1. Solar panel technology is over 100 years old
. Modern solar cells, like the ones we use today, were developed at Bell Labs in 1954. Since then, technological advances have made solar panels more efficient and reliable
.
2. Solar energy is free, but solar panels are not free
3. Solar panels can save you money
significant savings on electric bills
. Also, many states provide homeowners with incentives to install solar, and the federal government offers a
solar tax credit
of up to 30% of the cost of installing a residential solar system
.
4. The cost of solar panels keeps going down
cost of installing solar panels
has dropped by nearly $15,000 since 2010, according to the Solar Energy Industries Association
. According to EnergySage, the average cost of installing a home solar system in 2025 is about $30,000 before federal tax credits and incentives, with the cost potentially dropping to $21,000 or less after federal and local incentives
.
5. Solar panels take years to pay for themselves
. The exact payback time depends on factors like where you live, the size of your system and
how you pay for it
.
6. Solar panels last a long time
20 to 30 years with proper care and maintenance
. Warranties for solar power production are typically 25 years long. Solar panels typically won’t stop working after these periods — they just get less efficient.
7. The efficiency of solar panels decreases over time
is a measure of how well a solar panel converts sunlight into electricity. Although solar panels last a long time, they gradually lose efficiency as part of normal wear and tear — at an estimated rate of about 0.5% each year, according to the U.S. National Renewable Energy Laboratory. After 20 years, you can expect your solar panels to function at about 90% capacity
.
8. Some solar panels are more efficient than others
. This means they convert 21% to 23% of the sunlight that hits them into electricity. More efficient panels cost more, but because they generate more electricity, they may save you more over the life of your solar system.
9. Solar panels are usually connected to the power grid
. That’s because when your panels aren’t producing as much electricity as you’re using (such as when it’s dark outside), you have to draw electricity from the grid. When your panels are producing more power than you need, you can send that power back to the grid or store it in a battery for use later.
In many states, you have the opportunity to receive a credit on your electric bill for the power you send back, a process commonly known as net metering. More solar panels are being manufactured in the U.S., with the Inflation Reduction Act of 2022 encouraging growth in domestic solar manufacturing. According to research firm Wood Mackenzie, U.S. solar panel manufacturing capacity has nearly quintupled since Q2 of 2022. EnergySage provides a list of the top American-made panels.
Financing options for solar panel systems include tax incentives, rebates, and loans from solar installers. Homeowners can also finance their solar investment through a home equity loan or home equity line of credit (HELOC), which may offer lower interest rates, refinancing opportunities, and tax benefits. These options allow homeowners to borrow against the value of their homes without requiring collateral. Solar loans are another option, offered by banks, credit unions, and online lenders, with loan amounts typically ranging from $1,000 to $100,000 and APRs between 6% and 36%.
Financing Options for Solar Panels
It’s important to note that your home or solar panels are not at risk if you miss payments, but you may incur late fees. This provides a level of security for homeowners who are considering financing options for solar panels.
Yes, you likely can secure financing for your solar panels. When exploring financing options, be sure to compare interest rates, terms, and fees with any packages offered by solar providers to ensure you are getting the best deal possible.