The Pros and Cons of Rooftop Solar in 2025

Solar panels provide homeowners a unique opportunity to own the electricity that powers their home, instead of renting it from a utility. However, just like buying a home, solar is a long-term investment with many facets to consider.

So, we’ve compiled a list of the pros and cons of solar to help you decide if 2025 is the right year for you to jump on board.

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Pros of Going Solar in 2025

Solar prices have likely reached bottom

One reason to consider going solar in 2025 is that solar prices have likely reached bottom and are expected to increase as new tariffs on panel components take effect and the Federal Reserve pauses lowering interest rates for the time being.

Rooftop solar pricing is typically measured in price per watt (PPW). Residential solar prices plummeted for several decades until bottoming out at $2.92 per watt in 2019, according to the SEIA. However — like many other things — mangled supply chains during and after the pandemic and caused solar prices to rise from 2020-2023, as shown below.

While installation pricing is highly variable by market and site-specific conditions, industry analysts such as Wood Mackenzie have shown that pricing is actually starting to tick up.

With a confluence of US and global market events, we anticipate that trend will continue. Combined with the cost of power from utilities continuing to increase, this makes now an excellent time to go solar.

Solar is a hedge against energy inflation

Energy inflation has been a kitchen-table issue for the last several years. While the price of eggs captures headlines, the cost of utility electricity often goes overlooked.

The average utility rate in the U.S. increased 24% from December 2021 to December 2024, adding over $400 per year to the electricity costs of a household using 1,000 kWh per month.

Utility rates are expected to continue climbing over time, and will likely be accelerated by growing electricity demand to power AI data centers and electric vehicles.

Installing solar panels allows homeowners to set a low and fixed price for the electricity that powers their homes and electric vehicles. For example, the cost per kilowatt-hour (kWh) for rooftop solar electricity is typically around 8 cents per kWh — less than half the cost of the average utility rate in the US (17 cents per kWh).

In other words, going solar gives you control and independence over your electricity rate — something you won’t get from your utility — and it generates a tax credit.

Consider how much your electric prices have gone up over the last few years and how they will increase in the coming years. Going solar reduces your exposure to the increasing expense of renting power from the utility.

The 30% federal solar tax is still available… for now

For many homeowners looking to get the biggest bang for their buck, this may be the most compelling reason to go solar in 2025. The Federal Solar Tax Credit, or the Investment Tax Credit, is the single largest incentive for going solar.

While many state and local governments offer their own incentives, the Federal Solar Tax Credit is eligible for any homeowner who owns their system and has active income tax liability.

The tax incentive currently allows owners to claim 30% of their gross solar system cost until 2032. You can learn more about how to claim the federal solar tax credit here.

There’s been much discussion about whether President Trump will remove the 30% Solar Investment Tax Credit. While he might pull in the deadline to claim the tax credit, there is very low probability he’d make it retroactive where a homeowner that goes solar in 2025 would not be able to monetize the tax credit. This makes now the absolute best time to go solar as solar incentives will likely decrease.

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Solar modules are warrantied to last 25 years

As the lifespan of solar panels increases, so are the length of manufacturer and installation warranties. Most major solar manufacturers including REC, Q Cells, and Panasonic offer warranties that guarantee a certain level of output over 25 years.

A typical rooftop solar system returns its investment in 5-8 years. That leaves up to 20 years of warranted system life where the solar array is returning value – all while avoiding the ever-increasing cost of renting power from the utility.  

And remember, solar panels don’t disappear when they reach the end of their warranty, their production capacity just slowly degrades over time.

Solar Increases Your Home Value

According to Zillow, homes with solar panels sell for 4.1% more than homes without. Zillow also found that energy-efficient features are important to 80% of homebuyers.

And Zillow is not the only organization reporting the benefits of solar on home value.

A study by the  Department of Energy’s Lawrence Berkeley Laboratory and Sandia National Laboratories found Californian home buyers will pay up to $4 per watt of installed PV, while homebuyers across the country will pay around $3 per watt. This comes out to about an additional $15,000 for a home’s solar system.

Prospective homeowners see the value in a high-quality, functioning solar array to help lower their household expenses when they’re purchasing a new home. Solar helps homes stand out in a competitive market.

Cons of Going Solar in 2025

Net Metering Rollbacks

Under Net Energy Metering (NEM), utilities credit solar module owners for excess generation that is distributed back to the grid. While many utilities still offer net metering, some have begun rolling it back for a variety of reasons.

Notable examples include:

• California’s NEM 3.0 Solar Billing policy
• New York’s declining rebate values under the NY SUN program
• Arizona’s Net Billing battle
• North Carolina reducing net metering compensation

In general, solar incentives (especially net metering) are not going to improve over time and some are capacity-based, so people who install solar before you get better rebates.

So, it’s worth jumping on the incentives that are available now!

Solar scams

Solar scams have long plagued the industry, harming both consumers and reputable solar companies.

But that is no reason to throw the baby out with the bathwater. Going solar through a vetted and reputable installer is a means to clean, cheap electricity for millions of American homeowners.

Here’s how to avoid falling victim to a solar scam:

• Avoid high-pressure sales tactics, which are most commonly deployed by companies that knock on doors. You’re being asked to make a large financial decision when you go solar that you should be able to evaluate and have confidence in. Any reputable salesperson will deliver fantastic value and have complete confidence that you will come to that conclusion on your own. Pricing and availability can change so it’s common for proposals to expire after a week or two. But that’s a lot different than 24 hours or “sign today” to achieve a certain rebate or promotion that undoubtedly will be there tomorrow.
• Know your components. Solar scams will often not disclose the selected technology or say “or equivalent,” which allows the installer to substitute lower-cost components with your knowledge.
• Get familiar with financing terms. Understand the difference between your installed cost and any rate buydowns or “dealer fees” in a selected finance package.
• Research the sales company and installer. While online reviews might not tell the complete story (generally people don’t leave reviews when things go as expected), spotting trends in a number of reviews can help expose what might go wrong.

Through solar.com’s marketplace, we help you avoid being scammed. Our Energy Advisors collect multiple proposals on your behalf and work with you to evaluate which proposal meets your unique needs.

Understanding if Battery Storage Makes Sense For You

Batteries are not required for solar systems, but they can help maximize a system’s value and provide backup power during grid outages.

Homeowners can rely on stored solar generation at peak grid times, thereby avoiding higher utility electricity costs. While battery costs continue to decrease the overall cost is still considerable.

In some utility areas that do not have 1:1 net metering (where excess solar production is sent back to the grid and you’re credited at full retail value) installing a battery with solar allows you to “bank” all the energy you produce from solar and deploy it when its most advantageous to you. It’s your power, you can use it when you want.

For example, after California implemented “net metering 3.0” the Return on Investment for going solar is often improved by adding a battery, even with the additional expense. Think of adding energy storage as future-proofing your solar investment. No matter what your utility does to change the value of your solar power if you store it you keep it.

Homeowners looking to go solar in 2025 can take advantage of the Residential Clean Energy Credit, which applies to battery storage up to larger than 3 kWh. This credit is currently at 30% until 2032 thanks to the Inflation Reduction Act.

Breaking Down the High Upfront Cost

Even with local and federal incentives, going solar still has a relatively high upfront cost for homeowners paying cash. Thankfully, there are $0-down solar loan options that spread the cost out over time and provide savings on day one.

In general, solar should be thought of as a secure, long-term investment. Not only will it immediately reduce electricity costs, but it also shields homeowners from future utility rate hikes.

Many homeowners understand that going solar re-allocates the money you’d otherwise pay to your utility to “rent” power into owning a system that will generate electricity for 20+ years. The big difference is once you establish the solar price that value doesn’t change, unlike renting power from your utility, which likely goes up every year. And by going solar you likely will increase your home value, and can be eligible for valuable tax credits and other rebates.

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Solar Panels Don’t Move With You

Unfortunately, solar panels won’t pack up and move with you. They’re a long-term investment, so if you’re planning on moving in the near future it may not make financial sense to purchase a system now.

As mentioned, solar panels do help homes sell more quickly and for more money. Even if you move, you’ll likely recoup the cost of your solar system — and perhaps even come out ahead — through the added value to your home.

Pro tip: Solar arrays that are leased can complicate a home sale as the new owner has to agree to assume the lease or the seller has to buy out the lease, which can be expensive as it’s based on the net present value of the remainder of the contract.

However, solar arrays financed via a loan product are simple. Typically, the seller pays off the remaining principal via proceeds from the sale, which is offset by the premium the buyer pays to purchase a house that requires renting less power from the utility.

Related: Is It Worth Going Solar in Your Golden Years? A Retired NASA Scientist Weighs In

The Pros and Cons of Solar in 2025

The pros and cons of solar energy are constantly changing as the industry evolves. In 2024, the key things to watch for are:

• New tariffs increasing the cost to go solar soon
• Streamlined permitting timelines and lower costs means systems are installed quickly and likely at the lowest price point we’ll see for many years
• Rising utility rates as AI data centers increase electricity demand.
• Declining solar incentives, including the potential early expiration of the Federal 30% Investment Tax Credit, state rebate programs, and net metering.

Connect with an Energy Advisor to discuss the pros and cons of going solar in your area.