Homeowner shares unfiltered experience installing rooftop solar as investment strategy: 'That's a sweet deal'

Thinking about going solar but unsure if it's worth the investment? One Oregon homeowner crunched the numbers after installing panels in 2021, sharing exactly how the move is paying off.

The scoop

In a Reddit post on r/investing, the Portland-based homeowner explained they invested in solar panels in 2021 after having "some extra cash on hand that year." The year before switching, the homeowner said they spent $1,100 on grid electricity, though they said rates have "since increased substantially."

The solar panel system was $17,800 to install, excluding a 30% federal tax credit. The homeowner said the system offsets "the majority" of their electrical use, saving about $883 in "after tax money that would have been [spent] on electricity."

"For the net $12,460 I spent to get here that makes for a 7% rate of return," the homeowner wrote in the post.

For those considering solar, the homeowner recommended paying up front for solar panels instead of financing or leasing, which they said can reduce solar's monetary benefits. They also noted it's best to plan on staying in your home "a long time" to maximize savings, though selling a home with quality solar can boost resale value.

The homeowner added that solar benefits and experience can vary state-by-state, so it's essential to do your research. That's where a resource like EnergySage can help, offering free and fast solar installation estimates and comparing quotes to make smart solar decisions.

How it's helping

Going solar is one of the smartest ways to save on home energy costs and reduce planet-warming pollution. While the electric grid still depends heavily on polluting sources like gas, coal, and oil, solar power is clean, abundant, and endlessly renewable.

Recent data shows that 79% of the nation's electricity comes from these "dirty" energy sources, contributing to air pollution and environmental harm. By choosing solar, you help fight rising global temperatures, improve air quality, and protect the planet for future generations.

Installing solar can also be a savvy financial decision. The aforementioned electrification company EnergySage reports that solar panels can significantly reduce — or even eliminate — your electric bill, with potential savings ranging from $28,000 to $120,000 over 25 years. 

That said, installing solar does require an upfront investment — typically between $20,000 and $45,000, depending on where you live. But the government offers tax credits and other incentives via the Inflation Reduction Act that can lower those costs for qualified homeowners.

If you were to install home solar panels, which of these factors would be your primary motivation? Energy independence ⚡ Lower power bills 💰 Helping the planet 🌎 No chance I ever go solar 🚫 Click your choice to see results and speak your mind.

Curious about how much you could save? EnergySage offers quick, free solar estimates and compares installation quotes to help you find the best deal. As a no-cost third-party service, EnergySage can help the average homeowner claim about $10,000 in solar purchase and installation incentives. And that free assistance can make going solar even more affordable.

What everyone's saying

In response to the homeowner's solar review, fellow solar swappers commented that going solar has paid off big-time for them, too. And with electric rates continually rising, many say the savings just keep getting better.

"I did the same thing and came out with about 8-9 percent return," one New Jersey commenter wrote. "If you average out about 2-4 percent yearly increases in energy costs the return is even higher in later years."

Another commenter agreed, adding, "One of the neat things is that your return actually increases over time as electric rates rise and your avoided cost of energy goes up."

Another commenter discussed the programs available to them in Scotland and the benefits they've seen from having batteries to store their energy. 

"Oh dang that's a sweet deal!" the poster replied, "I was not aware that batteries can provide that substantial benefit." 

But these savings might not last. President Donald Trump has proposed dismantling the IRA, which could eliminate incentives for climate-friendly home upgrades like installing solar panels. While Congress would have to approve major changes to the IRA, the program's future is uncertain. Acting now could save you thousands.

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