Switching to solar energy can be a smart financial move—and with the 30% federal tax credit potentially expiring after this year, 2025 may be the best time to make the switch. But before you commit, it’s important to know whether solar is truly the right fit for your home. Here are the top three things to consider before going solar.

1. Is Your Home a Good Fit for Solar?

Not every home is ideal for solar. To get the most value from a system, your roof should get strong sunlight throughout the day, with minimal shading from trees, chimneys, or nearby buildings.

Also, think about your roof’s age and condition. Since solar panels typically last 25 to 30 years, it's smart to replace an aging roof before installation. A qualified solar installer can assess your roof’s suitability and give you a clear picture of what to expect.

2. What Are Your Energy Costs?

Solar is most cost-effective when your electricity bills are already relatively high. The more you currently spend on electricity, the greater your long-term savings are likely to be.

On average, homeowners save about $1,200 a year with solar panels. Most systems pay for themselves within 8 to 12 years and continue generating savings for many years after that. If your utility rates are lower, your break-even point may take longer—but solar can still be worth it over time.

3. How Will You Pay for It?

The average cost of a residential solar system is around $16,000 before incentives, but the 30% federal tax credit can significantly reduce that total. Additional rebates or incentive programs may also be available depending on your location and utility provider.

How you choose to pay for your system plays a big role in your overall return. Purchasing your system outright—or financing it with a solar loan—means you’re eligible for the tax credit and any other applicable incentives. However, leasing your system or entering a power purchase agreement often means you won’t receive those benefits, and you won’t own the equipment.

If you live in an area prone to power outages, you may also want to explore battery storage. It can add to your upfront costs but provides backup power and greater energy independence.

Going solar can reduce your electric bills and even increase your home’s value—but it’s not a one-size-fits-all decision. Before making the leap, consider your home’s solar potential, your energy usage, and your financing options. And with the federal tax credit up in the air, now may be the right time to take action.