Updated 2 weeks ago
How to Go Solar: Beginner’s Guide to Home Solar Panels
Written by Catherine Lane Catherine LaneCatherine has been researching and reporting on the solar industry for five years and is the Written Content Manager at SolarReviews. She leads a dyna...Learn more , Edited by Gianna Cappuccio Gianna CappuccioGianna Cappuccio is an editor at SolarReviews. After obtaining a Bachelor's in English from Montclair State University in 2016, Gianna decided to purs...Learn more
Find out what home solar panels cost in your area
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Despite being a leading clean energy technology, there is still a lot of mystery surrounding installing home solar panels. There are several benefits to getting solar panels for your home, like electricity bill savings and powering your home with clean energy.
That being said, residential solar is an investment that costs around $18,000 and comes with plenty of do’s and don'ts. That’s why our team of solar experts put together this comprehensive solar panels for home guide to help homeowners like you figure out what you need to know before getting home solar.
You can also watch this video from SolarReviews president and founder Andy Sendy to learn more about home solar.
Key takeaways
Homeowners can run their homes using solar power instead of taking energy from the grid, which lowers energy bills and carbon footprints.
A home solar energy system costs about $13,400 after the 30% federal tax credit and typically saves around $1,500 annually.
The installation cost of solar panels and electricity bill savings depend on local electricity rates, the solar company you choose, how much sunlight your roof gets, and the rebates and tax incentives available near you.
On average, solar panels pay for themselves after 10 years, making them a worthwhile investment for many homeowners.
Key solar terms to know
Before you dive into our beginner’s guide, there are a few solar terms that are important to know so you can fully understand everything about solar!
Solar term | Definition |
---|---|
Watt (W) | A watt is a unit of electrical power. The power output of solar panels is measured in watts. |
Kilowatt (kW) | A unit of power equal to 1,000 watts. Solar system sizes are typically measured in kilowatts. |
Kilowatt-hour (kWh) | A measure of the amount of energy delivered by one kilowatt of power for one hour. Used to describe energy consumption and energy production. |
Cost per watt | How solar panel cost is usually listed to make it easy to compare quotes of different sized solar systems. |
Net metering | The utility billing structure that allows homeowners to sell excess solar energy they produce back to the utility to cover future energy costs. |
How do home solar panels work?
Solar panels produce electricity through a process called the photovoltaic effect. Most home solar panels are made of silicon, a semiconductor material. When sunlight hits the silicon in solar panels, the electrons get excited, generating an electric current that goes to a solar inverter and is then used to power appliances and devices.
If your solar panels produce more energy than your home needs, the extra solar energy can be sent to the utility grid or stored in an energy storage system.
Exactly how the solar panel system works with your home and the electric grid will depend on the type of solar panel system you have. There are three main types of home solar systems: grid-tied, hybrid (or solar-plus-storage), and off-grid. The following videos outline how different solar system types work:
Grid-tied
Hybrid
Off-grid
Grid-tied solar system
A grid-tied system is the most common type of solar system. It has no solar battery for backup power and utilizes net metering to maximize savings. Solar panels are mounted on your roof then wired together, and the power generated flows into an inverter where direct current (DC) electricity is converted into alternating current (AC) electricity. This electricity is either used by your home or is exported to the utility grid.
Solar panel types
There are three different types of solar panels: monocrystalline, polycrystalline, and thin film. While each solar panel type has its own benefits and drawbacks, according to the National Renewable Energy Laboratory (NREL), the most popular solar panel type used for home solar installations is monocrystalline.
It is extremely rare to get a solar panel quote for a solar system that uses something other than monocrystalline solar panels.
Solar panel equipment
When you go solar, more than just solar panels are installed on your roof. Solar panel systems have multiple components that work together to power your home. The table below explains the solar panel equipment that is used in an average functional solar system
Equipment | Its function |
---|---|
Solar panels | Generates electricity |
Racking equipment | Hold the solar panels in place on your roof |
Solar inverter | Converts the solar energy into electricity appliances can use |
Net meter | Records how much energy your panels produce and how much energy your home uses from the utility |
Solar battery storage equipment (optional) | Stores any excess energy that your panels produce for later use |
Things to consider before you go solar
Listen, we’re solar people, so we’d love to tell you that you should just go out and get panels on your roof. But we’re also honest: solar panels aren’t for everyone. Solar panels have several pros and cons that can impact your decision to go solar.
Pros
Reduces your electric bill
Insurance against rising power costs
Renewable energy source
Low maintenance costs
Cons
High upfront costs
Intermittent energy source
Panel manufacturing has environmental impacts
Potential difficulty selling your home
Even if home solar panels are the right choice for you, there are some things you need to consider before installing them. Here are the top things our solar experts think you should understand before getting home solar panels.
Home solar cost and savings
A fully installed 6 kilowatt (kW) solar panel system costs about $18,000 before any incentives or rebates are considered and saves an estimated $1,500 annually on average.
Solar panel prices are usually measured in “cost per watt of solar installed,” with a normal price for home solar sitting between $2.60 per watt and $3.35 per watt when paying with cash. The following table outlines estimated solar costs and savings for different-sized solar systems:
System size | Estimated solar cost before incentives | Estimated lifetime solar savings |
---|---|---|
4 kW | $13,000 | $31,100 |
6 kW | $17,700 | $46,650 |
8 kW | $22,800 | $62,200 |
10 kW | $27,500 | $77,750 |
12 kW | $33,000 | $93,300 |
Remember, the total cost of your rooftop solar installation and your electricity bill savings will vary depending on your specific home, your utility company, your location, and the solar installer you choose.
How to pay for home solar panels
Solar installations aren’t cheap, but solar financing options are available to help pay for home solar. Cash purchases generally provide the best long-term solar savings, but it’s not a feasible option for many homeowners.
Solar loans are the next most popular financing choice, as they allow you to retain ownership of your system. Interest and dealer fees cut into long-term savings, but solar loans still provide a good return on investment.
Third-party-owned systems like solar leases and power purchase agreements require no upfront payments, but since you are not the system owner, you can’t take advantage of certain incentives. These systems often provide the lowest long-term savings.
Can you get solar panels for free? No, you cannot get solar panels for free! When a company advertises free solar panels, they’re usually referring to leases and PPAs. While there are no upfront costs, you do have to make monthly payments. Don’t be fooled by tricky advertising!
Is your roof suitable for solar?
Not all roofs are ideal for solar panels. For the best results, solar panels should be installed on a south-facing roof with minimal to no shading.
Solar panels can be installed facing other directions, but they won’t generate as much electricity, so you’d have to install more, which would jack up the price.
You also want to install solar panels on a roof that is in good condition. If your roof is getting old, you might want to get a roof replacement squared away before you get panels installed. If you have an older home, it’s also a good idea to get your roof inspected to make sure that it can handle the additional weight of solar panels.
What is your energy usage?
Understanding your home’s energy consumption is key when considering a solar switch. If you pay less than $75 for electricity each month, you probably don’t use enough energy for solar panels to be worth it.
Energy usage dictates how many solar panels you’ll need, and it can even determine if it’s worth it to go solar at all. The more energy you use, the bigger the solar system you’ll need to cover your consumption.
Most home solar systems use between 15 and 19 solar panels, but the exact number needed is unique for each home. Having a baseline understanding of the system size your home needs can help you get a better price and prevent unsavory salespeople from pulling a fast one on you.
Oversize your system if you can. System oversizing is a top recommendation among homeowners who have already installed solar. Solar systems are designed to cover your historical energy usage, but we all tend to use more energy year over year (maybe you got an electric vehicle or switched to a convection stove). You can spend a little bit more upfront and install a few more panels than you need right away to ensure you cover future energy needs. However, many utilities limit system oversizing, so be sure to discuss that with your installer.
Does your utility offer net metering?
Net metering is the billing structure that allows solar panels to cover all of your electricity costs. If your utility has net metering, it will buy excess solar energy you send to the grid at the full retail rate of electricity, allowing you to fully eliminate energy charges from your electric bill.
If your utility doesn’t offer net metering or credits excess solar energy at the full retail rate, it will impact the return on your solar investment. Take a look at how your utility bills solar customers to see if solar is worthwhile in your area.
What solar incentives and rebates are available near me?
Solar incentives and rebates can significantly impact the cost of solar panel installation and the time it takes for them to pay for themselves.
The most significant solar incentive that’s available nationwide is the federal solar tax credit, which directly reduces what you owe in taxes by 30% of your solar installation costs. Keep in mind that this isn’t a rebate; you will still be paying the full price for your solar system, but you’ll see the savings later when you file your taxes for the year.
There are home solar incentives offered by state governments and programs offered by utility companies. Check what is available in your area to see if incentives make going solar more financially viable for you.
Solar incentives by state
State solar incentive resources | ||||
---|---|---|---|---|
What to expect with a home solar installation
The actual solar panel installation can take just a few hours - but the entire process of going solar can take between two and six months to complete.
Typically, permitting and inspections are the longest parts of the solar installation timeline. This probably comes as no surprise if you’ve ever done any home improvement projects that require permits - it’s a slow-moving process. Some jurisdictions use a streamlined permitting system called SolarAPP that cuts down on time, but it’s not available everywhere.
But the wait is worth it for 25 years of clean energy!
Do you need to worry about solar maintenance and repairs?
Solar panels don’t require much in the way of long-term maintenance, but routine solar panel cleanings can help keep your panels operating at their very best.
While solar panel maintenance is typically minimal, you may come across solar repairs along the way. Software issues with inverters, batteries, and monitoring tend to be the biggest problem with home solar systems. Hardware and equipment issues are less common, but if they do occur, they are usually covered by your solar installer or manufacturer warranty.
If you live in an area with squirrels or other rodents, getting solar critter guards can prevent future repair costs.
Can I install a home solar power system myself?
While DIY solar is an option, we don’t recommend it for home solar systems. For one thing, it’s a dangerous task that requires electrical work and working at heights. This type of job is best suited for professionals.
However, there are some more logistical things to consider regarding DIY solar as well. You’d be responsible for sorting out equipment delivery, local permitting rules and regulations, organizing inspections, and interconnecting with the local utility. Some utilities won’t let systems connect unless a certified professional installs them.
You can also encounter issues voiding your panel, inverter, or other solar equipment warranties.
Overall, DIY isn’t something we recommend for solar systems for homes, but it may be a project for powering a detached shed or garage or an off-grid setup.
Is it worth it to go solar?
Solar panels are worth it for most homeowners and are definitely worth considering. With an average payback period of just 10 years, you can enjoy over a decade of free electricity. In fact, solar panels can offer a better internal rate of return than traditional investment options.
Again, whether solar panels are right for your home really depends on your unique situation. Contact local solar companies to find out if a solar investment is your best choice.
How to find the right home solar company to go solar
Finding the right solar installer is the most important part of getting solar panels for your home. Not only is your installer the one who actually gets the panels on your roof, but they’re also the ones you need to call for support down the line.
Our solar experts recommend getting at least three quotes from local solar companies that have been in business for at least five years, have recent positive customer reviews, and hire NABCEP-certified professionals. You’ll also want an installer that offers high-quality solar panel brands like Qcells, Silfab Solar, and JA Solar.
Finding a company that meets all of your needs can be intimidating - that’s where SolarReviews comes in. We can connect you with qualified, pre-vetted solar professionals in your area who can get you the best solar installation possible. You choose how many solar installers you want to hear from, and you’ll never be contacted by more companies than you select.
Solar panels for home FAQ
Do I still get an electricity bill with solar panels?
You can still get an electricity bill with solar panels. Some utility companies have monthly minimum bill requirements or taxes, fees, and charges that cannot be offset by solar generation. Also, if you use more electricity from the grid than your solar panels generate, you will be charged by your utility.
Will my solar panels power my home at night?
No, your solar panels won’t power your home at night. However, most home solar panel systems are sized to generate enough electricity during the day to cover the costs of nighttime energy usage under net metering. So, depending on your utilities net metering plan and system size, you’ll still be using energy from the grid at night, but you won’t be paying for it.
How many solar panels do I need for a 2,000-square-foot house?
A 2,000-square-foot home typically needs between 15 and 19 solar panels. Exactly how many solar panels you need depends more on your home’s energy usage, where you live, and your roof’s characteristics than the actual square footage of your home.
Do I need a solar battery?
Solar panels do not have to be paired with battery storage, but they are a great source of backup power for homeowners who experience regular blackouts. Batteries can also provide some financial benefits if your utility does not offer full retail net metering. Still, the additional savings are usually minimal compared to the upfront cost of the battery.
Do solar panels work during a power outage?
No, solar panels do not power your home during a power outage unless they are connected to a solar battery. Some new inverters on the market are designed to keep panels working when the grid is down, but they are currently not used widely. You can still power your home with a gas-powered generator if you have solar panels. Solar panels shut off during power outages to protect line workers when making repairs.
Do solar panels increase the value of my home?
Yes, solar panels can increase the value of your home, so long as you own them. Many states have property tax exemptions for solar systems, so you won’t see an increase in your tax payment. If the solar panels are financed under a lease or a PPA, the system likely will not add value to your home. In fact, third-party-owned systems can make it more difficult to sell your house, as buyers are hesitant to take on an additional contract.
Does a home solar panel system impact my homeowner's insurance?
Most homeowners insurance policies cover solar panels. However, solar panels may increase your insurance payment depending on your current policy coverage. The best way to know how installing solar panels will impact your homeowner's insurance is to contact your insurance agent.
Can I add solar panels to my roof after my installation?
Yes, you can add solar panels to your existing home solar system if you need more solar energy. However, this can be costly, as you’ll need to get more permits and integrate the new panels into your existing system.
Should I get solar shingles instead of solar panels?
Solar shingles are a great option for homeowners who want to go solar but don’t want to sacrifice their home's aesthetics. While there are a few solar shingle options out there, the most popular and widely available is the Tesla Solar Roof. However, solar shingles tend to be costly, and they don’t produce as much energy as traditional solar panels because they are flat against your roof.
Do solar panels work in the winter?
Yes, solar panels work well in cold weather. However, if you experience heavy snowfall and have solar panels covered in snow, you'll need to clean them off so they can regain access to sunlight.
Catherine has been researching and reporting on the solar industry for five years and is the Written Content Manager at SolarReviews. She leads a dynamic team in producing informative and engaging content on residential solar to help homeowners make informed decisions about investing in solar panels. Catherine’s expertise has garnered attention from leading industry publications, with her work being featured in Solar Today Magazine and Solar ...
Learn more about Catherine Lane