Solar Panels

Buying solar panels in 2024: The complete guide

November 07, 2022
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Ana Anderson

Rooftop solar panels used to be luxury items but that's no longer the case. Whether you want to save thousands on electric bills, lower your carbon footprint, or fully electrify your home, going solar is almost always the right decision if you own your home.

Adding solar panels is a great long-term investment. It can boost your home's value and minimize your electric bill. It's also a big purchase, so it's important to make sure it will pay off before you make a final decision.

Below, we'll explain how to decide if solar will work for your home, and how to get solar panels at the best price. It all comes down to your roof, how much you pay for electricity, and your eligibility for incentives.

DID YOU KNOW?
  • You don't need to live somewhere warm or with abundant sunshine to save with solar.
  • Most homeowners will save tens of thousands of dollars by going solar.
  • Solar panels aren't free, but they do come with great incentives.
  • The best solar equipment for you might not be the best solar equipment for your neighbors.
  • There are ways to go solar without installing a single panel on your property.
Will you save money with solar panels?

The average U.S. household spends about $1,747 annually on electricity, according to electricity cost and consumption data from the Energy Information Administration (EIA). Over 25 years, that adds up to $61,520 (assuming 2.45% annual inflation). You can easily lower (and sometimes even eliminate) these costs by installing a rooftop solar panel system.

Most households need an 11 kW system to fully cover their electricity usage. In 2024, an 11 kW solar panel system costs $22,022 upfront including installation costs and the federal solar tax credit (more on that later). This is a hefty price tag, but when you consider how much you otherwise would've spent on electricity, it's easy to understand why millions of homeowners have gone solar.

Solar is a long-term investment. Shoppers on the EnergySage Marketplace typically break even in about eight years. Remember that your costs and savings will ultimately depend on several factors, including where you live, how much you spend on electricity, and your home setup.

How do solar panels actually work?

We don't want to bore you with the nitty-gritty physics details, but at a high level, solar panels work by using sunlight to generate electricity through the photovoltaic effect. The process starts with solar cells, which absorb light, knocking electrons (aka carriers of electricity) loose. These electrons then flow, creating direct current (DC) electricity. Metal plates on the sides of each solar cell transfer the DC electricity to wires. At this point, inverters (more on these below) convert the DC electricity into alternating current (AC) electricity, which most common household appliances use. And voila – your solar panels have produced solar energy for your home!

Are you a good fit for solar?

You'll get the most out of this guide if you first understand your suitability for solar. Solar panels are an excellent investment for many homeowners but aren't right for everyone.

If you meet the following criteria, solar will probably work for your home. But, your home doesn't have to be a perfect fit for solar for you to benefit from it. Many homeowners will save money with the right installation or an alternative approach like a community solar subscription.

Are solar panels worth it?

If you've determined that you're a good fit for solar, it's probably worth the investment. But like any major financial decision, going solar has advantages and disadvantages you should consider first.

Pros of solar

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  1. You save on electric bills: The average homeowner saves between $20,000 and $90,000 on electric bills over the life of their solar panel system. If you electrify home appliances, like your heating & cooling system, car, or cooktop, you can often lower your other energy bills with solar.
  2. Your home value could increase: Studies show that having a solar panel system increases home value by an average of 4%.
  3. You lower your carbon footprint: Unlike fossil fuels such as coal, oil, and natural gas, solar doesn't directly release carbon dioxide or other greenhouse gasses into the atmosphere (which contribute to climate change).

Cons of solar

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  1. It takes time to break even on your investment: On average, it takes EnergySage shoppers about eight years to save enough on their electric bills to cover the cost of their solar panel system. However, with some financing options, like $0-down loans, you can start saving on day one.
  2. Solar panels don't work at night: They need sunlight to generate electricity, so they don't work in the dark! You can pair your solar panels with a battery backup system to store excess electricity produced during the day for use at night. A battery will add to the cost of the system, so you'll want to factor that into your total cost of ownership and how much savings you're hoping to achieve.
  3. Your solar panels could (eventually) end up in a landfill: In the United States, solar panel recycling is still in its infancy, so today, most solar panels end up in landfills at the end of their lives. Some companies, like We Recycle Solar, are looking for ways to improve solar panel recycling in the future, but none of them have achieved widespread adoption yet.