Key Questions and Answers About Going Solar

On February 25, 2026 By newsroom Topic: Solar Power Buyers Guide

Solar panels can significantly lower electricity costs, offer federal tax incentives, and provide long-term savings. However, going solar involves careful planning and consideration. Here are essential factors to weigh before making the leap.

Is Solar Worth It?

Break-Even Point: The average homeowner breaks even in 8.7 years, but it depends on:
Monthly electricity costs.
Solar system output potential (check tools like Google Project Sunroof or EnergySage).
How long you plan to stay in your home.
Tip: If you plan to sell your home before breaking even, solar may not be the best investment.

Is Your Home a Candidate for Solar?

Roof Age: Avoid installing solar panels on roofs over 10 years old—you’ll likely need to reroof before the panels' 25-year lifespan ends.
Sunlight Access: Solar reps will evaluate shade and structural feasibility during a free consultation.
HOA or Municipal Restrictions: Check local rules on panel type and placement before proceeding.

What Incentives Can Save You Money?

Federal Solar Tax Credit:
- Covers 30% of system costs, including installation.
- Available through 2033; applies to primary and secondary U.S. residences.

State and Local Incentives:
- Examples include sales tax exemptions and tax rebates (check Solar.com for options in your state).

Selling Excess Energy:
- In some states, you can trade Solar Renewable Energy Certificates (SRECs) for additional income.

What Should You Know About Leasing Solar?

Pros: No upfront cost; maintenance included.
Cons:
You don’t own the system, so you lose out on tax credits and rebates.
Leasing payments can increase yearly, unlike fixed loan payments.
Selling your home becomes complicated—buyers must assume the lease or you pay a buyout fee.
Lease payments may count as debt when buyers apply for a mortgage.

How Else Can You Finance Solar?

Home Equity Loan/HELOC:
- Lower interest rates than personal or solar loans.
- Interest may be tax-deductible if used for home improvement.

Solar Loans:
- Offered by solar companies but often have higher interest rates and fees.
- Avoid loans with high dealer markups (up to 30%).

Fannie Mae’s HomeStyle Energy Mortgage:
- Bundle solar financing into your home purchase or refinance.

Comparison Tools:
- Use Bankrate or Lending Tree to find the best interest rates and terms.

How Can You Find the Best Solar Installer?

Research Reputable Companies:
Use platforms like EnergySage, SolarReviews, and the Better Business Bureau to evaluate installers.
Verify certifications through the North American Board of Certified Energy Practitioners (NABCEP).
Tips:
Look for experienced companies with in-house installers.
Avoid aggressive sales tactics; focus on verified reviews and recommendations from neighbors.

How Do You Compare Solar Proposals?

Price per Watt: Lower cost per watt = better value.

Warranties: Aim for at least 25 years on panels and 10–25 years on inverters.

Rated Power: Prefer 420W–440W panels for higher efficiency.

Annual Production: Oversize your system if you anticipate increased future power needs (e.g., adding an EV).

Equipment Quality:
- Panels: Look for highly rated brands like LG or QCell.
- Inverters: Opt for microinverters over string inverters for reliability.

Energy-Saving Alternatives to Solar

Community Solar: Join local solar farms and earn credits on your utility bill—no installation required.

Energy-Efficient Upgrades: Consider upgrading appliances (e.g., water heaters, refrigerators) to reduce energy consumption before investing in solar.

Bottom Line

Solar can be a powerful investment if your home is suitable, and you plan to stay long-term. Research financing options, incentives, and reputable installers to maximize savings and benefits.