That depends on what you’re spending on electricity, the amount of power that an installed solar photovoltaic (PV) system can provide, your finances, and your time frame for living in your home.
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Calculate your average monthly electric expenses by tallying your electric bills for the past 12 months and dividing by 12. Plug that figure, and your address, into a solar calculator such as Google Project Sunroof, EnergySage, or SolarReviews. Those tools will combine that information with aerial views of your roof from Google Earth, Tesla Maps, or another aerial photography tool to estimate how big a PV system your home could handle, how much you could save over, say, 20 years, and your investment’s break-even point: that is, when a purchase would begin to pay off. The average homeowner who buys a solar panel system could break even in 8.7 years, EnergySage says.
Savings and break-even estimates for the same property can be wildly different among the calculators, so consider them a starting point in your decision-making. But if you plan to sell your home before the earliest break-even point, a solar purchase probably doesn’t make sense.
If your roof is old, the answer is no—at least not until you replace it. Asphalt shingles that are 10 years old or more should be replaced before adding a solar array on top, says Ana Almerini, a spokesperson for SolarReviews. New solar panels are warrantied to last, on average, 25 years, while most roofs are warrantied for 30 years or less. If your 10-year-old roof needs to be replaced at its 30-year mark—20 years into your solar array’s lifetime—you’ll need to remove everything to reroof and then reinstall the solar system, a costly proposition.
With newer roofs, you’ll still only know for sure if a solar installation is feasible after a solar company rep checks out your roof and surrounding foliage in person. They’ll determine whether there’s too much shade or other obstacles, or the roof has problems that don’t make an installation worthwhile. That inspection costs you nothing and takes place before you sign on the dotted line. Or, If you’d rather find out whether your roof is a candidate before you shop—avoiding the calls, texts, emails, and visits to your front door you can expect from aggressive salespeople—pay a roofer for an inspection.
Check, too, with your municipality—and homeowners’ association, if you have one—to find out about any restrictions on the type and placement of solar panel arrays.
The most powerful savings tool for homeowners who buy their solar systems is the federal solar tax credit, available for installations through . It allows you to subtract 30 percent of the cost of buying and installing solar heating, electricity generation, and other solar home products from your federal taxes. There’s no dollar limit on those expenses; you’re entitled to that 30 percent tax break whether you spend $20,000 or more than $100,000 on costs associated with a residential solar system.
This break is available to all taxpayers for their primary or secondary residence located in the U.S. Taxpayers of any income level can take advantage of it. You can use it whether you itemize your taxes or take the standard deduction. Keep in mind, though, that the solar tax credit is available only if you purchase a solar system; if you lease one, you can’t take advantage of the credit. And if you don’t typically owe taxes, the credit isn’t useful.
You also could further your savings in these ways:
Local and state incentives. Your state may offer additional breaks, including tax rebates or sales tax exemptions (see this state-by-state compilation from Solar.com, an online solar marketplace). Your municipality may exempt your solar system from your home’s assessed value, so your taxes don’t rise even as your home value does.
Rebates. Your electric utility, as well as certain installers and manufacturers, also may offer rebates for buying and installing a system.
Sale of your excess electricity. In a handful of states, solar-home owners can arrange to sell their excess power to utilities. They sign up with a marketplace that assigns the excess electricity a certain number of solar renewable energy certificates (SRECs); those SRECs are then traded in a marketplace with fluctuating prices. The District of Columbia and eight states—Delaware, Illinois, Maryland, Massachusetts, New Jersey, Ohio, Pennsylvania, and Virginia—have such marketplaces. In some areas of Michigan, Indiana, Kentucky, and West Virginia, residents can participate in Ohio’s SREC marketplace.
Leasing is commonly marketed as a way to finance a solar installation for those who aren’t using cash. The benefit of leasing—usually a 20-year commitment—is that you put no money down. Your energy bills are instantly lower, based on a formula the solar provider devises. Maintenance is handled by the solar company as well. Typically you pay a set monthly amount for electricity— regardless of how much power your system produces. (In a power-purchase agreement, a lease variant, you pay for what your system produces.)
Just be aware of the pitfalls and caveats of leasing, which make this type of financing less beneficial to homeowners than cash purchases or loans. For one, the solar panels, racks, and inverters on your roof aren’t yours, and the solar company that owns them—not you—benefits from all the available tax incentives. Interest rates can be higher than for financing you obtain yourself. Your monthly payment also can rise each year with a lease, versus a loan payment that stays constant.
And, depending on where you live, your home could be more difficult to sell with a leased solar system in place. If the new buyer doesn’t want to continue the lease, the solar company will remove its panels and you’ll have to pay what you still owe on the lease. Buyers who agree to assume the solar lease need to report those payments as their own debt when applying for a mortgage, added to any credit card balances, student debt, and car loans they already owe. “That lease payment could throw the buyer into a higher interest rate, or not qualify them for a loan at all,” says Sandra Adomatis, a real estate appraiser in Punta Gorda, Fla., and an expert in valuing green homes with The Appraisal Institute, an industry group.
Taking a loan from the solar company also isn’t ideal. The interest rates the solar company will charge may be higher than what you’d get by seeking an independent lender yourself. And solar dealers often tack on significant origination fees—up to 30 percent of the system’s cost, compared with 1 to 5 percent for traditional loans. “I wouldn’t use the financing from the solar company,” says Garrett Mendelsohn, founder and CEO at Solar Bootcamp, based in Palmas del Mar, Puerto Rico, which teaches solar company representatives how to sell systems virtually. “Ninety percent of the time, you’re paying a high interest rate and huge dealer fee.”
If you’ve been in your home a while, a less costly way to finance your solar investment is through a home equity loan or home equity line of credit (HELOC) or loan, borrowing off your home’s built-up value. The interest rate is likely to be lower than if you seek a personal loan for the job. And, you can deduct the interest on your federal tax returns for a major solar installation; the IRS permits such deductions when home equity is used to “substantially improve” your home.
For HELOCs and other types of loans, consult comparison sites like Bankrate, Lending Tree, and SoFi for competing interest rates and terms. New-home buyers and those refinancing also can check out Fannie Mae’s HomeStyle Energy Mortgage Program, which can help you bundle a solar loan into the new mortgage.
After closing, keep an eye on interest rates. You can refinance when current rates, now relatively high, begin to fall.
Solar installers are typically one-stop shops, offering you panels and inverters—and the racks that hold them—as well as installation. In addition to offering their own financing, they may sell extra warranties, monitoring, and maintenance.
To find installers, search for “solar installer,” or input your address and other basic personal information into comparison websites like EnergySage and SolarReviews; each analyzes the quality of local providers and their products using technical measures; they both also use consumer reviews. (EnergySage doesn’t require your number, a boon if you want to avoid texts.)
The not-for-profit Consumers’ Checkbook is another source of reputable installers, providing reviews of local services in seven major metro areas—Boston, Chicago, the Delaware Valley, Puget Sound, San Francisco, the Twin Cities, and Washington, D.C. In the Bay Area—subject to California’s relatively new mandate that new, low-rise residential construction include solar photovoltaic systems—Consumers’ Checkbook has reviews on 132 solar contractors.
Before you arrange for an in-person or Zoom consultation from companies you identify through these tools, ask providers to show proof that they’re licensed in your state and municipality to do the work where you live. Check, too, with the Better Business Bureau in your area for complaints. Confirm that the companies have been certified by the North American Board of Certified Energy Practitioners (NABCEP), a trade organization that sets standards for solar installers. Your utility company or state energy board also may list providers that meet certain quality standards. The New York State Energy Research and Development Authority (NYSERDA), for instance, offers a search for solar contractors with a “Quality Solar Installers” designation.
Neighbors with recent installations might be willing to talk to you about their experiences with solar contractors. Or, ask for input through community forums like NextDoor and the Facebook page for your community. And when you contact a company, find out how long they’ve been doing solar installations. Choose a company with several years’ installation experience, and ideally a presence in more than one state, Mendelsohn advises. He also recommends finding a company that uses its own, in-house installers.
You’ll see lots of figures and factors in a solar proposal. But there are five really worth focusing on when comparing offers.
Price per watt or kilowatt. That’s the upfront cost divided by the size of the system. The lower the cost per watt, the better the system’s value. You can use each company’s estimated cost per watt to compare proposals. “It’s like unit pricing at your supermarket.” explains Vikram Aggarwal, EnergySage CEO.
Warranties. They may differ for the workmanship, the solar panels, and the inverters—that is, the mechanisms that take the direct current (DC) that the solar panels create and convert it to alternating current (AC) electricity that our homes use. A standard solar panel warranty is 25 years, Aggarwal says. Inverter warranties range from 10 to 25 years.
Rated power. This is a measure of the system’s efficiency—that is, how much electricity it puts out under ideal conditions. Rated power of at least 400W is preferable; Aggarwal recommends 420W to 440W, because he says it’s the most efficient. The solar company should also give you a projection of how much the power production will degrade by the time the warranty expires. Solar panels’ productivity degrades at a median, 0.5 percent a year, according to the Department of Energy’s National Renewable Energy Laboratory. At the end of a typical, 25-year warranty, that translates to productivity of 87.5 percent.
Annual production. You may notice that the proposals you get from different companies show dramatically different estimates of the amount of power they can provide—from, say, 100 percent of your current needs to 125 percent or more. Why bother with all that excess power? If, say, you add an electric vehicle to your power consumption, planning for more power may be worthwhile. “If you think you’re going to buy an electric car in next four to five years, you may want to oversize your system now,” Aggarwal says. “Most installers won’t be willing to add new panels and inverters in the future.” Depending on the arrangement with your utility, you may be able to sell back the excess power, reducing your electric bill further.
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Quality of the solar equipment. You can look on EnergySage and SolarReviews for comparisons and judgments of solar panels and inverters; names like Canadian Solar, LG, and QCel show up highly rated there. For inverters, experts we talked to preferred microinverters, individual units attached to each panel, versus string inverters, which are connected to both the panels and each other like Christmas lights. As with Christmas lights, string inverters are annoyingly interdependent. “If one panel goes out, Aggarwal says, “the whole system goes out.”
Solar energy is one of the world’s most abundant and easily accessible sources of renewable power. But how well do you know it?
Several distinct technologies harness the sun’s power in different ways. Photovoltaic (PV) panels convert sunlight into electricity. Solar thermal panels use the sun’s energy to produce heat. Concentrated solar power uses mirrors to concentrate sunlight and produce heat and steam to generate electricity.
In , solar photovoltaic accounted for just 1% of Europe’s electricity. Today it represents 10% in the EU and even 23% in Greece, 19% in Spain or 16% in Germany, making it one the EU’s fastest-growing energy sources. Nearly 150GW of new capacity, which could power around 42 million households*, was added between and and a further 70 GW is expected in . This rapid expansion reflects the strong momentum for rolling out renewable energy in the EU. With the EU’s commitment to reaching climate neutrality by , solar energy is expected to deliver a major share of the Union’s renewable power. We have set ambitious targets. The EU Solar Energy Strategy from aims to reach at least 700 GW of new solar generation capacity by , four times more than in . This shift is already well underway: in renewables overtook fossil fuels in electricity generation (1,200 TWh vs 788 TWh) and by , it reached a record 47% of overall electricity generation. Driving this surge are wind and solar — with solar alone jumping by 15% in just one year.
* Assuming annual household energy consumption of 3.7 MWh and EU-wide capacity factors for solar PV from .
Despite its rapid growth and clear climate benefits, solar energy, and especially photovoltaics, are still surrounded by a few persistent myths and misunderstandings.
Let’s shed some light on the facts. Here are 5 key things you should know about solar.
Solar panels are a great addition to your home as they generate renewable electricity - even on cloudy days. And when it comes to safety, they’re among the most reliable technologies available. While any electrical device carries a potential fire risk, incidents involving solar installations are exceedingly rare. SolarPower Europe’s data from Germany (between and ) and the Netherlands (between and ) shows that fires caused by solar panels occur in just 0.006% to 0.014% of cases, a rate significantly lower than that of many common household appliances. When issues do arise, they are typically linked to poor installation or faulty components, not the solar technology itself.
Across Europe, strong safeguards are in place to keep solar installations safe. All solar panels, whether imported or manufactured in the EU, must meet strict technical requirements under EU product safety legislation and standards. To ensure systems are installed properly, EU countries must have certification schemes (or equivalents) for solar photovoltaic installers and designers, as required by the Renewables Directive. These schemes include training programmes and public lists of certified installers. On top of that, EU rules also cover how photovoltaic systems connect to the electricity grid, while allowing some flexibility for national requirements.
Solar energy comes in many shapes and sizes. Solar photovoltaic and solar thermal panels can be installed in compact spaces such as rooftops and balconies, and even integrated into buildings as solar roof tiles or facades. In some EU countries, homeowners and tenants can install plug-in solar panels on balcony railings, walls or terraces. These systems connect directly to the household grid, providing clean electricity for self-consumption, and helping to cut energy bills.
Not every building is ideal for installing solar panels – but that doesn’t mean you’re left out. Energy communities and energy sharing can provide a smart solution. Through energy communities, citizens, local authorities and businesses can team up to invest in clean energy projects, including solar energy, at local level. This allows them to produce, sell and use renewable energy collectively – even if the panels aren’t on their own roofs. Energy sharing allows you to share the electricity you generate with neighbours, friends or relatives. In short, we don’t need solar panels on our own rooftop to benefit from solar power in our home.
Large-scale solar farms may take up more land, but their efficiency is rapidly improving. For instance, the Cestas Solar Park in France spans 265 hectares (equivalent to roughly 8% of the size of the Charles de Gaulle Airport in Paris). With an installed capacity of 300 megawatt-peak, it can produce enough power for more than 70,000 households per year.
To make the most of available space, innovative and integrated approaches like agrisolar show great potential. These systems combine solar power production with agricultural use, allowing land to remain primarily dedicated to farming. Meanwhile floating solar installations on bodies of water, sometimes paired with hydropower, offer another innovative solution to expand solar generation without competing for land.
Like all human activity, using solar technologies has an environmental impact. But it’s climate change that poses the single greatest threat to biodiversity, affecting countless species and ecosystems across Europe and the globe. With an average temperature increase of 1.5°C, 6% of insect species, 8% of plant species and 4% of vertebrates would lose more than half of their habitat. Currently we are heading/tracking towards an increase of 2°C and more. Without urgent action, far more species will be pushed to the brink.
Renewables like solar energy are crucial for cutting greenhouse gas emissions by replacing electricity generated from fossil fuels. In doing so, they play a key role in tackling global warming and its growing threat to wildlife.
As highlighted in a Commission study from – the expansion of renewables, including solar, must be carefully managed to safeguard biodiversity. Climate action and nature protection can and must go hand in hand.
With good planning, the deployment of renewables can benefit ecosystems. Solar farms can support habitat restoration on degraded land, while other innovative approaches include repurposing former industrial or mining land, installing floating solar on artificial lakes and other bodies of water, and designing sites to enhance biodiversity and enable wildlife mobility.
Most solar power systems in the EU are installed on rooftops – already built-up spaces that exert no additional pressure on land or nature. Rooftop solar is quick to install, helps protect consumers from energy price volatility, and avoids land and biodiversity conflicts. According to scientific studies published in , rooftops could provide almost 25% of the EU’s electricity needs - a huge potential to tap into.
In , renewables produced nearly half of all electricity in Europe, up from 38% in and 30% in . This steady rise is driven by the EU’s target of reaching at least 42.5% of renewables in the overall energy mix by . Yet, despite this growth, households and businesses have faced higher energy bills due to the energy crisis. Price spikes have been particularly noticeable since the end of due to Russia’s weaponisation of its energy exports and the EU’s reliance on imported fossil fuels. As of , fossil fuels still account for around 28% of the EU’s electricity generation.
Solar energy, like wind, is a far more affordable alternative. According to the International Energy Agency, solar is now among the cheapest options for new electricity generation. The price of building new solar capacity has, according to a report published by IRENA in , dropped sharply over the last decade, both for photovoltaic and concentrated solar power. Solar photovoltaic now costs less than half as much of coal - another important reason it’s become a major contributor to the EU’s power supply.
As well as the lower costs and emissions, expanding our solar capacity helps wean the EU off imported energy sources like gas, and strengthen our energy independence.
A resilient energy system is essential for ensuring Europe’s energy security, economic competitiveness and public safety. Solar energy has a key role to play.
One of the major advantages of solar generation is its often decentralized nature: much of it is produced close to where it is used, helping to reduce losses and improve the energy system's resilience. While large utility-scale solar plants contribute significantly, rooftop photovoltaic on homes, businesses and industrial sites made up 58% of the EU’s solar photovoltaic installations in , compared to 42% utility-scale solar.
When combined with energy storage, the contribution of solar energy to the resilience of the energy system becomes even more powerful. Batteries allow solar systems to supply electricity even at night or during grid disruptions. During the April blackout in the Iberian Peninsula, for example, the University of Almería remained open thanks to on-site solar and battery storage. The impact of the blackout lasted 10 seconds, which is the time it took to activate the emergency power supply.
While solar is a variable energy resource, grid operators – those responsible for managing and operating the electricity grids – have a toolkit to ensure the reliability and flexibility of the electricity system. A diverse mix of variable renewables, such as solar and wind, can be effectively balanced across the grid with adequate transmission capacity and flexibility, such as that provided by energy storage and demand response – that is, when consumers shift electricity use to other periods, such as when supply is more abundant (and cheaper). In addition, firm low-carbon energy resources such as geothermal energy, sustainably sourced biomass and biogas and nuclear power, can help fill the gaps, providing power regardless of the weather. Together, these resources can deliver a secure, low-carbon electricity system that meets demand around the clock.
And there’s more: solar photovoltaic systems can also contribute to grid stability by providing essential grid services that make the whole system not only greener, but more resilient.
Solar energy has come a long way since , when French physicist Edmond Becquerel first discovered that sunlight could generate electricity. Today it’s far more than just a clean and abundant energy source, it’s a driver of economic innovation, jobs and sustainable industry in Europe.
The solar workforce is growing fast: the EU photovoltaic sector employed 826,000 people by the end of , a 27% increase from . If this trend continues, Europe could see more than 1 million solar workers by , according to SolarPower Europe.
Beyond jobs and innovation, solar energy also strengthens Europe’s energy independence. By generating clean electricity at home, we reduce our reliance on imported fossil fuels, improve energy security and help households and businesses cut their energy bills.
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