Advantages and Disadvantages of Solar Energy in 2025

Figuring out if solar panels are right for your home can be daunting. If you’re looking to install solar panels, you’ll come across a wide range of information listing out all the good (and bad) home solar offers. 

In most cases, the benefits of solar panels outweigh the drawbacks, so it's no surprise that over 5 million solar installations have been completed in the United States!

However, it’s important to know that solar isn’t for everyone! The experts at SolarReviews compiled a comprehensive of the pros and cons of solar energy in 2025. 

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Solar energy pros and cons

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Advantages of solar energy

Beyond electric bill savings, community benefits, and environmental benefits – solar energy  has plenty of advantages to offer. 

Electricity bill savings

One of the best advantages of owning solar panels is that they help reduce your electricity bills.

As of 2025, the average household can save about $1,500 per year on electric bills with solar panels! Through those annual savings, most homeowners can break even on their solar investment in 12 years or less. 

Plus, solar panels help protect you from future electric rate increases. When your utility is raising energy costs for everyone else, you’ll still be using energy generated right from your roof and saving even more money!

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Solar is an environmentally friendly energy source

When solar panels generate electricity, they do not release any harmful carbon emissions into the atmosphere – making solar energy a clean power source!

Most utility companies source energy from fossil fuels like natural gas and coal, which have widespread negative health and environmental impacts when burned and contribute to climate change.

There’s also a limited amount of fossil fuels available, so when we run out, we’ll need to find an alternative. That's not something we have to worry about with solar because it's a renewable energy source, and we won't run out of sunlight any time soon.

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Solar panels are low maintenance

Solar panels require very little maintenance, especially if they’re tilted at an angle. Rain typically washes away any debris that might affect your solar power system’s efficiency. However, occasionally cleaning your solar panels to remove excess dirt doesn't hurt.

A big reason why solar panels are low maintenance is because they have no moving parts. Solar equipment failures are rare and many issues that do occur are covered by solar warranties, leading to relatively low maintenance costs.

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Solar can earn you tax credits and other incentives

Solar incentive and rebate programs are available throughout the United States to make solar a cheaper investment. Right now, the best incentive is the 30% federal solar tax credit, which lowers what you owe in taxes for the year by thousands of dollars. 

There may be other local rebate programs available for you when you go solar that directly reduce the cost of your installation. Some incentives, like Solar Renewable Energy Credits (SRECs), earn you extra cash with no extra work!

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Solar energy is abundant and can work in many locations 

It’s a common misconception that solar panels will only work in extremely sunny places, like Arizona. But, this isn’t true! Solar panels can withstand all seasons, and they even work better in cold temperatures. 

Even if you live somewhere that doesn’t get as much sunshine, you can get solar. You might just need a few more solar panels to meet your energy needs. Believe it or not, some of the best states for home solar aren’t the ones that get the most sunshine!

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Solar is cheaper and more efficient than ever

Solar technology has evolved over the last decade making solar panels cheaper and more efficient than ever.

As of 2025, solar panels are 60% cheaper and 40% more efficient than they were in 2010. Back then a 6-kilowatt solar installation would cost you about $52,000. That same system today would be almost two-thirds cheaper!

Solar panels today are also much better at generating electricity than they were fifteen years ago, thanks to a number of technology advancements. In 2010, average solar panel efficiency ratings were about 15%. Today, solar panels are between 19% and 22% efficient on average.

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Solar panels can increase home value

Since they are considered a home improvement upgrade, solar panels can raise your home’s value when it's appraised.

Experts at SolarReviews analyzed over 400 homes on Zillow and found that on average, homes with solar panels sell for 6.8% more on average than homes without solar panels.

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Solar energy benefits your community

Home solar helps to reduce stress on the electricity grid, especially when paired with solar energy storage. With fewer people using the grid, the chance of a power outage decreases.

Also, since solar is a clean energy source, no carbon dioxide or other harmful pollutants are released when it's generated, which increases the overall air quality and human health. The more solar we use, the less air pollution there is! 

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Solar power has diverse uses

Photovoltaic energy can be used in many small and large-scale projects. From powering a single home to running space satellites, solar can be harnessed in more ways than you think.

Solar panels are commonly used on residential rooftops, but they're also used in large solar farms to power more than just a singular home. They can also provide power in areas where the grid doesn't reach, increasing access to electricity!

There are many different solar technologies, like solar PV panels for electricity generation, or solar thermal systems that heat water or are used in large power plants.

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Solar increases energy independence

Solar panels allow homeowners to create their own energy instead of relying on the electrical grid, helping to achieve energy independence from their utility company and take more control over where their home sources energy from. 

On a larger scale, solar energy systems in the U.S. would help the entire country reduce our reliance on other countries for foreign oil and other energy resources. 

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Disadvantages of solar energy

With the combination of a high upfront cost, installation limitations, environmental impacts, and more – there are a few drawbacks that come with solar energy. 

Solar has a high upfront cost

While solar panels are cheaper than they've ever been, home solar can still come with a high initial cost.

The average 7.2-kilowatt solar installation costs about $21,600 before incentives are applied. Rebates can help bring down initial costs, but they aren't always available.

However, there are solar financing options available to make it more affordable for homeowners to go solar. 

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Solar panel manufacturing and installations can have impacts

Solar panels generate clean energy, but manufacturing solar panels do have an environmental impact. Manufacturing plants release greenhouse gas emissions into the atmosphere, and mining for materials used in solar panels can damage the surrounding environment. 

Also, large-scale solar farms require a significant amount of land, which can potentially impact the migration route of some animals, or amplify the effects of erosion in the soil during the installation. 

Despite this, solar panel systems are still a far more environmentally friendly option than the use of fossil fuels.

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Solar is an intermittent energy source

Solar energy is considered an intermittent energy source because the amount of energy solar panels produce is generally weather-dependent.

Also, the sun’s intensity varies by location, time of day, and time of year, meaning solar production isn't as reliable as other energy sources.

However, pairing solar panels with battery storage can solve this problem. Solar panels can charge the batteries during the day when the sun is shining, and the battery power can be used when the panels aren't generating enough energy to meet demand. 

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Home solar panels could increase your property taxes and homeowners insurance

Solar panels add value to your home, which is a great advantage. However, increased property value can also mean increased property taxes. Many states and municipalities offer property tax exemptions for solar panel installations, so there’s a chance you won’t be affected by this.

Homeowner’s insurance is also based on the value of your home. So, if a solar installation increases your home’s value, your insurance will likely also increase. We recommend speaking to your insurance broker for more specifics about how solar panels impact your homeowners insurance policy. 

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Roof characteristics and location restraints

Unfortunately, not every home can have solar panels. For your solar installation to be worth it, you need a roof that is suitable for solar panels.

Here are a few reasons why your home might not be suitable for solar panels:

• Your home’s roof is entirely blocked by shade

• Your roof is due for a replacement

• Your roof doesn’t have enough space

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Solar panel recycling options are limited

Solar panels are made from 80% recyclable materials, but recycling programs for solar panels are limited. 

The United States has no laws currently that govern the recycling of solar panels. In recent years, some recycling programs and companies have formed to tackle this issue, but it's still not 100% solved. 

Luckily, solar panels are built to last for 25 or more years, so there is still time to develop better recycling processes. 

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Value depends on local policy

Some areas are more solar-friendly than others. When we say ‘solar-friendly’, we mean that different states, utilities, and municipalities have better policies that make solar a good investment.

States with better policies, like Colorado or Massachusetts, have more rebates and incentive programs available to homeowners that reside there, making solar more affordable for them.

If you live in a state that does not prioritize the adoption of solar, there’s a chance you end up paying more for your solar installation and earn lower savings. 

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Finding the right installer can be difficult

Solar is a 25-year investment, so it's crucial to find a trustworthy and reliable installer. A few bad apples have made it hard for homeowners to figure out who to trust. Deceptive, spammy sales tactics and solar scams have left a lasting bad impression on solar installers. 

Luckily, SolarReviews makes it easy for homeowners to connect with trustworthy solar companies. 

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How do solar panels work?

Solar panels produce electricity through a process called the photovoltaic effect. When sunlight hits the solar panels, an electric current is created. The current runs through the wiring of the system to a solar inverter that makes this electricity usable for your home.

If you produce more solar electricity than your home uses, it can be sent to the utility grid. Depending on where you live, your utility company might pay you for the energy you send to it through net metering. You can also store that energy in a solar battery. 

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Are solar panels worth it?

In most cases, the advantages of solar panels make them a worth it for homeowners. 

Solar panels are best for those who live in solar-friendly states with high electricity rates and good incentives. Also, homes with south-facing roofs that are mostly free of shade are ideal for solar panels.

There’s very few reasons why solar is not worth it. If you’re curious about your specific home being eligible for solar, put your home’s information into our solar calculator to learn more. 

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Solar panels frequently asked questions (FAQ)

Still unsure about solar? Here are some frequently asked questions pertaining to the pros and cons of solar panels.