Disadvantages of solar panels: an honest list for 2026

I'm on team solar, but a good decision starts with the downsides. Here they are, with numbers.

The main disadvantages are a high upfront cost with a long payback (about 12–14 years in the cities I cover), no federal tax credit in 2026, export credits far below retail rates, production that drops at night and in winter, and lease contracts where the company owns the system.

1. High upfront cost

At the US average of $2.89 per watt a 7 kW system costs about $20,230 before incentives (EnergySage, updated 2026-06-30). Prices by state and city.

2. No 30% federal credit

The Residential Clean Energy Credit is not available for systems placed in service after December 31, 2025 (IRS). Older savings estimates that subtract it are out of date: what changed.

3. A long payback

Without the credit, a 7 kW system at today's quotes pays back in 11.9–13.6 years where the utility has a single export rate. If you sell the home before that, you may not get your money back in savings. When solar is still worth it.

4. Exported power earns much less than you pay

• Arizona Public Service: 5.55¢ per exported kWh vs about 14.1¢ for power you buy
• Salt River Project: 3.45¢ per exported kWh vs about 15.0¢ for power you buy
• Tucson Electric Power: 5.13¢ per exported kWh vs about 14.8¢ for power you buy

California's net billing credits new customers' exports at hourly avoided-cost values, usually lower than import rates. Power you don't use at home is worth a fraction of its retail price.

5. The rules can change

Arizona's export rate for new APS and TEP customers can fall by up to 10% a year, though each customer's rate is locked for 10 years. California replaced net metering with net billing in April 2023. What you're promised applies to the rules on your interconnection date.

6. No power at night, less in winter

Panels produce only in daylight. In Fresno one kW makes 75 kWh in its weakest month and 180 kWh in its best (NREL PVWatts). Grid-tied systems also shut off in a power outage unless you add a battery, which costs extra.

7. Leases and PPAs

With a lease or power purchase agreement the company owns the panels, and contracts can include yearly price increases and terms that complicate selling your home. Share of systems in utility records that were leased or under a PPA: Fresno 29%, San Diego 18%, Phoenix 11%.

8. The roof and the home

Panels are tied to one roof. Replacing that roof later means removing and reinstalling them, and if you move, the system stays. Ask your installer what removal and reinstallation cost.

9. Your bill doesn't disappear

Fixed monthly charges stay, and you still buy power after sunset. What solar really saves.

What still works in its favor

• Arizona: state credit of 25% of the cost, up to $1,000, and solar devices add no assessed value for property tax.
• California: new systems completed before January 1, 2027 are excluded from property tax reassessment.
• Texas: the value added by solar is exempt from property tax (Form 50-123 to your appraisal district).
• Sunshine: one kW of panels makes 1,483–1,788 kWh a year in the cities I cover.

Keep reading

• How much solar panels cost in 2026 — Average price per watt by state and city, and what a 5, 7 or 10 kW system costs before incentives.
• Is solar worth it in 2026? — Payback without the federal credit in the cities I cover, and when solar is a weak deal.
• How much solar panels save — Yearly and monthly savings by utility, and why they change from month to month.

Updated 2026-09-15.