Learn About Solar Energy

The national average for a residential solar system is about $2.50–$3.50 per watt before incentives, which puts a typical 7–9 kW system at $18,000–$32,000 installed. The federal residential tax credit expired December 31, 2025, so there is no federal credit to reduce costs for new homeowner-owned installations in 2026. State rebates and utility incentives can still reduce costs in many states. Prices vary by location, installer, and panel brand.

Without the federal ITC (which expired December 31, 2025 for residential installations), the national average payback period for new 2026 installations is approximately 10–14 years depending on your state's electricity rates, available state incentives, and local sun hours. Homeowners with strong state rebates or high utility rates may still achieve payback in 8–10 years. After payback, you essentially generate free electricity for the remainder of the system's 25–30 year life. Our Solar Payback Period Calculator can estimate your specific timeline.

South-facing roofs produce the most energy in the northern hemisphere, but east- and west-facing roofs can still be highly effective — typically generating 75–90% of the output a south-facing roof would produce. North-facing roofs are generally not suitable. Flat roofs work well since panels can be angled in any direction. Your installer will assess your specific roof and shading during the design phase.

If you have a standard grid-tied solar system without battery storage, your panels will automatically shut off during a power outage — this is required by law to protect utility workers. To maintain power during outages, you need a battery storage system like the Tesla Powerwall or Enphase IQ Battery, or a backup generator. Grid-tied systems with battery backup can keep essential circuits running indefinitely on solar and stored energy.

Recent studies show that owned solar panels increase home values by approximately 6–7% on average — about $29,000 on the current median US home price. A 2025 SolarReviews study found homes with solar sold for 6.9% more than comparable homes without solar. The increase varies by location, system size, and local electricity rates. Leased systems generally do not increase home value and can complicate the sale, as the lease must be transferred to the buyer or paid off.

Solar panels require very little maintenance. Occasional cleaning (especially in dusty climates) helps maintain output, but rain handles this in most areas. Inverters typically last 10–15 years and may need replacement during the panel's 25–30 year life. Most reputable installers offer monitoring systems that alert you if production drops unexpectedly. Annual professional inspections are a good idea but not strictly necessary.

An SREC is a certificate that represents one megawatt-hour (MWh) of solar electricity generation. In states with active SREC markets (Maryland, Massachusetts, New Jersey, Pennsylvania, Washington D.C., and others), you can sell these certificates to utilities who need them to meet renewable energy requirements. SREC prices vary by state and market conditions, but can add hundreds or even thousands of dollars per year in income for solar homeowners. Note: Ohio's SREC market largely collapsed after 2014 and is not currently active for most homeowners.

If you rent or don't have a suitable roof, community solar may be an option. Community solar programs let you subscribe to a portion of a shared solar farm and receive bill credits for the energy it generates, without any installation at your property. These programs are expanding across the country. Our Community Solar Savings Calculator can help you estimate the potential savings in your area.