Solar Energy Pros and Cons

What is solar energy?

Solar panels are designed to work in all climates, but they aren’t always effective, depending on tree coverage. Consult with solar professionals in your area before buying panels.

Solar energy is energy harnessed from the sun’s light and heat. According to the University of California, Davis, the amount of solar energy that hits the Earth in one hour is enough to power the world for a whole year.

This abundance, and the fact that solar energy is the cleanest energy source, has played a role in solar power becoming a more popular energy choice. However, with its rising popularity, it's important to understand the pros and cons that come with solar energy.

Solar energy advantages and disadvantages

There are many advantages and disadvantages to think about when considering solar energy. While solar panel technology is constantly improving, it’s not perfect yet. Many of the pros and cons of solar energy present a tradeoff between long-term benefits and short-term costs and considerations.

Advantages of solar panels

There are many advantages of solar energy to consider when you’re deciding whether to install solar panels, including financial and environmental benefits.

Reduced electricity bills

Using solar energy instead of traditional energy sources can result in financial savings. Over a 20-year period, you could save anywhere from $10,000 to $30,000, depending on your state, home size and electricity usage.

Unlike paying utility bills, paying off a solar panel system gets a return on investment. Solar energy can also be sold back to the grid, so you have the potential to earn while you save.

ConsumerAffairs reviewer Andy from California considered solar panels to reduce electricity bills and was pleased with the result. “It would save me money in the long run of what it cost to buy electricity from Edison,” he said. “When they raise prices, my price will be pretty standard. … I have the app on my phone and it shows me how much I generate per day, per month and annually.”

» LEARN MORE: Is solar worth it?

Financial support from the government

You can receive federal and state tax benefits when you install solar panels in your home or business. Taxpayers could potentially claim 30% of installation costs, with benefits varying by state.

In some instances it may be possible to get a solar home installation with no out-of-pocket costs. This may take some time to research, but it is possible.

Energy independence

The sun is an infinite source of energy, unlike coal and natural gas, and solar panels can be installed practically anywhere. The electrical energy output of the panels depends on exposure to direct sunlight; anything that gets in the way of this reduces the output.

Using solar panels lets you reduce dependence on fossil fuels, leading to a more stable and predictable energy bill, especially during times when the demand for energy is high.

Reduced carbon footprint

Solar energy is able to generate power without giving off any dangerous emissions. While there is some carbon footprint from producing and distributing solar panel infrastructure, the energy produced from solar panels is clean and free of pollutants, and it emits no greenhouse gases.

The average U.S. home produces 14,020 pounds of carbon dioxide each year, according to the Environmental Protection Agency. By installing solar panels, you can reduce your carbon footprint by more than 3,000 pounds annually.

Longevity and little maintenance

Most systems last for 20 or more years. During that time, solar panels and equipment require little maintenance. The solar energy company you choose can help you understand what exactly is required for maintenance.

Some providers offer self-cleaning systems for their panels because dirt and dust can reduce the output significantly. Plus, solar energy technology is always improving, so solar panels that are the same size as last year's are even better today.

Disadvantages of solar panels

As with most things, where there are advantages, there are also disadvantages to consider when thinking about installing a solar energy system. Some disadvantages associated with solar energy systems include high upfront costs and location limitations.

High initial cost

While a reduced electric bill is an advantage, installing solar panels may cost over $20,000. If you have direct-current devices operating from alternating-current sources, they’ll need a transformer.

These transformers aren’t 100% efficient, though, so the operating cost is higher with an AC source than with a DC solar panel.

Weather dependence

The most important element for solar panels is the sun. If you live in an area prone to cloudy days for an extended period, this will negatively impact how the system runs. Your system will likely be less productive in winter months than in summer months.

Inability to move with you

Practically speaking, once a solar energy system is installed on a home or business, it's nearly impossible to transport. Theoretically, it is possible to transfer PV solar panels if you move into a new home, but it’s rarely advised. The system would have to be dismantled from your roof and retrofitted to your new property, which would likely cause extensive damage to both your panels and your roof. The value of the house also increases with the solar installation, so you should be able to recover most of the cost if you leave your solar panel system for the next owners.

Limitations from your surroundings

As the solar energy industry continues to grow and offer more nationwide services, most solar energy companies service a particular geographic region or even just one state. So, if you live outside solar energy companies' coverage area, you could have difficulty finding solar options near you.

Inconvenience in inner cities and other areas with limited space

A solar system requires a decent amount of space to install the equipment and have everything run smoothly, so solar panels might be inconvenient in inner cities and other areas with limited space. About 100 square feet of roof space is required for every 1 kW of conventional solar panels. If you have limited space or a small roof, you might not have the space for all the solar panels needed to power your entire house.

Should I install solar panels?

You should install solar panels if you’re looking for a way to save on energy expenses in the long run. While upfront installation costs can be high, the cost-benefit is clear: Installing solar panels on your home is both financially and environmentally responsible.

Using solar power will lower your electricity bills and earn you tax incentives. Solar panels are also great investments because they add value to your house and are exempt from property taxes.

After you understand how solar panels work and what makes the best solar panels, you will need to talk to a solar energy company to find out what makes the most sense for your home and climate.

Depending on where you live, you could qualify for government subsidies and tax incentives that could help offset the initial high cost of installing a solar energy system. To protect your investment, it’s often wise to hire a good electrical engineering consultant to look over the system you choose.