Installing solar panels can significantly reduce energy costs, but some homeowners are uncertain about installation costs and solar's reliability as an energy source.

One solution helping homeowners make the switch is neighborhood solar cooperatives. For Adam Hertzman, a homeowner in Pittsburgh, Pennsylvania, joining a Solar United Neighbors (SUN) co-op convinced him to push through.

The scoop

Hertzman was aware of the economic and environmental benefits of solar energy but was hesitant about upfront costs and finding a trained installer. 

He was invited to the SUN Allegheny County Solar Co-op in 2022, and joining turned out to be game-changing. The group's bulk-purchasing power allowed members to enjoy great discounts and quality installation for solar arrays. By spring of 2023, Hertzman was able to get a 3.5-kilowatt (kW) solar array..

"[The installation] was way easier than I thought it was going to be," Hertzman said, per Solar United Neighbors. "The one thing that I did not anticipate, that floored me, was how much money we are going to make. The return on investment in solar made me say, 'Why the hell doesn't everybody do this?'"

Aside from the solar co-op's discount, Hertzman was also able to save $7,000 on the upfront costs through the 30% solar Investment Tax Credit (ITC). The array covers most of his home's energy needs, cutting off about $235 from his household's monthly electricity bills and further lowering the payback time for the installation.

How it's helping

Co-op solar helps homeowners save more money with discounts, competitive pricing, expert support, and a smooth and transparent installation process while easing any uncertainties.

Beyond the discounts from the co-ops' bulk-purchasing power, homeowners who install solar arrays can qualify for up to 30% tax credit through the solar ITC under the Inflation Reduction Act (IRA), an initiative that rewards homeowners who install clean energy upgrades like solar panels and heat pumps. 

According to EnergySage, the solar tax credit can save homeowners thousands of dollars. However, these incentives might not last forever. The Trump administration has signaled an intention to revoke these privileges. Major changes to the IRA would require an act of Congress, but its future is still uncertain. Homeowners who want to save more money on sustainable energy upgrades should take advantage of these incentives sooner rather than later.

There are resources that homeowners can use to estimate how much the upgrade would cost, such as EnergySage's free tools for quick installation estimates and comparing quotes. Homeowners who don't want to invest in rooftop panels or join solar co-ops can also sign up for community solar. With a community solar subscription, homeowners can benefit from solar power without installing panels on their property.

What's the biggest factor stopping you from investing in solar panels? The cost 💰 The technology ☀️ I'm a renter 🏢 I'm already invested 😎 Click your choice to see results and speak your mind.

What else has Hertzman said about the solar co-op?

Joining a solar co-op helped Hertzman overcome the concerns and make the switch to solar. 

"The solar co-op has your best interest in mind, gets a great set of installers, and really picks the best option," Hertzman said in the Solar United Neighbors report. "So that made me very comfortable, the process was completely transparent."

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