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How Much Do Solar Panels Cost?
The first thing to be aware of is that installing a residential solar system is always going to be expensive. Yes, saving money on your monthly utility bills can help balance that startup expense, and you can get some incentives to help undercut the cost of solar panels (more on that in a moment). But ultimately, there's no way around it: Investing in a residential solar system can be pricey.
How pricey, exactly? Your total solar energy system cost will depend on a myriad of factors, including the type of solar panels you choose, the number of panels required for your home, and the specific solar panel installation company you hire.
With that said, according to Sunrun, the average cost of installing solar panels in 2021 is between $16,200 to $21,400. And it's worth noting that this actually represents a significant drop in the price tag for solar panels. Solar installation is becoming more and more affordable, even if the startup price remains a little daunting.
Offsetting the Cost of Solar Panels
Something else to be aware of is that, over the past decade or so, both the federal government and many state governments have unveiled programs to provide financial incentives for solar installation. These programs include local and federal tax credits and other rebates. Top solar companies are usually able to help you identify and apply to any programs you are eligible for.
The current federal solar tax credit, called an Investment Tax Credit (ITC) provides a 26% credit for systems installed between 2020 and 2022. State incentives can be added on top for even more savings. However, even with numerous solar incentives, pricing and solar panel installation costs can still be steep.
How Long Do Solar Panels Last?
As you think about the initial startup investment in solar panels, another question to consider is system longevity. After you buy solar panels, how long do they last? Will they function long enough for you to get your money's worth?
Again, the answer can vary slightly depending on the specific type of solar panels you choose. As a rule of thumb, however, most residential solar systems last between 20 and 30 years and require only the most minimal maintenance and upkeep. Most of the best solar panels come backed with fairly rigorous warranties, ensuring your system holds up for at least two decades. Of course, when purchasing a solar panel system, you'll want to take a close look at the warranty information offered.
The longevity of your solar panel system can also add to the value of your home. According to the U.S. Department of Energy, buyers nationwide have been willing to pay an average premium of about $15,000 for a home with a solar array. In many cases, that alone can cover most of all of your solar investment.
How Much Money Will You Save With Solar Panels?
Related to the question of panel longevity is the question of a solar power system's return on investment, or ROI. How much power is a home solar system going to generate? How much money will it save you? Will month-to-month electric bill savings mean that your solar system "pays for itself" after a few years?
The amount of money you save on your monthly utility costs can vary depending on the efficiency and power of your solar panels, as well as your household energy consumption habits. Keep in mind that your savings will be greater if you live in an area where electricity rates are higher; by contrast, if you live somewhere with a lower cost of electricity, the money you save from going solar may be comparatively meager.
EnergySage notes that, over the lifespan of your solar system, you're likely to save anywhere from $10,000 to $30,000 on utility costs. This may or may not be enough for the unit to "pay for itself," though an upside of solar power ROI is that it's fairly instantaneous. Once your system is installed, you'll be able to start saving money right away.
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Are Solar Panels Worth It for Your House?
Ultimately, whether solar panels are worth it will need to be evaluated on a case-by-case and home-by-home basis. Simply put, solar power is a smarter option for some than for others. The question is, how can you tell whether you're a good candidate for solar panels?
Best Candidates for Solar Power
Solar panels tend to be a better investment for homeowners who meet the following criteria:
- Ample exposure to sun: If you live in a part of the country that gets lots of exposure to sunlight throughout the year, then you'll probably get more mileage out of your solar panels. It's little wonder that solar power is most popular in places like Arizona, Texas, California and even North Carolina.
- Accommodating roof space: A good solar system will require plenty of surface area on your roof, unobstructed by skylights, chimneys or other fixtures. With a smaller roof, you can still potentially install a system, but you'll need to find the most efficient solar panels (which are often more expensive) to maximize your limited space.
- High electricity bills: The amount of money you save by going solar will be directly proportional to the amount you spend each month on electrical costs. So, if you live in a community where the price of electricity is pretty high, you stand to achieve greater savings when you go solar.
Who's Not a Good Candidate for Solar Power?
By contrast, some homes may not be as well-positioned to reap a high solar power ROI.
- Homes without much sun exposure: If you know anything about how solar panels work, it won't be a surprise that darker areas benefit less from this renewable energy source. In a place where there tends to be a lot of cloud coverage or more limited solar exposure for good chunks of the year, the jump to solar may not be as advantageous.
- Homes with too much shade: Similarly, if your roof tends to be shaded for long stretches of the day (for example, if your home is in the shadow of a larger building or a lot of dense trees), then your solar panels may not get the sun exposure they need to generate a solid ROI.
- You pay lower costs for electricity: If your electrical bills are already fairly minimal, then installing a residential solar system will yield more modest and measured savings.
- You don't have the right kind of roof: Certain types of roofs just aren't as well-suited for solar power installation. For example, older or historic homes that have particular kinds of tiled roofs and homes that have larger skylights may not be good matches for solar energy.
How to Determine Your Solar Power ROI
Is solar worth it for you and your household? There are a few steps you can take to weigh solar energy pros and cons and make an informed decision.
One option is to consult with a solar panel installation company that can assess your roof and your positioning in relation to the sun, then supply you with a basic estimate of how much money you could save by installing solar panels. Reputable installers can also provide greater detail about the different types of solar panels that are available and recommend the technology you'll need to realize a significant solar power ROI for your home.
Even before you take the initial step and meet with a solar installer, a number of solar companies offer online calculators, which you can use to estimate your monthly utility savings. We'll stress that these calculators only give a very rough estimate and should be taken lightly, but they can still create a basic sense of whether solar panels are worth it for your home.
So, Are Solar Panels Worth It? It All Depends...
The bottom line for homeowners: Solar energy represents one of the best ways to reduce your dependence on traditional utility companies. And for many homeowners, solar power ROI will be well worth it. With that said, the startup cost can be prohibitive, and not every homeowner will achieve the same bang for their buck.
As you consider whether solar panels are a sound investment for your home, make sure you take into account cost, warranty, longevity and overall efficiency, all while seeking guidance from qualified solar experts.
In his appearances this morning, Pruitt was hammered for admitting that he and Trump never discussed climate change, criticized for his support of the declining coal industry and slammed for dodging questions about Trump's acceptance of climate science. The Trump administration has misrepresented academic studies, the reality of the Green Climate Fund, India and China's commitments, and much more. Distorting everything from climate science to the Sierra Club's own strong support of the Paris agreement, Pruitt's appearances are littered with the same kind of deceit that marked his Senate testimony, where he lied about everything from using personal email for government business to climate science.
This administration's increasingly defensive attempts to spin their disastrous decision to leave the Paris agreement knows no bounds, no shame, and no respect for reality. Contrary to Pruitt's distortions, the Sierra Club said then and we believe now that the Paris climate agreement marks a historic turning point for humanity, and no amount of lies spewed by Donald Trump and Scott Pruitt can ever change that.
After making this historic mistake, the administration has been met with a tidal wave of criticism and action that undermines their position. World leaders are slamming Trump and creating their own alliances that leave the U.S. behind. Three coal plants closed the same day Trump announced he would not honor our country's climate commitments. The next day, three more plants were announced for closure in Missouri, along with a massive investment in local wind power. The Mayor of Pittsburgh—the city Trump cited as to why he was withdrawing from Paris—joined the mayors of Orlando, Florida, Columbia, South Carolina and Portland, Oregon in committing to 100 percent clean energy. Trump and Pruitt are on the ropes and they are flailing to defend themselves with shockingly confounding explanations.
Pruitt claims we are making progress on emissions reductions while not acknowledging his 14 lawsuits against the EPA, attempting to undermine that progress. Pruitt and Trump are attacking the efficacy of a climate change agreement while not acknowledging the reality of climate science. They are even claiming the Sierra Club didn't support this agreement when we were on the ground in Paris fighting for it. They seem to have five different explanations, none of which are true.
Here are the facts. By withdrawing from the Paris agreement, Scott Pruitt and Donald Trump are turning their backs on American families, eating away at America's global leadership and standing alone on the wrong side of history.
The agreement, which entered into force on Nov. 4, 2016, has been signed by every nation on Earth except war-torn Syria and Nicaragua, which would like it to be even stronger. Since the agreement came into force and Trump began to waver, dozens of countries—including India, China and the EU—have reaffirmed their commitment. The earliest the U.S. will be able to complete the withdrawal is Nov. 4, 2020, one day after the next U.S. Presidential election.A recent Yale Program on Climate Change Communication poll found that nearly 70 percent of Americans, including a majority in all 50 states, support the U.S. participating in the Paris agreement.
Generations from now, Americans will look back at Donald Trump's decision to leave the Paris agreement as one of the most ignorant and dangerous actions ever taken by any president. Trump's decision to ignore the vast majority of the American public and the scientific community will harm our country, costing us lives, jobs and our role as a world leader. Trump has isolated our country on the world stage, ceding our leadership position and our economic advantage on clean energy to India and China, and justifying it all by chanting a slogan from a baseball hat.
It's hard to overstate the negative consequences at home and abroad of this foolish, self-destructive move that will only help boost profits for few of the worst polluters while risking the health of our families and communities. Future scholars will search in vain to find a President with this level of disdain for reality and the future of humanity.
Effective leaders are driving state and local action in the United States, moving strongly forward as coal plants across the country continue to retire, dirty fossil fuel infrastructure investments falter, and innovative policies drive clean energy jobs like solar and wind to profound new heights. With our allies, Sierra Club members and supporters have helped retire more than 250 polluting coal plants in recent years, and also ensured that more than 25 American cities, from Atlanta, Georgia to San Diego, California, have committed to getting 100 percent of their energy from clean, renewable sources by 2030.
American climate advocates have a message for the world: we aren't waiting around for Donald Trump to pull his head out of the sand, and neither should you. The Paris agreement is the collective achievement of leaders around the world, and it cannot and will not be derailed by the ignorance of one man whose term of office is highly uncertain.
Watch Trump's announcement here (starts 37 minutes into the video).