The biggest pros of solar panels are lower electric bills for 25 years or more, protection from rising power prices, and a home that can sell for more if you own the system. The biggest cons are a high upfront price, a payback that can take a decade or longer, and utility rules that can pay little for the power you send back to the grid.
A typical U.S. home system costs about $22,976 in cash before incentives (7.95 kW, EcoGen Solar Cost Index, September 2026). The 30% federal homeowner tax credit ended for systems completed after December 31, 2025 (IRS). Solar is usually a good deal when four things line up: a sound roof with good sun, a high electricity rate, a utility that pays fairly for exports, and a plan to stay in the home for years.
Solar panel pros and cons, side by side
Most lists put the pros in one column and the cons in another. In real life they come in pairs: each benefit has a matching risk that can cancel it. The last line of each pair names the document that tells you which side wins for your home.
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Pro: Lower monthly electric bills
Every kilowatt-hour (kWh) your panels make and you use at home is one you don’t buy from the utility.
Con: Exports may earn very little
Power you send to the grid while you are out is credited at your utility’s export rate, which can be far below what you pay.
Check: your utility’s net metering or export tariff, and how much of your power you use during sunny hours.
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Pro: A shield against rising rates
The average U.S. home rate went from 17.3¢ per kWh in 2025 to a forecast 18.2¢ in 2026 and 18.7¢ in 2027 (EIA, October 2026). Power you make yourself doesn’t rise with it.
Con: Your bill rarely goes to zero
Fixed monthly charges, minimum bills and night-time use stay on your bill. If your rate is low to begin with, there is less to save.
Check: 12 months of bills. Split the per-kWh charges from the fixed fees that solar can’t touch.
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Pro: Decades of savings
Panels keep producing for 25 years or more, so savings can add up long after the system is paid off.
Con: A big upfront price and a long payback
About $22,976 in cash for a typical system, with no federal homeowner credit in 2026. In our national example, payback takes about 12.6 years when exports earn the full retail price and about 25.7 years when they earn a quarter of it (worth-it guide).
Check: the cash price on at least three quotes, and only incentives you can confirm for your state and utility.
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Pro: Higher home value, if you own it
A Berkeley Lab study of about 22,000 home sales in eight states found buyers paid about $4 per watt more for homes with owned solar, roughly $15,000 for an average system at the time (LBNL, 2015).
Con: Leases and loans can slow a sale
That study covered owned systems only. With a lease or PPA, the buyer has to take over the contract or the seller has to buy it out. A lender’s lien (a UCC filing) on the panels can cloud the title until it is released (CFPB).
Check: the contract’s sale and transfer section, and whether the lender files a lien on the panels.
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Pro: Little upkeep
Panels have no moving parts. Field studies put the median output loss at about 0.5% a year (NREL, Jordan and Kurtz), and rain usually does the cleaning.
Con: Repairs and roof work still happen
Inverters usually wear out before panels. A new roof means taking the panels off and putting them back. And if your installer closes, the workmanship warranty may go with it.
Check: who backs each warranty (panel maker, inverter maker, installer) and for how many years.
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Pro: Power during outages
With a home battery, solar can keep your key circuits running when the grid goes down.
Con: No battery, no backup
Standard grid-tied panels shut off during an outage for line-worker safety. A typical 13.5 kWh battery adds about $13,000 (DOE model via our cost guide).
Check: whether the quote includes a battery, and which circuits it will power.
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Pro: Cleaner electricity
A typical 7.95 kW system makes about 11,326 kWh a year (worth-it guide). At the EPA’s national factor, that is about 7.6 metric tons of CO₂ a year that grid power would otherwise emit (EPA).
Con: Recycling is still patchy
Panels contain glass, aluminum and small amounts of metals such as lead. The EPA is still writing rules to make panel recycling easier (EPA).
Check: what the installer or a recycler will do with old panels. See our disposal guide.
Advantages of solar panels
You buy less power from the utility
Savings come from the electricity you no longer buy. That makes your rate the biggest driver. In July 2026, home rates ran from about 12.7¢ per kWh in Louisiana to 48¢ in Hawaii, with California at 33.6¢ (EIA, preliminary monthly data). Each kilowatt-hour you avoid buying is worth almost four times as much in Hawaii as in Louisiana.
Your price for that power is fixed once you own it
A system you buy costs the same whether utility rates climb or not. Rates have been rising: see why electric rates are going up. A lease or PPA works differently. Your payment can rise each year by a set percentage, so read the escalator clause.
It can add value when you sell
Owned systems sold for about $4 per watt more in the Berkeley Lab study above. That study covers sales from 1999 to 2013, so treat it as a sign of buyer interest, not a price you can count on. The premium depends on your local market and the system’s age.
Panels last a long time with little care
At a 0.5% yearly loss, a panel still makes about 88% of its first-year output after 25 years. Most homes need no regular cleaning. An inspection after a big storm or if output drops is usually enough.
State and utility incentives still help in many places
The federal homeowner credit is gone, but many states and utilities still offer rebates, performance payments, or property and sales tax exemptions. They vary a lot by state. Find yours on our solar incentives page.
Disadvantages of solar panels
The upfront cost is high, and the tax credit is gone
For a system you buy, you pay the full price minus any state or utility incentive. If a 2026 quote still subtracts a 30% federal credit from your price, the quote is wrong. Leases and PPAs are different: the company owns the panels and may claim its own business credit, but that is not a credit on your tax return. More in our federal tax credit guide.
Export credits can be low
Many utilities no longer pay the full retail rate for power you send back. California’s net billing tariff, for customers of the three large utilities who applied on or after April 15, 2023, pays exports at a much lower “avoided cost” rate. In our national example, cutting the export credit to a quarter of retail roughly doubles the payback, from about 12.6 years to about 25.7.
Payback can take a long time
Payback is the number of years your savings take to cover what you paid. It depends on the price, your rate, the export credit and how much solar power you use at home. Our payback guide shows the formula and a worked example.
Financing can eat the savings
Many solar loans carry hidden dealer fees, often 10% to 30% of the cash price, added to the loan amount, so the total cost can be far above the cash price (CFPB). Compare cash, loan and lease offers on our solar financing page.
Not every roof or yard works
South-facing roofs usually produce the most, though other directions can work; heavy shade cuts output (DOE). Renters and many condo owners can’t put panels on the roof at all. See solar for renters.
Output changes with the weather and seasons
Panels make less in winter, on cloudy days and under snow. You will pull more from the grid in some months and send more back in others. A good quote shows estimated production month by month.
Solar companies can go out of business
Two large solar finance companies, Mosaic (a solar lender) and Sunnova (a lease and loan provider), filed for bankruptcy in June 2025 (Solar Power World). In both cases, customers’ loans and leases stayed in force, but service and warranty claims can get harder. Panel and inverter makers’ warranties usually still apply.
HOAs, permits and pushy sales
HOA rules and local permits can add time; many states limit how far an HOA can block solar (HOA guide). Door-to-door sales are common. You usually have three business days to cancel a door-to-door contract under the FTC’s cooling-off rule (16 CFR 429). Know the red flags before you sign.
Which pros and cons matter most for you
The same list weighs very differently from one home to the next. Find the row that fits you.
Your situation | Biggest pro | Biggest con | Check first |
|---|---|---|---|
Paying cash | Lowest total cost; you own the savings and any home-value premium | Ties up about $23,000 for a typical system | Cash price per watt on three quotes |
Taking a solar loan | You own the system with little or nothing down | Dealer fees and interest can wipe out the savings | Cash price vs. financed price, APR and fees |
Lease or PPA | No upfront cost; the company handles repairs | No ownership, yearly price increases, harder home sale | Escalator, buyout and transfer terms (how leases work) |
High rate, fair export credit | Fastest payback | Export rules can change for future customers | Your utility’s current export tariff |
Low rate or low use | Still cuts some of the bill | Savings may never cover the cost | Yearly kWh and per-kWh rate on 12 bills |
Roof due for replacement soon | Can combine roof and solar in one project | Removing and reinstalling panels later costs thousands | Roof age and condition before you sign |
Moving within a few years | An owned system can help a sale | Less time to reach payback; contracts must transfer | Your likely moving date and contract sale terms |
Frequent outages | Backup power with a battery | About $13,000 more for a typical battery | Which circuits the battery will run |
Pros and cons of solar panels on your roof
Most home systems go on the roof, and that is where most of the practical problems show up.
- Roof age. Panels can outlast a roof. If your roof needs replacing within the next several years, do it first. Taking a system off can cost $3,000 to $12,500, about $5,000 on average, and putting it back adds roughly $2,000 to $2,500 (HomeAdvisor, June 2026). See our removal and reinstallation guide.
- Direction and tilt. South is best. East and west work with some loss. North-facing panels rarely pay off. Ask for a shade report and a production estimate for your actual roof, not a satellite guess.
- Leaks. A good installer seals every roof mount with flashing. Poor work can cause leaks, so ask how long the installer’s roof-penetration warranty lasts.
- Roof material. Asphalt shingles are the simplest. Metal roofs work well and some need no drilling (metal roof guide). Tile and slate need special mounts and often cost more.
- Space and setbacks. A typical 7.95 kW system needs about 18 panels (how many panels you need). Fire codes often require clear paths at the roof edges and ridge, which reduces the usable area.
- Insurance. Rooftop panels are usually covered as part of the home, but your limit may need to go up. Check with your insurer (insurance guide).
Why some homeowners regret solar or remove it
Most regret traces back to a con that nobody checked before signing:
- “My electric bill is still high.” Usually because of fixed charges, a low export credit, a system sized too small, more usage (an EV or heat pump), or a fault. Compare your monthly production with the quote’s estimate first. If production is low, call the installer or see solar repair costs.
- “I can’t sell my house easily.” Usually a lease, a PPA or a loan with a lien on the panels. The buyer has to qualify to take it over, or you pay it off at closing. Read the transfer terms now, not when you list the home.
- “The roof needed work.” The panels had to come off. Plan roof work before you install.
- “The company is gone.” When an installer or finance company closes, service and workmanship claims get harder. Choose a company with a long track record, and keep the panel and inverter warranty papers yourself.
- “I’m stuck in a lease.” Some contracts let you buy out the system or transfer it. See getting out of a solar lease.
Weigh the pros and cons with your own numbers
Gather 12 months of electric bills, your roof’s age and your utility’s export rule. Then get at least three quotes and compare them line by line with our quote guide and questions for installers. To run the numbers yourself, use the payback check in our are solar panels worth it guide.
Compare solar quotes for your home from local installers, based on your roof, your bills and your utility
Questions about solar pros and cons
What is the biggest disadvantage of solar panels?
For most homes, it is the upfront price. A typical system costs about $22,976 in cash, and the federal homeowner tax credit ended for systems completed after 2025. In states where exports earn little, a low export credit can matter just as much.
Are solar panels good or bad for a home?
Good for a home with a sound, sunny roof, high electricity rates, a fair export credit and owners who plan to stay. Poor for a shaded roof, a roof due for replacement, very low rates or a move within a few years.
Do solar panels increase home value?
An owned system can. A 2015 Berkeley Lab study found buyers paid about $4 per watt more for homes with owned solar. A leased system belongs to the solar company, so the buyer must agree to take over the contract, or you buy it out.
How long do solar panels last?
Usually 25 years or more. At the typical 0.5% yearly loss, a panel still makes about 88% of its original output after 25 years. Inverters often need replacing sooner.
Do solar panels damage your roof?
Not when they are installed well. Mounts are sealed with flashing, and panels shade the roof under them. Leaks come from poor installation, so ask about the installer’s roof-penetration warranty.
Do solar panels work during a power outage?
Not on their own. Grid-tied systems shut off when the grid goes down, so line workers stay safe. You need a battery, or a system designed for backup, to keep power on.
Is the 30% solar tax credit still available in 2026?
Not for homeowners who buy a system. The Residential Clean Energy Credit does not apply to systems whose installation is completed after December 31, 2025 (IRS). State and utility incentives may still apply.
Sources
- EcoGen Solar Cost Index, September 2026 edition: typical system price and size (methodology).
- IRS, FAQs on Public Law 119-21 (One Big Beautiful Bill Act), Residential Clean Energy Credit.
- U.S. Energy Information Administration: Short-Term Energy Outlook (October 2026) and Electric Power Monthly, Table 5.6.A.
- Lawrence Berkeley National Laboratory, “Selling into the Sun” (2015).
- Jordan and Kurtz, “Photovoltaic Degradation Rates: An Analytical Review,” NREL.
- U.S. EPA, Greenhouse Gas Equivalencies Calculator (eGRID factor 6.72 × 10⁻⁴ metric tons CO₂ per kWh) and End-of-Life Solar Panels.
- Consumer Financial Protection Bureau, Issue Spotlight: Solar Financing (August 2024).
- U.S. Department of Energy, Homeowner’s Guide to Going Solar.
- Read how we work in our editorial standards and how we make money.
