The Truth About Residential Solar Energy Systems

What you need to know before you purchase solar panels for your home. Trustworthy, practical advice from industry experts.

Why Choose Residential Solar?

The benefits of residential solar are plentiful, both for the people who buy or lease systems and for the community at large.

Generating your own solar energy generally:

Is Residential Solar Right for Me?

There are several decisions you should make before you begin talking to installers. Otherwise, you may select a system that really doesn’t meet your needs.

Like any other major purchase, residential solar requires a certain amount of research to help you determine what you can reasonably expect out of your system.

  1. Have you analyzed your electric bills for the past two years? Do you understand your consumption patterns and volume, especially during peak hours? Knowing your consumption patterns, peak times and kilowatts needed will help you size your system correctly for your needs and wants.
  2. Can your existing roof physically support solar panels for the expected 20-25 year lifespan? What is the remaining lifespan of your current roof?
  3. Is your roof orientation and slope well suited for solar panels? South-facing roofs with a 15-40 degree slope generally offer good performance. West-facing roofs are also good for hot, long, summer days.
  4. Do you have trees that are shading your roof? If yes, are you willing to trim or remove them to improve your solar performance? Or will the shade they provide reduce your need for cooling, thereby reducing your load?
  5. Are you willing to do (or pay for) the minimal maintenance required to keep your solar panels operating at their peak?
  6. How long do you plan to keep your home? Will solar panels you own (or lease) have an impact on your resale value? According to a Zillow study, well-maintained solar panels can increase home values by about 4 percent. The US Department of Energy also suggested a $20 increase in home value for every $1 in utility savings.
  1. Do you want (or need) a system with battery storage that will operate even if the grid is down?
  2. Do you expect (or hope) to sell your excess generation to the grid at a fair price?  If yes, have you contacted your electricity supplier to see what their policy is to sell excess energy back to the grid? 
  3. If you are in the deregulated area, have you checked with other electricity suppliers to determine who has the best “buyback” program?  Check out this website for more information.
Solar installer working on a solar panel.
  1. Do you plan to purchase battery storage? If yes, how much is cost-effective for your situation?

  2. Do you have enough land to install a ground-mounted solar array? Or do you have another structure that can support solar panels?

Aerial view of a neighborhood with solar panels on house roofs.
  1. Are you a member of a homeowners’ association? If yes, do they have rules regarding solar installations? According to Texas law,  HOAs cannot restrict solar devices outright, but they can restrict solar panels under certain conditions.

  2. Does your municipality have rules regarding residential solar?  Are permits required? If yes, how much do they cost and how long does it take to get them?

Is Your Home a Good Candidate for Residential Solar?

Homeowners who have already made their homes as energy efficient as possible are the best candidates to install residential solar. Why? Because efficient homes require much less energy to operate.

Leaky houses can let hot and cold air infiltrate your home through inefficient windows and walls, gaps around the windows and doors or through uninsulated attics and electrical outlets. 

Think about it this way: You wouldn’t increase the size of your air conditioning system to compensate for leaving the windows open. You would shut the windows!

Don’t purchase expensive and excess solar panels to produce energy that doesn’t benefit you directly. Instead, reduce your needed energy load as much as possible before you estimate your energy generation needs.

Good Candidate Questionnaire

Can you keep up with maintenance?

Have you analyzed your electric bills?

Do you want or need battery storage?

Do you know your roof orientation?

How long will you keep your home?

Is your home insulated?

Does your home have sunlight coverage?

Does your HOA approve?

Selecting The Right Residential Solution

Renewable Energy Purchase Options

There are many different ways to generate or purchase renewable energy electricity for your home. Below is a high-level overview to help you with your decision-making.

Each method has pros and cons, and the best solution depends on your unique situation.

Purchase Renewable Energy Electricity from an Electricity Provider

An electricity supplier can be a Retail Electric Provider (REP), electric cooperative or municipal utility. Many electricity suppliers offer their customers the opportunity to purchase renewable energy electricity. You may be charged an additional fee or a different rate than customers who purchase fossil fuel generated electricity. You’ll need to do your research to determine whether they are providing renewable energy electricity or if they are providing fossil fuel generated electricity that is backed by Renewable Energy Certificates (RECs).

Some people think this is the least desirable method for generating renewable energy electricity, because the company is not adding any new renewable energy to the grid, they are only taking credit for the renewable energy that was added by someone else. Nevertheless, any time someone purchases renewable energy from an electricity supplier, it sends a signal to the marketplace that clean energy production is important to consumers who want clean energy choices.

Pros
Cons
Purchase Solar Panels

Solar panels are the best option for generating renewable energy in North Texas.

Very few locations in the DFW metroplex are good candidates for wind turbines due to cost, size and intermittency.

Solar United Neighbors offers group purchasing opportunities in Texas so that homeowners can get better pricing than if they were buying rooftop solar on their own.

Pros
Cons
Lease Solar Panels

There are several companies in the DFW area that lease solar panels to homeowners. The company will install solar panels on your home. They retain ownership of the panels and are responsible for the maintenance. You will pay a fixed monthly cost in exchange for the electricity the panels generate. The company receives all tax rebates and incentives.

Pros
Cons
Purchase Renewable Energy Though a Community Solar Project or Power Purchase Agreement (PPA)

The U.S. Department of Energy defines community solar as “any solar project or purchasing program, within a geographic area, in which the benefits flow to multiple customers such as individuals, businesses, nonprofits, and other groups. In most cases, customers benefit from energy generated by solar panels at an off-site array.“ Community solar customers typically subscribe to—or in some cases own—a portion of the energy generated by a solar array and receive an electric bill credit for electricity generated by their share of the community solar system.”

Currently there are no community solar projects in the DFW area for generation of electricity.

However, many for-profit solar development companies sell electricity that is generated for a particular organization or group of organizations through a renewable energy Power Purchase Agreement (PPA). These usually require the purchase of a very large amount electricity for at least five years or more.

As the market continues to evolve, it is possible that some companies may choose to generate and sell electricity to groups of individuals as well (e.g, a new housing development that includes retail and commercial customers or large groups of consumers who want to send a signal to the marketplace that renewable energy is highly desired by consumers and profitable.)

Solar Installation Process

Because rooftop solar is a significant and complex purchase, you’ll need to do your homework before selecting an installer. There are many organizations that have created resources to help. You’ll find several of those listed at the bottom of this section.

You’ll also need to familiarize yourself with the Buyer Beware section below before you begin talking to installers. If you know what to look for, you are less likely to be scammed.

Our affiliate, The American Solar Energy Society, has compiled a list of questions to ask potential installers. NTREG’s Questions to Ask Installers uses the ASES questions and also includes guidance as to what you are looking for in their answers.

How to Find a Reputable Dealer?

Do you know anyone who has rooftop solar? Ask trusted friends, neighbors, and family for their recommendations and experiences.

When researching specific installers, check websites such as Better Business Bureau, Google and Yelp for reviews and testimonials from past customers.

Don’t settle for the first quote. Compare quotes from at least three installers to ensure you’re getting a fair price and that their proposals are comprehensive. 

Also, ask the providers for the system size they would recommend, then ask for a second quote for a system about 33 percent smaller than their recommendation. A smaller system will cost less and send less energy back to the grid. It’s becoming more difficult to find fair compensation for energy sent back to the grid. 

One way to get quotes fast is to use websites that will solicit multiple bids for you and then provide detailed information to help you make your decisions (e.g., energysage.com; solarreviews.com and solar.com). They make money if/when you select an installer, who then pays them a small lead generation fee. 

Verify that the installer is licensed and certified by relevant state licensing boards and organizations like the North American Board of Certified Energy Practitioners (NABCEP).

Inquire about the installer’s experience in the solar industry, their history, and whether they have local experience. Regardless of whether they are a local or national provider, do they have experience in your area with permitting, weather, roof types, services, etc.

Ask about the warranties offered on both the equipment and the installation, including labor and workmanship warranties.

A performance guarantee for design and availability is desirable. (e.g., does the system produce the energy it was supposed to produce? Are the down times inconsequential?)

While you are shopping, be sure to note and assess each installer’s customer service, communication skills, responsiveness and ability to address any questions or concerns.

Ask the installer for multiple references that you can call. If possible, visit previous installations to see the quality of the work firsthand.

Finally, you might want to consider hiring an experienced consultant who represents YOU and helps you choose the best installer. You can use the list above to help you find the right person. Again, someone with experience in your area is the best choice.

Sadly, there have been numerous shady contractors in Texas who are more interested in separating you from your money than providing you with a residential solar system that meets your needs at a fair price. That’s why the Texas Legislature passed the “Residential Solar Retailer Regulatory Act” (Senate Bill 1036) during the 89th Legislature in 2025. The bill became effective September 1, 2025.

Solar scammers often target low-income families and elderly people. How many people have been scammed? We don’t know. But one Texas attorney who has “launched a solar-scam-only legal practice and in the first year attracted 2100 clients,” according to Dave Lieber (The Watchdog) at The Dallas Morning News.

Senate Bill 1036 is “…one of the most important pro-consumer laws” created during Governor Greg Abbott’s term of office” said Lieber.

Nevertheless, solar purchasers must still be cautious. If a solar salesperson uses high pressure sales techniques or brings in another party who uses fear, time limits or guarantees that seem too good to be true, ask them to leave your house immediately.

Here Are Some Specific Examples:

High Pressure Sales Tactics That Create a Sense of Urgency

Limited time offers, special programs, pushing you to sign now to prevent you from doing your research or getting a second opinion or bid.

Misrepresenting Affiliations

To appear more credible, they falsely claim they are affiliated with legitimate solar companies, utilities or government agencies.

False or Misleading Promises

“Your electricity bill will be zero;” free solar panels; unrealistic savings; inflated return on investment (ROI).

Deceptive Financing and Contracts

Watch for high interest loans with unfavorable terms and conditions; hidden fees and balloon payments; misleading contracts that overpromise on savings, efficiency or warranties.

False Claims of Government Incentives

Some crooked sales reps falsely claim that homeowners qualify for nonexistent or inflated federal, state, or local incentives for solar installations.

Miscellaneous Tactics

Sending unsolicited door-to-door salespeople who are experienced in high pressure sales pitches and armed with false promises and information into neighborhoods (reminiscent of roofing companies who blanket neighborhoods after a bad storm)

Using solar panel offers as a pretext to collect personal information like bank account details or social security numbers (also known as phishing)

Installing substandard equipment or cutting corners during installation, which leads to ongoing issues they won’t address.

If you do sign a contract, under the new law, you have five (5) days to send a letter of cancellation without penalty.

Finding Low Interest Loans

Shop around for the lowest interest rates on residential rooftop solar system loans to be sure you’re getting the best deal. The higher your credit score, the lower your interest rate will be. Longer loans will have lower payments, but you’ll pay more in interest over the extra years.

POSSIBLE SOURCES

Banks, Credit Unions and Other Lending Institutions

Again, shop at least three sources. Check with your own bank, which may give you a lower rate if you’re a good customer. Search for institutions that offer specialized solar loans. Check resources like EnergySage.

Solar Installers

If you get a loan through your installer, beware of dealer fees, which increase the cost of the loan.

Government or Utility Programs

For example, Oncor encourages the adoption of solar energy because it helps strengthen the electricity grid. To qualify, systems need to be within a specific size range (3kW to 15kW), include a battery, and meet certain orientation and tilt requirements.

Will Homeowners Insurance Cover Your Residential Rooftop Solar Panels?

The intensity and length of severe weather events is increasing, which means the chance that your home will be damaged is also increasing. Generally, most homeowners’ insurance policies cover damage to solar panels.

However, it’s highly recommended that you verify the specific details of your policy with your insurance provider before your system is installed. Be sure to ask exactly what the insurance covers (solar panels? removal? re-installation? roof damage?) so you won’t be surprised after a storm. If you don’t like what you learn, you can always shop for different insurance.

Note: Some extremely large or expensive systems may require additional insurance coverage (rider).

Proper Maintenance of Your Residential Solar System

You’ve bought your new residential solar system. Now what do you need to do to maintain it properly? Fortunately, solar panels require very little maintenance, especially if you have good monitoring software in your system.

Keep The Panels Clean

How often to clean your panels depends on where you live and how much rain you get. You’ll want to remove any dirt, dust or debris that minimizes the amount of sunlight that reaches your panels. Long-term solar panel owners in north Texas say that they generally spray off the panels once a year, but less if the rain has cleaned the panels for them.

Inspecting The Panels

Look for panel damage, loose connections, or signs of animal nesting. You may want to outsource this task if you don’t like heights; see if your solar installer offers an annual maintenance inspection similar to what many HVAC companies offer.

Review Your Monitoring Software Monthly

This can help you identify any production issues early. If a large problem arises, your monitoring software should notify you immediately.

Behind the Initiative

“The purpose of this microsite is to give you as much accurate, bias-free information as possible so you can make well-researched, fact-based decisions about rooftop solar.”

Tracy Wallace

Chair, North Texas Renewable Energy Group

“It’s our turn to ensure that future generations have access to all the energy they need and want.”

Susan Alvarez, PE, CFM

Director, Environment and Development, North Central Texas Council of Governments

Our Proud Partners

Credits

Many thanks to the NTREG Board of Directors for approving and contributing to this project. Special thanks go to the following subject matter experts for sharing their extensive knowledge, experience and proofreading skills for the creation of this guide:

Randy Boys

Former NTREG President

Paul Westbrook

Retired Strategy & Technology Manager at Oncor Electric Delivery and author of The Joy of Efficiency: How to Live and Work Better With Less

Eric Pratt

Solar Energy International Trained Mechanical Engineer

Tamara Kowlaski

Director of Communications, Texas Solar Energy Society

Georgeann Moss

NTREG Clean Energy Initiative Project Leader

Tracy Wallace

Tracy Wallace

Chair, North Texas Renewable Energy Group

We’ve all heard horror stories about people who were bullied and scammed by rooftop solar installers. There are a lot of false claims and bad actors out there. Fortunately, there are a lot of good guys, too. Solar power is a great fit for many homes. Kudos to the Texas Legislature for their work in the 2025 Session to help protect both the industry and consumers.

As the chair of a non-profit, volunteer driven organization whose purpose is to educate and advocate for renewable energy, we’re proud to share this new educational microsite called The Truth About Residential Solar with you. Yes, we’re advocates for rooftop solar, but we are also practical and concerned about the same things that you are (total cost of ownership, long term benefits, how to find a good contractor, how to avoid a scam, energy intermittency, etc.). 

The purpose of this microsite is to give you as much accurate, bias-free information as possible so you can make well-researched, fact-based decisions about rooftop solar. It’s not marketing fluff, but it IS written for the layperson who has just begun their due diligence when considering rooftop solar. If you find material in here that is not accurate, I want to hear about it personally (chair@NTREG.org).  I promise that thoughtful questions and comments will get a thoughtful reply.

We are grateful to our partner, the North Central Texas Council of Governments (NCTCOG) for helping us disseminate this information as well as our other co-sponsors and contributors: Texas Solar Energy Society, Solar United Neighbors, the Texas Electric School Bus Project, and others.  

We hope this content answers all your questions. If not, we invite you to join us at any of our standing monthly meetings. We address many ‘responsible energy’ issues (not just residential solar power), and you will be able to learn more and network with solar power owners, as well as with our ‘energy geeks’ who have been involved with rooftop solar for many years (and in some cases, decades). Or, as I mentioned, reach out to me personally.

Congratulations on your decision to learn more about rooftop solar. You’ve made a wise decision.

Susan Alvarez, PE, CFM

Susan Alvarez, PE, CFM

Director, Environment and Development, North Central Texas Council of Governments

North Central Texas Council of Governments is a voluntary association of, by, and for local governments, established in 1966. We help our members plan for common needs, strengthen our individual and collective power, recognize regional opportunities and resolve regional problems. We represent 16 counties, 220 cities and 53 school districts and other special districts.

Why is NCTCOG interested in rooftop solar? Because energy is the economic driver of our economy. It is used by literally every person in north Texas, both at home and at work. We take for granted that electricity will always be there when we need it. And that is because the people who came before us built a system that would meet the needs of future generations as well as their own.

Now it’s our turn to ensure that future generations have access to all the energy they need and want.

Between 2026 and 2050, the population in our service area is projected to grow by 43 percent. (If you think traffic is bad now, think about how bad it could be with almost double the people on the road. But that’s another topic for a different day.)

This is why it is critical that our current institutions think about and plan for how to meet those rapidly increasing energy needs. We need to generate enough new energy to accommodate the population growth, expanding commercial and industrial sectors and the new energy-intensive businesses like cryptocurrency and artificial intelligence. 

The non-partisan, nonprofit public policy research and advocacy organization Texas 2036 advocates for an “all of the above” energy strategy. Why? Because no one sector (fossil fuels, nuclear, renewables, hydrogen) can meet our projected demand by itself.  

Residential solar is an excellent option in the “all of the above” portfolio. It is one of the lowest cost options that will help protect Texas’ vulnerable grid and ensure that homeowners have a lower cost choice in how to purchase their electricity (depending upon how you purchase it). This guide explains those options in more detail so you can make an educated decision.

NCTCOG supports long term planning, and we support consumer choice. We’re happy to share this information with those who are thinking about making a switch. I made the switch. And I’m glad I did!