Homeowner's Guide to Going Solar - Department of Energy

08 Sep.,2025

 

Homeowner's Guide to Going Solar - Department of Energy

Solar panels are built to work in all climates, but in some cases, rooftops may not be suitable for solar systems due to age or tree cover. If there are trees near your home that create excessive shade on your roof, rooftop panels may not be the most ideal option. The size, shape, and slope of your roof are also important factors to consider. Typically, solar panels perform best on south-facing roofs with a slope between 15 and 40 degrees, though other roofs may be suitable too. You should also consider the age of your roof and how long until it will need replacement.

With competitive price and timely delivery, JM sincerely hope to be your supplier and partner.

If a solar professional determines that your roof is not suitable for solar, or you don’t own your home, you can still benefit from solar energy. Community solar allows multiple people to benefit from a single, shared solar array that can be installed on- or off-site. Costs associated with purchasing and installing a solar energy system are divided among all of the participants, who are able to buy into the shared system at a level that best fits their budget. Learn more about community solar.

Those interested in community solar can take advantage of a tool from SETO awardee EnergySage. The company's Community Solar Marketplace aggregates the many available options in one place and standardizes project information, allowing interested consumers to easily locate and compare multiple community solar projects in their area.

The National Renewable Energy Laboratory (NREL) developed a tool called PVWatts for this purpose. It estimates the energy production and cost of energy of grid-connected PV energy systems for any address in the world. It allows homeowners, small building owners, installers, and manufacturers to easily develop estimates of the performance of potential PV installations, and can even compare solar’s cost to utility bills. These tools are great for getting started, but make sure to work with a solar installer for a custom estimate of how much power your solar energy system is likely to generate.

For its analyses, NREL uses an average system size of 7.15 kilowatts direct-current with a 3-11 kilowatt range. According to SETO awardee EnergySage, that’s enough power to meet all the energy needs for an average home in Austin, Texas.

There are a number of mapping services that have been developed by SETO awardees that will help you determine if your roof is suitable for solar and can even provide you with quotes from pre-screened solar providers in your area. In addition to those resources, an internet search can help you find local companies that install solar panels. Because you will likely have many options to choose from, it’s important to thoroughly read reviews of solar companies to make sure you are selecting the best fit for you and your home.

Solar co-ops and Solarize campaigns can also help you start the process of going solar. These programs work by allowing groups of homeowners to work together to collectively negotiate rates, select an installer, and create additional community interest in solar through a limited-time offer to join the campaign. Ultimately, as the number of residents who participate in the program increase, the cost of the installations will decrease.

Most people going solar have a positive experience. But like other fast-growing industries, the rampant expansion of solar energy has opened the door to a small subset of bad actors.

Our Smart Shopping Tips for Solar outlines a few ways to identify red flags as you go solar: 

  1. Don’t give in to pushy sales tactics
  2. Talk to certified installers
  3. Understand your financing options
  4. Report bad actors

On August 7, , the U.S. Department of the Treasury (Treasury), the Consumer Financial Protection Bureau (CFPB), and the Federal Trade Commission (FTC) issued a consumer advisory to help you identify potential consumer solar scams and file complaints about suspicious behavior. Before you sign any documentation with a solar company, carefully review these educational materials:

  • Before You Buy Solar Panels
  • Before You Sign a Solar Lease
  • Before You Sign a Power Purchase Agreement
  • Before You Sign a Solar Subscription

Net metering is an arrangement between solar energy system owners and utilities in which the system owners are compensated for any solar power generation that is exported to the electricity grid. The name derives from the s, when the electric meter simply ran backwards when power was being exported, but it is rarely that simple today. Whether or not your solar system qualifies for net metering payments depends on policies and practices in your state and electric utility. Your local electric utility would be a good place to source information on net metering in your service area. When researching net metering policies and practices in your service area, there are some basic questions to consider, such as availability in your service area, eligible system size and customer type, rates, and design of bill credits.

Storage refers to energy storage, most often in the form of batteries. Installing energy storage with a solar system can help utilize the power generated when it’s needed most, regardless of whether it’s sunny outside at the time. Storage allows you to save that energy and use it later in the day, like when you turn the heat on at night or run the dishwasher after dinner or even when the power goes out. Ask your solar installer if they offer battery storage options and learn more about storing solar energy.

The amount of money you can save with solar depends upon how much electricity you consume, the size of your solar energy system, if you choose to buy or lease your system, and how much power it is able to generate given the direction your roof faces and how much sunlight hits it. Your savings also depend on the electricity rates set by your utility and how much the utility will compensate you for the excess solar energy you send back to the grid. Check the National Utility Rate Database to see current electricity rates in your area.

In some cities around the country, solar is already cost competitive with the electricity sold by your local utility. The cost of going solar has dropped every year since , a trend researchers expect to continue. Not only are the prices of panels dropping, so are the costs associated with installation, such as permitting and inspection—also known as “soft costs.” All of SETO's funding programs are working toward improving the affordability of solar and making it easier for consumers to choose solar.

It should also be noted that energy efficiency upgrades complement solar energy economically. By using Energy Star appliances and other products in your home, you’ll need less solar energy to power your home.

Consumers have different financial options to select from when deciding to go solar. In general, a purchased solar system can be installed at a lower total cost than system installed using a solar loan, lease, or power purchase agreement (PPA).

If you prefer to buy your solar energy system, solar loans can lower the up-front costs of the system. In most cases, monthly loan payments are smaller than a typical energy bill, which will help you save money from the start. Solar loans function the same way as home improvement loans, and some jurisdictions will offer subsidized solar energy loans with below-market interest rates, making solar even more affordable. New homeowners can add solar as part of their mortgage with loans available through the Federal Housing Administration and Fannie Mae, which allow borrowers to include financing for home improvements in the home’s purchase price. Buying a solar energy system makes you eligible for the Solar Investment Tax Credit, or ITC. In December , Congress passed an extension of the ITC, which provides a 26% tax credit for systems installed in -, and 22% for systems installed in . The tax credit expires starting in unless Congress renews it. Learn more about the ITC.

Solar leases and PPAs allow consumers to host solar energy systems that are owned by solar companies and purchase back the electricity generated. Consumers enter into agreements that allow them to have lower electricity bills without monthly loan payments. In many cases, that means putting no money down to go solar. Solar leases entail fixed monthly payments that are calculated using the estimated amount of electricity the system will produce. With a solar PPA, consumers agree to purchase the power generated by the system at a set price per kilowatt-hour of electricity produced. With both of these options, though, you are not entitled to tax benefits since you don’t own the solar energy system.

Navigating the landscape of solar financing can be difficult. The Clean Energy States Alliance released a guide to help homeowners understand their options, explaining the advantages and disadvantages of each. Download the guide.

DSIRE is the most comprehensive source of information on incentives and policies that support renewable energy in the United States. It is operated by the N.C. Clean Energy Technology Center at N.C. State University and was funded by the U.S. Department of Energy. By entering your zip code, DSIRE provides you with a comprehensive list of financial incentives and regulatory policies that apply to your home. Additionally, an experienced local installer should be able to assist you in claiming any state and local incentives, as well as the ITC. 

If you want to learn more about state and federal solar policies regarding incentives and tax breaks, the Solar Power in Your Community guidebook (PDF) has a section—Appendix A on page 87—that explains it in detail.

Buying a solar energy system will likely increase your home’s value. A recent study found that solar panels are viewed as upgrades, just like a renovated kitchen or a finished basement, and home buyers across the country have been willing to pay a premium of about $15,000 for a home with an average-sized solar array. Additionally, there is evidence homes with solar panels sell faster than those without. In , California homes with energy efficient features and PV were found to sell faster than homes that consume more energy. Keep in mind, these studies focused on homeowner-owned solar arrays.

When it comes to third-party owned (TPO) systems, data shows that while they add some complexity to the real estate transaction, the overall impacts in terms of sales price, time on market, agreement transfers, and customer satisfaction are mostly neutral. In some cases, TPO systems can even add value.

The PV Value® tool is helpful for both home sellers and homebuyers. It calculates the energy production value for a PV system and is compliant with Uniform Standards of Professional Appraisal Practice and has been endorsed by the Appraisal Institute for the income approach method. Make sure your appraiser uses this tool to get the most accurate estimate of your PV system’s value.

There are two primary technologies that can harness the sun’s power and turn it into electricity. The first is the one you’re likely most familiar with – photovoltaics, or PV. These are the panels you’ve seen on rooftops or in fields. When the sun shines onto a solar panel, photons from the sunlight are absorbed by the cells in the panel, which creates an electric field across the layers and causes electricity to flow. Learn more about how PV works.

The second technology is concentrating solar power, or CSP. It is used primarily in very large power plants and is not appropriate for residential use. This technology uses mirrors to reflect and concentrate sunlight onto receivers that collect solar energy and convert it to heat, which can then be used to produce electricity. Learn more about how CSP works.

Absolutely! All solar panels meet international inspection and testing standards, and a qualified installer will install them to meet local building, fire, and electrical codes. Also, your solar energy system will undergo a thorough inspection from a certified electrician as part of the installation process. 

A working PV panel has a strong encapsulant that prevents chemicals from leaching, similar to how defroster elements are sealed in a car windshield. Occasionally, a solar panel may break due to weather or other events. According to the International Energy Agency Photovoltaic Power Systems Technology Collaboration Program, any lead and cadmium exposure from broken solar panels in residential, commercial, and utility-scale systems would be below the acceptable limit set by the U.S. Environmental Protection Agency for soil, air, and groundwater.

Residential Consumer Guide to Solar Power – In an effort to make going solar as effortless and streamlined as possible, the Solar Energy Industries Association developed this guide to inform potential solar customers about the financing options available, contracting terms to be aware of, and other useful tips.

A Homeowner’s Guide to Solar Financing: Leases, Loans and PPAs – This guide from the Clean Energy States Alliance helps homeowners navigate the complex landscape of residential solar system financing. It describes three popular residential solar financing choices and explains the advantages and disadvantages of each, as well as how they compare to a direct cash purchase.

Solar PV Project Financing: Regulatory and Legislative Challenges for Third-Party PPA System Owners– Third-party owned solar arrays allow a developer to build and own a PV system on a customer’s property and sell the power back to the customer. While this can eliminate many of the up-front costs of going solar, third-party electricity sales face regulatory and legislative challenges in some states and jurisdictions. This report details the challenges and explains alternatives.

A Beautiful Day in the Neighborhood: Encouraging Solar Development through Community Association Policies and Processes – This guide, written for association boards of directors and architectural review committees, discusses the advantages of solar energy and examines the elements of state solar rights provisions designed to protect homeowner access to these benefits. It then presents a number of recommendations associations can use to help bring solar to their communities.

Selling into the Sun: Price Premium Analysis of a Multi-State Dataset of Solar Homes – This report from Lawrence Berkeley National Laboratory finds that home buyers are consistently willing to pay premiums of approximately $15,000 for homes that have solar across various states, housing and PV markets, and home types.

Residential Solar-Adopter Income and Demographic Trends – This report from Lawrence Berkeley National Laboratory finds that while solar adoption skews toward high-income households, low- and moderate-income households are also adopting, and that the rooftop solar market is becoming more equitable over time.

Learn more about the solar office's accomplishments.

20 Questions to Ask Before Getting Solar Panels

Home solar panels can reduce your electricity bill for decades. But if you're left with questions like, “Really?” or, “What’s the catch?” or, “How do solar panels even work?” no one would blame you, though solar panels are now a commonplace technology.

Whether you’re paying the cost of solar panels upfront and buying them, or getting a solar lease, it’s important to understand your decision and investment. Asking the right questions can help you find the best installer for you and weed out any bad deals along the way.

20 Questions to Ask a Solar Installer

To achieve the best possible experience when you go solar, let’s play a game of 20 questions you can ask at your next solar consultation.

1. How much will solar panels save me?

While you’ll still receive an electricity bill after going solar, you should save money. While it’s impossible to predict exactly how much solar panels can save you, installers can give you a reasonable estimate. Your actual savings will depend on how much your electricity rates change and whether incentives like net metering shift during your solar panels’ lifespan.

Your savings will also shift throughout the year, thanks to solar seasonality. It’s useful to get a clear understanding of your potential savings throughout the year and over the projected lifetime of your solar installation.

2. What solar incentives are available?

Asking your installer about available incentives is important to maximizing the value of your investment. Whether or not you qualify for the federal solar tax credit and other local solar incentives may significantly impact the return on investment of your energy system.

Contact us to discuss your requirements of Integrated Solar Applications. Our experienced sales team can help you identify the options that best suit your needs.

Around the country, solar incentives vary greatly by state and region, with some cities, counties, and utilities offering their own programs, tax credits, tax exemptions, rebates, and more.

3. Do you sell or lease your solar panels?

Decide whether you will buy or lease a solar system based on your personal preferences, financial goals, and available options and make sure your installer can deliver what you want.

Buying means the system is your property and, in most cases, you will save more over the lifetime of your systems. A lease or power purchase agreement, such as Palmetto’s LightReach Energy Plan, will give you solar power from a home system with no upfront cost and manageable monthly payments. 

4. Do you offer financing options?

Unless you’re able to pay for your panels upfront or are leasing them, you may need to finance your system through a loan. Many reputable solar installers offer loans, though you can always shop around..

By working with a company with multiple financing options, you are more likely to find a solar loan structured to fit into your budget that can unlock your long-term savings on electricity.

5. What type of solar panels do you install?

One of the most common questions solar companies are asked is, “What type of panels do you install?”

While there are differences in performance among solar panels, you probably don’t need to stress over the options. In some instances it may be beneficial to pay a bit more for highly efficient solar panels, you can typically achieve your savings and energy goals with multiple solar panel options, so long as your installer can provide solar panels of typical efficiency (around 20%) and wattage (350 watts and above).

6. What do your warranties cover?

You will likely have multiple solar warranties (product, performance, installation) associated with your energy system.

Before signing on the dotted line, talk to your installer about exactly what each of these warranties covers, how long the coverage periods are, and if you can extend the policies during the lifetime of your solar panels.

7. What if a part of my system breaks?

Along with warranty coverage, you should talk to your installer about the likelihood of system damage and what repair or maintenance procedures will be, even if solar panel maintenance is typically infrequent.

If you’re covered by a maintenance and monitoring plan, your installer will have a dedicated customer service team that can field your request and repair the part as soon as possible, ensuring your system will be back up and running without excessive time offline.

8. Can I add more solar panels later?

If you purchase an electric vehicle or grow your family, your electricity consumption will grow. If you anticipate you may want to expand your solar energy system in the future, talk to your installer about this possibility and what an upgrade may look like.

Depending on system setup and available space, it may be a better idea to oversize your solar system initially rather than add panels later. Or, your installer may make expanding easier by designing a microinverter-based solar system.

9. How long is the installation process?

A company that sets an installation timeline (and has the past projects to prove it) is more likely to deliver a good end result. When talking to your solar installer, ask them about the anticipated installation schedule.

Although they may not be able to tell you a precise interconnection date during your initial conversation, reputable companies should be able to provide a breakdown of your solar installation timeline, including permitting, equipment delivery, and construction.

10. Do you have a customer referral program?

If your installer has a referral program, it’s a strong sign they are used to delivering good customer experiences. As the best advocates for any company are its customers, many solar companies will compensate those who refer new business in bill credits or cash.

11. Can you explain the total cost of a system?

If a solar contractor gives you a price and doesn’t explain how they arrived at that number, it’s a red flag you may not be getting the best deal possible. Although the average cost of solar panels varies across the country, the total price of any solar energy system can be broken down into hard and soft costs, including expenses associated with hardware, permitting, labor, and business overhead.

12. Should I install a string inverter or microinverters?

Inverters turn the electricity your solar panels generate into electricity you can use at home. String inverters and micro-inverters are the two main options. As every home solar project is different, choosing the right technology can maximize your system performance and return on investment.

13. When will my system pay for itself?

If you purchase or finance your solar energy system with a reputable solar installer, they should be able to forecast an approximate break-even point at which your system will have paid for itself in savings.

In general, solar panel payback periods average somewhere between 7-10 years, depending on your location, the size of your system, and many other factors. A solar installer should be able to break down the expected performance of your system as it relates to the price of electricity in your area over time.

14. How do I track my solar panel performance?

Today, most solar panels are installed with smart components that report system performance directly to a digital landing page. The Palmetto App, for example, allows you to track your solar panel performance alongside your electricity consumption (with a supported meter).

15. What happens when my system reaches the end of its lifespan?

Even though it may be 20-30 years or more into the future, asking your installer about the end of your system's lifespan can help you avoid unwanted surprises later on.

Solar companies that plan to be around for decades are sure to have an answer for you when you ask about the decommissioning process. Critically, the end of your lease contract may give you options, like renewing your lease at a new rate, or buying out the system at the market value.

16. How long have you been in business?

In recent years, some solar companies have gone out of business. Working with an established, experienced solar company could help you avoid picking a company that’s going to go out of business.

A company able to answer all your questions in a helpful way without putting pressure on you is a sign of a partner you’ll be able to work with and depend on for a long time.

17. What should I do before I go solar?

Solar can supply you with the electricity you need to run your house, but reducing the amount of electricity you need can lead to savings, too. Getting an energy audit, upgrading your insulation, or electrifying your HVAC system or water heater may open the door to greater savings.

Your solar installer should be definitive about the state of your roof before installing solar panels. Your roof should be healthy at the time of installation, and replacing your roof and installing solar at the same time can save you time and money.

18. What other products do you sell? (Generators, EV chargers, home security, etc.)

Going solar can be a great time to also electrify your home with a heat pump or other efficient, electric appliances, install an EV charger, add battery storage, or replace your roof. Combining projects could save you time and money, especially if you use the same company, and let you stretch your solar electricity farther.

19. What makes your company different from others?

When weighing your solar options, you should feel free to open up the discussion and allow installers to explain exactly why they deserve the job. A professional solar expert should want to give you all the info you need rather than stick to a sales pitch and make you feel forced into a decision. 

20. Can I take my time and think about it?

In a high-pressure sales scenario, you may start to feel a solar installation company is pushing you to sign a contract right there, right now. If you feel rushed, asking for some time to make your decision will quickly show whether or not the company is acting in your best interest or is simply out to get your money.

Occasionally impending policy changes mean you need to rush, but even with those caveats, a reputable company should be happy to do follow-up calls and help you feel confident in your choice. 

Finding the Best Solar Installer

The right solar company should answer all your questions and concerns today and seem like a partner you’ll want to work with for 25 years or longer. Before, during, and after installation, is the solar installer listening to you and your needs? Or pressuring you into a specific plan, design, product, or deadline?

Your new home solar power system should deliver savings and reliable, clean, and renewable energy. It should be easy to understand and operate without extra work or stress.

Interested in seeing what it's like going solar with Palmetto? Or still have questions about solar in general? Get started today by using our solar savings calculator or contacting a Palmetto solar expert.

Frequently Asked Questions

How do you prepare for a solar installation?

Before you go solar, get to know your energy usage and current utility bills. You can check your property’s suitability for solar, including your roof’s health and shading, and confirm that tax credits, net metering, and other incentives apply to you.

How do you find a good solar installer?

It’s ok to interview and ask many, and even tough, questions of a solar installer before committing to a major project, a substantial amount of money, and years of working together. You are looking for a person or company that’s knowledgeable, experienced, professional, and helpful. 

Can solar panels really save you money?

Millions of homes in the US are saving money with home solar panels. While solar panels aren’t a fit for every home, they can lower energy bills and generate long-term savings. A reputable solar company will be able to explain the savings potential of solar at your home, including when it’s too small to be worth it.

Are you interested in learning more about High Power Solar Panels? Contact us today to secure an expert consultation!