6 Hidden Challenges of Powering Your Home With Renewable Energy

Rising utility costs and homeowners’ desire to decrease their carbon footprints have inspired an interest in residential renewable energy. However, while transitioning to clean power at home has many benefits for the planet and people’s wallets, it’s not always as simple as installing rooftop solar panels or a geothermal heating system. Homeowners may face these six challenges when powering their homes with renewables.

1. Initial Investments Are Costly

Before federal tax credits, state incentives, and manufacturer rebates kick in, the initial investment in renewable energy is costly. Without discount opportunities, homeowners pay about $29,360 to install rooftop solar on an average-sized home. The federal tax credit and local incentives may decrease the cost to $20,552 or less, which is still outside many people’s budgets.

Other renewable energy sources are also pricey. On average, homeowners could pay $4,541 to $26,610 for geothermal heat pumps, depending on the size of their house, required capacity, system type, and installation fees.

Some geothermal setups are even more expensive, like a horizontal closed-loop system, which costs between $15,000 and $34,000 but is ideal for rural properties. Meanwhile, a vertical closed-loop system could cost anywhere from $20,000 to $38,000 for rural or urban properties with limited space.

It’s still worth exploring federal tax credits to offset the costs of energy-efficient upgrades. Homeowners may be eligible for a 30% tax credit up to $3,200 through 2032.

2. Solar Power Is Weather-Dependent

Rooftop solar panels do an excellent job of providing clean energy to homes under ideal conditions. For example, they work best on a clear, sunny day with minimal cloud coverage and cooler temperatures. Even fog or shady trees can hinder how much sunlight the panels absorb, limiting power output.

Other weather conditions may also impact solar panels’ ability to provide power. Though wind can cool the system, it can also carry damaging debris. The same occurs with extreme weather events like hurricanes, tornadoes, heat waves, and freezing temperatures, which could adversely affect the rooftop solar system.

Though homeowners can’t control the weather, they can remove overhanging and dead trees to prevent branches from snapping and falling on the panels.

3. Limited Transmission Infrastructure Impacts Net Metering

Much of the United States’ grid transmission lines and transformers have reached their 50-year life expectancy, meaning they’ve hit capacity, particularly during peak demand. While engineers have begun replacing outdated lines, widespread modernization will require time and trillions of dollars in investments.

Limited transmission infrastructure may cause grid congestion — when there’s too little capacity to transfer excess residential renewable energy from homes to the grid. Homeowners may not be able to receive credits on their electricity bills from their state’s net metering policies.

Additionally, net metering equates to a faster return on investment. Without it, homeowners’ payback period for their rooftop solar power system is much longer. They also remain reliant on traditional grid power even if their solar panels produce excess power, making their investment in clean energy less attractive.

To overcome this problem, homeowners should advocate for improved net metering policies with local utilities and consider alternatives like feed-in tariffs. Exploring community solar programs is another option if available.

4. Efficient Energy Storage Is Lacking

While renewable energy advancements are impressive, efficient at-home energy storage is still lacking. Sufficient power storage can retain excess renewable energy until homeowners need it. Its application is essential to alleviate grid pressure during high-demand periods and provide a backup power source during prolonged outages.

However, renewable energy storage has several limitations, including solar and wind intermittency, high costs, supply chain issues and limited life spans. With home batteries, the frequent degradation and replacement also pose a negative environmental risk.

Despite this, engineers are exploring flow and solid-state batteries to overcome energy volume, safety, and storage duration — an improvement from lithium-ion batteries. Regulatory changes will also improve the development and distribution of these technologies.

While renewable energy storage is still in its infancy, homeowners should consider existing solutions. Integrating smart energy management software will further allow them to maximize solar storage capacity and efficiency and optimize the available energy.

5. Cyberattacks May Disrupt the Power Supply to Homes

Homeowners must contend with cybersecurity threats on the renewable energy supply as they would with any modern technology. The system requires an internet connection to control or monitor power outputs, thus increasing the risk of a cyberattack. Criminals often target inverters — the components used to convert sunlight into electricity — because of vulnerabilities posed by outdated software and insufficient passwords.

Cyberattackers can disrupt the power supply by tampering with renewable energy systems. The rising threat led the FBI to issue a warning in July 2024, recommending that businesses and individuals create strong passwords with multifactor authentication, update system access, look for abnormal activity, and regularly update antivirus software.

6. Renewable Power Systems Require Enough Space

According to SolarReviews, the average home — about 2,000 to 2,500 square feet — needs 15 to 19 solar panels for sufficient power supply. This amount of panels equates to about 264 to 334 square feet of roof space.

Unfortunately, homeowners may face several hurdles when installing the correct number of panels. For example, a home with expansive square footage may have a narrow roof design or obstructions such as chimneys, vents, and skylights. Though high-efficiency solar panels can generate more power in less space, they are more expensive.

Geothermal heat pumps also have space requirements, depending on the type you install. For instance, horizontal arrays need approximately 2.5 times more land to fit the piping, which is far more than vertical arrays. In other words, a 1,500-square-foot home will need 3,750 square feet of land for horizontal heat pumps. Larger homes usually have enough outdoor space for these systems, but smaller homes or urban residences may not.

Homeowners may overcome space limitations by exploring creative vertical solutions, such as installing solar panels on walls and fences. Community solar projects with large off-site arrays may be another option. If possible, property owners should consult with a geothermal energy expert to determine if they can install vertical heat pumps instead.

Clean Residential Energy Is Still Worth the Investment

While several barriers to renewable energy adoption exist, there are always ways to overcome them. Many people find that switching to clean energy at home accrues massive energy savings and a better quality of life, regardless of the challenges.