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DIY Solar

Pros and Cons of Solar Energy: Is Solar Energy Right for Me?

by liberry on Nov 04, 2024
Pros and Cons of Solar Energy: Is Solar Energy Right for Me?

Solar energy systems harness the sun's energy and convert it into electricity. In recent years, the use of solar energy has grown rapidly around the world. More and more homeowners are choosing to install photovoltaic panels on their roofs to generate their own electricity. Governments have begun to implement policies to encourage the use of solar energy as part of their renewable energy targets and to reduce greenhouse gas emissions.

The rapid growth of solar energy not only brings environmental and climate benefits, but also offers individuals and businesses the opportunity to reduce their energy costs and increase their energy independence. But it's not for everyone, so if you're unsure about installing solar on your home, read on.

We've listed some of the pros and cons of solar power to help you decide if it's right for you.

Benefits of solar: Why homeowners choose solar system

Reduce or eliminate your electricity bill with solar energy

Solar energy has many benefits, the most immediate of which is that it can reduce or even eliminate your electricity bill. If you have a solar system installed on your home, you can generate your own electricity and reduce your dependence on the electricity company. Who wouldn't be happy about one less bill? The average home in the United States can save nearly $1,500 a year on its electricity bill with a solar system. Solar panels typically last 25 to 35 years, and homeowners can save between $22,000 and $100,000 over that time.

Even if you choose to extend the payback period by financing the project with a loan, you'll benefit from reduced electricity costs as soon as the PV system is up and running.

See more: How much you can save with solar panels?

 

Counteracting rising electricity costs

Electricity prices in the United States have been rising for almost a decade. The national average price of electricity is now $0.14 per kilowatt hour. By purchasing a solar panel system instead of leasing, you can lock in your electricity bill for the next 25+ years. Once you have recouped the initial cost of your solar system through bill savings, you can generate electricity for free, free from the hassle of rising electricity prices.

Solar panels get cheaper

The fact that the price of solar energy continues to fall is an important point, as it is now easier than ever to install solar energy. The solar industry has made great strides in technology and the production efficiency of solar panels continues to improve. As the solar market expands and the technology matures, manufacturers are able to scale up production, reducing the cost of producing each solar panel. As confirmed by the International Energy Agency (IEA) in its World Energy Outlook 2020 report, solar power is now the cheapest electricity option in history. In its 2021 report, the IEA predicts that renewable energy generation will continue to grow until 2050, with solar power increasing dramatically to become the world's primary source of electricity.

In addition, the federal solar tax incentive allows you to deduct 30% of the cost of the equipment and installation from your federal tax bill.

 

Net metering

Net metering is an incentive for solar energy. Net metering allows you to use the grid to 'store' excess energy produced by your solar panel system. This allows you to take electricity from the grid when you need it and feed excess electricity back into the grid when you are allowed to do so. Your electricity bill is calculated on the net amount of electricity you actually use. In essence, you can 'sell' this excess energy back to your utility company in exchange for a reduced electricity bill. You gain greater energy independence without having to go completely off the grid. With net metering, you can shorten your payback period.

 

Increase property value

Many homeowners are interested in solar panels but don't understand how they can affect their home. Recent studies have shown that installing a solar system can increase the value of a home by about 4%. Homes with solar sell for an average of about $15,000 more, or 3.74% more than non-solar homes. And it helps your home sell faster than a home without solar. Even if you don't live in your home permanently, you can recoup your investment in solar panels and even make some money back when you sell your home. Whether you've lived in your home for years or are just moving into a new home, installing solar panels is a good investment for most homeowners.

 

Low maintenance costs

Solar systems don't have many moving parts, are very durable and rarely break down. Typically, solar panels come with a 25 year warranty, some even longer. You will rarely need to repair or replace the panels during the lifetime of the system. Even after thirty years, most systems are still 85% efficient or better. Your panels may only need occasional cleaning after snow or bad weather.

However, it is important to note that inverters usually have a 10-15 year warranty. You will probably need to replace the inverter at least once during its 25-year life. Off-grid systems are even more complicated because they need to include batteries, which usually require regular maintenance.

 

Solar works in most environments

Solar energy is a form of energy that works in most environments. The advantage of solar energy over some alternative energy sources, such as wind and hydro, is that it does not require large open spaces, constant wind shifts or abundant water sources. Solar energy can be used in almost any environment. Although the output of a solar system may be reduced on cloudy days or in climates with little sunlight, solar panels are still relevant in most climates.

Disadvantages of solar energy: things to consider before buying

Solar panels are expensive

Although solar energy systems are getting cheaper, the initial investment is still not small. The cost of solar panels, inverters, batteries and the installation of the system itself is still out of reach for many people. Solar panels are the core component of a solar system and one of the most expensive parts. According to statistics, the average cost per watt in the United States is $3.80 per state. For an average 6,000W solar system, the total installed price is $22,800.

Many solar companies or installers offer financing, but this usually involves paying interest and additional fees. The payback period may also be longer.

 

Solar energy is weather dependent

Solar panels require sunlight to produce energy, so they are not equally effective around the world. The performance of solar energy systems is also affected by geographical location, with areas where solar energy is installed requiring a certain number of hours of sunlight. At high latitudes or in areas that are often cloudy, solar systems may not be as efficient as in sunny areas.

Due to the intermittent nature of solar power, such as at night or during bad weather, you will need to draw power from the grid. If you live in a net metering area, this isn't a big deal. However, if your utility company does not compensate you for the excess power you send back to the grid, you will need to have storage equipment, such as a battery system, to store the power you generate during the day for use at night or when the sun is not shining. This adds complexity and cost to the system, but in states like California that do not have net metering, it is worth it.

 

Not all roofs are suitable for solar panels

Solar panels are best installed on a south-facing roof to maximise the amount of solar energy received. Even if your roof faces east or west, or is flat, it is still worth installing solar panels. If you can only install solar panels on the north side of your roof, we don't recommend it.

Again, solar works well with asphalt shingle or metal roofs. Some complex roof structures or materials, such as slate or cedar shingles, can add to the complexity and cost of installation. Some homes have skylights or roof extensions, such as decks, which can also make solar too expensive or difficult to install.

But if your home doesn't qualify for rooftop solar, you still have other options. If you have enough open space, you can install ground-mounted solar panels, or if your state has an open programme, you can join a local community solar farm. By participating in these projects, you can benefit from a shared solar array without having to install it on your own home. Participants share the cost of purchasing and installing the solar system, and can buy the electricity produced by the shared system at a price that fits their budget.

 

Solar panels are not easy to move

When considering whether to install a solar energy system, it is important to consider not only the payback period, but also your long-term plans and goals. Solar systems take time to pay for themselves, and the National Renewable Energy Laboratory (NREL) reports that the average payback period for a solar system is 5-8 years. It's not worth investing in a solar system if you're moving in the next few years. Although solar energy can increase the value of your home, you may never see a return on your investment.

 

Unable to get finance

The initial cost of a solar system often depends on factors such as tax credits, rebates and financing terms. For some, the upfront cost can be a barrier. If you don't qualify for a zero down solar loan, the disadvantages of solar are clear.

Various government agencies, financial institutions and solar companies offer a variety of financing options, including leases, loans and right-to-buy agreements. If you are considering installing a solar energy system, it is important to research and discuss the various financing options to find the best solution for your situation.

Is solar a good investment now?

For most homeowners, if the benefits of installing solar outweigh the costs, then it's worth it. This is because the long-term savings and increase in property value often outweigh the upfront costs. It reduces greenhouse gas emissions and saves you a lot of money on your electricity bill.

Tags: DIY solar
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