Residential solar panels are on the rise, especially with "encouragement" from the BP oil spill disaster.
The BP oil spill travesty has jolted a lot of homeowners into exploring alternative forms of energy that were once deemed cost prohibitive.
“Our industry is expanding dramatically because the price of residential solar panels has dropped,” says Susan Brown of the Kansas- and Missouri-based Energy Savers Store.
But before plunging into this rapidly growing technology, here are a few things to know.
The ABCs of Solar Panel Systems
There are a few basic types of solar panels. Grid tied systems are the most affordable and the most common. They generate energy that is directly used for the home or put on the grid, which causes the meter to spin backwards. Many utility companies have net metering programs in which you get credits for the excess energy you produce, and then you pay your bill with those credits.
Grid tied with battery backup systems are exactly the same except that the energy collected from the solar panels goes first to charge batteries that would power the house if anything should happen to the power supply such as a bad storm or a black out. Like the grid tied option, excess energy is used to pay your utility bill.
One of the most costly setups is an off grid system for homeowners wanting to live, you guessed it, off the grid. It produces enough energy to charge batteries, which power the house. A home with an off grid system must have an extremely energy efficient design.
Research and Get References on a Home Solar Power System
“Not all solar panels are created equal,” says Brown. ”Some produce more energy than others and have better warranties.” She recommends looking for manufacturers with long track records, such as SolarSheat, which is a passive solar device that supplements heating, and Sunpower Solar Panels, which are the most powerful on the market.
Brown also recommends doing an extensive reference check when choosing a contractor. “Ask for references and call them!” she says. “You don’t want to be a guinea pig for a brand new installer or a brand new technology.” This is particularly important in some areas, such as the Midwest, where these types of energy solutions are relatively new and the consumer protections few.
“It really hurts when we see homeowners being taken advantage of by new companies that just want to make a quick buck,” says Brown.
Financial Incentives of Solar Electric Panels
In general, a completed small residential solar panel system costs $8 to $9 per watt, before incentives. This also does not include local taxes and permits. Some equate buying this type of system as a way of prepaying an electric bill for the next 20 or 30 years at a fixed rate. Because solar power is free and unlimited as long as the sun rises every morning, rates will never increase as they would with traditional forms of energy.
Tax incentives, both federal and state, have also become more enticing for those considering solar power. But to keep up with those incentives and rebates is like trying to follow a moving target. A good resource to track solar tax incentives is the Database of State Incentives for Renewables & Efficiency (dsireusa.org), which covers rebate programs by state.
Finally, adding solar to a home is a good way to increase its value. The National Appraisers Association says that for every $1 spent in energy savings, your home’s value will increase by $20. Now there’s a reason to let the sun shine in!
