Solar basics & FAQ
Plain-English answers to the questions people ask most before going solar.
Update: the federal residential solar tax credit has ended
The Residential Clean Energy Credit (IRS section 25D) was worth 30% of a home solar system's cost. Under the law signed on July 4, 2025, it does not apply to expenditures made after December 31, 2025. The IRS treats the expenditure as made when installation is completed, so systems finished in 2026 do not qualify, even if a deposit was paid in 2025.
If you installed a qualifying system by the end of 2025, any unused credit can still be carried forward to later tax years. Leases and power purchase agreements (PPAs) are owned by a company, which may use different, commercial incentives; ask the provider how that affects your price.
State, local and utility rebates still exist in some places. Confirm details with a tax professional.
Frequently asked questions
Do solar panels really save money?
They can, especially if your bills are high and your utility's rates are high. Savings depend on system cost, how much sun your roof gets, your rates, and how your utility credits extra power.
Can solar eliminate my electric bill?
It can greatly reduce it. Most grid-connected homes still pay a small monthly connection fee, and solar doesn't cover natural gas.
Does the utility pay me for extra solar power?
Many utilities credit excess power through net metering or a similar export program. Credit rates vary widely and some are much lower than retail rates.
Do solar panels work at night?
No. Panels need sunlight. At night your home uses grid power or energy stored in a battery.
Will solar keep my power on during a blackout?
Standard grid-tied systems shut off during outages for line-worker safety. To keep power on, you need a battery or a system designed for backup.
How long do solar panels last?
Most panels carry a 25-year performance warranty and often keep about 80% or more of their rated output by the end of it. Inverters usually need replacement sooner.
What are the main downsides?
High upfront cost, output that depends on weather and shading, roof space needs, battery cost, and some emissions from manufacturing and transport.
Is solar worth it for my home?
Run the calculator with your real numbers, then compare written quotes. Payback periods vary a lot by state and utility.
What is solar energy?
Light and heat from the sun. Photovoltaic (PV) panels turn light into electricity; solar thermal systems use heat to warm water.
Should I buy, finance or lease?
Buying usually saves the most over time. Loans spread the cost but add interest. Leases and PPAs need little or no money down, but you don't own the system.
Advantages and disadvantages
Advantages
- No emissions while operating.
- Can lower or stabilize electric bills.
- Little maintenance beyond occasional cleaning and checks.
- Long warranties on panels.
Disadvantages
- High upfront cost.
- Produces nothing at night and less in cloudy weather.
- Batteries add significant cost.
- Needs unshaded roof or ground space.
Estimates only. Not financial, tax, legal or engineering advice.