Are solar panels worth it? In 2025, they usually are

If you install a solar panel system in 2025, chances are you’ll receive a five to six-figure return on investment. But of course, not everyone is a good fit for solar. 

With electricity rates increasing about 2.5% yearly, the benefit of going solar is that you no longer have to worry about climbing energy costs. On the contrary, you can save tens of thousands of dollars on your electric bill over the lifetime of your solar panels.

But solar doesn’t pay off for everyone. Let’s explore when it makes sense to go solar, when it doesn’t, and the factors contributing to your solar savings.

One of the primary reasons it makes sense to go solar is that electricity costs typically increase yearly, but your solar costs won’t. Without solar panels, the average homeowner will pay more than $64,000 in electricity bills over the next 25 years, according to EnergySage data. If you install solar panels now at an average cost of $20,000, you can save between $31,000 and $100,000 over the next two and a half decades.

The bottom line is that solar panels are almost always worth it if you own your home and have an electric bill, but how much money you can save varies for every property.

Solar is a long-term investment that requires some patience before you see a return. Before you commit, it’s important to understand your estimated savings. The average homeowner will save between $31,000 and $100,000 over 25 years, but it varies based on the following factors:

1. Your solar installation cost

As of 2025, solar costs have decreased back to pre-pandemic prices. As solar deployment continues to grow, the cost of installing solar panels will likely decrease further. 

Some of the most significant factors that will impact your solar cost and savings include:

2. How much you pay for electricity now

It's important to know how much electricity you use and how much you pay for it. When you go solar, you reduce or eliminate your monthly electricity bill, so your current electricity costs impact how much you can save.

You pay your local utility company for every kilowatt-hour (kWh) of energy consumption, and your rate varies significantly depending on where you live. In some parts of the country, like the South, your provider could charge less than 14 cents per kWh. You could pay as much as 28 cents or more in the Northeast.

3. The rebates and incentives available to you

Solar rebates and incentives significantly reduce your total solar cost, including the federal investment tax credit (ITC), net metering, and state and local incentives like SRECs and PBIs. They can even put money back into your pocket each month.

Check out the Database of State Incentives for Renewables and Efficiency (DSIRE) to see which incentives are available near you.

4. If you're planning on selling your home soon

It takes about seven years to break even on your solar costs. If you think you might move before you reach your payback period, purchasing a solar system may not be worth it. Instead, consider community solar, which doesn't lock you into a long-term investment.

However, adding a solar system can still benefit you financially if you move. According to a few studies, solar panels increase your home's value by about 4%. Just be wary of leasing solar panels if you think you might move. Leases are typically long-term and can be difficult to cancel, making it more challenging to sell your home.

5. How you pay for your solar power system

There are different financing options for going solar. Your savings will depend on whether you purchase your solar panel system upfront, take out a solar loan, or use a solar lease or PPA.

The average EnergySage shopper breaks even on solar in seven years. You can get a more specific estimate with this simple calculation: