Solar

Is Solar Really Worth It in 2025? Here’s the Real ROI

Solar
March 31, 2025•2 min read

If you’ve been sitting on the fence about going solar, 2025 might just be your moment. With utility rates climbing, home energy bills hitting record highs, and incentives still on the table, installing solar panels now could be one of the smartest financial moves you make this decade.

But how much will you actually save? What’s the real return on investment? Let’s break it all down.

Solar1

The Rising Cost of Electricity

It’s no secret: electricity rates have been steadily rising across the country. Depending on where you live, you could be paying 20–50% more for power than you were just a few years ago.

A typical U.S. household spends around $150 to $250/month on electricity. That’s $1,800 to $3,000 per year, and it’s only going up.

Now multiply that over the next 25 years—you could be spending $45,000–$75,000 just to keep the lights on. Going solar changes that math entirely.

The Federal Tax Credit Is Still Here

Good news: the Federal Solar Investment Tax Credit (ITC) is still offering a 30% credit on the total cost of your solar system through 2032. That means if your solar installation costs $20,000, you can claim $6,000 back on your taxes.

Many states also offer local incentives, property tax exemptions, and even solar rebates—further driving down your out-of-pocket costs.

The Real ROI of Solar in 2025

Here’s what the numbers look like for an average solar installation:

  • System cost after incentives: $14,000

  • Monthly energy savings: $150

  • Annual savings: $1,800

  • Payback period: ~7–9 years

  • 25-year net savings: $25,000–$40,000

And that doesn’t include added home value, which typically increases by 3–5% after going solar.

Real-World Example

Let’s say you live in California or Texas, where sunlight is plentiful and electricity isn’t cheap. You install a 7kW system for $20,000. After the 30% federal tax credit, your cost is $14,000.

If your average monthly electric bill was $200 before, and now you’re only paying $20 for grid connection fees, you’re saving about $180/month. That’s over $2,100 a year in savings—plus the peace of mind of owning your energy.

So... Is It Worth It?

Yes—solar in 2025 is still 100% worth it for most homeowners. The upfront investment pays for itself in under a decade, and after that, it’s pure savings. Add in the environmental benefits, energy independence, and increased home value, and the ROI becomes even more compelling.

If you’re serious about cutting your energy costs long-term, this is your year to make the switch.

Back to Blog