The ultimate guide to solar panels for homes

Today, most homeowners know that installing solar panels can help reduce energy costs and offset carbon emissions, but getting started can be intimidating for first-time buyers. Solar energy is not a simple impulse purchase, but rather a multi-decade commitment that requires a unique solution for every new project.

To maximize the financial, environmental, and security benefits of your solar energy system, there are several vital things to understand about solar panels, including how they work with inverters, batteries, and the utility grid to save money and power your home.

If you are considering solar panels for your home, you’ll find everything you need to get started in this complete guide.

Can solar panels save you money?

Not only “green” for the sake of the environment, solar panels can save you money as a wise financial investment for your home’s ongoing energy expenses. While exact financial benefits vary by installation, solar energy savings can be substantial when offsetting large energy bills for 25 years or more.

Reduced electricity bills: Solar panels primarily save you money by avoiding electricity costs otherwise spent on utility energy bills. By consuming renewable energy on-site and earning net metering or net billing credits for electricity exported to the grid, solar panels can typically “pay for themselves” within 6 to 8 years of energy cost offsets.

Increased home value: If you purchase or finance your system, solar panels could also increase the value of your home in a future real estate transaction. With built-in bill savings, multiple studies have shown that homes with solar panels sell more quickly and at higher prices than similar properties without.

How to pay for home solar panels

Although solar panels can help you save money, they are not free to install. If you see an advertisement for “free solar panels,” it is best to approach the offer with extreme caution, as it may not be related to a reputable business or program.

Most often, the best way to pay for solar panels is upfront, as this can lead to the lowest total investment costs and highest long-term savings. However, home solar installations without battery storage typically cost upwards of $15,000, so homeowners often choose to finance their project or explore other buying options.

Financing, solar leases, and other buying options

There are many ways to finance the costs of solar, and professional installers often offer multiple solar financing options with certified lending partners. With solar loans, it is important to understand every aspect of the agreement before signing, including interest rates, future cashflows, and whether the loan is tied to you or your property.

If a loan or purchase does not make financial sense, you may be able to choose third-party ownership (TPO) with a solar lease or power purchase agreement (PPA). In a TPO model, your installer maintains ownership of the energy system, while you make monthly payments, for either the panels or the electricity they produce.

Residential solar energy incentives and rebates

When you purchase a renewable energy system, you may be eligible for several solar incentives to lower total investment costs, depending on your location and project details.

Nationally, American homeowners may qualify for the Residential Clean Energy Credit (RCEC). Available at its current value through 2032, the RCEC can reduce total solar investment costs by 30%, redeemed as a credit on federal income taxes owed. Locally, many states, cities, and utilities also offer tax credits, rebates, and incentives to lower the costs of solar panels, batteries, and other home energy improvements.

Types of solar panels installed on homes

Solar energy technology takes many forms, so on a basic level, it is important to understand the common types of panels installed on homes before beginning your installation. First, this guide is intended for photovoltaic (PV) solar panel installations, a technology separate from thermal solar collectors, which are commonly used for home water heating.

Within the realm of electricity-generating photovoltaics (PV), there are several types of solar panels that can be used for various purposes.

Sizing and designing your solar panel system

When considering solar panels, remember that one size does not fit all, and the best system for your home depends on several factors, including your electricity demand and available installation space. 

Energy demand: The capacity of your solar energy system will determine the amount of electricity that can be generated on-site, therefore influencing potential saving on utility expenses. Before getting started with solar, review your electricity bills and consider how your future energy usage habits may change. 

Available installation space: Full home solar panel systems can require significant installation space where direct sunlight exposure is available. If there is not enough usable space on your roof, you may be able to install ground-mounted solar panels, a solar canopy, or another unique solution.

Often, the best way to start your solar journey is by talking to a professional. In a detailed site assessment, a professional can help determine the optimal solar design for your property to maximize electricity production and long-term savings. To find the best overall solution for your home, consider talking to multiple contractors or companies before finalizing your decision.

How solar panels work with inverters

Beyond the panels, solar energy systems are made up of several other critical components necessary to produce and use electricity from sunlight. Most importantly, because solar panels generate electricity as direct current (DC), the power must travel through an inverter system, like an Enphase IQ Microinverter, before it can be used in your home or sent to the grid as alternating current (AC).

Do you need a solar battery?

No, a solar battery is not a requirement for a grid-tied solar panel installation, but it can significantly enhance the efficiency and independence of your home energy system. By storing the excess solar energy your panels produce during the day, batteries can power your home without grid electricity overnight or throughout local outages, leading to increased self-consumption, further utility bill reduction, and greater peace of mind.

Whatever your energy goals, Enphase IQ Batteries can help you reach them with safe and reliable technology, app-based control, and an industry-leading 15-year warranty.

The home solar panel installation process

Once you have officially decided on your system design, contract, and project partners, the solar installation process can officially begin.

• Permitting

  For a grid-connected solar project, you must first obtain the necessary permits from your local building jurisdiction and the energy utility that serves your property. To do so, accurate and professional solar plan sets and approval from a certified electrical contractor are almost always required. While most states have a solar installation permitting process, in rarer cases, permits may not be necessary.

• Installation

  Once your plans are approved, you can set an installation date. Most systems can be physically installed within 1 or 2 days. When installed professionally with a reputable company, solar panels will not cause any adverse concerns to your electrical or roofing systems.

• Approval and interconnection

  After your solar panels and energy system components are installed, further approvals from your building authority and energy utility are required before it can legally operate and interconnect with the grid. This process typically takes between 2 weeks and 2 months.

Required solar panel maintenance and upkeep

Significant upkeep is rarely required for most solar energy systems. As solar panels can last for over 25 years, Enphase IQ Microinverters are built to do the same, with a 25-year warranty for guaranteed long-term electricity production and savings.

To maintain peace of mind and ensure your solar panels work at peak efficiency, it is advised to monitor system performance and track potential losses. In some instances, accumulated dust, dirt, or debris can limit the amount of sunlight able to reach your panels. By monitoring your panels’ performance individually, you can maximize the output of your system with minimal downtime while fixing issues covered by your warranty.

While rain and snow can wipe surfaces clean, you may also remove dirt, dust, or debris with professional help or safely from ground level with a garden hose. If you suspect an issue with any of your solar energy equipment, never attempt maintenance yourself, as this is a safety risk and could void product warranties.

Key Takeaways

Solar panels for home use increase energy independence and lower long-term electricity costs with the help of sunlight, additional hardware, and certified professionals. When considering solar panels for your home, finding the right system design and installer is essential to maximize your savings and investment in renewable power.

Although Enphase Energy does not manufacture or sell solar panels directly, we would not be in business without them. As a global leader in microinverter and clean technology, every Enphase Energy System is designed to optimize electricity production and use for maximum reductions in energy costs and carbon emissions.

Frequently asked questions on solar panels

How long do solar panels last?

Most solar panels are designed to last for 25 to 30 years, but they can often continue producing electricity beyond this range, albeit at a reduced efficiency.

Are solar panels worth it?

Yes, solar panels are often worth it for homeowners living on properties suitable for an installation. Solar panels can be a worthwhile investment when cost savings from reduced electricity bills exceed total installation expenses within the multi-decade lifespan of the system. 

How many solar panels do I need?

The number of solar panels you need depends on your energy consumption, the amount of sunlight your home receives, and the limitations of your roof and property. See how many solar panels you need to power your home with our System Estimator.

What is the difference between monocrystalline and polycrystalline solar panels?

The key difference between monocrystalline and polycrystalline solar panels is that monocrystalline solar panels are more efficient and are the preferred technology for residential installations. The terms “mono-” and “poly-” crystalline refer to the number of silicon crystals used to develop the solar cells, with either “one” or “many,” respectively. 

Do you need a permit to install solar panels?

Yes, permits are required to install solar panels almost everywhere in the United States, with rare expectations in some rural areas, and a professional can help you navigate this process both efficiently and legally. For grid-tied solar energy systems, you will need to obtain permits from your local building authority and electric utilities prior to your installation.