multiple quotes to compare, it's time to choose the best installer. EnergySage's mission is to help you choose with confidence. Our team of expert Energy Advisors can walk you through your quotes (even if you didn't get them through EnergySage) and answer all your questions so you can pick the system that meets your needs at the right price. Once you've selected an installer, you'll need to sign a contract. Thoroughly review it first for details on costs, incentives, equipment, cancellation terms, and clauses.
You'll next need to schedule a site visit with your installer as a final check to ensure the solar panel system you're purchasing is suitable for your home. (Learn why most installers prefer a signed contract before completing a site visit.) During this step, an engineer (not a salesperson) will check your roof and electrical panel to decide if they need any updates before you go solar. An installer can conduct a site visit in person or virtually. Check out this article to understand how to prepare for a virtual site visit.
Your installer has determined your house is solar-ready and is prepared to proceed with your installation. Now you'll need to decide how to pay for your system. Generally, we recommend paying with cash for the best long-term savings or a loan if you want to start saving immediately.
Upfront with cash: Paying for your solar system with cash is the best way to maximize your long-term savings: You won't owe anything in interest or be subject to origination, dealer, or closing costs (which can add up!). However, many homeowners lack the cash to purchase their solar panel systems upfront.
Solar loan: Most people choose to finance their solar panel systems with a solar loan. You'll still qualify for incentives, and you could start saving on day one if your monthly loan payments are less than your previous electric bills. Your savings will be lower than if you pay with cash, but using a solar loan makes it much easier for most people to go solar.
Solar lease or PPA: With a solar lease or PPA, you don't own your system, so you don't qualify for some of the best solar incentives. With a solar lease, you pay a fixed monthly lease payment, whereas with a PPA, you agree to purchase the power generated by your system at a set price per kWh. Your savings will be the lowest with a lease or PPA. They can also make it difficult to sell your home if the new owner doesn't want to take over the payments.
You've done all the hard work on your end! Now it's time to watch it pay off with a brand new solar panel system. Before installation day, your solar company will begin submitting the paperwork required for installation, interconnection to the grid, and any available incentives.
On the day of your installation, you can expect about 5-10 employees of your installation company to be onsite, ranging from certified electricians who do all of the electrical work to the solar panel installers who will be up on your roof putting the panels in place and attaching them to your roof. Depending on the size and scope of your installation, it will likely take about 1-3 days to complete.
Following your installation, you'll need permission to operate (PTO) from your utility before your installer can turn on your system, which can take anywhere from a few weeks to a few months. As part of PTO, your utility company will likely send a representative to your house to examine your system and install or update your meter so they can track the solar energy you send to the grid. Once PTO is complete, you'll receive official documentation to turn your solar panel system on for electricity generation officially!
Most homeowners will see significant benefits by going solar – but, as discussed above, a discrete solar installation on your home isn't always the right option. Here are two ways to go solar without installing a single panel:
Sign up for a community solar farm: Ever see those large solar arrays while driving down the highway? In many cases, they're community solar farms. When you subscribe to one of these projects, you support solar development in your community while saving about 5-15% annually on your electricity costs. Search for projects and providers near you.
Encourage your company to go solar: Businesses and nonprofits can spend tens of thousands of dollars each year on electricity, meaning they often have much to gain by going solar. Whether you own your company or work for one that could be a good fit, suggesting solar as a way to save can help your company lower its overhead costs and reach its sustainability goals. Learn how EnergySage can help your business go solar.
You can often get money back from your solar power system through government incentives. Here are some of the top solar incentives that will either reduce your cost of going solar or increase your savings over time:
The federal investment tax credit (ITC) is today's best solar incentive. Unlike a tax deduction (which reduces your taxable income), the ITC allows you to apply 30% of your solar system's upfront cost as a credit toward your federal tax bill. If you've overpaid your taxes during the year, you can even receive the ITC as a refund, as long as it doesn't exceed your total tax liability. If it does exceed your tax liability, the remaining credit will roll over to the following year.
Portable Battery When the sun's shining, your solar panel system will likely produce more electricity than you need. Luckily, many states have a solar policy called net metering in which you'll receive credits from your local utility company for the excess electricity you send to the grid. At night or on a rainy day when your panels aren't generating enough energy, you'll pull electricity from the grid, whi