Power outages are more than inconvenient; for homes relying on medical equipment, they’re a safety risk. Additionally, there’s another, quieter crisis hitting homes: The 116% surge in electricity costs over the past 25 years.
To illustrate, the average electricity rate in August of 2000 was 0.091 cents per kWh. In July of 2026, that rate increased to 0.197 cents per kWh, according to the Federal Reserve Bank of St. Louis.
For many homeowners, the conversation around solar use circles back to a single metric: The financial return on investment. However, if you’re looking at the next chapter of your life, the true value of these systems extends far beyond a monthly electric bill. It represents building a resilient homestead and moving away from reliance on an outdated and overtaxed grid.
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How homeowners can prepare for an unreliable grid
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The reality is we are relying on an electrical grid built over 100 years ago. Dr. Michael Stadler, an expert in energy systems and the Chief Technology Officer at Xendee, told Kiplinger this will become increasingly problematic as demand from climate change and AI data centers increases.
The Department of Energy released a report last year titled Report on Evaluating U.S. Grid Reliability and Security. It warns that blackouts could increase one hundredfold in 2030 if the US continues to shutter reliable power sources and doesn’t add more firm capacity.
Reliability on an aging network is a cost issue. Most importantly, it’s a stability issue too. If you’re a homeowner, this creates an almost must-have shift away from traditional means to energy sovereignty. A solar and battery system can serve as an insurance policy, ensuring your home remains powered and secure even with increasing blackouts.
How to make your home more energy independent
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One of the shifts is seeing homeowners move away from passive consumption, where you rely on your electric utility/supplier for power, to self-sufficient hubs. Using photovoltaics (PV) and battery storage means you’ve created a localized microgrid.
This has several advantages for your home’s journey toward energy independence. It means that when rolling blackouts or power outages occur, your home will retain power since it isn’t relying on the grid. And you can sell your excess power (offsets or net metering) to your local energy company if your state laws allow.
What’s more, smart control systems make it easy to manage power. It optimizes how you use and store electricity, and when to sell it, based on real-time grid needs. Dr. Stadler recommends selling offsets during peak demand, when you’re likely to earn more for them. This automation not only helps you optimize earnings, but it also protects your home for years to come.
Is the ROI worth it?
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While these systems require a significant initial investment, usually in the $20,000 to $40,000 range, federal tax incentives, such as the Clean Electricity Investment Credit, provide a six percent tax credit on the qualified investment. Dr. Stadler notes that if your current rate is at or above 20 cents per kWh, the economics of installing such a system become increasingly favorable.
Keep in mind that your electric rate is only one component of your bill. In my case, I found that the transmission/delivery fee is almost half of what I pay. With solar, the excess energy gained and sold could help offset these delivery fees while reducing your energy reliance on the grid, bringing down costs even more.
Another consideration is that solar is clean energy. In some cases, the energy you receive from your electric company can be dirty. Dirty electricity can take the form of high-voltage spikes, harmonic distortions and surges that, over time, can shorten the lifespan of your appliances and electronics.
Is your home ready for a microgrid?
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Keep in mind that not every home will be an ideal fit for a microgrid. Use this checklist to evaluate whether your home has the elements required for a successful transition:
- Roof health: Make sure your roof shingles and structure are in good shape since solar panels last 25 to 35 years. If not, you’ll need to budget for a new roof.
- Sun exposure: Does your home have obstructions such as large trees or neighboring buildings that cast ample shade? This might limit its effectiveness.
- Energy use: Examine the last year of utility bills to determine your average kWh monthly. This is essential for choosing the right-sized system for your home.
- Local regulations: Read up on your state’s net-metering policies. Some homeowners associations might also have restrictions on where you place panels.
- Critical load: Determine which appliances you want on during an outage, as this will decide the battery storage system size you need.
Taking these considerations into account can help you determine if your home is ready for a microgrid.
Before you borrow for solar
Solar and battery storage can be a sizable investment. If you’re considering tapping your home equity to cover the cost, brush up on your financing options and the trade-offs before you borrow.
Read more before you borrow:
Ultimately, investing in solar isn’t only about reducing your electricity bills; it’s about building a resilient, energy-efficient asset. Solar is becoming an essential home improvement that secures your property’s independence in a future where grid reliability isn’t guaranteed.
Making your home more energy independent can be a significant investment. A financial professional can help you build a plan for upgrades such as solar and battery storage while balancing them with your other financial priorities.
Use the tool below to connect with a financial professional and get started:
