Reasons to install solar panels on your home

Like many people, you probably want to save on your utility bills.  You might even want to reduce your carbon emissions by using less grid-based electricity (generated from burning coal or natural gas).  You can do both!

Residential solar panels are more affordable than ever today.  Let’s get started! Here are five reasons you should install solar:

1.  Solar panels have dramatically dropped in price over the past few years.  An average-sized American home would require a solar power array at a retail cost of $30,000.  In 2009, the same system would have cost nearly $50,000.  Take into consideration the fact that federal and local incentives and rebates can slice off another $10,000-15,000, and the investment makes sense.  If you don’t want to buy, you can always lease solar panels with no money down.

2.  Solar panels boost the value of your home.  For every $1 you save on annual electricity costs, the value of your home increases about $20.  Average American homes use about $130 of grid-based electricity each month.  If you slice off $100 a month, for an annual savings of $1200, you just got an instant boost of $24,000 in home equity.  Not too shabby in this market!

3.  Solar panels help your home sell faster when you put it on the market.  Homebuyers are looking for valuable improvements.  If you have taken the time to invest in and install solar panels, a potential buyer will recognize that they will instantly have monthly savings of about $100. A study by the National Renewable Energy Lab (NREL) confirmed that homes with solar power systems sell about 20% faster and for 17% more, based on a comparison with equivalent non-solar homes across several California subdivisions.

4.  Solar panels protect you against rising electricity costs.  When you go solar, the cost of your electricity will be fixed for the life of the system (25-35 years).  You cannot say the same thing about local utility bills.  Those increase annually due to a number of factors including taxes, constraints in developing or operating power plants, rate cases and more.  Lock in your future now with solar panels.

5.  Solar panels can reduce your electricity bill to zero.  Saving energy can save money, as we all know.  When your power comes directly from the sun, its 100% free.  If you have enough panels to generate all of your electricity needs, you can effectively “un-plug” from the grid and say good-bye to power bills.  Talk about freedom!

Solar power compared to coal based electricity

Granted, installing solar panels requires an upfront investment, but the decision of whether or not to go solar often depends on how quickly you can recoup your funds through savings on your utility bill and reductions of greenhouse gas emissions.  People considering switching to solar power have many factors to think about.

Among those considerations include the cost disparity between solar power and other grid-based sources including coal.  In addition, think about whether you will install solar panels at your property (distributed generation), or purchase (or lease) solar electricity generated by your utility.  Although solar has not yet reached grid parity with conventional power sources, it is fast reaching that goal.

Recently, Scientific American examined data from the Department of Energy’s National Renewable Energy Laboratory (NREL) collected over 30 years, to project a timeline for when we will achieve grid parity.  They predict that this milestone will be reached within the decade, or sooner, if conventional electricity prices continue to rise.

Switching to solar power can help even out peaks in electricity demand, as well as guard against rising utility costs over the years.  Whether you purchase or lease solar panels, you can easily reap the benefits of solar power vs. coal.

Utility scale solar shows great promise for people looking for cheap power.  Yet, owning or controlling your own solar power system allows you more predictability and cost savings than you might achieve otherwise.  As consumers realize that public investment in solar power is a better investment than fossil fuel energy, many experts expect that millions will soon join the solar revolution.

Installing solar panels (image from Lester Lefkowitz/Getty images)

Let me be clear:  we have no dog in this fight, so to speak.  I don’t work for any solar power manufacturer.  I am not a politician, nor am I employed by one.  Just curious as to what factors are considered by property owners in deciding whether or not not to install solar panels.

Over the past three years blogging on solar power and solar panels, we’ve determined that people are worried about three primary factors: (1) cost; (2) maintenance or hassle; and (3) efficiency.  The cost of solar panels has fallen over 50% in recent years, there are still generous government incentives, efficiency has increased, and maintenance is practically zero.

Install solar panels and then enjoy free solar electricity for the life of the system – 25-35 years.

With all this great information and continued support for solar energy, not to mention the security that switching to clean energy will give you in the face of rising energy costs, please tell me – what would it take to convince you to switch to solar power?

Looking forward to your comments below!

The truth about solar panels

We’ve posted several articles discussing the advantages and the disadvantages of solar power.  People are more and more interested in learning about this renewable resource, but there are several solar myths that may keep people from taking the next step toward installation of solar panels.

Its time to separate out the truth about solar panels from the persistent legendary myths.  Things have changed, and now its time to change your mind too!

1. Solar Energy is Affordable.

One of the biggest hurdles that prevent people from going solar is the fear about the cost of solar panels and the return on investment.  However, now is a great time to consider solar panels.  Prices have dropped by more than half in recent years, and generous local, state and federal rebates further defray the cost.  Then, you can start saving immediately on your power bills from the very first day!

2. Solar panels work even when its cloudy and cool.

You don’t have to live in California or Florida to effectively rely on solar power.  All that is needed is UV light.  When the sun comes up, even if it is filtered by heavy clouds, solar panels still can generate electricity.  Granted, they are most efficient in direct sunlight, but don’t think solar is not an option if you aren’t located in a sunshine state.  In fact, Germany is considered to be the solar capital of the world – not really the sunniest location on earth!  When it comes to temperature, solar panels work best when its not too hot.

3.   Consumers should not wait for solar panel prices to come down.

While technology advancements will improve efficiency and reduce the cost of materials, the biggest factor in price right now is government incentives.  Those will not last forever!  If you miss out on rebates that save you 50%, does it matter if solar panel prices drop 20% in the next few years?  Buy now!

4.  The return on investment for solar panels is immediate.

The biggest misconception regarding solar is that you have to stay in your home many years to recoup the investment.  But many people fail to realize that not only do you save significant money on your annual utility bills, but for every $1 you save, the value of your home increases by $20.  Slash your annual electricity bill by $1000 and that is an instantaneous $20,000 in equity.  Moreover, houses with solar panels sell faster for more money.

5.  Solar panels are easy to maintain.

In most cases, solar panels are an “install it and forget it” system.  Many manufacturers include maintenance as part of the price of a solar panels system.  As a property owner, you just need to make sure that any shading from landscaping does not occur.  Keep the solar panels cleared of snow, dust or debris.  And while you are at it, enjoy your free solar electricity!

Ground mounted solar panels

When you are looking to construct a solar array on the ground, instead of rooftop solar panels, you will need to select solar panel ground mounts.  Among the options are fixed-, single-, or dual-axis trackers.  There are costs and benefits associated with each, which will vary depending on factors such as the latitude of your location, climate, landscape and the size of the ground-mounted solar array you are proposing.

If you have a limited budget and/or are installing a relatively small solar array, a fixed-axis solar ground mount may be your best bet.  They are the least expensive option and are easy to maintain because they do not have mechanical, moving parts.  Fixed-axis systems can be used both on the ground and for rooftop solar panels.

Solar tracking ground mounts can help achieve greater efficiency, but are more expensive.  These mounts track the movement of the sun across the sky so that the solar panel continuously receives direct sunlight.  You can choose between thermal and electrical solar trackers.  The differences between the two are seen in cost, maintenance and effectiveness.  Thermal trackers use radiant heat to activate rotation.  They are less expensive and do not require much maintenance, but they can be slow to react to solar movement, particularly during winter months.  Electric solar trackers are more precise, more expensive and require regular maintenance, compared to thermal trackers and fixed-mount systems.  But it may be worth it – they can increase electrical output 20-40% over stationary solar ground mounts.

Installing solar panels on a ground mount

Not only can you choose between thermal and electric solar trackers, solar panel ground mounts also come in single-axis and dual-axis trackers.  According to this post at Clean Techies:

Single-axis trackers move only on one axis, usually aligned along a true North meridian. These trackers are more reliable because they are less mechanically complicated. Because of this they are also easier to maintain and consume less energy than dual-axis trackers. In addition, these trackers create less shadowing, allowing a closer positioning of panels. Single-axis trackers are more cost-effective for large installations of solar panels.

Dual-axis trackers track the sun along two axes, allowing for a more constant and accurate angle of incidence and a higher yield. These trackers are especially efficient in cloudier climates, at northern latitudes, and in sloped locations. Because these trackers are structurally complex, they tend to have higher installation and maintenance costs. They are also larger and create a lot of shade, requiring greater space between units. These trackers have great collection efficiency, but are very expensive and are most cost-effective for smaller installations.

Selecting solar panel ground mounts is an important part of designing the solar array that best fits your needs and budget!

Leasing Solar Panels

For people that want to switch to solar power, the cost is probably one of the biggest hurdles to cross.  Purchasing a solar panel array is expensive, and then you also have to worry about maintenance.  However, if you have wondered if you should lease solar panels, that might be your answer.

Leasing solar panels is one of several ways that can help homeowners and small business owners finance solar power. When you enter into a solar power lease, you don’t own the system, but the terms of the lease agreement could save you significant funds that can help you with your monthly budget.

Consider this list before deciding whether you should lease solar panels

• What are your monthly electricity bills?
• What would the monthly payments be (under a lease or a loan)?
• Make sure that the payments are less than your average electricity bills
• Do you have equity in your home?
• Are you planning on staying in your home for at least the next 12-24 months?
• Would you prefer maintenance or repair of the solar panels to be done by professionals, or yourself?
• How much liquidity do you have (available cash?)
• What is your credit score? (should be at least 640)

Before you enter into a solar lease, check with the Better Business Bureau to make sure that the company with which you are dealing is reputable. Review the official website and make a call to your local Chamber of Commerce to gather information.

Remember that, when you enter a solar panel lease, it is a binding contract. Both sides to the agreement must fulfill their promises, or risk facing the other side in court. Be sure to review every provision in the agreement carefully. Given the value of solar panels, you may want to consider retaining a lawyer to help you make sure that all potential concerns are addressed and there are no overly restrictive terms.

Consider these terms for a solar panel lease:

1. Lease term: How long will you be leasing the panels (usually at least 5 years)
2. Lease payments: How much will you pay, how often? Is there an escalation clause that gives the solar company the right to raise the rent?
3. Early termination: Do you have the right to terminate the lease before the end of the term without penalty? If there is a penalty, how much?
4. Lease renewal: Can you renew the lease? How? Under what terms?
5. Maintenance of the solar panels: This should be the solar company’s responsibility. Contact information should be spelled out specifically. Ideally, there should be a time stated within which a response must be made in case of damage or failure.
6. Insurance: This should be the solar company’s responsibility – to insure the solar panels.
7. End of lease: What happens when the term is over? Removal of the panels, or will you as a consumer have the right to purchase the panels at a reduced cost? How will that cost be determined?

Solar panel installation in the summer

Wondering about the best time to install solar panels?

With summer here in the Northern Hemisphere, home improvement and construction season encourage many people to think about upgrades and improvements to their property.

But is this the best time of year to go solar?  Summer offers both benefits and drawbacks for solar panel array construction.

On the positive side, long days and drier weather make it easier to schedule solar contractors at your home.  If you are considering a DIY solar project, its always more beneficial to get up on the rooftop when the rains or other inclement weather make it dangerous to do so.  And, professional solar installers will have more time and availability in their schedule over summer months.  Some even work extended hours from 7 a.m.-7 p.m.

The downside of installing solar panels during summer is that high temperatures can actually reduce efficiency.  It may be difficult to assess the efficiency of a solar array or even determine how much money it could save you in electricity bills until the weather cools in the fall.  In addition, as noted above, many people choose to undertake home improvement projects this time of year, which can make it difficult to schedule contractors that are available.

Perhaps the most determinative factor in considering the best time to install solar panels is the timing of renewable energy rebates and other incentives.  Over the past few years, the cost of solar cells has gone down, while governmental incentives have been quite generous.

We may be starting to see the beginning of the end, however.  Many experts are advising that the public funds are, or will be, running out.  That means that the best time to install solar panels is probably in the next 6-10 months.

Thinking about going solar?  Now may be the best time!

Sungevity Solar panels available at Lowe's

Lowe’s will become a distributor of Sungevity products and is to receive about a 20% share in the company.

Solar panels are becoming a popular item for homeowners looking to save money on their electricity bills and guard against utility rate hikes.  The Sungevity products are simple and affordable.  Consumers in California will be able to head to one of 30 Lowe’s stores, beginning in July 2011, and use Sungevity’s iQuote system.  Within 24 hours, the homeowner will receive a quote for the cost of panels that is specifically based on the location of their home, the design of their rooftop, and its sunlight exposure, using satellite technology.  In addition, homeowners will be given a concept illustration of how their property will look with solar panels installed.  Estimated power bill savings will also be provided, based on answers given about the consumers’ typical electricity usage.

Lowe’s is well-known for its pricing matching and will beat a competitor’s price by 10% if you bring them the competitor’s current ad.  Looking for additional savings?  Use a Lowe’s credit card and earn rewards points.

If the company Sungevity sounds familiar, its because it successfully convinced President Obama to install PV solar panels and a solar hot water system on the White House!

Solar power for the home (image by joncallas on Flickr)

Fortunately, home solar power is becoming more affordable each year.  Technology is improving and with growing demand, manufacturing process can be streamlined to produce more units at a lower price.  Add in generous government incentives, and solar energy could be well within reach.

There are two types of solar panels for the home – PV panels (photovoltaic cells that absorb sunlight and convert it into electricity) and solar thermal panels, which heat water for domestic or commercial uses.  Depending on the type and size of solar panel array you desire, average prices range from $8,000 – $40,000.  The more panels you have, the more you can trim your electricity bills.

Solar power for the home has been described as “install it and forget it.”  Maintenance is usually minimal, usually involving trimming vegetation that shades the panels, or removing snow.  While there are a number of DIY solar videos, your best bet is to hire a professional for the installation.  That way, if something goes wrong, you can look to the company for assistance.

So, find a sunny, south-facing portion of your roof and start tapping into that ample resource that is just waiting to be used.  Solar power for the home is easier and more affordable than ever.

What factors affect solar panel costs?

If you are looking to save on energy costs, you might be considering solar power.  But many homeowners are concerned about factors affecting the cost of solar panels.  Retail costs range between $5,000-$25,000 for a solar array to power the average home.

While solar used to be a very expensive way to power your home, costs have fallen dramatically in recent years.  In addition, there are a number of government incentives and rebates for people who install solar panels on their rooftops.  But you can cut costs for solar by taking these considerations into account:

1.  Current power usage.  If you can reduce energy consumption with efficient appliances, lowering the thermostat, washing in cold water and turning off lights, you’ll save money and need fewer solar panels.

2.  Can you work with the local utility? See about feed-in-tariffs and net metering.  Excess energy that you generate can be fed back into the grid to reduce your bill when and if you draw on grid-based power.

3. Timing is everything.  Just as with any other major consumer purchase, consider when to buy your solar panels to maximize sale prices and help manufacturers reduce inventory.

4.  Compare prices and quality.  Sure, you might save a few bucks by going with cheap solar panels, but what kind of quality are you getting?  If you are going to save much on your energy bills with low-cost panels, then investing a bit more upfront probably makes more sense.   Read consumer reports, comments on websites (like this one) and be a wise customer!