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The Pros & Cons of Solar Energy
- David Kranker
- Jan 28
- 10 min read
Electricity prices in the U.S. have risen steadily over the past decade, with the Energy Information Administration reporting an average residential increase of more than 20 percent since 2013. At the same time, solar panel prices have dropped significantly, making solar power a highly attractive option for many property owners. Consequently, solar installations continue to grow across residential, agricultural, and commercial sites.
Solar energy converts sunlight into usable electricity through photovoltaic panels, reducing reliance on utility-supplied power. While it has clear advantages, it also has limited drawbacks that you’ll want to take into account before scheduling an estimate. In this guide, we review the pros and cons of solar energy so you can determine whether a system installation is right for your property.
What You Need to Know About Solar Energy Systems
As we stated above, solar energy is electricity generated from sunlight using photovoltaic cells built into solar panels. Each panel contains silicon cells that release electrons when exposed to sunlight, creating direct current electricity. An inverter converts that electricity into alternating current, which powers lights, appliances, and equipment inside a building. If the system produces more electricity than the property uses at that moment, the excess typically flows to the utility grid under a net metering agreement.
Solar systems fall into three main categories based on how they interact with the grid:
Grid-tied systems connect directly to the utility and shut down during outages for safety reasons.
Hybrid systems connect to the grid and include battery storage, which supplies power during outages or at night.
Off-grid systems operate without a utility connection and rely entirely on panels and batteries, making them common in remote areas but rare for standard homes due to higher equipment costs.
Solar installations also differ by setup. Rooftop systems attach to existing structures and use available roof space, which keeps installation footprints small. In contrast, ground-mounted systems sit on open land and support ideal panel orientation and tilt, which can raise energy production by 10 to 20 percent compared to some roof layouts. Commercial and agricultural systems use larger arrays to offset heavy daytime electricity use from refrigeration, machinery, or processing equipment.
The Pros of Solar Energy
Solar energy delivers measurable benefits tied to cost control, emissions reduction, and long-term electricity supply. These advantages, which show up in utility bills, property value data, and system performance records, include those outlined below.
Renewable and Sustainable Energy Source
According to NASA data, enough sunlight hits the planet in one hour to meet global electricity demand for an entire year. While no system captures all of that energy, this scale explains why solar power supports long-term electricity supply without fuel extraction.
Unlike coal or natural gas plants, solar panels produce electricity without burning material. That eliminates fuel price swings tied to supply shortages or geopolitical events. Property owners with solar systems can also lock in a portion of their electricity production for decades, since panels continue producing power as long as sunlight reaches them.
Environmental Benefits
Solar panels generate electricity without releasing carbon dioxide during operation. The National Renewable Energy Laboratory estimates that an average residential solar system offsets three to four metric tons of carbon emissions each year. That equals removing one gasoline-powered car from the road annually. Over a 25-year panel lifespan, the emissions reduction adds up to 75 to 100 metric tons per home.
Solar energy also reduces air pollutants linked to fossil fuel combustion. Coal and gas plants release sulfur dioxide, nitrogen oxides, and particulate matter, which contribute to respiratory illness and smog. Solar panels do not produce these byproducts. This difference has real public health value, particularly in areas with a denser power generation infrastructure.
Long-Term Electricity Cost Control
Solar energy systems reduce or eliminate monthly electric bills by generating power on-site. A household that uses 900 kilowatt-hours per month and installs a system sized to match that use can offset nearly all grid purchases during daylight hours. Over time, this offsets thousands of dollars in utility charges. The exact savings depend on local rates, usage patterns, and system size.
Utility electricity prices tend to rise over time due to fuel costs, grid upgrades, and regulatory requirements. Solar owners avoid much of that expense because their panels produce electricity at a fixed cost after installation. Once the system pays for itself, the remaining years of production deliver electricity with no fuel expense. This creates a predictable long-term household energy budget.
Tax Credits and Incentive Programs
Some states and utility providers offer billing credits that improve the value of solar electricity sent to the grid. Under net metering or similar programs, excess daytime production offsets electricity used later, such as during evenings or winter months. The value of these credits, which varies by utility, is written into local tariff schedules. In areas with full retail credit, exported electricity can offset nearly one-for-one against consumption.
Several states also offer rebates or performance-based incentives that pay a fixed amount per installed watt or per kilowatt-hour produced. Availability depends on funding levels and program rules, which can change year to year.
Property Value Impact
Multiple real estate studies show that homes with owned solar systems sell at higher prices than comparable non-solar homes. A Lawrence Berkeley National Laboratory analysis found that solar-equipped homes sold for an average premium of about $4 per watt of installed capacity. A 6-kilowatt system added roughly $24,000 to resale value in markets with strong solar adoption. This is because homebuyers see lower utility costs as a built-in benefit.
Solar panels also appeal to commercial buyers wanting to lower their operating expenses. Warehouses, farms, and retail buildings with on-site generation are much more likely to attract tenants interested in long-term occupancy. This advantage is especially appealing in areas with high electricity rates or demand charges.
Low Operating and Maintenance Requirements
Solar panels have no moving parts, which limits mechanical failure. Most manufacturers provide 25-year performance warranties guaranteeing production levels above 80 percent of original output. Inverter replacement represents the most common long-term maintenance cost, usually required once during the system’s lifespan.
Routine monitoring systems track daily energy production and flag performance drops. This allows quick identification of wiring issues or inverter faults. Compared to generators or fuel-based systems, solar arrays are easy to operate, and maintenance costs remain low and predictable.
Energy Independence and Backup Options
Solar energy systems reduce reliance on centralized power generation. During peak demand periods, on-site generation lowers strain on the grid. When paired with battery storage, solar systems supply electricity during outages caused by storms or equipment failure. A standard home battery can power refrigeration, lighting, and communications for several hours or longer, depending on usage.
Even without batteries, solar reduces grid dependence during normal operation. Businesses with daytime energy demand benefit the most, since panels produce power during operating hours. This self-generation lowers the risk of unexpected utility demand charges and service interruptions.
Employment and Economic Activity
The U.S. solar industry supports hundreds of thousands of jobs across installation, manufacturing, sales, and system maintenance. Solar employment grew faster than overall job growth for several years prior to 2020 and continues to rise as local installers hire electricians, roofers, and project managers, keeping labor spending within regional economies.
Utility-scale and distributed solar projects also expand tax bases for local governments. Land leases for ground-mounted arrays also provide steady income to property owners. These projects create long-term economic activity without fuel supply chains or waste disposal costs.
The Cons of Solar Energy
Despite its many advantages, solar energy has some drawbacks. While comparatively minor, you’ll want to consider them before scheduling an installation.
High Upfront Installation Costs
Solar installation requires a larger initial payment before savings begin. In 2024, the average U.S. residential solar system cost ranged from $20,000 to $30,000 before tax credits, depending on size and equipment. Even after applying the federal tax credit, homeowners still pay thousands out of pocket or commit to long-term financing. This entry cost limits access for property owners without sufficient tax liability or borrowing capacity.
Financing spreads payments over time but raises total system cost. For example, solar loans involve interest, which can push total repayment well above the original installation price. Leases and power purchase agreements remove upfront expense but prevent ownership, which blocks tax credits and reduces long-term value. These tradeoffs aren’t huge, but you’ll want to take them into account.
Dependence on Sunlight and Seasonal Output
Solar panels generate electricity only when sunlight reaches their surface. Cloud cover, snow, and shorter winter days reduce output, especially in northern states. A system in Delaware, for example, can produce 35 to 40 percent less electricity in December than in June due to lower sun angles and fewer daylight hours. This seasonal swing means you’re looking at grid reliance during low-production periods.
Daily production also peaks at midday, which doesn’t always match household energy use. Homes with heavy evening demand still draw power from the grid after sunset, and without battery storage, solar energy systems can’t supply electricity overnight. This timing mismatch can be an issue.
Site and Roof Limitations
Not all properties support a solar energy system installation. Roofs with heavy shading from trees or nearby buildings present challenges, and even partial shade on one panel can reduce total system production due to electrical string design. This means that a roof facing north or with shallow pitch may fail to produce enough electricity to justify installation.
Roof condition also affects feasibility. For example, asphalt shingles nearing the end of their lifespan require replacement before panel installation. Ground-mounted systems solve some of these problems but they need open land and involve extra permitting.
Energy Storage Costs and Limits
Battery systems store excess solar electricity for later use, but they add a lot of expense. For example, a single residential battery typically costs $10,000 to $15,000 installed and provides limited capacity. High-demand appliances such as HVAC systems also drain batteries quickly and most homes need careful load management during outages.
Batteries also degrade over time. Manufacturers rate many systems for 10 to 15 years, which means replacement before solar panels reach end of life. This replacement adds long-term cost that many savings estimates exclude. Storage improves reliability but reduces overall financial return.
Payback Period Variability
Solar savings depend heavily on local electricity rates, incentives, and system performance. In high-rate states, systems may recover costs in eight to ten years. In lower-rate regions, payback can exceed 15 years. This means that property owners who sell before breaking even may not recover their full investment value.
Changes in policy also affect payback. Reductions in net metering credits lower annual savings, and utility rate restructuring can make the recovery timeline longer. These factors can be inconvenient for property owners planning shorter occupancy periods.
Manufacturing and End-of-Life Issues
Solar panel production requires energy, raw materials, and chemical processing. The manufacturing creates emissions before panels begin producing clean electricity. Studies show most panels offset their production emissions within one to four years, but the environmental benefit increases only after that point.
Panel disposal presents another challenge. Recycling infrastructure for solar panels remains limited in many regions. Some panels end up in landfills when recycling access proves unavailable or expensive. Industry programs continue to expand recycling options, but coverage remains inconsistent.
Regulatory and Utility Constraints
Solar installation involves permits, inspections, and utility approval. Approval timelines vary by jurisdiction and can delay system activation by weeks or months. Some utilities also cap the number of net metering participants or reduce credit rates for new systems. These limits can directly affect your projected savings.
Interconnection rules also restrict system size. For example, local utilities may limit export capacity to protect grid stability. This can force some property owners to install smaller systems than their usage would support.
Who Should and Shouldn’t Consider Solar Energy
Solar energy performs best when site conditions, energy use, and ownership plans line up. Below are some situations where solar performs well and cases where results tend to fall short.
Properties Well Suited for Solar
Long-term property owners benefit most from solar because savings accumulate over time. Homes or businesses planning to stay in place for ten years or longer can recover installation costs and capture years of reduced electricity bills afterward. Properties with unshaded roofs facing south or west also generate higher annual output due to stronger afternoon sunlight. High daytime electricity use, such as refrigeration, office equipment, or farm operations, allows on-site generation to offset grid purchases directly.
Regions with higher utility rates also favor solar adoption. When electricity costs exceed national averages, each kilowatt-hour produced on-site replaces a more expensive grid charge. This shortens cost recovery timelines. Stable policy environments with consistent net metering rules further improve results by preserving export credit value year after year.
Properties Poorly Suited for Solar
Short-term ownership limits solar value. For example, property owners who sell within five to seven years may not recover installation costs through bill reductions alone. Shaded properties also lose production capacity quickly, and roofs nearing replacement age can add extra expense if panel removal becomes necessary.
Low electricity usage also weakens solar economics. For example:
Small households with modest consumption may not generate enough bill offset to justify system cost.
In regions with low utility rates and reduced export credits, savings accumulate slowly.
These conditions don’t prevent solar installation entirely, but they do impact the financial advantages and make recovery timelines longer.
How to Decide If Solar Is Right for You
If you’re considering solar, the criteria below can help you determine whether a system will work for your property.
Electricity Usage History: Utility bills show monthly and annual kilowatt-hour consumption, which determines system size. A home using 1,000 kilowatt-hours per month needs roughly double the capacity of a home using 500. Seasonal usage patterns also affect sizing, since summer air conditioning or winter heating can drive peak demand.
Sun Exposure: Roof direction, tilt, and shading directly control energy output. South- and west-facing roofs receive stronger afternoon sunlight, which raises annual production totals. On the other hand, trees, chimneys, and nearby buildings can block sunlight and reduce output even if shading occurs only part of the day.
Local Utility Rules and Credit Rates: Net metering policies define how excess electricity is credited. Some utilities offer full retail credit, while others apply reduced export rates. These differences affect annual savings totals, so you’ll want to make sure that they support a future solar energy installation.
Ownership Timeline: Solar value increases with time. If you’re planning to stay in place for ten or more years, you’ll see greater savings after installation costs are recovered. Shorter ownership periods reduce total benefit unless resale value offsets remaining costs.
Need an Expert Opinion on Solar Viability?
Solar energy systems perform best when sunlight access supports steady production and when utility rules allow fair credit for excess electricity. At the same time, preliminary costs, seasonal output swings, and storage limits are real constraints that affect total value. You’ll want to take all of them into account before making a decision.
For property owners seeking a site-based assessment, Solair Green Energy Advisors can conduct a site review and go over your utility usage, sun exposure, and any applicable incentives before making a recommendation. For more information or to schedule a no-obligation estimate, call 302-841-1108 or fill out our simple contact form.
