Benefits of Residential Solar Electricity | Department of Energy

30 Jun.,2025

 

Benefits of Residential Solar Electricity | Department of Energy

Solar energy is renewable and plentiful. As the cost of using solar to produce electricity goes down each year, many Americans are increasingly switching to solar. Now, there are over a million solar installations across the country. Below are additional benefits of switching to solar electricity.

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Financial returns and lower monthly utility bills are major incentives for going solar. The exact savings you will see with solar depends on the following: 

  • Electricity consumption
  • Solar energy system size
  • Whether you purchase or lease your system
  • Direct hours of daily sunlight
  • Size and angle of roof
  • Local electricity rates.

A solar electric system provides an opportunity for anyone who is looking to reduce monthly utility bills and make a long-term, low-risk investment.

Solar panels are viewed as upgrades, like a renovated kitchen or a finished basement, so purchasing a solar energy system will likely increase your home’s value. Studies show that homeowners pay a premium for a solar home; one study by Lawrence Berkeley National Laboratory showed that on average, solar increased the value of a home by about $15,000. Although market factors like electricity rates and system size may impact the size of the premium, solar homes can sell for more than homes without PV. 

The solar resource of the United States is enormous.  In fact, just one hour of noontime summer sun is equal to the annual U.S. electricity demand.  Most states in the United States have good-to-excellent solar resource. Even places with relatively low solar resources, such as the Pacific Northwest and Alaska, can experience cost savings, and have similar solar resources to countries that have widely developed solar PV, like Germany.

Each kilowatt-hour (kWh) of solar that is generated will substantially reduce greenhouse gas emissions like CO2, as well as other dangerous pollutants such as sulfur oxides, nitrogen oxides and particulate matter.  Solar also reduces water consumption and withdrawal.

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Solar explained Solar energy and the environment - EIA

Solar energy technologies and power plants do not produce air pollution or greenhouse gases when operating. Using solar energy can have a positive, indirect effect on the environment when solar energy replaces or reduces the use of other energy sources that have larger effects on the environment. However, producing and using solar energy technologies may have some environmental affects.

Solar energy technologies require materials, such as metals and glass, that are energy intensive to make. The environmental issues related to producing these materials could be associated with solar energy systems. A number of organizations and researchers have conducted PV energy payback analysis and concluded that a PV system can produce energy equivalent to the energy used for its manufacture within 1 to 4 years. Most PV systems have operating lives of up to 30 years or more.

The hazardous chemicals used for manufacturing photovoltaic (PV) cells and panels must be carefully handled to avoid releasing them into the environment. Some types of PV cell technologies use heavy metals, and these types of cells and PV panels may require special handling when they reach the end of their useful life. Some solar thermal systems use potentially hazardous fluids to transfer heat, and leaks of these materials could be harmful to the environment. U.S. environmental laws regulate the use and disposal of hazardous materials. The U.S. Department of Energy is supporting various efforts to address end-of-life issues related to solar energy technologies, including recovering and recycling materials used to manufacture PV cells and panels. Several states have enacted laws that encourage recycling PV panels.

As with any type of power plant, large solar power plants can affect the environment at or near their locations. Clearing land for a power plant may have long-term effects on the habitats of native plants and animals. However, installing solar energy systems on land that has marginal agricultural value or integrating solar energy systems on farms may provide a variety of economic and environmental benefits to farmers.

Some solar power plants may require water for cleaning solar collectors and concentrators or for cooling turbine generators. Using large volumes of ground water or surface water for cleaning collectors in some arid locations may affect the ecosystems that depend on these water resources. In addition, the beam of concentrated sunlight a solar power tower creates can kill birds and insects that fly into the beam.

Last updated: January 19, .