How It’s Done

Solar energy for residences is a popular subject, and it’s no surprise.

The amount of solar power integrated into the electric grid has grown exponentially in recent years, and there are now nearly 4 million American households that are already generating their own power with solar energy. This environmentally-friendly energy source is not only improving the dependability of the electric grid but also helping solar homeowners save money and enhance the value of their homes.

Amidst the abundance of interest and abundant information available, we aim to take a moment to highlight five advantages of residential solar power.

Tax Incentives

The cost of residential solar panels has become increasingly affordable, particularly due to the extension of the federal residential solar tax credit. Taxpayers can now claim a 30% tax credit on the expenses associated with solar systems when filing their income taxes. It is important to note that the tax credit is scheduled to decrease to 26% after January 1, 2033.

Moreover, there are various financing options available to facilitate the purchase of solar systems, often resulting in lower monthly payments compared to the average utility bill.

Energy Savings

Solar power presents a great opportunity to save money on your monthly utility bill.

With the rising trend of utility costs, solar energy is expected to remain a cost-effective option for years to come. The amount of money you can save will depend on factors such as your electricity consumption, the size of your solar energy system, and its power generation capability.

Additionally, you have the option to choose a leased, third-party owned system, where you can host a solar energy system on your rooftop and purchase the generated electricity at a discounted rate. This rate is often lower than what utilities charge their customers and provides the added benefit of locking in electricity rates for an extended period.


Generating your own solar power can provide you with the freedom to maintain electricity during power outages. Residential solar energy systems, when combined with battery storage (referred to as solar-plus-storage systems), offer a reliable power supply regardless of weather conditions or the time of day, eliminating the need for grid-based backup power.

With advancing battery technology and the implementation of financial incentives for energy storage, investing in battery storage becomes a sensible choice for an increasing number of households nationwide.

Increased Home Value

Investing in a solar energy system can potentially boost the value of your home. A study conducted by the Berkeley National Laboratory indicates that solar photovoltaic panels are perceived as upgrades, similar to renovated kitchens or finished basements. Homebuyers nationwide have shown a willingness to pay a premium for homes equipped with an average-sized solar array.

While the impact on home value from third-party owned systems is typically neutral, there are instances where it can add value, especially for prepaid leases. It's important to consider that the positive perception of solar power can enhance the attractiveness and marketability of your home.


Solar panels operate effectively in diverse climates, thanks to the efforts of the Solar Energy Technologies Office (SETO).

SETO supports five Regional Test Centers located across the country, each situated in a different climate zone. This strategic placement allows for thorough testing and evaluation of solar panels, ensuring optimal performance regardless of the specific climate or weather conditions. By funding these test centers, SETO ensures that solar panels can function at their best in any climate, providing reliable and efficient solar power across the nation.