How doessolar work?
Solar panels convert sunlight into electricity that powers your home — and can dramatically reduce your monthly electric bill. Here's everything you need to know.
Your solar installation
A residential solar system has four key components that work together to power your home with clean energy.
Solar Panels
Solar panels are made up of photovoltaic (PV) cells, which convert sunlight into direct current (DC) electricity.
Inverter
An inverter converts the DC electricity generated by solar panels into the alternating current (AC) electricity used in most homes.
Monitoring System
A monitoring system sends information about your solar installation, including the amount of energy it generates, to your solar provider to maintain optimal system performance.
Utility Grid
Your solar system is still connected to a local utility grid to provide power after sundown. Connection to the grid also allows your solar system to return to the grid any excess clean energy your system generates during the day.
How much can solar save you
on electric bills?
Lower Monthly Electric Bills
Solar is more affordable and accessible today because the cost of solar systems has dropped and a range of financing options can help you meet your goals. Whether you lease, take out a loan, or purchase a system, you may be able to start generating savings right away.
Solar can save you money by replacing electricity from the grid with solar electricity generated on your roof. The cost of solar plus any remaining electric bill amount may be lower than what it was before solar.
Avg. monthly bill
With solar
Save up to $180/month
Key Factors That Determine Whether You Can Save
Does solar increase the
value of your home?
Research consistently shows that homes with solar sell faster and for more money.
Home buyers are willing to pay a premium for a home with a purchased solar installation.
Source: Reported in study "Added Value of the Sun" by U.S. Department of Energy & Lawrence Berkeley National Laboratory.
For homeowners concerned with rising electricity prices, a solar home helps control electricity costs and may provide savings over time. This increase in value applies to homes with purchased solar installations, not financed systems.
Lawrence Berkeley Study
Analyzed 22,000+ home sales across 8 states and found solar consistently adds value regardless of market conditions.
Peer-reviewed researchZillow Research
Homes with solar energy systems sold for 4.1% more on average than comparable homes without solar in 2019.
National housing dataAppraisal Institute
For every $1 reduction in annual energy bills, home value increases by $20 — solar can cut bills by $1,000+ per year.
Appraiser guidelinesTypes of solar systems
Not all solar setups are the same. Choose the system type that fits your energy goals and budget.
Grid-Tied System
Typical cost: $15,000 – $25,000The most common and cost-effective solar setup. Your system connects to the utility grid, allowing you to draw power at night and export excess energy during the day.
Pros
- Lowest upfront cost
- Net metering credits
- No battery needed
- Reliable backup from grid
Cons
- No power during grid outages
- Dependent on utility rates
Quick Comparison
Common solar questions
Everything you wanted to know about solar but were afraid to ask.
Most solar panels come with a 25–30 year performance warranty and can last even longer. They typically degrade at about 0.5% per year, meaning after 25 years they still produce around 87% of their original output.
Check your home's savings
See how much sun hits your roof and how much you could save with solar.
Ready to go solar?
Learn the full step-by-step process from quote to installation and beyond.
Trusted by homeowners across America