Underrated Benefits of Residential Solar Panels in 2025
If you’re thinking about installing solar panels for your home, you probably already know that they can save you money on your electric bills. It’s often the main reason why homeowners install solar panels, but it’s not their only benefit. There are tons of additional benefits of solar energy that make residential solar worth the investment worth it for Arizona homeowners.
1. Predictable Energy Costs for Decades
One of the most underappreciated benefits of solar panels is their ability to stabilize your energy costs. When you get all your power from the electric grid, you have to deal with fluctuating rates that make it hard to predict what your bill will look like, especially when you think in terms of years instead of just month to month.
With solar, you’ll know exactly how much you have to spend on power every month.
- If you buy your system outright, your electricity costs will drop significantly and you’ll quickly get a feel for how much electricity you generate each month and how much you have to buy from the grid.
- If you finance your solar panels with a loan, you’ll have a stable monthly payment, making it easier to budget your monthly expenses.
2. Protection Against Rising Electricity Prices
Electricity costs are rising fast. Last year, they started to outpace inflation. Rising costs are a problem for everyone, but even more so in Arizona, where we need air conditioning to stay comfortable for most of the year.
When you install solar panels, you’re protected against rising electricity rates. When you think about how much solar can save you, don’t just think about the savings based on your current electricity rate. Think about what they will be when your rate inevitably goes up.
3. Backup Power for Emergencies
Extreme weather has been all over the news lately, with hurricanes, wildfires, and even mudslides devastating huge swaths of the country. We might have come away unscathed in Arizona, but who knows what the future will bring?
Installing residential solar panels with battery storage will prepare you for anything that comes our way. With a solar plus battery system, your power will stay on even if the electric grid goes down. Your battery will recharge automatically from your solar panels, so you won’t have to worry about running out of fuel.
4. Higher Home Value and Better Marketability
With climate risks becoming a reality, homebuyers are looking for resilient features. According to research conducted by Zillow, 86% of recent home buyers said it’s very important that a home has at least one climate-resilient component. Buyers are also thinking about backup power—the term whole-home batteries was used in 62% more home listings in 2024 than in the year before.
5. Tax Incentives Are Still Available
Some homeowners assume they missed the window on solar incentives by not going solar sooner. But there are still excellent incentives available in 2025! The best is the federal solar tax credit. With the solar tax credit, you can reduce your federal income tax liability by 30% of your solar installation costs. It applies to all expenses, including battery storage, and there’s no limit. So, whether you spend $5,000 or $50,000 on solar, you can claim the full 30% credit.
Arizona homeowners can also claim the Arizona state solar tax credit. The Arizona solar tax credit reduces your state income taxes by 25% of your solar installation costs, up to $1,000.
