The sun has been providing free energy for about 4.6 billion years. Seems rude not to take advantage of it, right?

But before you cover your roof in shiny rectangles and start telling everyone at dinner parties about your "energy independence," let's talk numbers. Because solar panels are an investment, and investments should be, well, invested in wisely.

The math depends on:

• Where you live (hello, sunshine hours)
• Your current electricity costs
• Available incentives
• How long you plan to stay in your home
• Whether you buy, lease, or get a PPA
• Your roof's age, direction, and shade situation

Let's break this down piece by piece.

The True Cost of Going Solar

Everyone quotes different numbers, so let's be specific:

Average System Size and Cost (2026)

| System Size | Average Cost (before incentives) | |-------------|----------------------------------| | 6 kW (small home) | $15,000 - $18,000 | | 8 kW (average home) | $20,000 - $24,000 | | 10 kW (large home) | $25,000 - $30,000 | | 12 kW (very large/high usage) | $30,000 - $36,000 |

That's about $2.50-3.00 per watt installed, depending on your location and installer.

The Federal Tax Credit (This Is Big)

State and Local Incentives

Depending on where you live, you might also get:

• State tax credits
• Property tax exemptions for added home value
• Sales tax exemptions on equipment
• Utility rebates
• Performance-based incentives (paid per kWh produced)

Some states are solar paradise. Others... less so.

The Payback Period: When Do You Break Even?

This is what everyone wants to know. Here's how to calculate it:

The Simple Version

Net Cost ÷ Annual Savings = Payback Years

Example:

• Net cost after incentives: $16,800
• Annual electricity savings: $1,800
• Payback period: 9.3 years

The Reality Check

Solar panels have a 25-year warranty and often produce for 30+ years. So if you break even in year 9, you get 16-21 years of essentially free electricity.

National averages:

• Payback period: 6-12 years
• Total savings (25 years): $20,000 - $60,000+

Buy vs. Lease vs. PPA: The Great Debate

The Verdict: Buying wins for financial returns. If you can afford it (even with a loan), ownership provides the best ROI. Leases and PPAs are better than no solar, but you're leaving money on the table.

Factors That Affect Your ROI

1. Sun Exposure

This seems obvious, but it matters more than you think.

| Factor | Impact | |--------|--------| | Direction roof faces | South = best, East/West = okay, North = terrible | | Shade from trees | Even partial shade significantly reduces output | | Roof angle | 30-45 degrees is optimal | | Local climate | More sun = more power |

Tool: Use Google's Project Sunroof to estimate your roof's solar potential.

2. Current Electricity Costs

Higher electric rates = faster payback.

• If you pay 8¢/kWh, solar takes longer to pay off
• If you pay 20¢/kWh, solar is a no-brainer

3. Net Metering Policy

Net metering lets you sell excess power back to the grid. When your panels produce more than you use (midday sun), you get credit.

Full retail net metering: You get credited at your full electric rate. Best case scenario.

Reduced net metering: You get credited at a lower rate. Less great.

No net metering: Excess power is essentially wasted unless you add batteries.

Check your state's and utility's policies before committing.

4. Electricity Rate Inflation

Utility rates have historically increased 2-4% per year. Your solar production stays "free" while grid electricity gets more expensive, making savings grow over time.

The Battery Question

Should you add battery storage?

Without Battery

• Excess production goes to grid (if net metering exists)
• You use grid at night
• No power during outages

With Battery

• Store excess for nighttime use
• Backup power during outages
• Less dependence on net metering
• Adds $10,000-15,000 to cost
• May qualify for additional credits

The math: Batteries rarely make pure financial sense yet, but they provide value beyond dollars (backup power, energy independence). Costs are dropping quickly.

Red Flags When Shopping for Solar

Avoid companies that:

• Won't provide written quotes
• Pressure you to sign immediately
• Quote unrealistic savings (50%+ reduction claims)
• Can't explain financing clearly
• Have numerous complaints on BBB or Google
• Offer only lease options (they make more money that way)

Always:

• Get 3+ quotes
• Check installer certifications (NABCEP is gold standard)
• Read the contract thoroughly
• Understand the warranty (panels, inverters, workmanship)
• Verify they handle permits and inspections

Does Solar Increase Home Value?

Studies say yes:

• Homes with owned solar sell for 3-4% more on average
• Buyers value lower utility bills
• Solar is increasingly expected in some markets

But: Leased solar can actually hurt sales. Buyers don't want to take over contracts.

The Environmental Angle

We've focused on money, but let's acknowledge: solar is good for the planet.

An average residential system:

• Offsets 100,000+ pounds of CO2 over its lifetime
• Equivalent to planting 2,500+ trees
• Reduces reliance on fossil fuels

If environmental impact matters to you, that has value beyond ROI calculations.

So, Should You Go Solar?

Solar makes sense if:

• You own your home
• Your roof is in good condition with good sun exposure
• You plan to stay 7+ years
• Your electricity costs are moderate to high
• You can use the federal tax credit
• Your state has favorable policies

Solar might NOT make sense if:

• You rent
• You're moving soon
• Your roof needs replacement (do that first)
• Heavy shade coverage
• Very low electricity costs
• You can't benefit from tax credits

Final Thought

The sun will keep doing its thing for another 5 billion years or so. That's a lot of free energy waiting to be harvested.

Solar panels won't pay off immediately. But if you do the math, stay patient, and choose wisely, they'll likely be one of the better investments you make in your home.

And hey, at the very least, you'll have something interesting to talk about at parties. "Let me tell you about my kilowatt-hours..."

Everyone loves that guy.