Solar energy offers homeowners a unique opportunity to own the electricity that powers their home, rather than renting it from a utility company.
However, like any long-term investment, there are many aspects to consider.
Below, we present a list of the pros and cons of solar energy to help you decide if 2024 is the right year to make the switch.
Benefits of solar energy in 2024
Expected reduction in solar energy costs
One important reason to consider solar energy in 2024 is the expected decrease in solar panel prices.
The cost of rooftop solar energy, measured in price per watt (PPW), has experienced fluctuations due to supply chain disruptions during the pandemic.
However, projections indicate that prices will fall again due to several factors:
- Untangling supply chains and reducing global inflation.
- Investments in U.S. battery and solar panel manufacturing plants.
- Economies of scale as solar system installations continue to rise.
- Adoption of software and automated processes to streamline local permits.
These improvements will not only reduce the costs of solar panels but also make solar energy adoption more accessible in California.
Protection against energy inflation
Energy inflation has become a growing issue, with significant increases in utility electricity rates. Installing solar panels allows homeowners to lock in a stable, lower price for electricity.
For example, the cost per kilowatt-hour (kWh) of rooftop solar electricity is significantly lower than utility rates, offering control and independence that cannot be achieved otherwise.
Cleaner and more sustainable energy
Solar energy is renewable and produces far fewer greenhouse gas emissions compared to fossil fuels.
Rooftop solar energy is much cleaner, drastically reducing carbon emissions and providing other environmental benefits such as land conservation and reduced water evaporation when combined with agriculture and water bodies.
Extended durability and warranties
Technological advancements have increased the lifespan of solar panels and, consequently, the warranties offered by manufacturers.
Most major manufacturers guarantee a certain level of production for 25 years, with some starting to offer warranties of up to 30 years.
This means homeowners can enjoy many years of free electricity after the system has paid for itself.
Federal solar tax credit of 30% until 2032
The federal solar tax credit is one of the biggest incentives available, allowing homeowners to claim 30% of the total cost of their solar system.
This incentive is valid until 2032, providing an excellent opportunity to maximize the return on investment in solar energy.
Increase in property value
Solar home improvements can increase property value. Studies show that homes with solar panels sell for more money and faster.
This increase in property value can offset the initial cost of installing solar panels.
Drawbacks of solar energy in 2024
Reduction of net metering incentives
Net metering (NEM) allows solar panel owners to earn credits for the excess energy they generate and send back to the grid.
However, some utility companies are revising their net metering policies, often reducing the credits that solar homeowners can earn.
This reduction can impact the economic benefits of solar energy, as the return on investment may be lessened.
Despite this, it’s important to note that solar energy can still provide significant savings and environmental benefits.
Homeowners should stay informed about local net metering policies and work with reputable solar companies that can help them navigate these changes and maximize their savings.
Risk of solar scams
Unfortunately, the rise in popularity of solar energy has also led to an increase in solar scams.
These scams can range from fraudulent companies offering low-quality installations to deceptive financing schemes that trap homeowners in unfavorable contracts. To avoid falling victim to these scams, it is crucial to choose a reputable and accredited solar installer.
Homeowners should conduct thorough research, read reviews, and verify credentials before committing to any solar installation.
Partnering with trusted companies like Babio ensures that you receive a high-quality solar system and reliable service, safeguarding your investment.
High battery costs
While batteries are not essential for all solar systems, they play a critical role in maximizing the value of solar energy by storing excess power for use during non-sunny periods or power outages.
However, the cost of solar batteries remains relatively high, which can be a barrier for some homeowners. Despite this, the prices of solar batteries are gradually decreasing due to advancements in technology and increased production.
Homeowners should consider the long-term benefits of battery storage, such as energy independence and increased savings on utility bills, when evaluating the overall cost of a solar system.
High initial cost
The initial cost of installing solar panels can be significant, often deterring homeowners from making the switch.
However, there are various financing options available that can mitigate this upfront expense.
Many solar companies offer no-down-payment financing plans, allowing homeowners to spread the cost over time and start saving on energy bills immediately.
Additionally, federal and state incentives, such as tax credits and rebates, can substantially reduce the overall cost of a solar installation.
Considering solar energy as a long-term investment can highlight its financial benefits and make the initial cost more manageable.
Solar panels are immovable
Solar panels are designed to be a permanent fixture on your property, making them a long-term investment that cannot be easily relocated if you move.
This immobility can be a concern for homeowners planning to move in the near future.
However, it’s important to note that solar panels can significantly increase your property’s value, making it more attractive to potential buyers.
Studies have shown that homes with solar installations sell faster and at higher prices, potentially offsetting the cost of the solar system and even providing a financial gain.
Babio: your trusted solar energy partner in California
At Babio, we understand that deciding to invest in solar energy is significant. Based in California, our mission is to make solar energy accessible to everyone.
Using advanced artificial intelligence technology, we provide personalized and affordable solar solutions that help homeowners save money and reduce their dependence on the grid.
We offer flexible payment options, allowing our customers to purchase or lease solar panels with no upfront cost.
Our team handles the entire process, from management to installation and maintenance, ensuring maximum performance from day one.
Find out how much you can save with our AI-powered solar calculator. Save money and contribute to the environment with Babio!
