Creating a Solar Electric System for Your Home

When preparing to use solar energy to power your home, there are a number of procedures to take. After determining which solar option is ideal for you (see step 3), take the subsequent actions that pertain to you. More information on the precise procedures you must take to power your home with solar energy can be obtained from your solar energy installer and your local utility company.

1. Examine the energy efficiency of your home.
2. Evaluate your solar capacity and any restrictions.
3. Consider your solar-power choices.
4. Calculate your demand for solar power
5. Request quotes and site evaluations from contractors.
6. Recognize the financial and incentive options accessible.
7. Establish agreements and install the system by working with your installer and utilities.

1. Examine the energy efficiency of your home

Homeowners should look at their energy use and take into account any potential efficiency improvements before beginning the process of using solar energy to power their homes. Before deciding to go solar, homeowners should be well aware of their overall electricity usage and take into account simple, inexpensive efficiency improvements.

Examine the resources below to lower your electricity usage:

• Home energy audits: A home energy audit can show you where your house is wasting energy and what you can do to make it more energy-efficient.
• Gadgets and appliances: Use existing electronics and appliances more effectively, or think about making a purchase of a highly efficient device.
• Lighting: Use energy-saving lighting, like LED lightbulbs.
• Heating and cooling requirements will have a big impact on how much solar energy you require if you use electricity to heat and cool your home. The quantity of electricity you need to generate with solar energy will be reduced by weatherizing your home and using energy-efficient heating and cooling.

2. Evaluate your solar capacity and any restrictions

Examine the potential solar energy that can be produced at your address before deciding on the best strategy to use solar power at home. The solar resource in the United States is sufficient for residential solar electric systems since PV technologies utilise both direct and dispersed sunlight to generate power.

However, how much solar energy is received at a specific place and the size of the system itself determine how much power is produced there.

You may find the solar energy potential of your home using a number of mapping sites and applications. A few of the services additionally include details on the approximate system size, prospective financial benefits, and nearby contractors.

These tools are a great place to start and can assist you in determining whether your home is suited for solar power and, if not, the best course of action for continuing to reap the benefits of solar. These tools are useful, but they don’t take into account all the factors that must be taken into consideration for your particular system. You will need to do that by working closely with a solar installation who can accurately assess your solar potential and offer thorough recommendations, estimates, and equipment knowledge.

Think about the following:

shade trees around. Contractors will also assist in evaluating shading, but remember to take into account any nearby trees, either your own or those of your neighbor, that may shade your system in the future.

Your roof’s age and how long it will be before it needs to be replaced. You might want to think twice before installing solar if you anticipate needing a new roof in the near future.

limits or procedures for permission from the neighborhood or homeowner association (HOA). The authority of HOAs to block solar installations or limit solar access is now restricted by “solar rights provisions” in some jurisdictions. Check up your own HOA covenants and state legislation as these rules differ from state to state and by municipality.

3. Consider Your Solar Energy Options

If you want to go solar, you no longer have to buy and install a system that you totally own and operate. There are numerous programs that will allow you to utilize solar electricity even if you rent your home or don’t want to buy a rooftop system.

The possibilities for using solar energy at home are listed below; inquire about local installers and utility programs by contacting them.

A SOLAR ENERGY SYSTEM PURCHASE

When a solarize program is unavailable or unfeasible and you want to optimize the financial advantages of installing solar panels, take advantage of tax credits, and raise the market value of your property, buying a solar energy system with cash or a loan is your best option.

The system will be connected to the grid by the solar installer, who will also get an interconnection license from the utility. When the PV system produces more energy than the home needs, the customer is frequently able to sell the extra energy to the grid. Conversely, when the home’s energy requirements are more than the system’s capacity, the home continues to take power from the grid. Find out more about home energy solutions that are grid-connected.

If you fit one or more of the following criteria, investing in a solar energy system is a good choice for you:

• You wish to invest in a solar energy system for your house.
• State or federal investment tax benefits are available to you.
• You’re prepared to be accountable for upkeep or repairs (note that most solar energy systems offer warranties, and many installers offer operations and maintenance plans)
• You want to spend less on power.
• You wish to employ a net-metering setup to resell any extra electricity your system produces to your utility.
• You want to raise the value of your house.
• You can get money through a lender or have the cash on hand to buy the system (note: many banks, utilities, and solar installers offer financing arrangements for solar systems).

COMMUNITY SOLAR POWER OR SHARE

Because they rent their homes or have insufficient roof space, over half of all U.S. households are unable to support a rooftop solar system. An alternative choice if you can’t host a rooftop system is to contribute to a shared or community solar program. Through these schemes, participants can pool their money to purchase solar for a solar system at a price that suits their demands and budget. The system may be on- or off-site, owned by utilities, a solar developer, non-profit organizations, or a number of neighborhood residents.

If you fit one or more of the following criteria, take into account community solar:

• You can’t or don’t want to install solar panels on your house or other building.
• You cannot make a claim for investment tax credits under state or federal law.
• You don’t want to be in charge of upkeep or repairs.

SOLAR RENTAL

When you lease a solar energy system, you can use the power it generates, but the PV system’s hardware is owned by a different company. After then, the customer pays to lease the equipment. Solar leases sometimes entail a small initial investment and consistent monthly payments for a predetermined length of time. As part of a leasing agreement, homeowners often pay the equipment developer a set monthly cost that is based on the anticipated amount of electricity the system would generate. Frequently, this sum is less expensive than their initial electric bill.

If you fit one or more of the following criteria, solar leasing are a good choice for you:

• You want to put solar panels on your house, but you can’t afford one or don’t want to.
• You are not qualified for investment tax credits under state or federal law.
• You don’t want to be in charge of upkeep or repairs.
• You want to spend less on power.
• You wish to employ a net-metering setup to resell any extra electricity your system produces to your utility.

PURCHASE AGREEMENTS FOR POWER (PPA)

PPAs let customers host solar energy systems that are owned by solar energy firms and then buy the electricity produced. In exchange for little or no up-front payment, a developer will arrange for the design, approval, financing, and installation on a customer’s property. The host consumer agrees to pay the system’s fixed price per kilowatt-hour of electricity produced over the system’s lifetime in exchange for the right to use the power generated by the system. The cost of solar electricity is frequently less than the retail rate offered by the nearby utility.

If any of the following describe you, PPAs are an excellent option for you:

• You want to put solar panels on your house, but you can’t afford one or don’t want to.
• You are not qualified for investment tax credits under state or federal law.
• You don’t want to be in charge of upkeep or repairs.
• You want to spend less on power.
• You wish to employ a net-metering setup to resell any extra electricity your system produces to your utility.
• You’re looking to purchase solar with a low initial investment.

PROGRAMS TO SOLARISE

A Solarize initiative is one of the most effective ways for communities to go solar. Through solarize initiatives, local companies and homes can pool their purchasing power to choose an installer in a competitive market and to bargain for lower prices. More people can adopt solar thanks to this bulk purchase because the group model streamlines the procedure, boosts demand for solar, and also decreases installation costs.

If you fit one or more of the following criteria, Solarize programs are an excellent choice for you:

• There is a Solarize program in your area.
• You wish to invest in a solar energy system for your house.
• State or federal investment tax benefits are available to you.
• You’re prepared to be accountable for upkeep or repairs (note that most solar energy systems offer warranties, and many installers offer operations and maintenance plans)
• You wish to lower your electricity expenses and employ a net-metering setup to return any extra electricity your system produces to your utility.
• You want to make your house worth more money.

4. Calculate Your Needs for Solar Power

Gather information about your home and power use to assist your contractor in making recommendations for the type and size of your system.

• To calculate annual electricity demand, review power bills. Kilowatt-hours will be used to display your usage (kWh). Review each month of the year because you might consume more or less electricity depending on the month (e.g., if you run the air conditioner in the summer). Some utilities provide resources that can be useful for this review.
• Think about any upcoming changes. Your electricity requirements may rise if you plan to buy an electric car or if you expand on to your home. You might use less electricity if you keep implementing significant modifications to increase the energy efficiency of your home.

5. Request quotes and site evaluations from solar installers.

Be sure to select licensed, insured, and certified installers when doing your research. The North American Board of Certified Energy Practitioners’ certification is the gold standard for the solar industry. You may also look for reviews online and get referrals from friends and family who have just switched to solar power. Before working with an installer, request documentation of their license before making any commitments.

You may identify and compare solar installers with the use of online tools as well. Get at least three quotes for the PV system installation, and make sure the quotes are comparable in terms of features and metrics.

Consider posing the following queries to installers when conducting an interview:

• Is your business familiar with regional connectivity and permitting procedures? It can frequently take a long time to get a building permit and to get approval to interconnect. Making sure the technician is knowledgeable about these regional procedures will guarantee that your system is installed and connected quickly.
• Can the business provide testimonials from past clients in your area? Ask other local customers about any difficulties they may have encountered and how the business was able to aid them.
• Is the business legitimately certified or licensed? A licensed installer should be used to install PV systems. This often denotes the possession of an electrical contractor’s license by the installation or a subcontractor. You can find out if a contractor has a current electrician’s license by contacting your state electrical board. It may also be necessary for the installation to have a general contractor’s license, according to local building departments. You may find out more about licensing by calling the city or county where you currently reside. In order to get the discounted system pricing, solarize programs could also need you to deal with a particular installer.
• What kind of warranty is offered for this system? Who oversees the system’s upkeep and operation? An industry-standard warranty is provided for the majority of solar equipment (often 20 years for solar panels and 10 years for inverters). Making sure the system is covered by a robust warranty is frequently a sign that the installation is utilizing high-quality machinery. The homeowner should also decide who is responsible for the system’s maintenance and repairs. The installer will often be responsible for system maintenance under lease and PPA agreements, and many installers sell affordable O&M plans for host-owned systems.
• Are there any judgements or liens against the business that are now active or pending? Due diligence is advised for every project involving a contractor. You can learn about any verdicts or complaints made against a state-licensed electrician via your state electrical board. Customers who want advice on how to evaluate contractors should contact their local city and county. Another resource for information is the Better Business Bureau.

The maximum producing capacity of the system, expressed in Watts (W) or kilowatts, should be specified in the bids (kW). Additionally, ask for an estimation of the system’s annual or monthly energy production (measured in kilowatt-hours). The best use for this number is to compare it to your current utility bills.

The whole cost of setting up the PV system, including hardware, installation, grid connection, permitting, sales tax, and warranty, should also be included in the bids. As installers may use different equipment or provide bids for systems of various capacities, a cost/watt and an anticipated cost/kWh are the most helpful metrics for comparing pricing across different installations.

6. Recognize the financial options and incentives.

Those that install solar PV systems in 2020 or 2021 are eligible for a 26% tax credit. Congress passed an extension of the ITC in August 2022, bringing it to 30% for installations between 2022 and 2032. A 30% tax credit was also available for systems that were installed on or before December 31, 2019. For systems installed in 2033 and 2034, it will drop to 26% and 22%, respectively. If Congress doesn’t extend the tax credit, it will end in 2035. The sum that can be claimed has no upper limit.

Remember that you won’t qualify for this tax benefit if you choose a solar lease or power-purchase agreement because you won’t be the owner of the solar energy system.

On the Database of State Incentives for Renewables and Efficiency, you can look for more state, local, or utility incentives (DSIRE).

Be careful to look into all of the solar financing options that are offered in addition to incentives. What is best for your house will vary depending on a wide range of circumstances. The Clean Energy States Alliance handbook explains the benefits and drawbacks of each option, assisting homeowners in understanding their choices. For other financing possibilities, see the Homeowner’s Guide to Going Solar.

7. Cooperate with your utility and installer

Your installer should be able to assist you with obtaining the required permits and following the relevant procedures if you opt to install a solar energy system.

The ideal system size will be chosen by your installation. Your electricity requirements (as estimated in step 4) and the following factors will decide the size:

• The solar resource or sunshine accessible at the location
• The tilt and orientation of the system
• Efficiency of the system in converting sunlight to power
• Other sources of power, such as a utility, a wind turbine, or a generator using fossil fuels.

In order to maximize the daily and seasonal solar energy collected and produced by your system, your installer will also make sure that all equipment is put correctly and is slanted and orientated in the right ways.

Make sure you comprehend billing, net metering, and any additional utility charges you may be required to pay.