The Pros and Cons Of Solar Energy

Vault’s Viewpoint on Solar Energy

• In the right set of circumstances, the pros of solar energy can heavily outweigh the cons when compared to other electricity sources.
• Solar energy’s practical, financial and environmental benefits make it a great choice for homeowners and commercial property managers alike.
• Every solar project is different, therefore it’s advisable to seek expert consultations from multiple providers to determine what approach is best to meet your energy goals.

Analyzing Solar Energy Pros and Cons

When analyzing solar energy’s advantages and disadvantages, you should discuss the technology in two key ways: How solar power compares to other energy sources and the pros and cons of installing solar panels on your property.

Pros and Cons of Solar Energy as a Source of Electricity

Pros

• With only a one-time upfront cost, solar energy is a reliable and renewable energy source
• Emission-free and noise-free, on-site electricity generation
• Works anywhere there is direct sunlight available
• Long-term solution (solar panels last 25 years or more)
• Durable and low expected maintenance throughout system lifespans
• You can recycle the majority of solar panel system materials

Cons

• Electricity generation depends on limited sunlight hours
• Geographical and seasonal energy potential constraints
• Generally high upfront costs of adoption for systems of all sizes
• Ample space with direct sunlight needed for installations
• Concerns with decommissioning and equipment end-of-life cycles
• Energy storage required for 24/7 operation and off-grid applications

Rising in the east and setting in the west every single day, year after year, the sun is one of the most reliable sources of energy present on Earth. When considering today’s ever-evolving solar panel technology and increased public interest in green technologies, capturing the power of the sun and turning it into usable electricity has never been easier or more affordable.

Despite its advantages, however, there are also several drawbacks to solar energy, the most obvious of which is a reliance on direct sunlight. Overnight, new solar power cannot be produced while other energy sources like wind, hydropower and fossil fuel combustion can continue generating electricity without reliance on daylight. To make the most out of a solar power system, panels must be attached to a battery or the electric grid.

Solar Energy Advantages and Disadvantages for Homeowners

Advantages

• Provides an alternative to grid-supplied electricity
• Many incentives available to reduce investment costs
• Lowers utility bills with tax credits as well as net metering and net billing programs
• Sustainable choice for lower household carbon footprint
• Opportunity to combine with battery backup storage
• Increases home value, often without increasing property tax
• Significantly lower adoption costs over the last 15 years

Disadvantages

• May come with high upfront costs or required financing
• Not an option for heavily shaded properties from trees or neighboring buildings
• Can require significant amounts of unobstructed roof or yard space
• Incentives like tax credits, utility programs and resources limited in some areas
• Lengthy payback periods and tough to measure efficacy
• Battery storage required for panels to operate during local grid outages

With a solar energy installation, you may be able to lower your long-term electricity costs at home, while simultaneously offsetting greenhouse gas emissions and increasing your property value. Although high upfront costs are typically required to purchase solar panels, these expenses can usually be recovered in energy bills avoided. However, there are also some instances in which a solar installation may not be worth it, such as when high financing rates make going solar difficult due to slimmer margins from increased interest payments.

Generally speaking, solar energy makes the most sense for homes with

• High electricity usage or expensive utility energy rates
• Sufficient roof area or yard space to host a large system
• South, east or west-facing roofs that receive unobstructed daily sunlight
• Net energy metering (or something similar) is available through your local utility

The Benefits of Solar Panels for Homeowners

Installing solar panels may benefit your home in three key ways: financially, environmentally and practically as a long-term energy solution.

1. Financial Advantages of Installing Solar Panels

When you install solar panels, you can experience immediate utility bill savings that help recoup your investment expenses over time. Although the expected payback period for solar panels varies from state to state and project to project, the 2024 national average is estimated to be 8.7 years—that is, solar panels will “pay for themselves” in utility costs avoided in less than a decade. Then considering that solar panels last for 25 years or more, an installation may potentially pay for itself in energy expenses avoided two or three times over in the right set of circumstances.

2. Environmental Impact of Solar Panels

With a green energy supply right on your roof, going solar can transform your property’s long-term, environmental impact. While utility-grade renewables are being installed every day, the reality is that the majority of electricity in the United States is generated by fossil fuels like natural gas, coal and petroleum. By adding an emission-free power generator to your property, you can help offset thousands of pounds of carbon dioxide every year and join the clean energy boom that is slowing down global greenhouse gas emissions.

3. Independence and Energy Security with Solar Panels

Capable of generating electricity anywhere the sun shines, solar panels are an essential home upgrade for those seeking greater energy independence. Whether you live in the middle of the city or way beyond the powerlines, installing a solar energy battery along with your panels will help you reduce your utility electricity consumption, sometimes entirely. By using a battery backup, you can power your home with solar overnight, during peak billing hours, and sustainably throughout local electrical outages.

Are solar panels worth it?

Although individual circumstances will always determine whether solar panels will be worth it for your particular installation, in general, solar panels are a good long-term investment for most homeowners. Predominantly, if you have enough exposed installation space and your local utility offers compensation for the electricity you share with the grid (through programs like net metering), then there is a very good chance that your solar panels will pay for themselves.

Even further, solar panels paired with battery storage may be worth it financially for homeowners attempting to limit utility energy consumption while having backup power during local outages. To help lower the costs of adoption of both solar and battery storage systems, there are many incentives available federally and locally for homeowners today, such as the Residential Clean Energy Credit.

How to Weigh Your Solar Energy Pros and Cons

While solar comes with many advantages, its technological disadvantages sometimes complicate whether or not an installation is worth it. To weigh the pros and cons of solar energy to power your home, we recommend seeking multiple consultations from solar companies in your area. With the help of a professional, you can determine if your property is suitable for an installation and estimate the lifetime expenses that your solar panels will offset on your energy bills.

Exploring Alternatives

If buying solar panels isn’t an option, a solar lease or Power Purchase Agreement (PPA) may deliver similar benefits while subbing investment costs for ongoing payments, much like the lease of a vehicle or apartment. If your property isn’t suitable for solar energy generation, you may also be able to participate in an off-site solar farm or green energy program to unlock the financial or environmental benefits of solar energy.