Pros and Cons of Solar Energy

There are many pros of solar energy that can directly benefit you, your home or business, and your energy bills. Here are some of the advantages of solar energy that often appeal to consumers:

• Solar energy cost savings
• Solar availability
• Variety of options
• Home improvements and increased resale value
• Sustainability and green energy

1. Solar energy can reduce your energy bills

Of course, one of the most enticing pros of solar panels is financial energy savings. “You can think of a solar rooftop as a low-risk long-term investment that generally provides a high return on investment (ROI),” said Joshua M. Pearce, PhD, Professor of Materials Science & Engineering and Director of the Michigan Tech Open Sustainability Technology (MOST) Lab at Michigan Technological University.

And since the cost of solar panels has come down so much, the gap between solar energy savings and traditional energy costs continues to widen. This is especially true for states that often have high electricity rates, like Hawaii. Consider your states monthly electricity rates to estimate how much solar could save you on energy bills.

Depending on where you live, the solar return on investment can be a very appealing advantage to investing in solar. “On my home system, my ROI is greater than 10 percent, and if you live somewhere sunnier you could do even better,” said Pearce.

There are also solar tax incentives and rebates to consider. The solar federal tax incentive offers a credit of 26 percent of the total cost of a home solar system. Additionally, the average residential solar system normally pays for itself within 6 – 9 years. This payback period marks the break even point, so after this time your solar savings will continue even after you’ve made back your initial investment.

2. Solar energy is widely available

Home solar panels are becoming more common in many states, especially as the total price of solar panels drops. With the rise in popularity comes an increase in solar panel installation companies offering services throughout the country. What’s more, most U.S. homes are located in areas that receive enough sunshine to benefit from solar panels. “Satellite surveys show that 80 percent of homes could get at least a decent amount of energy from solar electric panel systems on rooftops,” explained Hannah Wiegard at Ipsun Solar, a residential and commercial solar panels installer. As home solar systems continue to grow in numbers, the availability of solar installers and solar products will become even more accessible for consumers.

3. Solar energy is versatile

There are many different brands and types of solar panels that can meet a variety of needs and wishes. This includes aesthetic requirements, since many consumers want low-profile solar panels that can’t be seen from the ground. Additionally, some solar panel companies use an aluminum frame that produces more energy when there is low light or poor weather, making solar panels more efficient for homes that don’t get direct sunlight.

Bi-facial solar panels capture sunlight from both the front and the back of the panel. “The bi-facial nature of these panels can allow them to produce energy from sunlight captured from the sun above, but also additional energy from the reflection off of lower surfaces,” said Brandon Weiss is the Chief Innovation Officer at Dvele, which builds customizable homes. Weiss explained these panels can be used for building projections, overhangs, and patio roofs.

4. Solar energy can improve your home’s value

Solar panels can also benefit the overall wellbeing of your roof. “Solar protects the roof investment by shielding the roof from the harmful UV sun light and weather elements that can deteriorate the roof and shorten its life expectancy,” said Andrew Carr at Harvest Power, a solar energy design and installation firm. According to Carr, solar also insulates your home, keeping it a little cooler in the summer and warmer during winter months.

Installing a solar system on your roof also increases your home’s resale value. According to the Department of Energy, a functioning solar panel system can increase your home’s value by up to $15,000. This could completely cover the upfront cost of the solar system if you ever move or sell your home.

5. Solar energy is sustainable

Solar energy is a renewable resource. Unlike fossil fuels such as oil and gas, energy generated by the sun is a natural and sustainable power source. Solar power is also a green energy source because solar panels do not emit harmful greenhouse gases (like carbon dioxide) into the atmosphere.

Sustainability is a major advantage to solar energy. “You can help the world out by providing energy to your family and your neighbors that is clean and nearly maintenance-free,” said Abe Fouhy, who teaches Renewable Energy courses at Clackamas Community College in Oregon City, OR.

While there is some discussion about the impact of solar panels on the environment, solar power is a much more sustainable power source compared to traditional fossil fuels. Many consumers choose to invest in solar because they want to reduce their carbon footprint.

The pros of solar energy are very attractive to many property owners. However, there are some drawbacks to solar energy that are worth considering. Here are some of the main cons to solar energy:

• The upfront cost of purchasing solar panels is high
• Solar panels won’t work for all homes
• Solar generation isn’t always consistent
• Solar energy isn’t best for movers
• The solar industry can be confusing

1. The upfront cost of solar energy

It’s no secret that the upfront cost to buy solar panels is high. Factoring in tax credits, the average cost of a residential solar system is between $11,100 – $18,500. This large initial investment is not feasible for everyone and is one of the main cons of solar panels.

Consumers should also consider the cost of solar batteries or other upgrades when doing the math. “You may have to upgrade your electrical panel, not a huge deal, but just know that you may have to upgrade your service panel to allow for the solar system,” Fouhy explained. If your roof needs repairs or is old, this could impact your bottom line, too.

2. Solar energy is not for all homes

There are various factors that determine if your home is a good candidate for a solar rooftop. If it doesn’t meet certain requirements, solar panels may not be the right fit for your home. “The best homes for rooftop solar are south-facing, flat roofs, without obstructions like chimneys or vents, and without blockages like trees or shade from neighboring homes,” said David Amster-Olszewski, founder and CEO of SunShare.

You should also consider how many hours of sunlight your home typically gets. Solar panels placed in rainy climates or that are covered by shade will not generate as much electricity as panels installed in direct sunlight.

3. Solar energy can be inconsistent

Another disadvantage of solar energy is that it is entirely reliant on the sun to shine. “During night time and low irradiance periods, there is typically low to no production of energy, so the grid or [solar] batteries are needed as back up,” explained Ramon Rosquete, senior project manager at CREADIS.

During these low-production times, consumers either have to rely on the traditional power grid for supplemental electricity or invest in solar batteries to store excess energy. The potential for inconsistent power generation remains a major con of solar for many consumers.

4. Solar is not best for consumers who are about to move

The average payback period for home solar panels is between 7-9 years. After this time, your solar system has paid for itself in energy savings. If you move to a new home before this payback period, the upfront investment may not be worthwhile. That being said, a working solar system can increase the value of your home by an average of $15,000, so you can recoup a good portion of the cost of solar panels (if not all of it) if you sell your home.

5. Solar options can feel overwhelming

From finding the right solar installation company to choosing the best brand of solar panels for your energy needs, the amount of options can leave consumers feeling stressed or confused. The key to navigating the solar industry is doing thorough research and preparation before signing a solar contract. Choose Energy offers a wealth of expertly-written guides on all things solar to help you in your search.

Visit the following guides for an in-depth walkthrough into these solar topics:

• An overview of solar energy 
• The cost of solar panels in 2021
• Solar energy generation by state
• The pros and cons of a solar lease
• The best and worst states for solar energy

When considering the pros and cons of solar energy, you may find that purchasing home solar panels is not the right option for your needs. There are alternatives to buying solar panels if the negatives outweigh the positives.

If the upfront cost of solar panels is too high, solar leases or solar power purchase agreements (PPAs) offer another option. With solar leases or PPAs, the solar panel company maintains ownership of the panels installed on your home and you pay a monthly fee to use the energy that the system generates. The long-term energy savings will be lower, but consumers can bypass the large initial solar cost.

If your home isn’t structurally able to handle solar panel installation or doesn’t receive enough sunlight, shared or community solar projects could be an alternative worth considering. “Many states allow anyone to subscribe to solar installed somewhere else instead,” Wiegard said. With shared or community solar, consumers can use a portion of the electricity generated by an off-site solar installation. This can be an ideal option for renters or people who live in apartments.

The financial savings with shared solar will also be lower than if you buy a solar system upfront, just like with solar leases or PPAs. According to Wiegard, “We’d only recommend that course if your home is much too shaded, or has no wide sections of roof to use, or has an HOA that bans solar, if you’re in a state where that’s lawful.”

The bottom line is this – there are both pros and cons of solar energy and investing in solar panels may not be the right decision for all consumers. To ensure you make the right choice, just be sure to do your research and ask yourself whether the advantages of solar are strong enough to overshadow the drawbacks. Keeping the pros and cons of solar energy that we discussed in mind, you can make the best decision for your home or business.

Would solar energy save me money?

Switching to solar energy could significantly lower your energy costs because your home would be powered by the solar panels that you have installed. Visit Choose Energy’s solar costs and savings guide to find your state’s average solar savings.

Which states are the best for solar energy?

California, Texas, and North Carolina lead the nation in solar energy generation in 2021. Explore the full breakdown of the best (and worst) states when it comes to solar energy.

How much do solar panels cost?

The average cost of home solar panels is between $15,000 and $25,000 before factoring in tax credits. Of course, this price can vary based on how many solar panels you install, your energy consumption each month, whether your home would require maintenance before installing a solar system, and more.

Are solar panels bad for the environment? 

Quite the opposite – solar power is a renewable and green energy source that doesn’t emit carbon dioxide into the atmosphere like traditional fossil fuels. However, the manufacturing of solar products (such as panels and batteries) does have some impact on the environment. That being said, the carbon emissions created in the solar industry is mitigated by the carbon emissions saved when a home uses solar power.