Is Solar Power Right for You? FTC Tips Highlight Homeowners’ Options

Solar panels on top of a commercial building.

If you’re thinking about using solar power at home, the Federal Trade Commission has new information to help you sort through the options.

Solar Power for Your Home explains costs and benefits of buying or leasing a system, or signing a power purchase agreement. It also has tips to help you evaluate companies and products, and advice about what to know – about tax breaks, rate changes and what happens when you sell your house – before you sign a contract.

If you want to use solar power for your home, you have options. You may be able to buy or lease a system or sign a power purchase agreement. Your choice can affect how much you spend up front and over the life of the system, whether you get certain tax breaks or not, and your responsibilities when you sell your home. Evaluate the company, product, costs and your obligations before you make a commitment.

If you use a solar panel system — also called a photovoltaic or PV system — to produce electricity, you buy less electricity from the utility company and enjoy the benefits of renewable energy. The Department of Energy says most homes with solar panels get at least 40% of their energy from solar; that varies by house. Whether solar power will fill all your power needs depends on how much your system produces and how much you use.

If you buy a solar panel system, you may be eligible for tax credits or other financial incentives that offset the initial cost. If you lease or have a power purchase agreement (PPA), you can pay less up front and may have lower monthly payments, but you usually won’t get tax credits or other incentives — the company that owns the system will. Whether you buy, lease or have a PPA, you’ll probably still buy some power from the local utility.

Project Sunroof estimates that the average home in Spartanburg would save $6,000 over 20 years. Local companies who can assist you in the transition to solar include Sunrun, Tesla’s SolarCity, and Vivint Solar.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357).