Blog Updated: June 2026
First time home buyers are looking for a place to call home, a place to raise a family, or maybe to gain a little more space compared to the apartment they have been living in. In addition to these drivers for buying a home, people understand that a home represents an investment that can help build their wealth over time. People see a home mortgage as good debt.
It’s not as common to view solar in the same light, but the comparison can help us understand the investing potential of solar. Installing home solar removes your monthly utility bill (over time if you finance, right away if you purchase your system outright) and provides a significant return on your investment.
Key Takeaways for the Value of Debt and Home Solar
- The value of solar: Just like buying a home gives you ownership of your property, solar panels give you ownership of your electricity generation and allow you to build equity.
- Good debt: If taking on debt (like a mortgage) can help you build wealth or improve your financial future, that debt is often considered good debt.
- Is solar right for you? If your roof is a good fit for solar and your financial situation is right, then solar might represent good debt for you.
Renting Vs Owning
As a renter, your money is going out the door to your landlord, and you never see a return on those payments. When you buy a home, your monthly mortgage payments are now going toward building equity in your home. Over time, your home equity can build your wealth as well as be leveraged for loans or lines of credit.
With your electricity bill, your monthly payments are going out to your utility provider, but you don’t get any return on that money. Each payment is a sunk cost with no equity to be had, just like renting. Enter solar.
Think of solar as owning your electricity production, just like buying a home gives you ownership of your property. Instead of paying the utility, you are now generating your own electricity with a solar panel array on your home. (Learn more about how solar offsets your energy bill with net metering.) You have taken ownership of your electricity and can now start building equity in your solar array, just like owning a home.
Solar is Good Debt
Debt is sometimes considered a four-letter word, but not all debt is bad all the time. If taking on debt can help you build wealth or improve your financial future, that debt is often considered good debt. Of course, determining whether debt is good or bad depends on many personal factors, so we can’t make a blanket statement about any specific kind of debt.* But if your roof is a good fit for solar and your financial situation is right, then solar might represent an opportunity for good debt.
Of course, this assumes that you are financing your solar panel system. When financing a solar panel system for your home, you are investing in a reduced or 100% offset electricity bill while also increasing the value of your home. But if you purchase your system outright, then you are reducing or removing your electrical expenses on day one and will see the highest return on your solar investment.
The Value of Solar
There is a cost to install solar, but what is the value of adding solar to your home? We’ve discussed the concept of owning your power production as a means to build equity and wealth, similar to that of buying a home. Solar is also able to provide you with a stable, tax-free return on your investment while you hedge against riding electricity rates. And once your panels have paid for themselves with solar savings? Well then you are soaking up free electricity from the sun.
These are some the ways solar can add financial value, but of course there are environmental benefits as well. Solar can save you money, but it’s also a way to align your living with your personal values. Each person will assign value to the intangible benefits of solar differently, but it’s there regardless.
Will You Benefit from Solar?
If you’re interested in learning more about solar for your home, reach out to our team of home solar advisors by clicking the button below or calling us at 303-536-8920. We don’t work on commission, and our focus is always giving you the information you need to make the best decision for your home. No pressure, no sales pitch.
*We’re not financial advisors. We’re solar professionals. Get professional advice if you have questions about managing money and debt.
