Your guide to home solar in 2025

Once reserved for climate-conscious homeowners willing to shell out a pretty penny, solar panels now cover the rooftops of millions of U.S. homes. Why'd they become so popular? Solar prices have dropped dramatically over the past decade, while electricity costs have climbed higher and higher.

Solar is a financially sound long-term investment for most homeowners. The savings from reduced electricity bills over 25-30 years typically provide strong returns. And with electricity rates continuing their upward trend—having increased 32% over the past 10 years—locking in your energy costs with solar makes more sense than ever.

If you're ready to take control of your energy future, we'll help you understand how solar works, what it costs, and how to get started.

When you "go solar," you get a solar panel system installed on your property—usually on your home's roof, but sometimes on your land with ground-mounted solar.

Why should you install home solar panels?

Homeowners go solar for all sorts of reasons. For starters, you'll likely save anywhere from $37,000 to $148,000 on your electric bills over 25 years, minimize your reliance on fossil fuels, and enhance your independence from your utility. A solar panel system even increases the value of your home by about 5-10% on average, based on a recent study by SolarInsure.

If you pay for solar upfront, you'll spend about $29,649 before any available incentives. Many states, towns, and utility companies offer incentives and rebates that can significantly lower your upfront costs. The economics of solar are built on long-term energy savings—your system pays for itself through decades of reduced electric bills.

What’s included in a home solar installation?

A lot more goes into a solar panel system than the panels themselves. Here's a quick list of the equipment you get when you go solar:

• Solar panels: Capture energy from the sun

• Inverter(s): Converts solar energy into energy that your home can use

• Racking equipment: Mounts solar panels to your roof

• Monitoring equipment: Tracks the amount of energy your solar panels generate

• Solar battery (optional): Stores excess electricity for use later on.

Not sure which equipment brand is right for you? See our top picks:

Should you get a battery?

More homeowners are adding batteries to their solar systems than ever before—and for good reason. A solar battery stores excess energy your panels produce during the day so you can use it at night or during power outages. This means true energy independence: Your home keeps running even when the grid goes down.

Beyond backup power, batteries can boost your savings in areas where net metering policies are changing. Some states no longer offer one-to-one credit for excess solar energy sent to the grid, which means storing that energy in a battery and using it yourself often makes more financial sense than selling it back at reduced rates.

Even if you have strong net metering in your area, batteries offer peace of mind during outages and protection against future policy changes. And if you live somewhere with time-of-use electricity rates, batteries let you avoid expensive peak pricing by using your stored solar energy when utility rates are highest.

That said, batteries do add to your upfront costs. The right choice depends on your local policies, how often you experience power outages, and whether you value energy independence enough to justify the investment.

Your home doesn't have to be a perfect fit for solar for you to benefit from it. Many homeowners can save money with the right installation—but if you meet the following criteria, investing in solar will probably work for you.

1. You own your property 

It's easiest to go solar if you own your home. If you're a renter or you're part of an HOA, solar can still be worth it. You just need to check with the property owner or homeowners association before making concrete plans.

2. You pay a lot for electricity

The cost of electricity continues to increase, while the cost of solar has fallen pretty significantly nationwide. But this doesn't mean everyone's electric bill is crazy high. The higher your monthly electric bill, the faster you'll save money with your new solar system. Wouldn't it be nice to pay nothing for electricity every month?

3. You have the right roof for solar

You don't need to live somewhere where the sun is always shining for solar to be worth it, but you do need a suitable roof. The ideal roof for solar is south-facing, has a slope between 30 and 45 degrees, has plenty of open space, experiences minimal shading throughout the day, and is in good condition. But even if you have an east or west-facing roof, you can still go solar and expect big savings.

4. You can take advantage of incentives

The cost of solar panels depends in part on the value of incentives you can access, which varies based on where you live. The federal tax credit expires for systems installed after December 31, 2025, and is largely unavailable to most homeowners due to limited installer capacity through the end of the year. But many states offer their own tax credits, rebates, or performance-based incentives that can significantly reduce your costs and boost your savings.

You've decided you're a good fit for solar and are ready to move forward. Where do you start? We've broken down the process into five easily actionable steps:

1. Get (multiple) quotes

The best way to get a great deal on your solar panel system is to compare quotes based on cost, equipment, and installer reputation. Historically, many solar shoppers only received one solar quote from a door-to-door salesperson or a cold call. But how can you feel confident in your solar decision if you only see one quote?

The EnergySage Marketplace makes it easy by gathering custom solar quotes for you from our network of pre-screened installers, but if you'd prefer to do it yourself, start by researching what it takes to go solar. How big of a system do you need? What equipment brands would you prefer? How much does solar cost these days? From there, look into installers in your area and reach out directly for quotes.

(On average, solar shoppers who receive quotes on EnergySage pay 20% less for their solar systems than those who don't.)

Whether you use EnergySage or connect with installers independently, we recommend hiring professionals to install your home solar panel system. A DIY installation can be costly and dangerous, and the best products can't be bought online or at a hardware store. Only certified installers have access to brands like Maxeon and REC through wholesale distributors; solar panels for sale online are often of lesser quality and best for small, off-grid applications like an RV, boat, or tiny home.

2. Choose an installer

Once you have multiple quotes to compare, it's time to choose the best installer. EnergySage's mission is to help you choose with confidence. Our team of expert Energy Advisors can walk you through your quotes (even if you didn't get them through EnergySage) and answer all your questions so you can pick the system that meets your needs at the right price. 

When you've selected an installer, you'll need to sign a contract. Thoroughly review it first for details on costs, incentives, equipment, cancellation terms, and clauses.

3. Decide how to pay for your system

After picking an installer, you'll need to decide how to pay for your system. You have three main options: purchase with cash, finance with a loan, or sign a lease or power purchase agreement (PPA).

4. Schedule a site visit

As a final check, you'll next need to schedule a site visit with your installer to ensure the solar panel system you're purchasing is suitable for your home. During this step, an engineer (not a salesperson) will check your roof and electrical panel to decide if they need any updates before you go solar. Site visits can often be conducted in person or virtually.

5. Prepare for your installation

You've done all the hard work on your end! Now it's time to watch it pay off with a brand new solar panel system. Before installation day, your solar company will begin submitting the paperwork required for installation, interconnection to the grid, and any available incentives. 

On the day of your installation, you can expect about 5 to 10 employees of your installation company to be onsite. The crew will include certified electricians and installers who will be up on your roof attaching the panels. Depending on the size and scope of your installation, it will likely take about one to three days to complete. 

Following your installation, you'll need permission to operate (PTO) from your utility before your installer can turn on your system, which can take anywhere from a few weeks to a few months. As part of PTO, your utility company will likely send a representative to your house to examine your system and install or update your meter so they can track the solar energy you send to the grid. 

Once PTO is complete, you'll receive official documentation to turn your solar panel system on for electricity generation.

Rising electricity rates aren't slowing down. Over the next 25 years, your electric bills will likely increase by tens of thousands of dollars—unless you take control of your energy costs now. Solar panels lock in predictable energy expenses while your neighbors watch their bills climb higher each year.

The best solar decision starts with understanding your options. When you compare multiple quotes, you'll see exactly how much you can save, which equipment works best for your home, and which installers offer the best value. The process is simpler than most homeowners expect, and taking the time to evaluate your choices ensures you get a system that truly meets your needs.

Your roof has been sitting there for years. Isn't it time it started working for you?