Photo courtesy of Panasonic Eco Systems and Advance Solar
Homeowners increasingly turn to solar to lower electricity bills and increase energy independence, shielding their households from volatile energy prices and power outages. With each new year, the benefits of solar and battery technologies for homeowners increase as technology improvements lower costs while improving efficiency and reliability. Here's a breakdown of everything you need to know to make an informed decision on going solar in 2025.
Is solar right for your home?
There are several things to consider before going solar that could significantly influence your decision. From where you live to the type of roof you have and how much energy your household uses. Let's break down the most important questions to ask before you make a decision.
#1 How long do you plan to stay in your home?
Solar panels last for 25 years or more and pay for themselves in an average of 8.5 years. If you plan on staying in your property for at least another 5 years or more, you'll be able to fully realize the financial benefits of solar. If not, you may not enjoy the full benefits of your installation.
#2 What type of roof do you have and which way does it face?
The material of your roof, its orientation and condition are all crucial to understand before going solar. Asphalt shingle is the most common roofing material in the U.S. and also one of the best for solar. Materials such as slate, wood, and terracotta tiles are more challenging as they can break under the weight of solar panels. A solar installer will check your roof material and condition ahead of installation, and they may recommend replacing all or part of your roof before they start work.
The direction your roof faces is also vital. South-facing roofs are ideal as they capture sunlight at its strongest for the longest time each day. East- and west-facing roofs are also a good fit. North-facing roofs may require special equipment to ensure the panels are positioned to absorb the most sunlight, which can make these installations challenging and expensive.
#3 What are your household energy requirements?
The more electricity your household uses, the higher your energy bills and the more you could save by going solar. Other factors contributing to the amount you pay for energy include where you live, the size of your home, its energy efficiency and your utility rate plan. If you're on a time-of-use (TOU) rate plan, for instance, you'll be paying more for electricity during times of peak demand. Solar can help you to avoid paying these rates, particularly when paired with a battery.
Photo courtesy of Panasonic Eco Systems and Seven Star Electric
Is home battery storage worth it?
Solar panels generate electricity when the sun shines, whether there's someone home to use it or not. Rather than your surplus solar power going to waste, a battery will store the power so you can use it later. This might be in the evenings, when your panels stop producing power, or during times of peak energy demand when utility electricity rates are at their highest.
More than saving you money, batteries also increase your energy independence. As freak weather events and power outages increase in frequency, batteries give you peace of mind that you will have a source of backup electricity to keep your critical appliances running even when the grid goes down.
How much does solar really cost in 2025?
U.S. residential solar installations currently cost an average of $16,500. Nearly half of this cost (46%) is the price of the equipment required for the installation, including the panels, inverter and racking system. Another 46% is typically spent on the installation itself and around 8% on permitting and interconnection, which is usually handled by your installer. Solar batteries cost about another $9,000.
Financial incentives and tax benefits
Plenty of federal and local incentives are available that considerably bring down the costs of solar and battery installations.
The most generous incentive available to all U.S. homeowners is the federal "Residential Clean Energy Credit," which allows you to shave 30% of the cost of your solar installation - with or without a battery - from your federal tax bill. There's no cap on its value and if you can't claim the full amount in the first year, you can roll it over to future years.
Several states offer additional incentives you can combine with the federal tax credit to further lower installation costs. Massachusetts, for instance, has its own tax credit that allows homeowners to deduct 15% of installation costs from their state tax bill. Other states have sales and property tax exemptions on solar equipment and installations.
Alongside Government incentives, many utilities are introducing innovative programs to encourage their customers to go solar. These range from demand response programs that reward customers for shifting or lowering their energy usage during times of peak demand, through to net metering, where you're awarded credits on your energy bills for sending surplus solar back to the grid.
Photo courtesy of Panasonic Eco Systems and Western Solar
How to choose a solar installer
Choosing an installer is one of the most important decisions you will make. Working with a reputable, trusted company will tailor your system to meet your energy needs and budget. But with so many choices, it can be tricky to know where to start. Here are a few key factors to consider when selecting an installer:
- Certification: Installers certified with ‘The North American Board of Certified Energy Practitioners’ are considered 'gold standard'.
- Track record: Request a portfolio of previous work and ask how long the installer has been in business. Ideally, look for at least five years of experience in your area.
- Reputation: Scrutinise online reviews on social media sites and platforms, including Yelp, Google, and Solarreviews.com
- Licenses: Check if an installer has all the licenses required in your state, such as solar, electrician, and general contractor licenses.
- Warranties: An installer should provide three warranties, covering product and equipment, system performance and labor. Product warranties should cover around 25 years.
Solar technology advancements in 2025
Solar and battery technologies are constantly advancing, increasing efficiency and lowering homeowners' costs. Innovations such as smart inverters and home energy monitoring systems (HEMS) promise to transform how electricity is managed, ensuring clean solar power goes as far as possible.
Smart inverters for instance, connect to the internet, enabling real-time monitoring of your solar panels. This allows them to optimize energy production from your panels, by tracking their output and adjusting to factors such as shading and changes in temperature.
Other smart technologies like HEMS, give homeowners more control over how energy is used throughout the home. A HEMS monitors household energy usage, as well as external factors such as utility rates and the weather, to make forecasts, recommendations and automatic adjustments to your electricity usage. If a HEMS detects a rise in electricity prices for example, it can turn on your battery.
Solar panels themselves are also becoming more efficient, meaning more energy can be generated from the same amount of sunlight. Just five years ago, the average efficiency of a solar panel was 19%. In 2024, this rose to just over 21% and is expected to reach 25% in 2025. This means you'll need fewer panels to achieve the same energy output, saving money and roof space.
With advancements in technology, falling installation and equipment costs, and generous government incentives, there's never been a better time to make the switch to solar. Working with a Panasonic authorized installer will make the transition so much quicker and easier, ensuring your system meets your budget and is tailored to your needs. Find one in your area.
