Types

• According to Solar Power at Home, there are three different types of solar power currently used for homes. These include passive solar energy, thermal solar energy, and photovaltics. Passive and thermal solar energy can be very cost effective when installed in the home because they are applied to areas of high energy consumption that typically produce expensive energy bills, such as water heating. Photovaltics, also known as solar panels, can be a more significant investment but cost varies greatly case by case.
  
  

Cost Estimates

• The Solar Guide indicates that installation costs for powering an entire home with solar energy using photovaltics can be roughly $20,000 as of 2009. Homeowners can choose, however, to use solar energy only in specific areas of the home with costs ranging from 10 to 12 dollars per energy watt used. Initial installation costs for a thermal water heating system amount to about $5,000 but are recovered in just a few years as thermal water heating systems have the potential to cut utility bills down substantially, in some cases entirely. Thermal systems used to heat pools provide the same short term cost recovery benefits.
  
  

Considerations

• Costs for installing solar energy products in the home vary due to a vast amount of factors. One must consider the location of the home, the size of the home, the amount of energy typically consumed, whether or not to purchase new or used products, what specific areas will be powered with solar energy, as well as the potential financial benefits afforded by state government energy incentive plans. For more information of state incentive plans, visit Database of State Incentives for Renewables and Efficiency. Finally, an important consideration is whether or not the home is tied to a grid interconnected solar panel system, which can be further explored at The Solar Guide.
  
  

Benefits

• Using solar energy can dramatically decrease the costs of energy bills and provide a renewable way to consume energy. While cost saving is the most tangible benefit involved with installing solar energy in the home, other implicit benefits are apparent. Using solar energy reduces the use and transportation of nonrenewable resources, such as fossil fuels, reduces pollution, and prevents emissions of greenhouse gases. It also requires minimal maintenance and is a tax free fuel source.
  
  

Tips

• The cost for solar energy is generally much cheaper in remote areas where grid systems are not available. It can be cost effective to install solar panels in both new and older homes, and they are covered by homeowner's insurance. Although the solar energy use can appear complicated and highly technical, understanding the process is an achievable feat for the average homeowner. For more information on how solar energy works, visit All About Energy section of The Solar Guide.