The Cost of Solar Energy System

Solar energy is free but the tools that will enable you to harness this free energy are not.

If you are planning to install a solar energy system right at your home and would like to know how much it would cost, there are 3 things you need to consider:

First, the cost depends on how much energy your household requires. More energy you require means more solar panels and higher cost of installation. The good thing is, the technology to harness the power of the sun is relatively cheaper than it was several years ago.

Second, the government is offering a rebate to those who will switch to alternative form of energy. That means, the government will shoulder a portion of the total cost of the system.    
Third, you can get tax credits when you switch to solar energy system. The amount of tax rebate depends from state to state but the range can go from $1000 to $2000.  

All these affect the overall cost of your installation.
A photovoltaic system can cost roughly at $8000 to $10000 per 1kW system. This equates to $8 to $10 per Watt. An average American household with 3 bedrooms requires at least 1.5kW to as much as 3kW. Thus, installation can cost from $14000 to $30000, before rebates and tax credits.

Government rebate varies from state to state. As a reference, an average California household that requires 1.5kW system can get as much as $4200 rebate (1.5kW= 1500 watts x $2.80 per watt = $4200).

A household that requires 3kW system can get as much as $8400 (3kW= 3000 watts x $2.80 per watt = $8400).

Before, tax credit goes as much as 30% but it is lowered to 7.5% of system cost after rebate.

So an average household with 1.5kW system can get $735 ($14000 - $4200 x 7.5% = $735) worth of tax credit while the 3kW system can get $1620 ($30000 - $8400 x 7.5% = $1620) worth of tax credit.

Example A: 1.5kW system

Cost of solar electric system: $14000
Less rebate: $4200
Less tax credit: $735

Cost of the system after rebate and tax credit: $9065

Example B: 3kW system

Cost of solar electric system: $30000
Less rebate: $8400
Less tax credit: $1620

Cost of the system after rebate and tax credit: $19980

Again, these are rough estimates just to give you an idea of the cost of installing solar energy system. They do not represent real figures.

Top tips:

Energy independent home has higher resale value and is more preferred by home buyers. So, if you are planning to sell your home in several years, installing solar energy system does not only provide substantial saving on electric bill, it also is a good home improvement option.

If you want to finance the cost of your solar energy installation, include it in your mortgage.

If you want to reduce your electricity load, switch to energy efficient appliances. Buy electric appliances with ENERGY STAR seal.

Low energy requirement means lower installation cost.

Residents of areas with higher electricity rate can benefit most on solar energy system.

If you can't afford the photovoltaic system, you can install solar hot water system that costs roughly from $2000 to $4000.

Solar energy is best for houses that are located far from the existing power lines. 

Helpful Tips On Using Solar Energy No Matter Where You Are

Are you totally lost about the benefits of solar power? The vast majority of people aren't aware of what is involved in switching to solar. You should learn more before you go with solar energy. Read on for valuable information related to solar energy.

Two categories of solar panels are available. Less expensive panels are usually poly-crystalline, but they are not as effective as the more expensive mono-crystalline panels. It is better to buy the most efficient products you can afford when going with solar energy. 

If you properly maintain your solar panels, they should continue to work well. You should inspect your equipment at least once a month, and wash the surface of the panels carefully. Although you can save money by inspecting and cleaning your panels on your own, you should hire a professional for doing this if you are just not comfortable climbing up on your roof.

If you really want to see how your solar panels are working, keep a diary of the day to day energy output. Make a note if you are recording data on a particularly dark or shady day. Having this information can help you to understand how your panels work, and this can help you to optimize their performance.

Are you wondering how you can help to reduce your carbon footprint on the earth? There are many small ways that you can do this, but by switching to solar energy you can help to make a big impact. Solar energy is renewable, meaning healthy for the environment and good for your wallet too.

Solar energy harnesses the energy from the sun to power everything from little garden lights to huge corporations. Unlike coal and oil, the sun is a renewable energy, meaning it will never run out like other energy sources. Making the switch to solar power is a wise investment for your future.

If you find that you cannot afford solar panels at the moment, you should stay up to date with new products and technologies. Scientists are regularly coming up with new technologies and materials that can be used to build more efficient and affordable panels, which means solar energy should become a more efficient solution in the future.

Be prepared to keep your solar panels clean. The dirtier they get, the less efficient they are at generating power. While it is true that rain and wind can often take care of a lot of this for you, you do need to get up there sometimes and dust them off yourself.

Look into portable solar energy battery packs. These can be extremely useful when you are somewhere that does not have access to power. For example, it could be used to charge your cell phone while you are camping in a remote location. It has recently become very popular, and because of this, it is relatively inexpensive.

There is really no reason to even consider getting a solar energy system if you live in an area that rarely sees the sun. This does not mean that a less than reputable company will not try to sell you a solar system though. If your roof does not receive at least 6 hours of full sunlight per day, you should not consider solar power.

There are many companies who claim to be specialists in solar conversion. However, it is up to you to confirm that they have the proper qualifications and credentials. Check with the Better Business Bureau for their current business standing. Do an online search for any reviews. If you turn up any negative information, look for another service.

Don't assume that you have to live in the desert to use solar panels on your roof. If your roof expanse gets a minimum of five hours of direct sunlight on an average day, there is likely a solar panel installation that can generate electricity for your home or building.

Many people have no idea of how solar energy actually works. Now that you have read this article, you are better educated and what it is all about. You should know more about how you can benefit from it. If you decide to switch to solar energy, don't forget this information.