Are Solar Panels Worth It?
Last Updated: Feb 9, 2025When you hear “sustainable home,” do you immediately think of solar panels? Solar panels have become a symbol—and a major driver—of our transition to a clean energy economy. Today, most homeowners know that residential photovoltaic (PV) renewable energy systems can reduce dependence on fossil fuel sources of energy, lower the levels of greenhouse gasses (GHGs) that lead to climate change, and save money on electric bills. According to the EPA, 27.5 percent of 2017 greenhouse gas emissions came from electricity production. Around 62.9 percent of electricity produced in the United States still comes from burning fossil fuels—primarily coal and natural gas. The same EPA report further states that 11.6 percent of 2017 greenhouse gas emissions are associated with residential and commercial buildings, mainly from burning fossil fuels for heat.
Table of Contents
- How Much Do Solar Panels Cost?
- Before You Start
- The Analysis
- Tax Incentives and Net Metering Policies
- Final Considerations
All-electric homes that rely on electric sources of heat such as heat pumps have the ability to essentially eliminate reliance on fossil fuels by opting for a residential solar panel system. While this can significantly reduce the carbon footprint of a home and allow homes to attain carbon zero status, the economic cost of solar panel installation is still considered to be prohibitively expensive by many homeowners, which is one of the reasons why, even in the State of California, only 9 percent of detached single-family homes have some solar panel system installed. Understanding the economics of solar panels, like the internal rate of return and payback periods for various-sized PV systems, can help homeowners make an educated decision for their household energy needs that will be good for the environment and good for their budgets.


How Much Do Solar Panels Cost?
Because most homeowners are not professional electricians who understand the difference between a watt and an amp, the process of pricing a solar PV system can tend to be confusing. A decade ago, solar electric systems in the United States were widely considered a luxury (and did not make much economic sense). The average residential solar system cost at least $10 per watt. Over the past 15 years, however, increased production and investment in solar technology, a wide range of government subsidies, and the mounting recognition of the severity of global warming and other environmental concerns have led to major reductions in solar and other costs renewable technologies. Today, some energy companies find it cheaper to install commercial renewable energy systems than new fossil fuel energy plants. A recent article in The Guardian, citing a report by Energy Innovation, states that “around three-quarters of US coal production is now more expensive than solar and wind energy in providing electricity to American households.” The same pattern holds true for residential solar panel systems.
Solar Power
Shop the best high-performing solar power products that save you money through their use and reduce waste, without compromise.

QuickBOLT QB2 with Microflashing Multi Roof Mount Solar Panel Fastener Kit
QuickBOLT
In Stock

QuickBOLT 2-1/4" EPDM Solar System Conduit Mount w/Screw
QuickBOLT
In Stock

QuickBOLT Stone Coated Roof Height Adjustable 18mm for Side Mount Rails - Short
QuickBOLT
In Stock

QuickBOLT Deck T Mount Solar Panel Fastener Kit
QuickBOLT
In Stock

QuickBOLT Flat Tile Roof Hook for Solar Panel Side Mount Rails
QuickBOLT
In Stock

Lion Energy 100W 24V Portable Solar Panel
Lion Energy
In Stock

QuickBOLT Multi Roof Mount - QB2 Kit with 3" Microflashing, Stainless Steel L-Foot, T-Bolt and Nut (16001) - 17771
QuickBOLT
In Stock

QuickBOLT 3" Microflashing Stainless Steel & EPDM - 17669
QuickBOLT
In Stock

QuickBOLT Throne - The Set Screw Standing Seam Mount
QuickBOLT
In Stock

SunGoldPower 100 Amp Mppt Solar Charge Controller - SGC4825100A
SunGoldPower
In Stock
It is important to recognize that a rooftop solar PV system can increase the total value of your home. A study by the real estate website Zillow found that solar panels can raise a home’s value by 4.1 percent across the U.S., which amounts to a boost in value of $9,274 on a $226,300 home. So do the economics of solar make sense for you? Do the quick analysis for your own home, and let us know!
Tobias Roberts
Tobias runs an agroecology farm and a natural building collective in the mountains of El Salvador. He specializes in earthen construction methods and uses permaculture design methods to integrate structures into the sustainability of the landscape.