About $150 (€130) is what Brian McGowan says he spent on power last year at his home in Coatesville, Pennsylvania. Since adding more solar panels in the fall, he expects his bill to fall further. By contrast, he says he would ordinarily have spent more than $2,000 a year on electricity, around $1,000 on gas and over $2,000 on heating oil.
McGowan drives an EV, so he isn’t buying petrol, and a mini-split heat pump now heats the house most of the time, cutting heating oil use. What started with a couple of panels to run a kettle, a coffee machine and emergency lights has grown into a full system with battery storage and a heat pump.
John Spezia, a retired professor in Steamboat Springs, Colorado, installed solar about 13 years ago and recently added a heat pump so he could turn off his gas supply. He estimates saving $400–$500 and avoiding a monthly base gas charge. In some months he and his wife produce more power than they use and can bank hours or export to the grid for credit during colder times.
Power reliability is a key motivator. McGowan runs two setups: an off-grid system he uses during long outages and a grid-tied system with 30 rooftop panels connected to batteries. When the neighborhood lost power, his home only experienced a flicker while the rest of the block was dark. His area sees roughly three or four outages a year, some lasting days, and he expects more strain on grids as data center demand grows.
The U.S. Energy Information Administration reported that in 2024 electricity customers experienced an average of 11 hours of interruptions — about twice the annual average of the prior decade. A Stanford study found that combining solar and battery storage helps households survive outages and that roughly 60% of households would also see financial benefits, though that analysis included incentives from a now-scrapped federal tax credit under the Inflation Reduction Act.
How much homeowners save depends on several factors:
– Solar generation potential at the site and the size of the system installed
– Installation costs including labor, permits, panels and batteries
– Local electricity prices and how utilities reimburse exported power
Compensation rules vary. Under net metering, utilities credit exported electricity at the retail rate — the same rate the customer pays. Net billing credits typically reflect the wholesale rate utilities receive, which can be a fraction of retail. In California, for example, some net billing credits are around 25% of retail. Where net billing applies, adding battery storage to consume your own generation often makes more financial sense.
Payback periods vary by state and incentives. In places with strong renewable credits, payback can be two to five years; in states with weaker incentives or cheaper electricity, seven to eleven years is more typical. About 5 million U.S. households now have metered rooftop solar — roughly one in 30 homes — making solar adoption a nationwide trend. For many, the attraction is not only environmental but also energy stability and control.
Starting with solar
– Check state and local incentives: some states still offer tax credits and financing programs. Local banks may offer loans; leases remain an option in some markets.
– Compare compensation policies: understand whether your utility uses net metering or net billing and what export rates apply.
– Factor in batteries: if exported-energy compensation is low or utilities add fixed charges for solar customers, batteries let you store and use more of your own power and provide backup during outages.
– Shop costs: get multiple quotes and include labor, permits and potential upgrades to electrical panels.
Policy shifts matter. Some states and utilities have rolled back generous compensation and even added fees for solar customers, prompting some homeowners to add batteries and reduce grid dependence.
Make the house efficient first
Installing generation without improving efficiency wastes money. McGowan added measures such as a drain-water heat exchanger to recover hot water heat and switched to electric appliances where possible. An energy audit can identify leaks and poor insulation; sealing gaps and upgrading insulation and windows reduces required generation and storage capacity.
Other practical tips:
– Convert heating and major appliances to electric if feasible (heat pumps can cut heating energy use substantially).
– Prioritize weatherization: air sealing and insulation give the best long-term returns.
– Right-size storage: choose battery capacity to cover critical loads through typical outage durations in your area.
– Consider staged upgrades: start with efficiency measures, add panels, then batteries as budgets and incentives allow.
Beyond economics, resilience is a major value. As Tao Sun from Stanford asks: how much would you pay for uninterrupted power? For many homeowners, especially in outage-prone areas or where energy prices are volatile, investing in solar, batteries and efficiency buys both savings and peace of mind.
Edited by: Tamsin Walker