Energy expert shoots down persistent financial myth about rooftop solar: ‘Most utility companies have restrictions’

Going solar is one of the best ways to save money on energy bills, but there is plenty of misleading information circulating that can make people hesitant to invest in rooftop solar. Luckily, energy experts at the online solar marketplace EnergySage have dispelled a major financial myth about solar energy.

One commonly held belief about going solar is that homeowners will receive a check from their utility provider if they produce more electricity than they consume. While EnergySage noted that this is possible, it’s extremely rare and shouldn’t be expected unless your utility offers incentive programs. A check for excess energy produced may also be based on wholesale electricity rates, which are usually lower than retail rates.

“Most utility companies have restrictions to prevent you from interconnecting a solar panel system that produces far more energy than your meter history indicates you need,” EnergySage explained. “Even if you are generating more solar energy than you’re using, utilities that offer net metering will provide monetary credits towards your future electricity bill, but rarely will they pay these out as a check — more likely, it will remain an ongoing credit on your electricity bill.”

While you likely won’t receive checks from your energy company, being able to save on energy bills each month is still a great bargain. When you’re ready to shop for solar, EnergySage offers free tools that allow you to compare quotes from vetted contractors after answering a few basic questions about your home energy needs.

The company also has a mapping tool that will show you the average cost of a rooftop solar system in your state as well as the tax rebates and incentives available. Together, these services can help you get the best deal on a home solar system and claim all the incentives you’re eligible for. Most people save $10,000 on a solar purchase and installation with EnergySage’s services, so if you’re in the market, it’s more than worth a look.

However, solar tax incentives may not be around much longer, as Congress has hinted it may end the 30% Investment Tax Credit by the end of 2025, according to Solar Builder Magazine. If you want to make the switch, installing your system as soon as possible can maximize the financial benefits.

Watch now: Why eliminating the solar tax credit is bad for all of us

Another option is to lease solar panels if you don’t want to shell out thousands of dollars in upfront costs to buy your own system. By leasing, you won’t have to deal with variable energy costs, providing you with peace of mind during periods when electricity demand is high. Palmetto’s LightReach solar panel leasing program offers installations for $0 down and allows you to lock in low energy rates.

Whether you buy or lease, going solar is also a win for the planet, as it reduces your home’s pollution footprint and improves air quality, which helps your neighbors as well.

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