The Ups and Downs of Solar

With federal tax credits set to expire at the end of December 2025, going solar may be more attainable now than ever.

🌞 The Ups of Going Solar

Lower Energy Bills — Especially in Summer

One of the biggest advantages to solar panels is a dramatic reduction in your electricity bills. In sunny Southern Utah, solar generation tends to peak when cooling demands are highest, making summer savings particularly noticeable.

A Long-Term Investment and Reasonable Payback Period

Solar now costs much less than in past decades. A typical residential solar installation in Utah runs under $3.00 per watt before incentives, and many homeowners see payback in roughly 10–15 years, depending on energy use and system size Over the 20–30 year lifespan of the system, that often translates to significant lifetime savings compared to continually paying a utility. 

Selling Power Back to the Grid (Net Metering / Export Credit)

When your panels generate more electricity than your home uses, many utility providers offer “net metering” or an export credit rate for sending that surplus back to the grid. This can further reduce your overall energy costs — and in an ideal scenario, offset months when your power use is higher than what your panels generate.

Hedging Against Future Utility Rate Hikes

Electricity rates tend to go up over time. By installing solar now, you essentially lock in (or pre-pay) a portion of your future energy costs, insulating yourself from rising energy bills and volatility in grid electricity pricing.

Emerging Alternatives: Solar Roof Tiles + Battery Storage

Solar technology continues to evolve. Companies like Tesla (among others) are offering solar roofing tiles — a more integrated, aesthetic alternative to traditional rack-mounted panels.
Paired with a battery storage system, solar roofs can capture energy during the day and allow homeowners to use it at night, increasing energy independence and resilience.

⚠️ The Downsides — What You Need to Watch Out For

Leased Panels or Other Encumbrances Can Make Sale of Home Difficult

If you lease your solar system rather than owning it outright, that lease can become a headache when you go to sell. A buyer may be hesitant to take over a lease, or it could complicate financing or transfer. Many experts warn: if you don’t own it, don’t do it. 

Warranty Risks — Especially If Roof Work Is Needed Later

Some solar warranties require that only the original installer can remove and reinstall the panels — for example, if you need a roof repair or replacement. If another company handles removal, you could void the warranty. That can mean unexpected out-of-pocket costs for maintenance, repairs, or even full reinstallation.

Weather Risks — Hail and Natural Damage

Like any roof-mounted system, solar panels are exposed to the elements. Hail, strong storms, or extreme weather can damage panels — which may lead to costly repairs or reduced efficiency.

Low Compensation for Excess Energy Sent Back to the Grid

In many parts of Utah, the rate utilities pay for excess energy exported to the grid is significantly lower than what they charge for electricity consumption. For example, some programs credit excess energy at only about 5–7 cents per kWh, while retail electricity rates may be double that. That means net metering savings may be modest — making payback slower and total financial benefit less than many expect.

Upfront Costs Still Significant, Especially Including Batteries or Roof-Integrated Solutions

Even with incentives, a full solar installation for a typical Utah home can run from $10,000 to $30,000+, depending on system size, roof complexity, and whether battery storage or solar-roof tiles are included. ConsumerAffairs+1
If you add battery storage — which is almost required for full nighttime energy independence — costs rise further.

📊 What It Looks Like in Southern Utah: Cost vs. Compensation

• The average residential electricity rate in Utah is around 13–14 cents per kWh

• For exported solar energy, some net-metering or credit programs offer only 5 to 7 cents per kWh — a fraction of the retail rate.

• A typical 10 kW solar system (common for a 2,000-square-foot home) installed before federal tax incentives can cost around $20,000–$27,000, falling to somewhere near $13,000–$19,000 after tax credits. This Consumer Affairs Link geves more details.

• If your electricity consumption is moderate and the net metering payoff is low, the real return on investment may take 10–15 years — meaning solar becomes most attractive if you plan to stay put for a long time.

✅ So Is Solar Worth It? Maybe — If You Do It Right

Solar panels (or solar roof tiles) can be a wise investment — especially if you:

• Live in a sunny climate like Southern Utah

• Plan to stay in your home for 10–20+ years

• Own the panels (not lease them)

• Combine solar with battery storage for maximum benefit

• Understand the realities of net metering and possible weather/roof maintenance risks

Solar becomes less appealing if you lease your system, want to sell the house soon, or rely on high buy-back rates from the grid (which are often limited).

For many homeowners, solar isn’t just about saving today — it’s about hedging against future rate hikes, increasing energy independence, and aligning with long-term sustainability values. New technologies — like solar-integrated roofing tiles and home battery systems — may make solar even more attractive over time, especially for those building or remodeling homes.

🧮 What That Means for a Typical Southern Utah Home

✅ My Take: Solar Can Pay Off — Especially If You Plan to Stay

• For many Southern Utah homeowners, a 8–12 year payback period is realistic.

• After that point, you’re essentially getting electricity for “free,” aside from minimal maintenance — which offers a long-term hedge against rising utility prices.

• If you plan to stay in your home for 15–20 years or more, solar becomes a solid long-term investment, especially if energy usage is moderate to high, or if you anticipate future increases in rates or demand (EV, heat pumps, etc.).

• Adding battery storage increases the upfront cost and extends payback slightly — but enhances independence, resilience, and potential long-term value.