The Rise of Residential Solar Energy

Solar energy for residences has become a popular topic, and for good reason. The amount of solar energy connected to the electric grid has grown dramatically over the past few years, with nearly 4 million American households now generating their own power from solar energy.

This clean energy source enhances the reliability of the electric grid while helping homeowners save money and increase the value of their homes. With growing interest and abundant information available, Energy Saver highlights five key benefits of residential solar:

Benefit 1: Increasingly Affordable Solar Panels

Residential solar has never been more affordable, especially with the extension of the federal residential solar tax credit. Homeowners can claim a 30% tax credit on the cost of their solar systems on their income taxes, but installation must be completed before January 1, 2033, when the tax credit will drop to 26%.

Additionally, there are various financing options available to make purchasing solar systems easier with minimal upfront costs. The monthly payments on a solar loan are often lower than the average utility bill.

Benefit 2: Significant Savings on Utility Bills

Solar energy provides a substantial opportunity to reduce your monthly utility bills. With utility rates trending upward, solar is likely to remain a cost-effective option for years to come. The amount of money you save depends on your electricity consumption, the size of your solar energy system, and its power generation capacity. Homeowners can also opt for leased, third-party-owned systems, allowing them to host a solar energy system on their rooftop and purchase the generated electricity at a discounted rate, often lower than utility rates, and with locked-in rates for years.

Benefit 3: Backup Power During Grid Outages

Generating your own solar power allows you to keep the lights on during power disruptions. Residential solar systems paired with battery storage, known as solar-plus-storage systems, provide power regardless of weather conditions or time of day without relying on the grid. As battery technology improves and financial incentives for energy storage are introduced, investing in battery storage becomes a sensible choice for more households nationwide.

Benefit 4: Increased Home Value

Installing a solar energy system can boost your home's value. A study by the Berkeley National Laboratory found that solar photovoltaic panels are seen as home upgrades, similar to a renovated kitchen or finished basement. Homebuyers across the country are willing to pay a premium for homes with an average-sized solar array. Third-party-owned systems generally have a neutral impact on home value, but prepaid leases can occasionally add value.

Benefit 5: Solar Systems in Various Climates

Solar panels need just one thing to generate electricity: sunshine! Even in winter, with fewer daylight hours, there is enough sunlight to power the average American home, making solar viable even in colder regions like Alaska. The U.S. Department of Energy's Solar Energy Technologies Office (SETO) ensures solar panels can withstand various weather conditions. SETO funds five Regional Test Centers across the country, each in a different climate, to ensure optimal panel performance regardless of location.