Is Solar Right for Me?

With so much news coming out about cleantech and renewable energy, climate change, politics and the price of oil, it’s easy to get overwhelmed by “the big picture.” This can be either a depressing or inspiring experience, depending on your general outlook. We here at Getsolar lean towards optimism, and we all share a belief in innovation and our collective will to tackle the big issues, but we totally understand that sometimes it feels like we’re not moving towards our energy goals fast enough.

Enough with the flowery introduction. This week I thought I’d take a break from the bigger issues and get back to basics to venture an answer to a simple, yet important, question: Is solar right for me?

If you’re reading this, chances are you’re at least a little bit interested in learning more about solar-powered homes. So let’s briefly cover a few of the main considerations:

• First things first, an unobstructed, south-facing roof is ideal—it ensures that the solar panels get as much exposure to the sun as possible. (There are also minimum load-bearing requirements, but most roofs are sturdy enough for the job.)
• Take a look at your energy bill. If you’re paying on average more than 12 cents per kilowatt hour (kwh), you should definitely take a harder look at solar. Why? (1) By reducing the amount of money you pay to your utility each month, your PV system will “break-even” sooner than it would, for example, if you were only paying 5 cents/kwh; and (2) If net-metering is available in your state, you can probably sell excess energy back to your utility at a higher price (though this price will tend to be lower than their retail price).
• Look to the future. Between 1999 and 2005, retail electricity prices rose about 30 percent—reasonable estimates suggest this trend will continue, with an annualized rate increase of around 2 percent.
• Check to see how the $2,000 federal tax credit and state- and municipal-sponsored incentive programs affect your bottom line.
• Research options for financing and estimate your expected return on investment (ROI). In rough terms, your ROI is a function of the following factors:
  • Initial costs (typically around $10 per installed watt of PV)
  • + building permits
  • - $2,000 Federal Tax Credit
  • - State or municipal incentive(s)
  • = Net Investment
  • - Discounted annual savings in monthly utility bills
  • - Excess kilowatts sold back to utility with net-metering (if applicable)
  • = ROI
• A solar professional can of course help you crunch these numbers, as well as provide you with a home energy audit that’s helpful in understanding the financial benefits of a given PV installation.
• If you do go ahead with solar, don’t forget to consider energy-saving steps, such as installing LEDs and compact fluorescent light bulbs, and beefing up on insulation and weather-stripping where appropriate. Adding so-called negawatts to the mix will save you cash over the long haul and make each kilowatt from your solar panels go further.
• Finally, remember that even if you don’t live in sunny California or Arizona, solar panels and solar thermal systems can both help to reduce your monthly energy bills and add value to your home.

For more info, be sure to check out our FAQ section. If you have any questions that aren’t answered, don’t hesitate to post them. We love hearing from the solar community.