With a solar energy system, you generate your own electricity at home, which means you don't need to buy as much--or possibly any--from your utility company.
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Some utilities even compensate you for any excess electricity your system produces and sends to the grid through a policy called net metering (more on this below). And, depending on where you live, you may even have access to other solar incentives such as local rebates and tax credits. Your exact savings with solar will depend on a few factors, including how much you pay for electricity, but it’s usually a wise financial investment for most homeowners.
Many homeowners install solar panels for environmental and health benefits. Solar panels are a clean power source, meaning they don’t produce harmful greenhouse gas emissions like carbon dioxide or methane when generating electricity. Solar also results in fewer air pollutants (like sulfur dioxide and particulate matter), which can cause health problems. Reducing our reliance on fossil fuels keeps our air cleaner, slows the effects of climate change, and helps reduce disruption to wildlife habitats.
The easiest way to find out how much you pay for electricity (and how much electricity you use per month) is to take a look at your utility bill. (Review EnergySage's guide to reading your electric bill to find out exactly what to look for.) If your bill doesn’t show the rate, you can divide the total amount you owe by the total kilowatt-hour (kWh) of electricity you used to find your effective cost per kWh.
In most cases, adding solar panels increases your property value. Multiple studies have shown that homes with solar energy systems sell for more than homes without—it can add as much as $24,000 to the resale value! However, your property value will only increase if you own your solar panels, not if you’re leasing them. For details, check out our guide to selling your house with solar.
If you connect your solar panel system to the grid, you might be able to benefit from net metering—one of the best solar incentives for home solar. Your utility company essentially works like a bank account for all the energy your solar panels produce in a given month.
When the sun shines, your home first takes as much power as it needs from the solar panels. If the panels generate any excess energy, it gets sent back to the grid. In return, your utility gives you credits. When the sun isn’t shining and you need grid electricity to power your home, you won’t have to pay for it until those credits run out.
Most home appliances don't run on DC electricity, so devices called inverters convert it to alternating current (AC) electricity. Once converted, the electricity flows into your home, powering everything from your lights to your fridge to your cell charger. If your panels produce more electricity than you need, the excess goes to the grid (which is where net metering comes in) or a battery, if you have one installed.
It depends. Solar panels need sunlight to generate electricity. The more sunlight they get, the more power they generate. They’ll produce less energy when the sky is cloudy and won’t produce any energy after the sun sets. But with high electricity costs and financial incentives, solar is a smart choice even if you live in a cloudy state. For example, as of , the average solar homeowner in the State of Washington still saves more than $20,000 on electric bills over their system's 25-year lifespan.
Unless your solar energy system includes battery storage and you're fully off the grid, you'll still receive a bill from your utility. However, you can dramatically reduce your bill—or even cut it down to $0—with a solar panel system that matches your energy use.
Yes, it’s possible to go off the grid with a solar energy system that includes battery storage. But truthfully, it's costly and unnecessary for most homeowners, especially those who live in more urban areas.
The majority of homeowners who install solar panels on their property are still connected to the grid. This allows you to draw power from the grid when your system is not producing all the power you need and, if you have access to net metering, earn credits for the power you send to the grid when your panels are overproducing.
No. If your solar panel system is connected to the grid, it will shut off during a blackout to prevent emergency responders and electricity utility repair people from being injured by your panels sending power back to the grid. If you want to keep your lights on during power outages, you’ll need to pair your solar panel system with a solar battery.
Solar panel maintenance costs homeowners roughly $30 per kilowatt (kW) installed per year—about $330 per year for the average 11 kW system—according to a study by the National Renewable Energy Library (NREL). But, most solar panel owners will pay much less. This $30 per kW figure includes operations beyond routine maintenance, including insurance, asset management and security, and equipment replacement costs.
Truthfully, solar panel systems generally require little to no maintenance over their 25-to-35-year lifetime. Solar panels include durable tempered glass that can withstand most weather conditions and only require infrequent cleaning. If there’s a technical or mechanical issue, most equipment manufacturers include warranties that vary from 10 to 40 years, although terms depend on the company.
Solar panels usually still generate some electricity on snowy days. If there's snow sitting on your solar panels, it will significantly reduce their production. But, since most panels are tilted at an angle, snow tends to slide right off (and as a bonus, cleans your panels in the process), meaning the accumulation rarely lasts. Snow generally isn't heavy enough to cause structural issues with your panels. Still, you might want to consider snow guards to prevent sliding snow from potentially injuring you or your family members.
The cost of installing solar panels is about $30,000 before any incentives or rebates, but most homeowners pay less. The average U.S. solar shopper needs about 11 kilowatts (kW) of home solar to cover their electricity usage. Based on thousands of quotes in the EnergySage Marketplace, you'll pay about $20,948 to install a system around that size in after federal tax credits.
Solar rebates and incentives vary depending on where you live, who your utility provider is, and other criteria unique to your situation. The most significant solar incentive is available to homeowners nationwide—it’s the 30% federal investment tax credit (ITC), which allows you to deduct 30% of the cost of your solar energy system from your taxes. Some states offer additional tax credits, and certain municipalities and utilities offer other incentives, like cash rebates.
It depends on your reason for going solar. If you're interested in maximizing the financial returns of your solar energy system, buying your solar panel system is the best choice, either with cash or a loan. If you prioritize a low upfront-cost, maintenance-free way to reduce your energy bills and help the environment, you may want to consider a PPA.
We typically don’t recommend solar leases because they often lead to the lowest savings. And, with either a lease or a PPA, you won't be able to take advantage of financial incentives. But truly, it’s a personal choice that depends on your specific circumstances. If you're considering a solar lease or a PPA, do your research and read the agreement carefully before signing.
The main difference between secured and unsecured solar loans is that secured solar loans require that you promise an asset, usually your home, as collateral for the money you borrow. Unsecured solar loans don't require an asset, but their interest rates are generally higher to make up for the increased risk taken on by the lender. To understand which financing option is best, you can evaluate offers for secured and unsecured loans on EnergySage.
A lot of different institutions offer solar loans, including local and national banks, specialty financing companies, manufacturers, and credit unions. To choose the best solar loan, we recommend comparing options from a few financing providers. Look for ones with low upfront fees, even if that means higher interest rates—it will lead to better long-term savings, especially if you end up paying off your loan early (which most homeowners do).
If you can afford to pay your electric bill, you can afford to go solar. There are $0-down solar financing options, including both solar loans and solar leases/PPAs, that make it easy for homeowners to start saving on their electricity bills right from the start. Some financing options require certain credit scores, but shopping around will help you find one that works for you.
The ideal size of your solar energy system depends on your electricity usage and how much sun your roof gets, among other things. Look at your past electric bills and compare offers from licensed, pre-screened solar installers to determine the best system size for your needs. And, if you're considering future electrical upgrades, like heat pumps, an induction cooktop, or an EV charger, make sure to tell your installer so they can size your system to meet your future needs.
For maximum output, you'll want a roof that's roughly south-facing, has minimal shading, and is tilted between 15 and 40 degrees. But even if your roof doesn't have an ideal layout, solar is often still worth it. East or west-facing systems will produce plenty of power. And, you can always add racking equipment to change the angle of your solar panels relative to your roof.
It depends. Solar energy systems can last for 25 to 35 years. If you need to replace your roof within that time frame, removing and reinstalling your solar panels won't be cheap. So if you know your roof needs maintenance soon, we recommend getting it done before going solar.
Solar panel systems are built to last. Typically, they'll generate electricity for 25 to 35 years. Various components will need to be replaced at different times; for example, inverters generally last between 10 and 25 years. The solar panels themselves are very durable, capable of withstanding snow, wind, and hail, and are usually protected under warranties between 10 and 40 years.
If you own your solar energy system, your house will likely sell at a premium, possibly as much as $24,000 more. But if you lease solar panels and want to sell your home, it's a different story: You'll either need to buy out your lease before you put your house on the market, or work with your leasing company to transfer it to the new homeowner. For more information, check out this guide: Five questions to ask your real estate agent before selling your home with solar panels.
There are a few things to consider when choosing a solar installer. First, confirm that they are certified, licensed, insured, have relevant experience, and can provide references. All EnergySage-approved installers are pre-screened to ensure that they meet these high-quality standards.
Then, research what the company has to offer—do they install high-quality equipment? How do their warranties compare to others? Do they perform their installations in-house or hire contractors? Finally, it’s a good idea to meet with your solar installer in person before signing an agreement to ensure you're comfortable working with them.
If you have multiple quotes from different solar installers, it can be hard to pick one. Not all solar installers use the same assumptions and metrics when providing homeowners with equipment and financing options. And the lowest quote isn’t always the best value.
We make it easy to compare quotes side-by-side so you understand the cost and benefits of each one. If you already have some quotes, upload them to EnergySage! You can compare them to quotes you receive in the Marketplace.
On a technical level, there are three main types of solar panels: monocrystalline (most efficient), polycrystalline (more budget-friendly), and thin-film (versatile, good for RVs or tiny homes). Within those three types, there are dozens of manufacturers. We rate the equipment that's quoted in our Marketplace (solar panels, inverters, and batteries) so you can easily compare it side-by-side. These are the top solar panel brands we recommend.
There are three types of inverters: string/central inverters, microinverters, and optimized inverters. Inverters convert your panels' electricity from direct current (DC) to alternating current (AC) electricity. In general, microinverters and optimized inverters are best for shady roofs but tend to cost more. If you have a pretty simple roof with minimal shading, you'll save a lot by choosing a string inverter. Here's our list of the best inverters.
After you compare quotes and find your desired solar installer on EnergySage, your installer will conduct a site visit to assess your property. Once you accept a quote on EnergySage, your installer will file the paperwork necessary to approve your system. The solar panel system installation usually only takes a few days to complete, but the entire installation process—from site assessment to commissioning—can take anywhere from two to six months due to scheduling constraints around permitting, installation, inspections, utility interconnection, and more.
If you want detailed information about how much energy your solar panel system produces, then yes, you should ask your installer about solar monitoring system options. In many cases, solar lease agreements will include free programs to track your system's performance. You may need to pay for one separately if you own your system.
No, as long as you're connected to the grid, your solar panel system doesn't necessarily need a battery. Your excess power will flow back to the grid, and you can draw from the grid if you need more electricity than your panels generate.
If you want backup power during outages, you will need a battery. And, if you don't have access to one-to-one net metering, batteries can significantly increase your savings with solar, making them very worthwhile.
When you subscribe to a community solar project, you receive a portion of the energy generated by a large solar panel system located in your area. Unlike a home solar panel system, a community solar project isn't installed on your roof. Community solar and rooftop solar both result in net savings on your electricity bill, but each offers distinct benefits. Compare rooftop vs. community solar to see which is right for you.
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There are two models of community solar: ownership-based and subscription-based. Ownership allows you to make an up-front investment to save money in the future, while subscription-based programs offer savings over a set period. When comparing community solar offers, you’ll find different types of structures within these tiers—it all varies depending on where you live. Before selecting a project, consider its location and how soon it will begin delivering savings.
If you move within the same service area, you may be able to keep your share of the community solar project. If you move outside the service area, you could sell your share (if you own it), transfer your subscription to another account, or potentially pay an early cancellation fee (if you have a subscription-based model). Community solar cancellation terms vary by project and provider, so be sure to ask before you sign up.
When you purchase bill credits from your community solar provider, you get them at a 5-20% discount, depending on your initial contract. If your community solar subscription includes a 10% discount on bill credits, you'll receive $1 towards your utility bill charges for every 90 cents you pay your community solar provider, which means you pocket 10 cents of savings.
While 10 cents doesn't seem like much, over the hundreds or thousands you spend on electric bills each year, 90 cents for every dollar leads to decent savings. If you currently spend $200 every month on electricity, you could save $20 every bill, or $240 every year with community solar.
By signing up for a community solar project, you'll receive virtual net metering credits on your electric bill. Each credit is equal to one kilowatt-hour (kWh) of electricity. Let’s say, for example, you use 1,000 kWh at home in one month, and your community solar share produces 800 kWh. The 800 kWh in credits from your share are applied to your electric bill, so your utility bills you only for the remaining 200 kWh. You pay your community solar provider directly for the cost of your share or subscription.
Energy bills are on the rise. As the weather heats up, it's going to take more energy to cool the house and keep everyone comfortable. And when fall and winter come around again, it's the same story with running the heat. Plus, pretty much everything else also requires electricity, from the lights, television, computers and phones to gaming consoles, home appliances, EVs and more. All these power needs come with rising energy bills.
A recent CNET survey found that high energy bills are stressing out 78% of US adults, but 70% of those Americans are looking into ways to be more energy efficient. Switching to solar power is a logical next step for homeowners looking to lessen their monthly bills, perhaps give back to the grid on low energy days and bank solar energy for when the grid goes down due to overwhelming demand or a downed transformer. But 32% are also concerned about the cost of energy-efficient projects, too, though they're still a worthwhile investment to consider.
Installing solar panels is a smart investment that can increase your home's value and reduce your energy bills, but with tens of thousands of dollars on the line, you can't take it lightly, no matter how many federal or local incentives may be available. Knowing the right kind of questions to ask solar companies in your area can ensure a smooth installation experience and save you thousands over your system's lifetime.
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Going solar is a big step in the right direction, but if you've never dealt with solar companies before, it can be overwhelming, even intimidating. It's a common issue on Reddit, with people asking others who've gone through the process for advice.
Through research and the expert knowledge of CNET's energy team, we've gathered the top 15 questions -- and expected answers -- you should ask before you sign a contract from any solar installer.
The solar industry's recent boom means that more companies than ever are getting in on the action. That's generally a good thing, but not all of them are experienced installers or even legitimate businesses.
"Sometimes these installation companies are fly-by-night. They open one month and close the next," said Jani Hale, help desk manager with Solar United Neighbors, a nonprofit that helps consumers go solar by forming residential co-ops and providing educational support. Ideally, an installer will have been in business for at least three years or more.
Online reviews for solar installers are a great start, but they're not as reliable as an industry certification. The National American Board of Certified Energy Practitioners (NABCEP) sets standards for knowledge, experience and professionalism in the renewable energy sector. "We recommend that at least one person in that company be NABCEP certified to ensure that they have the appropriate knowledge and skills," Hale said.
Additional certifications can tell you more about a company's labor practices and environmental standards. B Corp-certified companies are required to meet certain social and environmental standards in their operations, including fair labor practices and wages. "If installers are getting a fair wage, they're going to be much more likely to do a quality installation," said Micah Gold-Markel, who founded Philadelphia-based installer Solar States in .
"There are different rules for different states, so making sure that the person you're talking to can explain the rules in your state very clearly is extremely important," said Gold-Markel.
For example, California law restricts the backflow of residential solar to the grid. In Pennsylvania, residential systems can send unlimited power back to the grid, with utilities required to pay the full retail price. Those state-by-state differences can significantly affect the payback period for your system.
In addition to the 30% federal tax credit offered by the Inflation Reduction Act, you may be eligible for additional credits or incentives based on other factors. Those incentives can add up, and that's before any local or utility-specific incentives come into play. A knowledgeable solar installer will be able to tell you about federal, state and local incentives that can help you save money. "You can get between 30% and 60% of the cost of your solar back in tax credits, depending on how you use these various federal incentives," Gold-Markel said.
For example, if you're purchasing solar for your business it may be possible to accelerate the depreciation of that asset, allowing for a larger tax deduction in the initial years of your system. You could also be eligible for additional credits if your installer uses American-made materials.
Ask about the equipment an installer plans to use and why they've made that choice. A company that only uses one size of panel may not be the best fit if your home has a complex or architecturally elaborate roof. "Beware of salespersons who imply that there's only one type of solar system or battery storage," Hale said. "There are many brands of solar equipment and system designs to choose from."
Gold-Markel also recommends inquiring about where equipment was sourced, with a preference for panels that were manufactured in the US. "We are part of Amicus, a national cooperative of installers that buys ethically sourced solar panels," he says. "If you can find an Amicus installation professional in your area, you know you're getting a responsibly sourced system."
The age of your roof is a key consideration in going solar. Solar United Neighbors recommends replacing a roof with less than 10 to 15 years of life left before installing your system.
A competent solar installer should be able to give you an opinion of your roof's condition and make recommendations as part of their proposal. "They may not be roofers themselves, but they should be able to say, 'We see some damage on your roof and it would be a good idea if you got it replaced prior to going solar," Gold-Markel said.
Believe it or not, the salesperson you're speaking with might not work for the company that will actually do your installation. Make sure the installer you're signing on with will be the one to do the work.
"There are a lot of high-pressure marketing companies out there that are sort of posing as solar companies," Gold-Markel said. "All they do is marketing and sales, and then they pawn off the solar installation to some other company. That can be a real recipe for disaster."
You'll want to discuss a rough project timeline with any solar installer you're considering -- both in terms of when work will begin and how long it will take to get your solar installation up and running. Hale noted that's a question a reputable installer should be asking you.
"Installers should ask what your timeframe is for getting your system installed, so they can give you the room to do your research," she said. "The really good installers will wait for you to come back to them."
Gold-Markel recommends inquiring about extended warranties or operations and maintenance packages that cover the entire life of the system, which is typically around 25 years. "Ask if you can also get an operations and maintenance package, an extended warranty that covers the lifespan of the solar or a longer warranty for the workmanship than may come with the contract," he said.
Due to high interest rates, financing your solar installation is a less attractive option than it was a few years ago. If you are considering financing, Gold-Markel said, be sure to inquire about any hidden fees that may be a part of the agreement. It's also important to look into the institution offering the loan, which may be a third party, and read the terms closely to understand what happens if you default.
Homeowners tend to focus on the total cost to install solar or the cost per panel. Be sure to compare the cost in dollars per watt when comparing solar installers, Hale said. Two solar systems may have a similar overall cost, but the wattage generated can differ based on panel size and capacity. The system with the lower cost per watt is the better deal.
A good solar installer should make it easy to understand how much of your household's power consumption can be met by your solar system. Factors like weather, shade, roof size and household energy use will all affect how much power your panels will generate.
Information about how much of your household's electricity will be offset by your system should be included in a reputable solar installer's proposal for your project, and installers should be forthcoming about this information. "If that's clearly laid out in a proposal, then nine times out of ten, that's a green flag," Hale said.
Your discussions with solar installers should not only estimate how much you'll save over the life of your system but also include how that estimate was derived.
Installers calculate lifetime savings using a metric called a utility escalator. This percentage describes the projected inflation rate of the cost of power and is based on historical trends (and is different from the escalators in a power purchase agreement). Solar United Neighbors recommends checking that the utility escalator used in competing proposals from different installers is the same to help you compare accurately.
It's not possible to ensure that every panel in your solar system will always produce power at the maximum level, said Gold-Markel, but a good installer should be able to guarantee your panels' performance within a reasonable range.
"If the overall power output is within a reasonable error rate of, say, 10% of what was predicted, then I think you should be happy with the outcome," he says.
Net metering policies in some states allow you to sell power generated by your solar system back to the public grid -- a significant solar incentive that can significantly reduce the payback period on your system. You don't typically sell that power to your energy utility directly.
Instead, homeowners often sell solar renewable energy certificates, or SRECs, through a third party known as a broker or aggregator. Your installer may be able to connect you with a broker. If you'd prefer to choose your own broker, Solar United Neighbors recommends double-checking your contract to make sure that's not prohibited in your agreement.
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