Blog Updated: June 2026
There are a lot of reasons you might be considering going solar. Many people first become interested in solar because of the environmental benefits of creating electricity from the unlimited supply of free sunshine. Others want to gain independence from the utility companies and rising energy rates. There is also the benefit of being a trendsetter in your neighborhood and installing new technologies like battery storage. Home solar panels are a great conversation piece, and many homeowners are inspired to go solar themselves after seeing panels on their neighbor’s roof.
Even with all these other reasons to go solar, there is one key question you’ll want answered: are solar panels worth it financially? Solar won’t be right for everyone, but for many homeowners, the short answer to this question is yes. Solar panels are a unique home improvement project that pays for itself over time, adds value to your home, and often can be a better long-term investment than some traditional investment opportunities. Let’s explore further to see exactly how worth it solar panels are for your home.
Key Takeaways for Solar Panels Being Worth it for Your Home
- Solar pays for itself: Solar can save you money on your electric bill each month, and over time, those savings will cover the cost of your system.
- Solar increases the value of your home: On average, home buyers were willing to pay an additional $15,000 for a home featuring a 3.6 kW solar system.
- Solar is smart financial investment: A typical payback period is around 14 years, returning about 7% of your investment each year. Compare this to bonds or the stock market; solar is low risk and offers tax-free returns.
- Are solar panels worth it financially? The answer is yes for many Colorado homeowners.
Solar is The Home Improvement Project that Pays You Back
When you install solar panels on your home, those panels will start capturing energy from the sun to create electricity. These little power producers will offset your usual electric usage, reducing your monthly electricity bill as soon as the system is on. Over time, the money you save on your electric bill each month provides a return on the money invested to install solar panels on your home. How many other home improvement projects will actually pay for themselves? Not many. That granite countertop, though very beautiful, sure won’t.
On average, homes on the front range in Colorado will see a payback period of 12-15 years. For some people it’s sooner, others later – it depends on your energy usage and utility rates. You’ll see more financial gain in a shorter amount of time if your household has high electricity use and higher utility rates. If you consume less electricity, you will still see long-term savings and a return on your investment over time. Either way, a solar system is also a hedge against the inevitable increases in electricity rates over time, as the panels on your home will insulate you from these rising costs.
One interesting development is the increasing popularity of electric cars. People who go solar now and then add an electric car to their household later are likely to see a faster payback; they are now running their car off solar with low-cost electricity instead of paying for gasoline.
Solar and the Value of Your Home
It’s normal for you to be wondering how solar will impact the value of your home. Luckily, we can find the answer in the form of a 2015 study sponsored by the Department of Energy and conducted by the Lawrence Berkeley National Laboratory. The study looked at data from the sales of over 22,000 homes across eight states between 2002 and 2013. Of those homes, roughly 4,000 had solar panels.
The research showed home buyers are willing to pay more for houses with solar panels. On average, home buyers were willing to pay an additional $15,000 for a home featuring a 3.6 kW solar system. This was true across the eight states studied, their unique housing and solar markets, and different home types.
These findings were confirmed by a report from Zillow that looked at sale prices and listings from March 2018 to February 2019. Zillow found that homes with solar panels installed sold for an average of 4.1% more than non-solar homes. This is great news for anyone who’s considering solar but hesitating because they’re not sure how long they’ll be in their home.
So, are solar panels worth it when it comes to home value? Regardless of whether you plan to stay in your home or sell sooner than later, yes! You can still earn value from solar panels when you go to sell, and in the meantime, you’ll enjoy lower monthly energy bills.
How Does Solar Compare to Other Investments?
Home solar and battery backup is a smart investment opportunity for your financial future that is attractive in comparison to other investments. Solar competes as a long-term investment option.
Consider that a typical payback period of around 14 years is roughly the equivalent of an 7% return on investment. This compares favorably to returns on other common investments like intermediate term bond funds or even the stock market. Plus, the savings you see from solar are tax-free compare to gains made in the stock market. When you combine all of this with the fact that solar protects you from rising electric utility rates, increases the value of your home, and is comparably low-risk, the case for solar as a smart investment looks even better.*
So, Are Solar Panels Worth It?
In the end, you’ll have your own combination of reasons for going solar that resonate and make sense for you. There are many benefits that may speak to you and your reasons may change over time.
But are solar panels worth it financially? The answer is yes for many Colorado homeowners. Installing a home solar system can add value to your home, you can see a stable return on investment, and your system will pay for itself in the end. Homeowners with solar also enjoy the benefits of clean energy, energy independence, and solar bragging rights.We, and our many happy customers, think solar is worth it for many reasons.
Learn how much you could save with solar to decide for yourself. Our team of solar advisors takes an educational approach – we want to give you all the information you need to make an informed decision for yourself. No pressure, no commission. Give us a call at 303-536-8920 or click the button below to get started.
*If we had consulted with lawyers, we’re sure they would have wanted us to tell you that we are solar advisors, not financial advisors. We’re pretty good with numbers, but you should still check with your financial advisor when dealing with your investment portfolio.
