A Beginner’s Guide to Solar Power for Home

Installing solar power for the home is an economical and environmentally friendly way to upgrade. With an annual growth rate of 25%, the utilization of solar power continues to increase year by year, per the Solar Energy Industries Association. With so many benefits, it’s easy to see why more and more homeowners are opting for solar panels to meet their energy needs. 

 

In addition to the money you can save and the renewable energy you generate, there are several other major benefits. You can potentially earn revenue by selling excess energy back to the power company, increase your home’s value, and protect yourself from electricity grid failures. 

 

We’ll address these topics and more below.

In this article: 

• What is Solar Power and How Does It Work? 
• Pros and Cons of a Home Solar Power System
• Components of a Home Solar Power System
• Types of Solar Power Systems
• Assessing Suitability for Home Solar Power
• Cost and Financial Considerations
• Installation
• Environmental and Social Impact
• Why Solar Panels Make Sense
•  Frequently asked questions 

What Is Solar Power and How Does It Work? 

The key to understanding solar power 101 is knowing how photovoltaics (PV) convert sunlight into usable electricity. Here’s how solar power works:

 

• During the day, solar panels absorb power from the sun. 
• PV cell circuits in the panels gather that energy and convert it into direct current energy (DC).
• Then, the DC energy travels through an inverter, transforming the energy into usable alternating current (AC) electricity. 
• AC energy can be used for electricity, stored for later, or recycled back to the power grid. 

 

Panels are usually installed on the roof of a home, and the inverter is somewhere out of sight, like in a garage. The average home using solar power needs between 15 and 20 full-sized panels to power the house full-time. 

Pros and Cons of a Home Solar Power System

While solar power is a terrific way to offset your home’s electricity costs and reduce your carbon footprint, the technology has its pros and cons. To better understand each side, we’ve broken them down as follows: 

Pros of a Home Solar Power System

• Solar power panels work in all climates. 
• Battery backup systems are available in case of power loss. 
• You become energy-independent and not reliant on a public grid system. 
• Solar panels can increase home value. 
• Reduce your carbon footprint by using a renewable energy source. 
• Panels can create a protective layer on your roof. 
• You can receive special tax credits to offset the cost of solar power installation.

Cons of a Home Solar Power System

• High start-up cost. 
• Panels require a lot of space. 
• You become more reliant on the weather for consistent electricity. 
• Solar panels don’t last forever, and there are very few recycling programs for dead/broken panels.

Components of a Home Solar Power System

Solar panels themselves may be a flourish to a home, but they are only one element of an intricate solar power system. After all, you can’t operate the panels without the rest of the pieces. 

Solar Panels

We mentioned previously that solar panels are made up of PV cells that convert sunlight into usable electricity. As the cells absorb sunlight, electrical charges start flowing. 

 

A solar panel with an average amount of sunlight can generate around 2 kilowatt-hours (kWh) a day, but could potentially create up to 4 per day. That’s why homes generally have between 15-20 panels to generate enough electricity to power what they need and store the rest. 

Inverters

After the direct current is captured from the solar panels, the inverter changes the electricity into alternating current. This is necessary because home appliances cannot use DC; they need the AC to operate correctly. 

Battery Storage Systems

The sun isn’t always shining, which is why you want battery storage with a solar panel system. When the panels generate more energy than you’re using, the excess electricity gets stored in your battery storage system. That way, at nighttime or on cloudy days, you can utilize that extra power without losing it. 

Mounting and Racking Equipment

Just like putting a television on a wall, your solar panel has to be connected to something. A mounting and racking system is what holds your panels in place on the roof or in a ground mounting system. This equipment usually includes clamps, flashings, grounding, mounts and rails. These pieces are important to ensure the solar panels stay in place. 

Monitoring Systems

The monitoring system is the part of a solar power system you would interact with the most. These programs analyze and track how the solar panels function and how much energy your home uses. 

 

Without these systems, you may not know that one of the panels is malfunctioning, your home is using too much power, or your solar batteries are full — which means you’re losing any excess power the panels created.

Types of Solar Power Systems

When determining what kind of solar power system is right for you, one of the considerations you have to make is which kind of system to choose. Generally, the three types collect power in the same way. The main difference is how each of them distributes that power.   

Grid-Tied Solar Power Systems

Some homeowners opt to remain connected to the local power grid — that’s why this type is called grief-tied solar power. Instead of putting excess energy into your solar batteries, it’s sent out to the utility grid, which can result in some revenue from the power company. 

 

• Pros:
  • Low maintenance
  • Least expensive to install
  • Generally more reliable
  • Make money from excess power sold to utility
• Cons: 
  • Still dependent on local utility grid
  • More fees
  • Will lose power during blackout (unless you have battery backup)

Off-Grid Solar Power Systems

Unlike a tied-grid power system, an off-grid solar power system doesn’t keep you connected to the local electric utility company. Because of this, you can be totally self-sufficient with your energy needs. Excess energy is stored in solar batteries rather than sent to the local utility. 

 

• Pros: 
  • No blackouts from grid outages
  • Self-sufficient
  • No electric utility bill
• Cons: 
  • More expensive to install
  • No backup energy 
  • Must do maintenance on batteries
  • Extra energy is wasted if batteries are full

Hybrid Solar Power Systems

The best of both worlds, a hybrid solar power system has elements of both grid-tied and off-grid systems. With a hybrid system, you’re still tied to the local utility system, but you also have battery storage. 

 

• Pros: 
  • No blackouts if the grid goes down
  • Storage capabilities for excess energy
  • More energy independence than tied-grid systems
• Cons: 
  • Still pay an energy utility bill
  • More expensive to install

Assessing Suitability for Home Solar Power

Not every home is suitable for home solar power installation. A range of considerations must be made before transitioning to solar. 

Assess Energy Efficiency

Even if your home can host a solar panel system, that doesn’t mean your household is ready for it. Before converting to solar power, you must understand how you and your family use electricity. You can do this by conducting a home energy audit to evaluate how efficient your home is with power. 

 

An auditor will look into your home’s appliances, cooling and heating systems, and even the insulation of your home. They will seek out things like air leaks that lead to higher heating and cooling costs and how efficient the electronics and appliances in your home are. 

Assess Solar Potential

In addition to an energy audit, you’ll want to hire experts to assess your home’s solar potential. Solar site assessments will find any logistical problems that could inhibit solar panel installation. 

 

These assessors will look at:

• Any necessary local permits are needed. 
• The condition of the roof and whether the slope can sustain panels. 
• Identify nearby shade that could inhibit sunlight absorption. 
• Assess the electrical system to determine if it can take on the additional energy created by a solar power system. 

Cost and Financial Considerations

How much it costs to install a solar power system largely depends on a few things, like where you live and how much energy you typically use. From there, the kind of system you want to install can also make a huge price difference. 

 

It’s important to know that there are several financial incentives and payment plans to make solar power more accessible for homeowners. Generally, the average cost before credits or other incentives runs from $25,000 to $50,000. 

Financing Solar

While some homeowners can buy a solar power system outright, that isn’t the case for everyone. Like other major purchases, you can take out loans and make monthly payments on them. A specific loan is available for these systems, called a solar loan. 

 

Additionally, there’s a program for solar known as a Power Purchase Agreement (PPA). A PPA is not a loan. Instead, it’s a plan in which a third party owns and operates the solar power system on your property, and you purchase electricity from them for a set period. 

 

PPAs will save you less money in the long run but are a viable option if you don’t have the money to install a system yourself. 

Incentives and Rebates 

Many homeowners can save money on their solar power systems by utilizing tax credits, rebates and incentives like state-specific sales tax exemptions, which don’t charge sales tax on solar power systems. Some states also have property tax exemptions that exclude the value of the system from a home’s value. 

 

Remember that you cannot claim incentives if you are in a PPA because you don’t own the system.

 

A few other money-saving programs include: 

• Residential renewable energy tax credit: 30% of the system cost back on annual taxes (through 2032)
• Solar Renewable Energy Certificates or net metering: Selling excess energy back to the local utility company 
• Vendor or company-specific rebates

Calculating ROI

Breaking even or achieving a return on investment for your solar power system will vary based on where you live, the cost of installation, and the rebates/tax breaks you receive. However, the general formula for determining your ROI is: 

 

(System Cost) – (Cost x .3 for Tax Credit) = (Initial Investment) 

 

Followed by (Initial Investment/Annual Energy Costs) = (Pay-Off Period)

 

For example: 25,000 – 7,500 = 17,500

17,500/1500 = 11.66 years

Installation

Unlike many other home projects, a solar power system has several more steps than simply buying the equipment and getting it installed. On average, it can take two to six months before you can actually start using the system. 

 

Here are the steps to fully installing your power system: 

 

• Site assessment
• Design review/approval
• Local permitting
• Installing the system
• City/local municipality inspection
• Connecting utilities
• Turning on the system

Environmental and Social Impact

According to the Office of Energy Efficiency and Renewable Energy, the positive impacts of solar power systems are huge. These systems help reduce carbon emissions, improve air quality, and reduce impacts on local ecosystems. 

 

Beyond environmental effects, there are myriad social impacts for these systems as well. Not only do they create jobs, but they can also increase home values (at an average of 4% or greater) and help households become more energy-resilient against natural disasters. 

Why Solar Panels Make Sense

Whether you want to save money on your utilities, protect the Earth, or anything in between, solar panel installation can be a good home investment. These systems last for decades and pay for themselves in just a fraction of that time. 

 

Call a certified solar expert today to get started! 

Frequently Asked Questions 

How much solar power do you need to run a house? 

Since the average household uses roughly 900 kWh per month, most homes will need between 15 to 20 solar panels. That’s because, with average sun exposure, each panel will produce approximately two kWh per day. 

How long can a house run on solar power alone? 

A home can run indefinitely on just solar power alone. However, during a period of no/little sunlight, a home will only be able to operate with a solar battery for just a day or two. 

Is installing solar panels worth it? 

Depending on your household needs, solar panels can be worth it. They can increase your home value, reduce your reliance on the local power grid, and save you money on your electricity costs. 

Can you run air conditioning with solar power? 

Absolutely! How long you can run an air conditioner on solar power depends on how much wattage your unit has and how much power your solar panels create. 

What maintenance is required for residential solar panels? 

The great thing about solar panels is that they require very little maintenance. They last between 20-30 years and can be repaired by professionals if needed. However, you will need to do more maintenance on solar batteries. 

What is the average cost of installing solar panels for your home?

Since the cost of solar panel installation varies so widely, it can be hard to pinpoint the exact amount. In the U.S., the range for installation (before tax rebates and other incentives) is between $25,000 and $50,000.