Steps for switching to Solar residential system.

A planning guide for setting up Solar Residential System

More homeowners across the USA are currently going for the home solar system instead of fossil-fueled electricity. The main motivation behind the transition to solar residential system is to reduce long-term energy costs while minimizing carbon emissions in a time of global climate change.

Clean, renewable, and affordable, solar energy is clearly the energy of the future as witnessed by its rapid growth throughout North America, Europe, China, and even India. According to a report, solar power capacity has expanded by nearly 30% in 2017 and this whopping growth is also continuing at present. This is mostly due to improvements in the efficiency and lower cost of solar panels for homes. The type of solar panels required for home solar system (residential photovoltaic systems) would have cost more than $50,000 a decade ago. With the advent of new technology, the prices of solar panels for home have dropped about 60% in the last few years. Today, the average upfront cost of a 6 KW solar panel system, one of the common sizes of solar panels for home, is around $20,000 before you factor in the federal solar tax credit discount. With this rapidly falling price, switching to a solar residential system can dramatically reduce your energy bill, if you can do your homework for solar system planning for your home ahead of time. In this connection, you can also go through this article – Are solar panels worth it?

Solar system planning guide

Here’re the steps to follow for switching over to a Solar residential system:

1. Study your home’s energy efficiency

For making solar system planning for a home you need to study first your energy use and implement a few low-cost efficiency measures for potential efficiency upgrades. You can explore the following resources to upgrade the energy efficiency of your home.

• A home energy audit should be your first priority before solar system planning for homes. It can help you to understand the whole picture of your home’s energy use, the areas where there are scopes of saving energy, and what steps need to be taken to improve the energy efficiency of your home;
• Go for high-efficiency home appliances;
• Change over to energy-efficient lighting systems (such as LED lights);

2. Study solar energy potential at your home location

The first consideration before solar system planning for your home is to assess the solar energy potential (i.e. solar irradiation levels) at your home’s geographical location i.e. how much of the sun’s energy reaches the location. Being closer to the equator is generally better when it comes to using solar panels. But other factors also need consideration. Your home’s orientation is also an equally important factor. For rooftop arrays, a south-facing roof without trees or other objects obstructing sunlight maximizes the availability of solar energy. You can refer to the website of the National Renewable Energy Laboratory (NREL) which provides maps and data detailing solar information including solar energy potential (solar irradiation levels) for specific locations within the U.S.

Apart from the above information about solar residential systems, there are several other things that need consideration for your particular home solar system. For that, you need to work directly with a solar system installer who can provide an accurate assessment of your solar potential as well as detailed recommendations, estimates, and equipment expertise.

3. Examine the available options for home solar system

Find below the major options available to homeowners for a home solar system. Examine these solar options for residential homes to assess their suitability depending on your needs and how much you want to invest in a solar power system.

a. Purchasing your own solar panels for home

Purchasing your own solar panels for home is the best option if you want to maximize the financial benefits of installing solar panels, take advantage of tax credits, and increase the market value of your home. You can take the help of the solar installer who will connect your solar panel system to the grid, and receive an interconnection permit from the utility for you.

When home solar system generates more power than the homeowner’s requirement, the owner can sell the excess electricity to the grid, and when his electricity needs exceed the capacity of the solar panel system, the homeowner can draw energy from the grid as usual.

You may also like to read this related post: How solar panels work step by step

b. Participating in Community (shared) solar program

Despite a rooftop solar market that has grown by leaps and bounds over the last decade, the majority of American households are unable to go for the solar residential system through the traditional rooftop model because they rent or have shaded or unsuitable roofs, or live in apartments.

If you’re unable to host a rooftop system there is another option i.e. to invest in a Community (or shared) solar program. The primary purpose of the community program is to allow members of a community the opportunity to share the benefits of solar power even if they cannot or prefer not to install solar panels on their property. Project participants benefit from the electricity generated by the community solar farm, which costs less than the price they would ordinarily pay to their utility. The community home solar system may be owned by utilities, a solar developer, non-profit entities, or multiple community members.

If you are unable or do not want to install a solar panel system at your home or property or if you do not want to take responsibility for the repair and maintenance of the system you can consider going for a community or shared solar program.

c. Going for Solar Lease

Solar leasing has become the most popular way of helping homeowners reap the benefits of solar energy. It gives you the same dependable power as solar ownership, but with the added benefits of a professionally managed and maintained system.

When you talk about solar leases in the US you are typically talking about a contract where a solar company agrees to fund the installation of solar panels for a solar residential system on homeowner’s roof and charge him a monthly fee for the electricity these panels generate. This fee is calculated using the estimated amount of electricity the system will produce in exchange for the right to use the solar panel system on the homeowner’s property. This amount is often less than the homeowner’s original electricity bill.

d. Going for Solar Power Purchase Agreement (PPA)

A solar PPA or Power Purchase Agreement is similar to a solar lease in that the solar panels remain owned by the third-party investors rather than the homeowners, during the term of the agreement.

A solar Power Purchase Agreement (PPA) is a financial agreement between a developer and a homeowner under which the developer arranges for the design, required permits, finance, and installation of the solar residential system on the homeowner’s property at practically no upfront cost. The developer sells the power generated over the life of the system to the host customer at a fixed per-unit rate ( per kWh) that is normally lower than the local utility’s retail rate. This lower electricity price serves to offset the homeowner’s purchase of electricity from the grid at a higher rate while the developer earns from the sale of electricity as well as any tax credits and other incentives generated from the system. These PPAs typically range from 10 to 25 years and the developer remains responsible for the operation and maintenance of the solar panel system for the duration of the agreement. At the end of the contract term, the consumer can extend the term of the agreement or remove the system from his property or choose to buy back the solar panel system from the developer.

4. Estimate your energy requirement

The most important step in solar system planning for your home is to figure out how much solar power you need annually from your system. This will help your solar installer to determine the type and appropriate size for your system. The easiest way to know your energy needs is to look at your monthly energy bill and estimate your daily consumption. You could also calculate your energy consumption by knowing the average watts of each device you use and for how many hours you will be using them on average. Some utilities also offer tools that can help you with this review.

5. Explore the solar financing options

Homeowners have different financial options to select from when deciding to go for a residential solar system. In general, a purchased solar system for home can be installed at a lower total cost than installing a system using Solar Lease, or Power Purchase Agreement (PPA). This is because, in these cases, the homeowner will not be eligible for the tax benefits as he will not be the owner of the home solar system.

Federal Government wants you to use clean energy. To incentivize you to make the move, they’re giving 26% back as a TAX CREDIT in 2022, and 22% back in 202.

You can also explore the available solar financing options by visiting the website –  Homeowner’s Guide to Going Solar.

Frequently asked questions

Before I conclude let me also address some of the queries often made by prospective homeowners, wishing to install a Solar residential system.

Which solar panel is better – mono-crystalline or poly-crystalline?

Mono-crystalline solar panels are a little more expensive than poly-crystalline panels. Although both panels generate the same amount of electricity, panels made of mono-crystalline silicon are comparatively more space-efficient.

How does the efficiency of solar panels matter?

Solar cell efficiency is referred to as the percentage of energy in the form of sunlight that is converted into usable electricity by each solar cell. This means that by using high-efficiency solar cells (mono/poly cells) more power can be generated with fewer solar panels requiring much less roof space. On the other hand with low-efficiency cells (amorphous cells) more number of solar panels will be needed, which will require more roof space, to produce the same amount of power as high-efficiency modules. In other words, low-efficiency cells will reduce the maximum power output capacity of your rooftop.

Is a high-efficiency solar panel a must for home?

Solar panel efficiency is not the sole factor to determine which panels are right for your home. Whether you will go for the most efficient solar panel or not depends entirely on your available roof space. If you have limited roof space, going for more costly high-efficiency solar panels would be a better option. On the other hand, you may not need the costly high-efficiency panels if you have enough roof space to accommodate less efficient but cheaper panels.

How much do solar panels cost?

The cost of installation of solar panels depends on how much electricity you are going to use daily. Residential solar panels are usually sized at 3kW to 8kW and can cost anywhere from $10,000 and $28,000 in total installation costs.

How many solar panels does it take to run a house?

The average home in the U.S. uses about 10,000 kWh of electricity per year. You’d need around 28-34 solar panels to generate enough energy to power your house if you use an average 250-watt solar panel.

How long do solar panels last?

According to the Federal Trade Commission, the average life of Solar panels is about 20 years. However, with proper maintenance, the panels may even run for more than 40 years.

Do solar panels need servicing?

The Solar PV system needs little maintenance besides keeping them relatively clean which rainwater normally does for you.

You may also like to read: Off Grid Solar Power System for homes 

Conclusion

On going through the solar system planning guide, switching over to home solar may seem to be a difficult task. But it is important to remember that transition to solar residential system is a long-term investment.

In many geographical locations, residential solar systems are a good choice from a financial perspective, particularly due to the rapidly falling price of solar panels for home. Apart from savings on electricity bills, homeowners may wish to install a home Solar system to avoid future potential fluctuations in energy costs as the cost of non-renewable energy sources continues to increase. Moreover, solar residential system help in “Eco-friendly” living, which eventually improves the quality of life of the inhabitants.

You may also like to read this post: Passive Solar House Plan