Is Solar Power Worth the Investment?
By Service Rank USA Team
Every homeowner has seen the ads: "Eliminate your electric bill!" But is it really that simple? Solar energy is a significant financial decision, and the answer depends heavily on your location, roof type, and energy consumption.
The Payback Period
The "Payback Period" is the time it takes for your electricity savings to equal the cost of the
system.
Average Cost: A typical 6kW system costs between $16,000 and $21,000 before
incentives.
Average Savings: If you save $150/month on electricity, the system pays for
itself in roughly 8-10 years. Since panels last 25-30 years, that leaves you with 15+ years of
"free" energy.
The Federal Tax Credit (ITC)
As of 2024, the Federal Investment Tax Credit allows you to deduct 30% of the cost of
installing a solar energy system from your federal taxes. This is a
dollar-for-dollar reduction in income tax owed, not just a deduction.
Example: On a $20,000 system, you receive a $6,000 tax credit, bringing the net
cost down to $14,000.
Does it Increase Home Value?
Yes. According to Zillow, homes with solar panels sell for approximately 4.1% more than comparable homes without them. Importantly, owning the panels outright is key—leased panels can actually complicate a home sale.