As energy costs rise and climate concerns grow, investing in solar panels has become a smart move for homeowners.
Residential energy use accounts for roughly 20% of total U.S. energy consumption, according to the Energy Information Administration. Not only can solar energy significantly reduce your electricity bills, but it also helps decrease the emissions generated by fossil fuels to power grid electricity.
Solar industry experts at EnergySage ranked the top-performing panels for homeowners in 2025. Choosing high-efficiency panels can maximize energy production, especially for homes with limited roof space.
EnergySage said efficiency is improving, adding that the average solar panel on its marketplace has increased by 10% in efficiency in the last five years. "Highly efficient solar panels can generate greater electric bill savings than their less efficient counterparts, but they cost more upfront," the article states.
EnergySage's free tools make it easier to get estimates and compare quotes. While it is expensive, the cost might be lower than you think in relation to the annual savings. Additionally, federal and state tax incentives can reduce installation costs and bring you savings on electric bills a lot quicker.
The Inflation Reduction Act restored the 30% federal solar Investment Tax Credit through 2032, allowing homeowners to deduct nearly a third of their installation costs from federal taxes. This credit will decrease to 26% in 2033 and 22% in 2034 before phasing out, although President Donald Trump has repeatedly said he intends to make changes to the act, so taking advantage sooner can lead to greater savings.
As EnergySage puts it, "it's most helpful to think about solar panels as an investment." All in all, the company deems solar panels to be worth it both for your wallet and the environment. Nevertheless, it is helpful that it indicates when going solar might not be right for everyone, such as renters or those with extremely low-cost electric bills.
Bottom line: Picking the right solar panels and cashing in on current federal tax incentives could mean big savings — plus a cleaner, healthier planet.
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