Nearly Half Of Americans Plan To Install Solar, But Over A Third Worry About Upfront Cost

By Lexie Pelchen
Editor
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Key Takeaways

  • Almost 50% of survey respondents said they plan to install solar panels in the future.
  • 60% of those respondents are concerned about their home’s impact on the environment.
  • 75% of survey respondents said it’s important for them to switch to solar within the next five years.
  • 36% of respondents cite upfront costs as main hesitation to installing solar panels.

With inflation rates soaring to the highest they’ve been since 1982 and the threat of climate change becoming more evident every day, many Americans are searching for ways to save money and help the planet. Installing solar panels is one way that homeowners can start tackling both of these issues at once. 

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A recent survey by Forbes Home showed that 19% of Americans either have solar panels already or are currently in the process of installing them. Of the remaining 81% surveyed, an astonishing 48% of respondents said that while they don’t currently have solar panels, they plan to install them in the future.   

But are sentiments to install solar panels enough? Survey results and expert opinions show that while the desire is there, the preparedness may not be. 

Chief Development Officer of Impact Power Solutions Eric Pasi told Forbes Home, “I think it’s accurate that there’s a desire for half of Americans to install solar, especially in today’s climate with energy prices climbing through the roof, to want to have better control and essentially independence regarding energy. But I think the reality is that only a percentage of homes, and residents in general, have the right resources to install solar.”

Here are several of the reasons why, even though many individuals want to install solar panels, they may not follow through. 

Americans’ Unwillingness (or Inability) to Pay Initial Investment 

When it comes to why people want to install solar panels, the benefits run the gamut from not having to rely on a power company, going off the grid, protecting the environment, saving money and more. And while, yes, installing the best solar panels will eventually cut down your monthly energy costs, there are  steep upfront costs associated with the process, and it can take some time until you’re actually seeing the payoff. 

According to survey results, that initial investment is cited as the main hesitation preventing respondents from switching to solar, with 36%stating upfront costs as the main deterrent, a percentage more than tripling the next closest answer of “None of the above” at 10%, directly followed by “I have other life events to pay for (wedding, furniture, children, etc.)” at 9%. It’s a classic case of having to spend money to make (or in this case, save) money. 

Prepare for Unrealistic and Unpredictable Price Expectations

We’ve all been there: You pick up an item and are excited to purchase it, but then once you catch a glimpse of the price tag you immediately put it back on the shelf. Like many other items, sticker shock is another very real reason why individuals who plan to install solar panels, ultimately end up not. The reason for this? There is really no such thing as standard rates or flat pricing when it comes to solar panels. 

There are so many factors that can ultimately determine how much solar panels will cost for your specific home, it’s no wonder almost 20% of survey respondents said that they have no idea how much solar panels cost, and the other respondents’ answers were all across the board. 

What if Your Home Is Unprepared or Incompatible? 

Even if you have properly budgeted and are in a good place financially to purchase solar panels, there are still other reasons why you might ultimately decide not to purchase and install them, one prominent reason being that your home isn’t properly suited for them.

According to Pasi, “[Homeowners] may not have the right roof, maybe their roof is too old, [or] maybe they rent the home that they’re in or they’re in an apartment… I think there’s a strong desire [for homeowners to install solar panels], but in reality, only about a quarter to a third of houses, as [they are] today, have an appropriate situation for them to install that equipment.”

If your home or roof aren’t already in ideal shape to accept solar panels, getting to that point is just another expense to add to the upfront costs of solar panels, and roofing is expensive. If you need to repair your roof before adding solar panels, expect to pay anywhere from $150 to $400 for minor repairs, and up to $7,000 or more for major repairs. If you need to replace your roof entirely, costs can range anywhere from $5,500 to $11,000. And all of that is before the cost of solar panels.  

While all of these factors have, and will likely continue to, deter some solar panel prospects, there are unwavering pros that should not go overlooked.  

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Eventual Return on Investment and Monthly Savings Make Solar Attractive Despite Upfront Costs

According to survey results, 34% of individuals agreed that the main motivator for going solar is saving money on monthly bills.  

While it can take some time to finally see the payout, homeowners across the board seem to think that the savings are worth it, no matter the wait time.

Anna Chiranova, co-founder at Ucanproduction, has been a solar panel user for almost two year. She told Forbes Home about her experience.

“The rooftop panels produce enough electricity to meet all the needs of my family of four. The savings are absolutely wonderful. I [have] not [had] to pay electricity bills since the time the panels went online. Before installation, we needed to analyze the electricity production requirements for our home and install only the required capacity,” Chiranova said. “I have heard of a few cases where a larger than required capacity was installed, resulting in a higher initial investment. We also use the excess electricity for cooking using electric stoves and induction stoves. That has helped us save on cooking gas, too.”

The savings can stretch far beyond just your electric bills. Tax incentives are another very enticing financial benefit to going solar. David Reed, co-founder of llcstars.com, explained how adding solar panels to one of his properties has created opportunities for exponential savings.

“I installed solar panels on my rental property, and I would say it was indeed worth it. The tax credit helped pull me into the green this year on TurboTax, 26% is what you will get from 2020 to 2022. You can use the common solar credit if you are installing on your personal residence, or the ITC credit if you are installing on a rental property,” Reed told Forbes Home. “Either way, you get a quick 26% back on your tax liability, which was great.”

“The remainder is financed with a low-interest 3.5% loan,” he continued. “My monthly bill is about 28% cheaper per month, even with the interest on financing, frozen at 2020 pre-inflation dollars… I’m now spending 36% less on electricity for this home and will save even more as utilities and inflation continue to rise.”

The Majority of Survey Respondents Believe Solar Adds Value to a Home

Not only can the addition of solar panels help homeowners save money, but it can potentially help them make money too. According to the National Renewable Energy Laboratory, every $1 of savings generated from a solar energy system will add $20 to your home’s market value if or when you decide to sell. 

According to survey results, nearly 80% of Americans believe this to be true, stating that they do agree with the statement, “I believe that solar power increases the value of a home.”

Solar Can Attract Potential Buyers 

While you shouldn’t plan to add solar panels simply to attract buyers if you’re planning on moving and selling your home (because you will need to have them for long enough to see the payoff for this to be beneficial), if you already have them, it can absolutely be an additional selling point. According to survey results, 66% of Americans agree that they would be more likely to buy a house that has solar panels installed. 

Americans’ Interest in Helping Protect The Environment

From the 2010s to the present day, we’ve seen a resurgence in concern for the environment, and finding ways for individuals to do their part to live greener, more environmentally-conscious lives is important to many, as global warming and climate change are becoming more top of mind once again. In fact, 60% of survey respondents said they are concerned regarding their home’s impact on the environment. 

With that in mind, it’s no surprise that homeowners are looking for ways to do their part, however they can, in protecting our planet. If this is a concern for you, going solar can help. 

According to the Office of Energy Efficiency & Renewable Energy, using solar energy minimizes the amount of carbon and pollutants generated. This helps protect our environment by producing cleaner air and fresher water, and helps create more environmental stability for future generations. As a bonus, unlike the widespread energy grid that is reliant on non-renewable resources like oil and gas, solar energy is renewable—meaning we’ll never run out of it.

How to Fully Prepare for Solar Panels
If for you and your home, the benefits to installing solar panels outweigh the drawbacks, it’s sure to be a sound investment that will benefit you, your family, your household and the environment, for years to come. That said, there are steps you should take to prepare before you start researching and calling the best solar companies to schedule an installation.   

Determine How Much Solar Energy You Need

The first step is to determine just how much of your daily household electrical needs you’re looking to offset with solar energy. Are you trying to go complete off grid, or are you just looking to partially supplement your electrical needs with solar? Whatever you decide, this is a crucial first step.

One you make this decision, you can determine how many solar panels you need. You can do this by examining your past electric bills and seeing approximately many kilowatt per hour (kWh) you’re using monthly or annually. From there, you can start calling reputable solar installation companies in your area to get quotes, we recommend getting at least three or more quotes. 

Scope Out the Best Location for Your Solar System

To get the most out of your solar investment, placing the panels in the optimal location is crucial. Find a spot that receives optimal sun exposure throughout the day with minimal trees, branches or other items that could block the panels (in the northern hemisphere, it’s usually best to place the panels on south-facing roofs). If you decide that, for whatever reason, your roof is not the ideal location for panels, a ground-mount solar system is another great option.  

A reputable solar installer can help you with this process, too. They’re trained to look at homes and property layouts to determine the best spot for solar panels. From there, they should be able to give you an accurate price estimate.

Look into Local Regulation

Just like many major home projects, like building an addition or installing a pool, there are local regulations you’ll need to follow and some approvals you’ll need to get. Be sure to do your due diligence and get all the necessary approvals from your utility and local building departments before doing any installation.

The solar installation company that you choose to work with should take the reins during this part of the process and get any necessary permits, but as a homeowner, it’s important to know this is part of the process and be informed as to what processes and paperwork they’ll be doing for you.

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Know About Your Incentives 

Installing solar panels earns you a federal tax credit. That means you’ll get a credit for your income taxes that actually lowers your tax bill. The U.S. government offers a 26% tax credit for solar panel systems installed through the end of 2022. The percentage drops to 22% for systems installed in 2023, but the credit is slated to expire at the start of 2024, unless Congress approves an extension. More information about the tax credit is available at Energy.gov.

You could qualify for some local and state solar incentives too. Net metering varies by coverage areas. Some utilities offer a one-to-one credit while others charge solar customers more during peak periods and less during off-peak periods. Homeowners can use the Energy Saver tool to find incentives nearby.

Prepare Your Roof and Property

Solar panels weigh about 2.5 to 2.7 pounds per square foot, and if you’re planning to install solar panels, it’s important to determine if your roof can safely and securely handle this extra weight. For most roofs, this shouldn’t be an issue, but it’s a good idea to have a structural engineer or a building inspector do a thorough roof inspection and make this determination. 

Your chosen solar installation company will likely be able to set up this inspection for you, but be sure to inquire. 

How long a roof lasts depends on the materials it’s made of, the quality of those materials and the climate where you live. If your roof is nearing the end of its lifespan, or needs to be repaired, it’s important to make the repairs or have your roof replaced before the solar panels are installed.    

If your roof is ready to go, make sure that the surrounding property is prepared too. This shouldn’t involve too much, but you’ll want to declutter the areas as much as possible to make ample roof for your installers to do their job. Remove anything that may be blocking access to your utility meter and electrical panel. If you’re planning to install a solar battery system, make sure the area where you want that is cleared, too.

If you really want to go solar but you come to find that your roof or property is not conducive for it, community solar is a great alternative. Community solar, if available in your area, offers opportunities for those with property or other constraints, to still enjoy the benefits of solar energy. 

Community solar involves placing large groups of solar panels off-site in what’s called a “community solar garden.” There can be hundreds to thousands of solar panels in a single community solar garden, and individuals can join or subscribe to a community and pay a fee to use the solar energy, which then is subtracted from their energy bills. Community solar is a great alternative to installing solar panels on your home. 

How to Determine How Much Solar Panels Will Cost 

As previously discussed, unrealistic price expectations and lack of knowledge when it comes to solar panel pricing, ultimately ends up turning away many potential solar prospects. If you’re ready to install solar, but want to avoid sticker shock, here are some consideration factors to help you determine how much you can expect to pay.

NOTE: Please consider this advice as a guide, and know that prices will differ for your personal case. Every house and situation is different, so be sure to get multiple quotes. 

Cost of Solar Panels by Type

There are three main types of solar panels: Monocrystalline solar panels, polycrystalline solar panels and thin-film solar panels, and all come at a different cost. Here’s what you can expect to pay, on average, for each type.

Solar Panel Installation Costs

The price to install solar panels is another factor to consider when trying to estimate your total cost. On average, you should expect to pay anywhere between $15,000 and $25,000 for solar panel installation. This price will depend on location, which is another important consideration factor, with solar power costing more in regions farther from the equator, like Alaska, and costing less in regions flooded with sun. 

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Bottom Line

It’s exciting to know that almost half of Americans want to go solar. However, with the drastic price ranges, lack of knowledge and unknown additional expenses or setbacks, it’s not surprising that they seldom actually follow through and take the plunge to install them. That said, the fact that the sheer want is there is a great sign. 

Hopefully with time and resources, every homeowner with an interest in going solar can feel confident that they have all the information they need in order to confidently make the switch. 

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