Rising electricity costs and carbon dioxide emissions have given rise to a demand for renewable, clean energy.
Solar power is the most popular way to achieve sustainability and energy independence. In fact, more than 3.2 Million US homes already have domestic solar, and the solar industry is growing 30% year on year.
So a lot of people ask "Are solar panels worth it?" and whether or not they should invest in them.
There are many financial and environmental benefits to installing solar energy systems in your home. But there are also some potential drawbacks that you need to consider before making the investment.
In this article, we discuss both the pros and cons of residential solar panels in 2026 so you can make an informed choice and decide whether solar is the right choice for you.
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Photovoltaic (PV) solar panels use semiconductor technology to directly convert sunlight into electricity through the photovoltaic effect, with no moving parts or emissions.
For the purposes of this guide, we are referring to domestic solar panel systems that are normally installed on the roof of your house and connected to a solar inverter.
A solar inverter converts the direct current (DC) electricity produced by solar panels into alternating current (AC) electricity that your home appliances can use.
Let's start by summarizing the main pros and cons of solar panels and the key takeaways you need to be aware of.
You've seen the main points at a glance for comparison. Now let's look at them in more detail.
To start with, let's look at the many advantages of using solar panels to power your home.
One of the benefits of installing solar panels on your home is that they allow you to generate your own power instead of relying on the grid. This can massively reduce your electricity bill, or even eliminate it entirely!
The average U.S. household uses 855 kWh/month of energy (EIA data). A kilowatt-hour (kWh) is a unit of energy measuring how much electricity you use over time - equivalent to running a 1,000-watt appliance for one hour.
The median new U.S. residential solar installation was 7.4 kW in 2023 (Lawrence Berkeley National Laboratory), but the actual power output depends on where you live.
For example, a median-sized installation in sunny locations such as Phoenix, AZ, generates 12,950 kWh/yr or 1,079 kWh/month (data from SRPnet). Based on the average consumption, this would more than cover your electricity bills.
In New York City, a median-sized installation produces 9,160 kWh per year or 763 kWh per month (using the NYC Solar Map’s yield assumption of 1,238 kWh per kW-year). That would cover about 89% of a typical U.S. home’s electricity consumption.
Larger solar panel systems allow you to go "off grid" and become entirely energy self-sufficient.
Off-grid means completely disconnecting from the public electricity network and relying solely on your solar panels and battery storage for all electrical power.
This is possible when your system is large enough to generate more power than you use, and you have the necessary battery capacity to store your excess energy.
While there are no official figures, estimates suggest between 180,000 and 750,000 households live off-grid in the U.S. ("Off-the-Grid in an On-Grid Nation," Smith-Cavros & Sunyak, 2019).
Even if you can't disconnect or don't want such a major lifestyle change, the long-term cost savings of solar PV systems are likely to be significant for many people.
The electricity use of an average U.S. household causes between 3.8 - 4.0 metric tons of CO₂ per year, according to U.S. Energy Information Administration data.
That’s roughly 0.31 - 0.33 tons per month (about 690 - 730 lb CO₂/month).
According to our research, 75.6% of overall greenhouse gas emissions are caused by the energy sector. Electricity generated by natural gas and coal-fired power stations has a devastating environmental impact.
In contrast, solar power is a clean, renewable energy source that does not release any harmful gases into the atmosphere.
The less energy you use from the grid, and the more renewable energy you produce yourself, the lower your carbon footprint. You also get secondary benefits such as reduced air and water pollution.
Solar panels are a cost-effective step towards living a more sustainable lifestyle.
Residential electricity prices are up 26% since 2019, increasing from 13.01¢ to 16.48¢ per kWh, according to the U.S. Energy Information Administration.
Unfortunately, there's very little we can do about it. Fossil fuels are a finite resource after all, so in the long term, they will only get more expensive.
But if you have solar panels, you're protected against all that. Once your solar system is installed, you have what is known as energy autonomy.
Energy autonomy means having complete control over your electricity production and consumption, independent of utility companies and external energy price fluctuations. All of your future electricity is free, and any energy price increase only means you're saving even more.
Homes with solar panels sold for 4.1% more on average nationwide than those without, according to an independent industry analysis (Zillow, 2019).
If you install solar and choose to sell your home, you can advertise to buyers that the property is already "energy independent".
31% of agents say solar panels increase a home’s perceived value. 13% believe high-performance homes can command a 1 - 5% price premium (National Association of REALTORS Sustainability Report - Residential).
A typical solar panel warranty period is 25 years, and some manufacturers offer a 30-year warranty (but only for the first owner).
Solar panels aren't entirely maintenance-free, but they run very efficiently with minimal maintenance. There are very few moving parts that need to be replaced.
Typical residential PV operation & maintenance costs are $0 – $300/yr for a median 7.4 kW system, according to NREL estimates.
NREL also notes residential PV O&M costs fell 49% from 2010 to 2020 and tend to decline alongside system costs. Therefore, maintenance is likely to become even cheaper in the future.
A grid-linked solar system is connected to your local electricity network. It means your system can draw power from the grid when needed, but also send excess solar power back to the utility company.
If your solar panels generate more electricity than you use, then, depending on what state you live in, you can sell it back to the grid (known in the U.S. as Net Metering).
Net metering is a billing system that credits solar homeowners for excess electricity they generate and feed back into the power grid, effectively running your electricity meter backwards. There are similar schemes available in Canada, the UK, and other countries around the world.
How much you can “earn” for excess solar depends on the amount of excess energy your system generates and your state/utility tariff. To estimate your earnings, multiply exported kWh × your tariff’s export rate, and check whether your utility company pays cash or just bill credits.
Government incentives can meaningfully lower the cost of going solar. The following apply in 2025.
We've spoken about the benefits. However, there are also some potential disadvantages of solar energy that you need to consider.
Solar panels typically require an upfront investment that not everybody can afford. They're not suitable for every type of residence, and are hard to move once installed.
Here are the main drawbacks in more detail.
When you install solar panels, there is a large initial cost involved. Although the cost of installation is much cheaper than it used to be, and the government incentives and tax breaks help, the cost may still be beyond some people.
But how much does a typical solar panel system cost? State median prices range from $3.2 to $5.2/W, That means a median-sized 7.4 kW solar panel installation costs between $23,700 and $38,500 (data from Lawrence Berkeley National Laboratory). That's before the discounts and incentives mentioned earlier.
With the 30% Residential Clean Energy Credit applied, the cost falls to between $16,950 and $26,950.
It is possible to buy solar panels on finance. So-called solar loans cover the cost of purchase and installation. However, typical APRs (annual percentage rates) can be up to 36% (Nerdwallet). Therefore, you need to consider the interest payable and perform a full cost-benefit analysis when deciding whether it is worth the investment.
Irrespective of how you finance the purchase, you should look at solar energy as a long-term investment. Although costs and electric bills vary, typically it takes around 8 years for your home solar power system to pay for itself. After that, you enjoy free electricity for the remainder of the life of your system.
Rooftop solar systems take up a lot of space, and property constraints mean they won't be suitable for everyone.
But how much space do you need? A typical U.S. domestic solar panel installation requires 350 - 500 sq ft of clear, shade-free roof (NREL).
You can still install solar panels if you have less available space than this, but your system will be smaller and will generate less power.
If you live in a condo or another shared building, you may not have access to the roof, unless you can persuade the management company and other residents to install communal solar panels.
Even if you have a single-family dwelling, certain types of roofing material, such as slate, make it difficult to install solar cells.
However, putting panels on your roof is not the only way to go solar at home. There are other solar technology alternatives you can look at, such as ground solar cells in your garden.
Once your home solar system is installed, it generally stays where it is. Solar systems can be moved, but the labor and transport costs make this prohibitive.
Removal and reinstallation costs range from $200 to $300 per panel (EnergySage, Paradise Solar).
You will also need to pay for transportation to your new location and any new license fees. This brings the typical relocation costs for a median-sized system to between $7,000 and $10,000.
Given that this is around 50% of the cost of a new installation, many solar owners choose to sell their systems along with their property, rather than move them.
You'll likely recoup most of the cost through the increased value of your property when you sell it, but you would need to install solar power again at your new home if it doesn't already have its own solar system in place.
It may seem obvious, but many people overlook the simple fact that solar panels are weather-dependent. They only produce electricity when there is sunlight, so they don't work at night.
If you remain connected to the grid, that's not a problem. You can simply use the grid's power at night, and generate electricity from your solar panels during the day (selling back any excess to keep your electric bill low or zero).
However, if you intend to go off-grid, you need a way of storing your electricity so you don't lose power at night.
If you want to go off-grid entirely, you need to invest in solar batteries to store your excess energy so that you still have power when your solar panels aren't generating electricity.
In 2023, the typical price premium for pairing storage with residential PV was $750 to $1,000 per kWh of battery capacity (Lawrence Berkeley National Laboratory).
A solar battery, such as the Tesla Powerwall, costs up to $9,300 before incentives. Applying the Residential Clean Energy Credit brings that down to $6,510. You may need more than one, depending on how much energy you produce and how much power your home consumes.
However, leading labs and analysts expect battery costs to keep declining this decade. NREL projects much lower system costs by 2035, and Argonne sees U.S. pack costs sliding toward $86 per kWh.
In the meantime, you can always opt for a net metering solution and still benefit from all the advantages.
Although it is possible to install a solar panel system yourself, it is a job that's probably beyond the scope of most DIYers.
Smaller systems such as the Zendure SolarFlow Kit are suitable for self-installation. But for larger systems, most people need to find a competent local tradesman for solar panel installation.
Some of the best solar companies are booked up months in advance. However, don't be tempted to choose an unqualified installer just because they can get the job done quicker.
Be sure to do your research and don't be swayed by pushy salesmen. Contact more than one solar company in your area and compare prices and reviews before deciding which one to buy from.
Solar technology is rapidly improving, but it's not yet perfect. To understand the current limitations, you need to know what is meant by solar panel efficiency.
Solar panel efficiency measures the percentage of sunlight hitting a panel that is converted into usable electricity. For example, a 20% efficient panel converts one-fifth of the sun's energy into electrical power.
Currently, the best solar panels are more than 24% efficient, according to NREL’s “Champion Photovoltaic Module Efficiency” chart. Maxeon’s current flagship residential panel (Maxeon 7) lists up to 24.1% efficiency on its datasheet
Most panels are between 20% and 22%, and their performance degrades slowly over time until the point they need to be replaced.
Performance degradation refers to the gradual decline in a solar panel's electricity output over time. They typically lose about 0.5% of efficiency per year due to weather exposure and normal aging (NREL).
However, as technology improves, researchers have now found a way to improve solar cell efficiency to 25% (MIT News). So we could well see far more effective domestic installations available in the near future.
Solar payback period is the time it takes for your electricity bill savings to equal the total cost of your solar installation, after which your solar power is essentially free.
You need to work out the setup cost and divide that by how much money you'll save with solar per annum, based on your current energy bills.
In the U.S., the average solar system takes 8-12 years to break even, but this varies depending on your household electricity consumption and where you live.
Residents of Massachusetts and New York, for example, can achieve payback in around 3.5 years according to current data.
The cheapest domestic solar panel systems retail for under $4000. For example, the Zendure SolarFlow Kit costs $3,932.00 and is suitable for DIY installation.
However, cheaper systems often have a smaller capacity. The Zendure kit can handle 1.8kW of input and can output up to 900W of AC current to your home. This is far less than the median-size 7.4kW installation, so it may not be enough to power your home entirely.
Cheaper systems still save money on your utility bills, but may not allow you to go off-grid entirely unless your power consumption is lower than average.
There are pros and cons of solar energy, and it might not be right for everybody. A home solar system is a source of renewable energy that can save you a lot of money on your electricity bills, while reducing carbon emissions.
However, despite being a good long-term investment, the upfront costs and other installation considerations do mean it's not suitable for everybody.
I personally have solar panels on my home, and I don't regret that decision for one second. But you need to examine the facts as I've explained them above and decide whether it's the right move for you.
Yes, according to a Forbes survey, 89.6% of homeowners with solar panels say they are satisfied with their choice.
Yes, you can sell solar energy, depending on where you live. If your solar panels produce more energy than you use, then you have the option of selling the excess energy back to the grid.
You can store solar energy using technology that is currently available, and many families have chosen to do this and go "off-grid."
However, storage is expensive and might not be within everyone's price range at the moment.
Choosing to go off-grid with solar energy means embracing a self-sufficient lifestyle where you're responsible for generating and managing your own electricity. This shift requires a mindful approach to energy usage, as your supply depends on the solar power you produce.
You'll need to be prepared for the initial cost of buying and installing solar panels and batteries. Regular maintenance of your system is crucial. However, this lifestyle offers independence from utility companies, protection from energy price increases, and a reduced environmental impact, aligning with sustainable living practices.
Yes, it's highly likely. As with any evolving technology, we would expect the cost of a home solar system and solar batteries to reduce over time.
However, you should consider the effect of policy changes - government tax incentives will start to wind down at some point. Also, if you decide to wait for prices to reduce, you'll still be paying full price, be vulnerable to increasing electricity costs, AND contributing to ongoing pollution from fossil fuels.
So waiting for solar panel costs to come down may not actually be a financially or environmentally sound decision.
NASA scientists say that the sun will continue to shine for about another 5 billion years, making it the most reliable renewable energy source at our disposal.
Your home solar systems won't last as long as that, but they are guaranteed for at least 25-30 years and could conceivably last a lot longer than that before they need to be replaced or upgraded.
Adding solar panels to your home is the perfect way to cut your electric bill and reduce dependency on fossil fuels that harm the environment.
A residential solar system can generate power from the sun's energy for many years to come. It pays for itself after around 8 years, giving you free power for the remainder of its lifespan.
We've examined all the solar energy pros and cons, and yes, there are a few potential drawbacks that mean solar isn't right for everyone in 2025. But if you do have a suitable home and the money to invest, solar systems are a fantastic way to reduce both your environmental impact and your electric bill.
