Solar Energy Advantages

Solar Power Home Costs have been out of reach for many people, the upfront costs high and financing options have been limited.  Additionally, taking on a home equity loan to fund a new solar project was a gamble if you didn’t stay in the home long enough to pay off the loan.  While an increase in property value as a results of solar energy would soften the financial hit, there is no guarantee that it would cover your investment.  These limitations have not gone unnoticed by the solar industry, solar companies and government agencies interested in expanding renewable energy.

Leasing/Renting Options

Some solar companies offer a leasing/renting option so your solar power home costs are manageable.  They can supply your home with solar power with no upfront fees.  You lock in lower electric rates and you are no longer dependent on fossil fuels.  Your fixed monthly fees are usually lower than your current electric bills from the start and since they are fixed, as electric bills raise your savings increase.

The companies will size, install and maintain your system.  If your system does not operate as expected, they will make the adjustments.  This is an option that makes it easy to transition to solar energy and with no issues.  If possible, compare several leasing options; each company has a different approach.

Power Purchase Agreements

Power Purchase Agreements are typically a vehicle used by businesses, but some solar companies offer this option to homeowners.  These agreements operate much as leasing agreements with no upfront fees and maintenance.

Innovative Loan Product

PACE (Property-Assessed Clean Energy) financing allows a property owner to acquire a loan from a city or municipality to finance a renewable energy project.  It is paid back through a property tax assessment and no upfront payments are required.  You then repay the loan in fixed payments over 20 years as part of your property tax bill. So the cost of your solar energy project stays with your home should you sell it before the loan is paid off.  You can also deduct the interest component of the solar financing tax just as you would a home equity line or home mortgage and take advantage of the 30% solar energy tax credit.  

PACE programs enable local governments to finance renewable energy and energy efficient projects on private property, including residential, commercial and industrial properties.  It’s a voluntary program and you only pay the additional annual special tax if you apply and install a solar energy project.  This is a relatively new program and is not available in all areas yet.  

If solar power home costs have been your biggest hurdle to transitioning to solar energy, leasing or the PACE financing program may by your answer.  Explore these two options and evaluate if now is time to go solar.

Solar energy sources range in size from the large De Soto photovoltaic power plant in Florida to the single households that produce more than they use. The sun is the main source and everyone has access.  Homeowners might like to know where they can buy products or get access to information about this and other green alternatives. Here are some of the resources.

US Department of Energy

For information concerning home designs and efficient appliances, as well as advice about conserving electricity and water in your home, energysavers.gov is a good resource. It is one of the websites provided by the US Department of Energy.

What will you learn? You can learn about replacing your home’s heating and cooling system. Advice about insulation and ventilation to make your heating and cooling system work more efficiently is also provided.

If you are about to build a new home or would like to remodel, you can learn how to construct a “zero-energy” design. The Department has partnered with a number of building professionals and organizations to develop and expand on the concept.

State Energy Departments

Most states publish websites that provide information about conserving and installing efficient appliances. In some states, you have the option to choose who provides your electricity. You can choose solar energy sources or another clean power generator, rather than a coal-fired electricity plant, if you want to.

In states where clean power is not available, you have the option to buy green certificates. It’s something like making a donation to the production of more clean power plants. The primary complaint that individuals and politicians that represent them have about green fuel is that it will cost more initially. Buying green certificates can help offset the cost, which should cause more people to be in favor of it.

Manufacturers

There are hundreds of companies providing solar energy sources for your home. Photovoltaic panels are a popular choice for supplying clean electricity to individual homes in most parts of the world.  This is an industry that is rapidly changing with mergers and acquisitions make keeping track a full time job.  I recommend the following solar professional organizations.  SEIA – Solar Energy Industries
Association and  ASES – American Solar Energy Society.

Solar Contractors

Solar contractors are a good source for all kinds of information. You can find out how much it will cost and how long it will take to install solar energy sources in your home.  Often, the biggest challenge is finding a solar contractor.

We hope you find these solar energy sources useful in your journey to get off the grid.

We’ve scoured all the solar energy resources for you and included some useful links. Since saving money is important to most people, let’s start with where you get government incentives to go green.

Currently, tax incentives are being offered by most states,  federal government, local communities and electric companies.  Even installing more efficient electrical appliances will earn you some kind of credit.  A more energy-efficient refrigerator or washing machine may be eligible for a credit. Some manufacturers have a new label that helps consumers quickly identify eligible appliances. Many of the available tax credits are not available for do-it-yourself projects. Collection panels and some appliances must be installed by licensed contractors in order to qualify for the credit. Before you buy, make sure the product you are considering is eligible.

Incentives and grants are being offered by the Canadian government as well. So if you live in North America, it pays to go green.  Governments across the globe are interested in renewable energy and are offering incentives to residents and businesses to make the switch. 

Advantage Of An Older Home

In urban areas with older homes, there are more incentives. Some local governments are offering grants for remodeling older homes to make them use less electricity.  The key to getting one of these grants is to apply early. Find out when your local government will start taking applications and apply the first day. Some communities have run out of money before the end of the first day.

Most people want to know when their efforts will start paying for themselves. You should start seeing lower utility bills right away. Depending on how much you spend initially, you should recover your investment within four to eight years according to estimates by the Environmental and Energy Study Institute.

Remodeling Your Home

For homeowners interested in remodeling, the best source of information is a contractor in your local area. He or she will be familiar with the incentives that are currently available, as well as the feasibility of going “all-solar” in your area.  Some of the things to consider include the number of tall trees or buildings that will interfere with your access to the power of the sun.

Free brochures and other solar energy resources are available from manufactures of solar-powered water heaters and photovoltaic panels. There are dozens of different manufacturers and the industry is continuously growing. Your sources of information continue to grow as well.  Pay close atention to the energy efficiency rating on each solar panel, small differences add up as you add numerous panels to your roof.

Make use of the solar energy resources available, we’ve included some useful links below and learn about the benefits for you, your family and future generations.  With the cost of solar panels dropping and the incentives available, now may be the time to add solar energy to your home.

Database of State Incentives for renewables and efficiency,

Energy Star

Consumer Energy Tax Incentives

Solar Net Metering US Govt

US Dept of Energy Net Metering Policies

The power of the sun is responsible for producing solar energy and wind energy.  Humans have been using solar and wind energy in some form since ancient times for illumination, warmth and power.  It took modern man a long time to figure out how useful renewable energy is; it’s been quite a long and dirty road.  Had we expanded the uses of renewable energy instead of fossil fuels, think about how the world would be different.  Fortunately, we have that opportunity now.

First Things First

You might choose solar energy or wind energy as your preferred renewable energy, but you could use them in combination to maximize your energy production and minimize your investment.  Before you choose any solar wind power, minimizing your energy consumption is your single biggest opportunity for savings.  A professional home energy audit will reduce your energy usage.  The recommendations could save you thousands of dollars and give you insights into your best options for renewable energy.  Taking this step saves you twice, in the short term you will see decreased energy bills and as your purchase your solar wind power, you will need to purchase less.  Definitely a step worth taking.

The Solar Solution

Solar energy could be your total energy solution if you store your excess in batteries.  Now you will have energy to draw upon at night.  However, you may not be ready to go for a total energy solution, but want to supply a portion of your energy.  That is possible with solar panels and net metering.  You will still be connected to the electrical grid, but in the event you produce more than you need, you’ll receive a credit or your electric company will buy your excess energy.  

Solar is a good option if you live in a sunny location and your heating and air conditioning costs are moderate.  In areas where heating and AC costs are a significant portion of your electric expense, solar may not be able to supply all your electrical needs because of limited roof space and cost.  Combining renewable energy technologies to provide all your electrical needs may be a better solution.

The Wind Solution

Wind energy is now efficient at wind speeds of 7-10 mph.  The Small Wind Industry has been working hard to develop solutions for homeowners and they have been successful in eliminating many of the problems that face the Large Wind Industry.  When choosing wind as an option, the most important consideration is the wind speed over your house.  There are no wind charts that can provide you with this information; you need to measure this to make sure your situation has all the right elements.  Your particular wind situation depends on the trees and large structures surrounding your home and changing the wind patterns.  This will cost a few hundred dollars and a few months of measuring.  Knowing the wind speed will help you make a better choice and one that results in the most efficient wind turbine output.

Teaming Up Solar and Wind

Combining solar and wind to supply your electrical needs may be your best option if your electrical usage is higher than either technology alone can affordably provide.  Certainly evaluate each option separately first and then your options as your combine technologies.  Your best option is to find an energy consultant that has experience combining solar and wind. 

You’ve decided renewable energy is your next step.  Your home energy audit provided you with lots of opportunities to save energy and your changes have resulted in reduced energy usage and costs.  Now, take your time to evaluate solar wind power.  Combining these technologies may provide you with all the electricity you need at a lower cost than either technology alone. 

An investment in a solar energy product for your home is an investment in the future. It’s also saves money. Here’s a look at some of the products currently available.

Outdoor Lighting

Solar-powered outdoor lighting is easy to install and long-lasting. In most designs, a small photovoltaic panel charges an internal battery. The batteries usually wear out long before the light-gathering panel.  

There are a variety of choices for outdoor lighting of this kind. Everything from traditional classic-looking designs to modern party lights are available. The only drawback is that the lights won’t come on after a couple of cloudy days.

Electronic Devices

Solar-powered calculators have been available for decades. Any electronic item that requires only a small amount of electricity can be designed to use light energy rather than batteries.  Solar power packs are available for small electronic devices and small solar panels are on the market to produce enough energy to power computers, lights and fans if you are on a field trip.  Several large electronics manufacturers are developing products with solar built in, soon your laptop will not be limited to the hours of your battery charge and you will not need to carry as many accessories and cords when you travel.  

Water Heaters

If you have been driving less or switched to a more fuel efficient car in order to reduce your “carbon footprint”, you should find it interesting that residential electrical water heaters in North America are believed by analysts to produce as much CO2 as all of the cars and lightweight trucks put together.

There may be no other solar energy product that is more beneficial for reducing CO2 emissions. According to the Environmental and Energy Study Institute (EESI) solar-powered water heaters can be installed anywhere, regardless of the climate.

Whole House Photovoltaic Panels

The solar energy product that can be used to supply electricity to every appliance in your home is the photovoltaic panel. They can be installed on rooftops or on the ground. The latest models contain no hazardous heavy metals.

They are lightweight and in some cases provide more than enough electricity for a single home. Any extra electricity produced goes back in the grid and the local utilities are required to pay you for it either via a credit or to purchase your excess.

In the Future

Cars, boats and planes are some of the futuristic designs that are being developed.  There are solar solutions being explored in mass transit.   Architects are in a race to develop more efficient homes, building and businesses.  Universities have competitions to see who can develop the most energy efficient homes.  Electronics companies are developing solar powered solutions and more efficient appliances are being designed.

Is there something solar powered in your future?

Using solar energy benefits families today and future generations in many ways. Lower utility bills are the first things you will notice. Utility companies are required to allow you to use alternate sources for your electrical needs. They are also required to buy or give you credit for any excess energy that you produce, so net metering is a good idea if you are not storing your own energy.   In the future, we will see energy produced using far less fossil fuels and resulting in less pollution.

Growing Popularity

There are already some homes that produce more electricity than they use. The majority are located in Europe with a sprinkling in the US and other countries.  It’s an idea that is gaining in momentum and is spreading around the world.

The popularity is expected to increase as collection panels improve and more energy efficient appliances become available.  In the last 10 years we have seen an explosion of competition in the solar energy industry, with a variety of options for homeowners and businesses.  Photovoltaic panels are becoming more efficient and thin-film solar is rapidly increasing in efficiency and the price of both is falling rapidly.  There are solar panels that are being developed that are more efficient in lower light conditions and some that can produce electricity and hot water, thus combining two technologies into one solution.  Federal, state and local governments have programs in place to encourage people to make the changes. Getting a tax break is another short term benefit.  Many governments around the globe are offering incentives to encourage the transition to alternative energy.

Long-Term Benefits

You personally might never see the long-term benefit. It will take time for the planet to recover from our reliance on fossil fuels. What we hope to see is less pollution and reduced global warming.

The vast majority of electricity plants throughout the world are powered by coal. Despite the political rhetoric, coal is a dirty fuel.

In studies conducted by the US Geological Service in 2010, all of the fish tested contained some level of mercury. The fish were captured in rivers, streams and lakes all over the US. The source of the mercury contamination is coal-fired electrical plants.

Long-term solar energy benefits should include a reduction of mercury in our streams, which corresponds to better health for the population. When people eat fish containing mercury, they run the risk of mercury poisoning. Almost all of the modern cases of mercury poisoning in humans was due to the consumption of mercury laden fish.

Short-Term Benefits

One of the solar energy benefits that you should experience in your lifetime is less reliance on the electrical providers. Currently, you are at their mercy.   We have all experienced a power outage, some for a few hours, days and on occasion weeks.  A few hours without electricity is an adventure, a few days an inconvenience, but longer than that and you see ugly and unimaginable cultural changes.  If you have an alternative power source, you can still heat your home and conduct your daily affairs. You will be more independent and self-reliant.

Those are only some of the solar energy benefits.  The panels are safe, weather resistant and last a long time.  Is it time you started considering a transition to solar energy?  

A solar energy contractor should be capable of providing electricians, plumbers or other specialists depending on the type of project. The licensing requirements and classifications vary from one state to the next.

Skills Needed

While licensing requirements vary from state to state, contractors that specialize in solar installations are required to complete an examination specific to the industry. Subjects on the exam include safety, maintenance and design. Troubleshooting or diagnostics are subjects that relate to repairing existing systems.

For installing photovoltaic panels, which are growing in popularity, contractors or their employees must be able to install the battery backup systems and connect the collector panels to the power grid. Thus an electrician’s license is an additional requirement.

Hot water and pool heating systems are also available. It might be necessary to hire more than one contractor if numerous systems are to be installed.

What to Expect

It is important to examine the contractor’s qualifications and ask for references. You might ask friends or family members for recommendations.

The solar energy contractor should be able to evaluate your home honestly. Solar energy installation is not always feasible. Experienced contractors can help you make the right choice in terms of where the collectors should be located to take full advantage of the sun.  Solar manufacturers have different requirements to achieve maximum efficiency.  It’s good to understand the conditions where you solar panels achieve maximum efficiency and have a discussion with your contractor to make sure you achieve that.

Estimates and Contracts

Once you have a couple of solar energy contractors to choose from, ask them to come to your home and give you an estimate. Remember that phone or email estimates are not accurate.  In order to give an accurate estimate, it is necessary to examine the existing structure and the surrounding buildings and landscaping.

The contract should include information about the contractor’s insurance. Ask about worker’s compensation to ensure that an accident on your property does not cost you.   Before you sign a contract for solar energy installation, be sure to read the fine print. In some cases, deposits are non-refundable even if the customer is not happy with the job.

Don’t be afraid to discuss the “what ifs”. Experienced contractors are accustomed to hearing the questions and are not offended by them. A good discussion prevents misunderstandings that could be costly to both the contractor and to you.

This is a good time to consider home improvement projects of this kind. A number of different tax credits and deductions are available from the federal government. Some states have their own incentive programs, too. A knowledgeable solar energy contractor can tell you more about what’s currently available.

Solar power cost has so many variables it’s difficult to quickly and easily put a number on your needs.  Yet, the question on everyone’s mind that is even remotely considering solar power is “What is it going to cost?”

Get the Calculator

The first place to start is by putting a number on your current energy consumption.  Your energy bill will have your monthly kilowatts used, this is roughly what you will need to produce.  I say roughly because you will notice that some months you will use more and other months less.  To have solar power supply all your energy needs you need to focus on your highest kilowatt month.
 
A Step Worth Big Dividends

We are now at the point where you can significantly reduce the cost of your solar installation by reducing your current energy consumption.  Get a home energy audit by a professional.  This will cost a few hundred dollars and the recommendations and changes you make to your home will save you thousands.  Once you have implemented your energy efficiency recommendations, you will notice your energy usage lessen.  This is now your starting point to determine how many panels you will need to create enough energy to run your home.  Compared to your first calculation, you have just reduced the number of solar panels you need to purchase. 

Making the Right Choice

Determining if solar energy is the best option of if combining technologies would be more cost effective is the next step.  In areas where sunshine is prevalent and the cost to heat and cool your home is modest, solar energy is the ideal solution.  However, if the cost to heat and cool your home is significant, consider combining technologies such as a geothermal heat pump which will heat and cool your home in addition to solar panels.  Or if you are in a situation where wind energy is an option, solar and wind make are a good combination.

How many panels you will need depends on the efficiency of the panel, the number of hours of direct sunlight that hits them and how many kilowatts you need to produce.  Each solar panel has a different efficiency rating, but what seems like insignificant difference can have an impact when multiplied over a number of panels and the amount of time each panel is operating at maximum efficiency.  Choosing the right panel and understanding the differences between manufacturers is homework with a big return.  To make it possible for people to transition to solar, some solar companies are offering financing and renting/leasing options.

Free Money

Federal, state and local governments are offering tax incentives and rebates.  Utility companies are also offering some rebates.  Make sure the product you are interested in qualifies for the most “free money”.  In some states, the savings are up to 70% of the cost of the panels. 

We’ve talked about how to start evaluating your solar power cost by knowing how much energy you use today, what you need to do to reduce your energy consumption and making sure that solar energy is the most efficient energy solution for your area.  You know about choosing the most efficient panel and to check the differences between manufacturers and finally how to grab the most “free money”.  What’s left? 

Energy Independence

Once your system is installed, all the energy you produce for the next 20-30 years is without additional cost to you.  That savings can be applied to the cost of your solar system and you’ll still have some left over.  The warranty on solar panels are between 20-30 years, with little or no maintenance except for additional cleaning to maintain maximum efficiency.  Your property value will increase and your home will be more marketable if you choose to sell.  Because it’s renewable energy, you won’t see an increase in property taxes. 

It’s up to you, are you ready to transition to solar power?