Pros and cons of solar energy explained

If you're considering installing a solar panel system, it's important to weigh the benefits and drawbacks of going solar. Solar is a revolutionary energy solution for property owners of any type, but like any energy decision, choosing to go solar has various advantages and disadvantages you should keep in mind. In this article, we'll outline some of the most important pros and cons of installing solar.

The main advantages of solar energy make it an attractive option, whether your primary motivator is raising your home value, reducing your carbon footprint, or combating rising electricity costs. In addition to providing increased energy independence, a solar photovoltaic system will often pay for itself in electricity bill savings – incentives like the federal tax credit also help to reduce your up-front cost and increase your return on investment.

On the other hand, the key disadvantages of solar energy are that it doesn't work for every roof, it's not ideal if you're about to move, the upfront cost can be expensive, savings can be low if your electricity bills are low, and finding a local installer can sometimes be difficult.

Key pros and cons of solar energy

Installing a solar system in your home or business has many benefits. Here's our list of the most important advantages of solar energy to keep in mind:

1. Solar reduces (and sometimes eliminates) electric bills

2. Solar panels improve the value of your home

3. Going solar reduces your carbon emissions

4. A solar installation protects against rising energy costs

5. You can earn money back on your solar investment

6. Solar is a versatile energy source

7. You can often "sell" solar energy back to the grid

8. Solar is a low-maintenance energy source

1. Solar can drastically reduce or eliminate your electric bills

The number one benefit of solar panels is pretty straightforward. When you install solar power for your home, you generate your own electricity, become less reliant on your electric utility, and reduce your monthly electricity bill. A solar panel system typically has a 25- to 35-year lifespan, meaning you can cut your electricity costs for decades by going solar. Additionally, the cost of solar has decreased by more than 70 percent in the past decade, while the cost of electricity has risen by about five percent. This trend is expected to continue, and a solar energy system can help you gain control in the face of these rising costs.

2. Solar improves your home value

Millions of U.S. residents are interested in home solar panels but don't understand how it will impact their homes. Recent studies indicate that installing a solar system can increase your home's value by about four percent. So, even if you plan on moving, you could earn back your solar panel investment and then some when you sell your home. Whether you've been there for years or just moved into a new home, installing solar is a good investment for most homeowners.

3. Solar reduces carbon emissions

Solar is a renewable source of clean energy that can help reduce carbon dioxide and other greenhouse gas emissions, lowering your environmental impact. Unlike traditional fossil fuels like coal, oil, and natural gas, solar energy doesn't directly release pollutants that cause climate change (like carbon dioxide) into the atmosphere and water supply. Even compared to nuclear energy, solar comes out on top in terms of environmental impact.

4. Solar protects against rising energy costs

When you install solar panels on your home, you're locking in energy costs for the next 25+ years, provided you aren't leasing your system. Once you've paid off the initial cost of the solar panels, if you took out a loan, you'll generate your own electricity for free. The federal solar tax credit also provides a 30 percent tax credit for newly installed solar power systems, which can reduce your up-front costs.

5. Solar can pay you money while you're earning back your investment

Due to several solar incentives in certain states, solar panels can turn a profit in addition to generating bill savings that pay off the cost of the system. Solar renewable energy credits (SRECs) compensate you for the electricity that your solar panel system generates. If you live in a state where this incentive applies, you can expect both immediate and long-term returns from your solar investment.

6. Solar is the most versatile form of alternative energy

Unlike other types of alternative energy like wind and hydroelectric power, which need wide open spaces with ample wind changes and large water sources, solar is a source of energy that can be implemented in almost every environment. While output is lower on cloudy days or in climates without as much regular sun exposure, solar panels are almost always a great investment.

7. Solar electricity can be "sold" back to the grid

Depending on where you live, you could be eligible for net metering. Net metering is an electric billing tool that uses the electric grid to "store" excess energy produced by your solar panel system. As you send this energy to the grid, your utility company will provide you with bill credits – essentially; you'll be able to sell excess solar energy produced by your solar panels to your utility company in exchange for reduced utility bills. This will allow you greater energy independence without going completely "off-grid."

8. Solar is a low-maintenance energy source

If you choose an installer with EnergySage, qualified professionals will handle the installation completely. Once your panels are installed, they require very little maintenance compared to other forms of energy production. With no moving parts, your panels might only need an occasional cleaning after snow or inclement weather.

Solar isn't perfect – here are some disadvantages of solar energy to keep in mind when considering installing solar panels:

1. Solar doesn't work for every roof type

2. Solar isn't ideal if you're about to move

3. Low electricity costs = low savings

4. Upfront costs can be high

5. Solar panels don't work at night

6. Solar panels sometimes contain toxic metals

7. Finding the right installer can be a challenging process

1. Solar panels don't work for every type of roof

Rooftop solar panels are installed by connecting a mounting system (or "racking") to your roof. Certain roofing materials used in older or historical homes, such as slate or cedar tiles, can be difficult for solar installers to work with, creating a roadblock for solar power. Additionally, many homes and apartment buildings have skylights or rooftop additions like roof decks, making the solar installation process difficult or costly. Fortunately, in the long run, this challenge shouldn't be a barrier to the mass adoption of solar power in the U.S. If your home doesn't qualify for a rooftop solar installation, you still have options: you can still go solar by installing ground-mounted solar panels or subscribing to a local community solar farm.

2. Solar isn't ideal if you're about to move

Solar is a great financial investment, but it can take some time to reach the break-even point: the average solar panel payback period in the U.S. is around eight to nine years. For homeowners moving in the coming years, putting solar panels on their roof might not feel worthwhile. But, as previously discussed, solar can improve your property value and increase your return when you sell your home. A solar panel system warranty is often transferable depending on the company, so new homeowners can take advantage of the warranty that came with the panels you installed. So, as long as you plan to buy your system with a cash purchase or loan, this disadvantage of solar energy can be easily avoided.

3. If your electricity costs are low, so are your solar savings

The ultimate benefit of solar energy is that it will reduce your use of utility-provided electricity, increase your overall energy efficiency and save you money every month. However, that condition assumes a homeowner has sizable electric bills, to begin with. For a homeowner in a state like Louisiana, where the cost of electricity is often 25 percent lower than the national average, installing a solar panel system isn't nearly as attractive as it is to a Hawaii homeowner who pays more than double the average electric rate.

4. If you can't access solar financing, up-front solar costs can be intimidating

There's a nationwide debate about how much homeowners have to pay out-of-pocket for solar. The total out-of-pocket price tag for a solar panel system depends on tax credits, rebates, and the terms of your financing. Though you can quickly get a figure for the average cost of solar in your state or even a personalized estimate for your home, the simple answer is that the up-front cost of solar is sizable if you don't qualify for a zero-down solar loan. The disadvantage of solar energy here is clear: not everyone has the cash to make an investment of this size with an up-front payment. However, several solar financing options help you avoid this solar con, such as state-backed loan programs, leases, and power purchase agreements.

5. Solar panels don't work at night

Solar panels require light to absorb energy from the sun. Solar panels need light to absorb energy from the sun, meaning they don't work at night. However, by pairing your solar energy system with energy storage, you can use excess energy generated by your solar panels during the day and stored in your solar batteries even if there's no sunlight. Your system will also include inverters that can convert stored energy into usable energy for your home. If you live in a state with net metering, the generated excess energy will be sold back to the grid for credits on your electric bill.

6. Solar panels are sometimes made with toxic materials

Solar panels are made of monocrystalline, polycrystalline, or thin-film silicon. However, depending on the brand and model, they can also contain toxic heavy metals like lead and cadmium. This means that most old solar panels are considered hazardous waste by the EPA and must be disposed of properly. It's important to note that the use of these materials is declining as solar panel technology continues to evolve and improve.

7. Finding quality, local solar installers and easily comparing quotes can be difficult

Unfortunately, many homeowners associate home solar with pushy door-to-door solar sales reps that pressure consumers to sign a 20-year solar contract before they explain the full scope of the offer or the credibility of the solar company. Solar is one of the fastest-growing markets in the world, and plenty of companies are deploying aggressive sales tactics to get their fair share of the market. As a result, shopping for solar can be stressful and confusing for many people. Luckily, there are easier ways to shop for solar that puts the homeowner in control: the EnergySage Marketplace is a 100 percent online comparison-shopping platform that allows you to compare solar quotes from top pre-screened installers in your area.

While there are high upfront costs, going solar is worth it for most homeowners with eligible properties: in most scenarios, the pros of solar energy will far outweigh the cons. Solar is an increasingly more affordable renewable energy source, helping you reduce greenhouse gas emissions while saving considerable money on your electric bills.

As you consider investing in solar energy, it's essential to weigh the pros and cons as they relate to your home, geography and climate, and unique needs. Check out a few of the most common questions we get from shoppers about the benefits of solar panels to learn more:

What are the top advantages of solar energy?

The top advantages of solar energy are that it reduces electricity bills, increases the value of your home, cuts carbon emissions, protects against rising electricity costs, and helps you earn money back on your investment. Once installed, solar is pretty low maintenance and doesn't require much upkeep besides occasional cleaning.

What are the top disadvantages of solar energy?

Disadvantages of solar energy include a high initial cost, an inability to work on every roof type, and sometimes difficulty finding a reputable and local installer (depending on where you live).

Is solar energy good for the environment? 

Solar is a form of renewable energy that has numerous environmental benefits and leads to cleaner water and air. The only factor that some consider a downside is that there's a lack of recycling options for solar panels when they reach the end of their lifespan. Learn more about the advantages and disadvantages of renewable energy, and see what solar panel recycling options are available. Luckily, solar technology continues to improve and further extend the already long lifespan of solar panels, typically lasting anywhere from 25 to 35 years.

The best way to take advantage of all solar offers is to compare quotes. On the EnergySage Marketplace, you'll receive up to seven free quotes from installers in your area to easily compare your options, allowing you to find a system that meets your needs at the right price. Want a quick estimate of what a solar installation will cost? Check out our Solar Calculator.