A Guide to Home Solar Panels

Shining a Light on Home Solar Panels

Solar panels are versatile and can power a variety of devices and systems, ranging from small gadgets like calculators to large infrastructures such as sports stadiums and satellites. They can also provide energy for residential homes, making them a practical choice for homeowners.

You don't need to be an expert in renewable energy to install solar panels on your property. Nowadays, adding solar panels to your home is a common home improvement project that offers advantages such as lower energy bills, decreased carbon footprint, and an increase in property value.

In this guide, we'll discuss the essential information about installing solar panels at home, helping you make well-informed decisions as you proceed through the process.

How Solar Panels Power Your Home

Before installing solar panels on your roof, it is important to understand how solar energy functions. Solar panels harness the sun's energy through the photovoltaic (PV) effect, converting sunlight into an electric current. This electricity can be used to power your home's electrical systems. If the panels produce more electricity than your home consumes, the excess energy can be stored in a battery for later use or sent back to the local power grid, contributing to the electricity supply for other homes in your community.

Powering Through the Night and Cloudy Days

When your solar panels aren't generating power, you have the option to draw energy from battery storage or from the local electricity grid.

Most states and utilities offer net metering billing, which allows solar owners to balance the cost of grid electricity they consume with the credits they receive from feeding surplus solar energy back into the grid.

Additionally, owning your own battery storage offers advantages such as increased energy independence, a backup power source during grid outages, and the ability to shift loads to avoid higher time-of-use rates.

Advantages of Home Solar Panels

Powering your home with solar panels can offer numerous advantages over relying solely on utility electricity. The most significant benefit is the potential for substantial energy cost savings. By generating your own electricity, you can significantly reduce your energy bills, potentially saving tens or even hundreds of thousands of dollars over the lifespan of the solar panels.

One key reason for these savings is the ability to lock in your electricity costs for 25 years, providing stability and protection against rising utility rates. This long-term cost predictability allows you to better manage your household budget and avoid the financial impact of increasing energy prices.

The second reason, often associated with solar panels, is the positive impact on the environment.

Solar panels have a lifecycle carbon emission rate that is significantly lower compared to traditional fossil fuels, about 12 times lower than natural gas and 20 times lower than coal.

By switching to solar energy, homeowners can substantially reduce their carbon footprint, improve local air quality, and play a key role in advancing the clean energy transition.

Rooftop solar offers more than just a solution to carbon emissions; it presents a multitude of environmental advantages.

Unlike traditional energy sources, rooftop solar demands no additional land usage. Moreover, large-scale solar installations can integrate with agricultural spaces, known as agrivoltaics, fostering enhanced crop and livestock yields. Additionally, solar panels positioned over bodies of water, known as floatovoltaics, mitigate water loss due to evaporation. This intersection of sustainability and innovation underscores the transformative potential of solar technology.

Solar Modules and Warranties Evolving for Longevity

Utilizing otherwise unused space effectively, installing solar panels also leads to an increase in home value. Research from Zillow and the Berkeley Lab indicates that homes equipped with solar panels tend to sell for a higher price compared to similar homes without them. Additionally, more than 30 states offer property tax exemptions for the added value that solar installations contribute to the home.

Going solar allows you to increase the value of your home without incurring additional tax liabilities and can help offset the initial cost of the system when selling your home.

Achieving Energy Independence Taking the step to go solar is a major move towards energy independence, offering you the ability to manage and control your energy expenses.

In the absence of solar energy, you're subject to the rates set by your utility provider, with little to no say in how your money is spent. The alternatives are limited: either pay the utility's rates or go without electricity.

By switching to solar, you gain control over the cost of electricity and direct your money where you choose. Additionally, integrating battery storage means you can create your own mini power grid, allowing your home to operate independently of the main grid.

This setup proves invaluable during grid outages, which are becoming increasingly common due to climate change.

For more information.

How Much Does a Home Solar Energy System Cost?

Home solar systems are now increasingly affordable and accessible to a wider range of homeowners due to significant drops in costs over recent decades. The perception of solar energy as a luxury for the affluent is changing, thanks to substantial price reductions and available incentives.

The Solar Energy Industry Association reports that solar installation costs have declined by over 60% in the past decade, leading to expansion across different markets and the installation of thousands of solar systems nationwide. A typical residential system's pre-incentive cost has decreased from $40,000 in 2010 to around $20,000 today.

Additionally, there is a federal solar tax credit of 30% available to all US homeowners, which means that for a standard $20,000 solar system, the tax credit would amount to $6,000. This would effectively bring the net cost down to $14,000, making solar energy a more attainable option for many households.

Energy Investment Metrics: Price per Watt and LCOE

A key factor in determining the cost of a home solar installation is the price per watt (PPW), a method of evaluating different solar quotes. This metric allows homeowners to compare the overall system cost with the total output, which is measured in watts. By dividing the system's gross cost by its capacity in watts, you can easily calculate the PPW and make more informed decisions regarding your solar investment.

$20,000 / 5,000 W = $4 per Watt

So, even though Bid 3 has the highest total cost, its price per watt is a competitive $3.96, providing the most cost-effective option in terms of value for your investment.

Today, the average cost of a solar system ranges from $3 to $4 per Watt, and the cost tends to decrease as the system's size increases.

Levelized Cost of Energy (LCOE)

Another useful method for comparing the cost of solar to traditional utility electricity is the Levelized Cost of Energy (LCOE).

LCOE, measured in cents per kilowatt-hour (c/kWh), is calculated by dividing the net cost of the solar system by the total energy production expected over its lifetime. For example, a 5 kWh system with a net cost of $14,000 and an anticipated lifetime production of 175,000 kWh over 25 years would have an LCOE of 8 cents per kWh:

$14,000 / 175,000 kWh = 8 cents per kWh

Knowing the LCOE helps you easily compare the price of solar-generated electricity to your utility's rates. Explore the map below to view the average utility electricity rates in each state.

Funding Options for Solar Energy Systems

Just as you can choose to pay for a car or a house outright or through financing, you can also choose how to pay for a solar system for your home. Financing allows you to spread the cost over monthly payments, making it easier to manage the expense.

When considering how to finance solar panels, you are also determining:

The long-term cost of electricity over the next 25 years
Your overall savings throughout the system's lifespan
The timeline for when you begin to see savings

Paying upfront in cash provides the most significant savings over the system's life, though it may take 6 to 10 years to recover your initial investment.

Alternatively, solar loans involve interest payments, which can decrease your overall savings, but they can lead to immediate savings by establishing a monthly payment lower than your existing electricity bill.

For instance, the way you finance a $20,000 solar system can significantly affect your lifetime savings and the payback period.

Electricity is an essential expense, and you'll need to pay for it regardless. It's important to consider how your energy expenses are allocated. When you rely entirely on grid electricity, all of your payments go to an energy utility, and most areas have limited options for utility providers. Some of your payment is used for maintaining and improving infrastructure, but a portion may also be directed towards profits, shareholder dividends, lobbying, or other activities that might not directly benefit you as a consumer. However, if you switch to solar power, you gain autonomy over your electricity production, distribution, and consumption. You can select the installers you prefer and the equipment that suits your needs. Additionally, investing in solar energy can increase your property's value and reduce your energy bills over time.

If solar energy is beginning to sound like a worthwhile investment, you might want to get acquainted with some of the essential equipment involved.

A home solar setup consists of several key parts:

Solar panels: These capture sunlight and convert it into electricity.
Inverters and monitoring software: Inverters transform the direct current (DC) electricity from the panels into alternating current (AC), which is used in homes. Monitoring software allows you to track the system's performance.
Balance of system: This includes all the additional hardware and electrical components needed for a functioning system, such as wiring, mounting, and junction boxes.
Battery storage: This stores excess energy produced during the day for use at night or during times when the panels aren't producing power.

Choosing Equipment Options for Your Solar System

The most important aspect of any solar system is the solar panels, and there are a few key factors to consider when selecting the right type. When choosing solar panels, you should think about the differences between monocrystalline (black) and polycrystalline (blue) panels, power output ratings, and efficiency ratings. It's also essential to evaluate product and performance warranties and where the panels are manufactured. Some homeowners prioritize panels with the best performance warranties, while others focus on sourcing panels that are made in the United States. Ultimately, the best choice depends on your individual budget and specific goals.

It's also interesting to note that many solar.com customers prefer REC and Q Cells panels, with a typical power output of 400 W.

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Home Solar Inverters: Everything You Need to Know

The next thing to consider is inverters, which invert the DC electricity produced by solar panels into AC electricity that’s usable in your home.

Inverters also play a role in monitoring your solar production. As electricity passes through the inverter gateway, the data is reported to a monitoring software that can be viewed on your phone or computer.

Monitoring your system is important for identifying and claiming warranty issues to avoid lost energy production.

There are two main types of inverters:

A string inverter is a single box that mounts to your house and inverts electricity for multiple panels. Meanwhile, microinverters are small units that attach to each panel and invert electricity before it leaves the panel.

There are pros and cons to each, but in 2022 around 75% of solar.com customers chose.

Balance of system

Balance of system (BOS) encompasses all the components in a solar system other than the solar panels themselves. These parts include:

Inverters: Convert the direct current (DC) output of the solar panels into alternating current (AC) that can be used in your home or business.
Racking: Structures that support and mount the solar panels, ensuring they are positioned correctly for maximum sunlight exposure.
Wiring: Connects the solar panels to other system components, such as the inverter, and ensures a safe and efficient flow of electricity.
Meters: Track the energy production and usage, which helps monitor system performance and may assist in net metering.
Combiner boxes: Collect the DC power from multiple strings of solar panels and combine it into a single DC output for the inverter.

While the focus is often on the solar panels themselves, understanding the balance of system components is important for the overall functionality and efficiency of a solar power installation.

Home Solar Battery Solutions

Many homeowners are increasingly combining solar power with battery storage solutions. Batteries play an essential role in providing backup power during a grid failure.

Without battery storage, solar power systems will usually turn off automatically when the grid fails. This safety measure is designed to prevent the flow of solar energy back into the grid while utility workers are conducting repairs.

However, having battery storage ensures that your solar power system remains functional during outages.

In regions with time-of-use electricity pricing, batteries can also allow you to store excess solar energy during off-peak hours and utilize it during peak times when electricity rates are higher. This practice, known as load shifting, can result in additional savings for solar energy users.

How to Install Solar Panels at Home

The quality of the equipment in your solar system is crucial, but choosing a trustworthy installer is equally important. Installing solar panels can be a lengthy, complicated process that is sometimes plagued by scams and questionable sales tactics.

Solar.com steps in to address these concerns. Electrum, the parent company, was established with the goal of fighting against solar scams and providing clarity in the market. Solar.com streamlines the entire process, eliminates distractions, and contributes to additional savings, as confirmed by the US Department of Energy.

Here's how it works.

Partner with an Energy Expert

Joining forces with an Energy Advisor is akin to having a knowledgeable friend by your side when purchasing a car. They help you navigate the complexities, pointing out potential issues and providing insights so you can make well-informed choices every step of the way.

Together, you'll harness satellite data to craft a tailored solar system and leverage it to obtain a variety of quotes from our network of trusted installers.
Evaluating Solar Quotes from Trusted Installers: A Comprehensive Comparison

Like any home improvement endeavor, securing the best price for home solar hinges on obtaining multiple quotes. While Solar.com isn't the only online platform for comparing solar quotes, it does offer two notable advantages.

Firstly, Solar.com provides firm quotes rather than estimates, which are often lower than what installers can actually offer. On Solar.com, the price you see is the price you pay because it is established by the installers themselves.

Secondly, the platform features vetted local installers. Solar companies undergo a thorough vetting process before being accepted into our network, including an examination of their financial stability to ensure they operate on solid ground. In the end, only about 30% of applicants gain entry to our network.

Using Solar.com to compare quotes not only conserves your time and money, but also ensures that you work with a reputable installer who is held in high regard within your community.

Managing Projects from Start to End

Our support extends beyond selecting a bid for your project. We offer assistance in securing incentives and exploring potential financing opportunities.

Our dedicated Customer Success Manager will be your advocate throughout the entire process, from installation to inspection and obtaining permission to operate (PTO). We even follow up a year after your solar system is up and running to ensure everything is performing as expected.

Key Takeaway

One of the key advantages of installing solar panels on your home is the potential for substantial savings on energy costs over time. Additionally, solar panels can increase the resale value of your property and contribute to a cleaner environment by reducing reliance on fossil fuels. While the initial investment may seem high, the long-term savings often outweigh the upfront costs, and solar energy can provide a level of energy independence.

The main challenge of transitioning to solar power is the installation process, which can sometimes be lengthy and complicated. However, solar.com streamlines the process by connecting you with an impartial Energy Advisor who helps you navigate multiple quotes from pre-screened installers, ensuring a seamless and efficient experience.