Is Solar Power Right for You?

So how much do solar-electric systems cost? An initial estimate on an average size solar-electric system might come in at $20,000 to $40,000 — or more. But as Liz points out, an average American household can expect to spend more than $100,000 over the next 25 years on electricity. Buying a solar-electric system is like buying that electricity up front, and depending on the details of your situation, making that investment now can save you a lot of money in the future. It also creates immediate cash flow and increases the value of your home, which can help offset that sticker shock. New federal tax credits can help, too. These renewable energy incentives give you a 30 percent dollar-for-dollar tax credit for the price of the panels, and if your state offers additional incentives, you can end up saving as much as 50 percent!

Another thing Liz says people should keep in mind is that if you’re serious about installing solar panels, there is a certain amount of effort involved in working out the details. “It’s just like any other construction project, like a home remodel. You’re going to want to go through the same process to make an informed decision,” she says.

You have to do your homework to get the best deal and be sure you get the best quality— after all, you don’t want just anyone poking holes in your roof. A safe bet is to choose a professional installer. That means contacting different companies and getting bids. Liz also suggests checking a company’s record with the Better Business Bureau, and asking the installer lots of questions about their previous experience in construction and with solar. And to keep things simple, look for a professional installer who will take care of all the design, permitting, installation and rebate paperwork.

Finally, Liz says, if you’re considering solar power, it’s a good idea to start thinking about your own daily habits. “It’s very important to understand how your electricity is being billed and what your electric usage is. There might be ways to minimize your charges (are you running appliances during peak hours?) and minimize your usage (are you already using energy-efficient light bulbs?) so that you don't need as big of a system.”