Solar Panel Fact Check
With spring in full swing, more homeowners are asking about the truth behind solar panels. These systems are marketed with bold claims, but how many of them actually hold up under scrutiny? Let’s break down some common statements and separate fact from fiction.
SOLAR PANELS WILL PAY FOR ITESELF
Verdict: TRUE (with a catch)
If you pay cash, the average system will pay for itself in about nine years. If you finance the installation, the break-even point moves to 11+ years, assuming a 4% interest rate. However, some financing programs carry rates as high as 20%, which means it could take up to 19 years before your savings match your investment. But here’s the catch — homeowners in our area move every 8–9 years on average. That means you might sell your home before you ever break even, leaving the next homeowner to enjoy the savings while you foot the bill.
IT INCREASES THE HOME’S VALUE
Verdict: FALSE but TRUE
This is where having a local professional matters. If you look at the national stats, which includes the big cities, you will see that Solar Panels due increase a home’s value by 3%. However, if you look at local data, you will see there is no difference in the sales price of a home with Solar verses a home without. By local, I mean the following areas: Amherst, Bedford, Campbell, Lynchburg, Appomattox, Pittsylvania, Nelson, Buckingham, Halifax, Charlotte, and Prince Edward. But let’s say at some point we do meet the national average. That means you will spend $30,000 to make your home $8,760 better.
YOU WON’T HAVE A POWER BILL WITH SOLAR PANELS
Verdict: FALSE
Even with solar, you’ll still owe a utility company a mandatory monthly hookup fee.
IT’S FREE WITH DOLLAR-FOR-DOLLAR TAX CREDITS
Verdict: FALSE
This is one of the most misleading claims in the solar industry. The Solar Investment Tax Credit (ITC) covers only 30% of installation costs, meaning a $30,000 system earns you a $9,000 tax credit—not a full reimbursement. While this credit can roll over to future tax years if unused, solar panels are not “free.” And the $9,000 is not reoccurring, it’s a one-time credit that can be spread over many years.
YOU’LL MAKE MONEY FROM YOUR SOLAR PANELS
Verdict: FALSE
AEP charges about 17 cents per kWh after taxes and fees. Under the new recommended amounts, AEP would no longer pay 14 cents per kWh but only four cents. For the average Virginian, this means earning around $8 per month while still paying a mandatory hookup fee—which often results in little to no actual earnings.
SOLAR PANELS ARE ENVIRONMENTALLY FRIENDLY
Verdict: TRUE
For years, the environmental benefits of solar panels were debatable due to the high carbon footprint of manufacturing and disposal. However, thanks to new recycling programs and advances in panel efficiency, solar panels are now genuinely eco-friendly. While producing a single panel creates pollution equivalent to 12 years of energy use, the 25-year lifespan offsets this impact significantly. With recycling technology improving, future panels will be even greener. Of course, where the panels were manufactured makes a HUGE difference in the carbon footprint.
SOLAR PANELS ARE AN INVESTMENT
Verdict: FALSE
An investment should generate income or a solid return, and solar panels do neither. While they can reduce electricity costs, they function more like a home appliance than a financial asset. Just like a smartphone or a new smart water heater, solar panels provide utility but don’t make money.
Solar panels can be a smart move for some homeowners, but understanding the full picture is crucial. While they do reduce electricity costs and provide environmental benefits, they are not a guaranteed financial win—especially in our local market. Thinking about how solar might affect your home’s value? Let’s go over the numbers together to see what fits you.
Nathan is the president of Haefer Homes and a trusted REALTOR and educator serving Lynchburg and the surrounding areas. He’s a husband, father of four, and a dedicated nonprofit volunteer. He can be reached at 434-944-6982 or at nathan@haeferhomes.com.