Brian McGowan of Coatesville, Pennsylvania, says he paid roughly $150 (€130) for power last year after expanding his rooftop solar in the fall. By contrast, he estimates his pre-solar annual energy costs would have been more than $2,000 for electricity, about $1,000 for gas and over $2,000 for heating oil. He drives an EV and now uses a mini-split heat pump for most heating, cutting oil use. What began as a couple of panels to run a kettle, coffee maker and emergency lights has become a full system with batteries 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 shut off his gas. He estimates he saves $400–$500 a year and avoids a monthly gas base charge. In some months he and his wife produce more power than they consume, banking hours or exporting excess to the grid for credit during leaner months.
Reliability is as important as savings. McGowan maintains two systems: a grid-tied array of 30 rooftop panels with batteries and a separate off-grid setup for long outages. When his neighborhood lost power, his house only flickered while the rest of the block stayed dark. He sees roughly three to four outages a year in his area, some lasting multiple days, and expects grid strain to rise with growing data-center demand.
Nationwide, interruptions are increasing: the U.S. Energy Information Administration reported that in 2024 customers experienced an average of 11 hours of outages — roughly double the annual average of the prior decade. A Stanford analysis found that pairing solar with battery storage improves outage survival and that a majority of households could see financial benefits, although that study counted incentives that have since changed.
How much you save depends on several things:
– The site’s solar potential and the size of your system
– All installation costs: equipment, labor, permits and any panel or meter upgrades
– Local electricity prices and how your utility pays for exported power
Compensation rules differ by utility. Under net metering, exported electricity is credited at the retail rate you pay. Under net billing, export credits are often based on wholesale prices and can be a small fraction of retail — in some California programs that’s about 25% of retail. Where export credits are low, adding batteries to store and consume your own generation usually makes more financial sense.
Typical payback windows vary. In states with strong incentives, paybacks can be two to five years. In regions with weaker incentives or low electricity prices, paybacks often stretch to seven to eleven years. Roughly 5 million U.S. households now have metered rooftop solar — about one in 30 homes — drawn by both environmental benefits and greater energy control.
Practical steps to get started
– Check incentives and financing: review federal, state and local rebates, tax credits and loan programs. Leasing remains an option in some markets.
– Compare utility rules: confirm whether your utility uses net metering or net billing and what export rates apply.
– Factor batteries into the plan: they boost self-consumption, reduce exposure to low export credits, and provide backup during outages.
– Shop wisely: get multiple quotes that include equipment, labor, permits and any needed electrical upgrades.
Policy changes are important: some states and utilities have scaled back generous compensation or added fees for solar customers, leading many homeowners to add batteries and reduce reliance on the grid.
Make efficiency your first investment
Installing generation without tightening the building envelope wastes money. McGowan added a drain-water heat exchanger and swapped to electric appliances where practical. An energy audit can identify air leaks, poor insulation and inefficient systems. Sealing gaps, upgrading insulation and improving windows lower the size (and cost) of the solar and battery system you’ll need.
Other practical tips
– Convert heating and major appliances to electric where feasible; modern heat pumps often sharply cut heating energy use.
– Prioritize weatherization: air sealing and insulation upgrades commonly deliver the highest long-term returns.
– Right-size storage: size battery capacity to cover critical loads for the typical outage length in your area rather than oversized backups.
– Phase upgrades: start with efficiency measures, add solar panels, then add batteries as budgets and incentives permit.
Beyond direct savings, resilience is a major benefit. As a Stanford researcher asks: how much is uninterrupted power worth to you? For homeowners in outage-prone areas or where energy prices are volatile, combining efficiency, solar panels and battery storage buys both financial savings and peace of mind.