Solar energy is free but the tools that will enable you to harness this free energy are not.

If you are planning to install a solar energy system right at your home and would like to know how much it would cost, there are 3 things you need to consider:

First, the cost depends on how much energy your household requires. More energy you require means more solar panels and higher cost of installation. The good thing is, the technology to harness the power of the sun is relatively cheaper than it was several years ago.

Second, the government is offering a rebate to those who will switch to alternative form of energy. That means, the government will shoulder a portion of the total cost of the system.

Third, you can get tax credits when you switch to solar energy system. The amount of tax rebate depends from state to state but the range can go from $1000 to $2000.

All these affect the overall cost of your installation.

A photovoltaic system can cost roughly at $8000 to $10000 per 1kW system. This equates to $8 to $10 per Watt. An average American household with 3 bedrooms requires at least 1.5kW to as much as 3kW. Thus, installation can cost from $14000 to $30000, before rebates and tax credits.

Government rebate varies from state to state. As a reference, an average California household that requires 1.5kW system can get as much as $4200 rebate (1.5kW= 1500 watts x $2.80 per watt = $4200).

A household that requires 3kW system can get as much as $8400 (3kW= 3000 watts x $2.80 per watt = $8400).

Before, tax credit goes as much as 30% but it is lowered to 7.5% of system cost after rebate.

So an average household with 1.5kW system can get $735 ($14000 - $4200 x 7.5% = $735) worth of tax credit while the 3kW system can get $1620 ($30000 - $8400 x 7.5% = $1620) worth of tax credit.

Example A: 1.5kW system

Cost of solar electric system: $14000
Less rebate: $4200
Less tax credit: $735

Cost of the system after rebate and tax credit: $9065

Example B: 3kW system

Cost of solar electric system: $30000
Less rebate: $8400
Less tax credit: $1620

Cost of the system after rebate and tax credit: $19980

Again, these are rough estimates just to give you an idea of the cost of installing solar energy system. They do not represent real figures.

Top tips:

Energy independent home has higher resale value and is more preferred by home buyers. So, if you are planning to sell your home in several years, installing solar energy system does not only provide substantial saving on electric bill, it also is a good home improvement option.

If you want to finance the cost of your solar energy installation, include it in your mortgage.

If you want to reduce your electricity load, switch to energy efficient appliances. Buy electric appliances with ENERGY STAR seal.

Low energy requirement means lower installation cost.

Residents of areas with higher electricity rate can benefit most on solar energy system.

If you can’t afford the photovoltaic system, you can install solar hot water system that costs roughly from $2000 to $4000.

Solar energy is best for houses that are located far from the existing power lines.

First the advantages:

Solar energy is abundant and is free. We can count the sun to rise tomorrow and the day after that. Oil and natural gases on the other hand are non renewable, once the source taps out, it is gone forever. Sure there are other areas that could still be tapped but sooner that could run out of oil as well.

Solar energy does not pollute the air. If ever, the heat coming from the sun cleans the environment and maintains the earth’s eco balance. Not so with oil. Oil, its derivatives and its byproducts are great pollutants. In fact, 22,000 pounds of carbon monoxide will need to be produced first for the oil to be processed and supply a home with electrical energy for a year.

Solar energy harnessing panels are silent operators. Except maybe for the mechanical contraptions that are built into the panels so it could track the sun, from the collection of the suns rays to its photovoltaic conversion, they give neither a peep nor a squeak. It is a world of difference from the cacophony of giant drills and pumps that are used to extract oil form the ground.

Maintenance for the solar panels is very minimal. Except for the mechanical parts that are optional, almost no maintenance is needed. Once it is installed nothing much will be the cause for worry. The energy that is derived is free. With oil there is no telling what the next pump price would be and when. Oil, being a commodity, heavily depend its prices on market forces. Often with the right strategies, even market forces could be manipulated that could cause volatility in pricing.

The Disadvantages of Solar Energy

The cost. While solar energy is free, the cost of installation setbacks many household from installing it. Brand new solar energy generating systems are expensive. Although it tends to pay off overtime, initial cash out could range into several thousands of dollars depending on the quality and volume of generated power a household or an establishment would require. While solar energy technology has been around since the 1950’s it is only in recent years that its development was spurred. While costs of installation could also be subjective depending on the purchasing capacity of a customer, the benefits that could be derived out of it is enormous although mostly in unquantifiable terms.

For mass consumption, distribution lines are needed and this remains to be a big issue. Old antiquated distribution lines used to transfer electricity and other modes of fuel into the homes are clogged in many regions that to deliver solar energy power into the houses of consumers will require a different approach.

Be that as it may, the benefits from solar power far outweigh its disadvantages. It is an ideal source of energy that it may soon be the norm in power generation.

Compare that with energy that is generated by nuclear and fossil fuel. Presently, the available data for fossil and nuclear fuel is 10,800,000 terawatts which we all know to be non renewable.

To produce electricity, utility companies burn fossil fuels that translate to 1.3 pounds of carbon dioxide to produce 1kw of electrical power. This unwanted CO2 emissions are dumped into the atmosphere. This then translates into each typical home being accountable yearly for 22,000 pounds of CO2 emissions.

The harnessing of the sun’s rays is clean and safe. It produces no emissions and it is practical and may in the years ahead, prove very economical. In the United States, only 0.1% of power that is generated is solar energy driven. So what are the obstacles?

According to the Wall Street Journal (in an article that was released in its August 2008 issue), there are groups, backed by political groups that are lobbying against the putting up of transmission lines for solar power. The construction of distribution lines for solar energy is also being blocked by environmental activists that restrict the delivering of solar energy to those who want it in their homes.

Another obstacle is that the power grid in the United States which was designed more than 100 years ago is now so congested in many regions. To deliver the solar power to consumers, scientists and engineers will have to come out with another cost efficient plan to transfer huge amounts of energy from one location to another.

Solar panels are considered expensive. Although a home increases its value by folds when solar powered, the costs still could be prohibitive to most that unless the non silicon flexible solar panels that are now being developed are released for market consumption, powering homes through solar energy could still be very limited.

Other forms of rewards to avoid fossil fuel use should still be effectively placed. The 30% tax cut to projected cost previously awarded will be more attractive if other federal credits are included to encourage further investments.

The global warming issue that has been brought to the papers is a recurrent subject of talk shows and remains to be a good news item. Also, the too unstable pump prices, should and for most part, already be a good incentive to use this alternative source of energy.

However, effective solar energy transmission to homes will remain to be very hard unless these obstacles are breached. Assuming that these obstacles are solved today, it will still take some 10 years to convert 20% of American homes into solar energy users. Meanwhile, solar panels on individual homes remain to be the most viable alternative.

The good part to solar energy quest is that technology is advancing very rapidly. Nano technology for solar power is being developed and may be available in five years time. Other breakthroughs in cell designs are also being developed that could, in the next few years, be a cost-effective way of generating energy without having to rely anymore on fossil and nuclear power.

Harnessing the power of the sun’s ray to create energy to power our house is very appealing. But the question is, “Is everything about solar energy good?”

Looking at the current price of fossil fuel-based electricity, it is quite impractical to convert into solar energy system. However, with the growing concern on the state of the earth, there is really a need to find other means of energy aside from what power plants are using right now. Where do you place yourself?

Whether you are an advocate of clean energy or simply care about where your finances go, looking at the pros and cons of residential solar energy system will help you decide on whether to convert or not.

Pros

Solar energy is free. Did you know that the earth absorbs 174 pettawatts of solar radiation? This means that we have more than enough source of free energy to power every house in the world. Unfortunately, most of our energy is still drawn from oil, gas and coal. But in recent years, there is a steady increase of demand for alternative and renewable energy like solar power. It is estimated that the demand for alternative sources of energy will increase by 53% between 1999 and 2020.

Solar energy is clean, renewable and sustainable. Because the energy created from the sun’s rays does not produce byproducts like those from fossil fuel power plants (sulfur dioxide, nitrogen oxide, mercury or carbon dioxide), it does not contribute to pollution. Accordingly, the increase in the use of solar energy and other alternative forms of energy will decrease the demand for greenhouse gases-producing power plants.

The price of photovoltaic cells is steadily decreasing. The demand for solar panels has risen by 57% in the United States in 2007 and is steadily increasing on a monthly basis. The increase in demand results to the improvement of solar technology as a whole. The prices of photovoltaic cells have declined on the average of 4% every year over the past 15 years.

Solar panels can be installed on most rooftops, eliminating the problem of finding a suitable place for installation. Solar panels require little or no maintenance. The original photovoltaic cells technology is used for most satellites orbiting our earth today which are not maintained at all. Many solar panel manufacturers give 25 to 40 years warranty on their products.

Because most areas of the country receive a substantial amount of sunlight throughout the year, solar panels can be installed anywhere.

Many states in the country give tax credits and rebates to households who want to install solar energy system. Check with your state government the cost of these incentives.

Cons

While the prices of PV cells are in constant decline, the cost of installation is substantially high compared to the current electric cost. But the good thing is, after your initial cash out, you don’t have to pay every month on electric bills for the rest of your life.

On areas cities and areas with heavy pollution problem, solar energy may not work as fine. Weather can also affect the efficiency of solar energy. If it is raining, overcast weather or if there is a hurricane, the solar panels’ efficiency is decreased.

You are only producing energy during day time.

These are general pros and cons you might encounter when considering the conversion to solar energy system. It would be best if your decision is based on location, cost, budget, rebates, tax credits and practicality.

The earth receives more than enough energy from the sun in an hour to supply the world’s energy requirement for the whole year.

Unfortunately, only a tiny portion of it is harnessed and the world still relies on power plants that burn fossil fuels. The good thing, though, is that there is a constant increase in demand for solar energy; and over the years of continuous development, solar panels are much cheaper today.

During peak hours, the maximum power density that the sun can give is about 1kW per square meter. In other words, one square meter of solar panel can produce as much as 100 GWh (gigawatt hours) of electricity in one year. That is enough to power 50,000 houses.

If a solar power plant is build on 1% of the total land area of the Sahara desert, it will satisfy the world’s energy requirement.

The efficiency of solar panels depends on several factors such as pollution, clouds, temperature and atmospheric humidity.

Solar power plants are very similar to other conventional power plants ?with one significant difference: The majority of power plants draw their power from fossil fuels like oil, coal and gas.

When power plants burn fossil fuels, they produce greenhouse gases that contribute to global warming. Solar power plants or solar thermal power plants (or Concentrating Solar Power plants) utilize the power of the sun’s rays to generate electricity.

The process could not be any simpler. The solar panels receive heat from the sun, which will be reflected to the receiver. The receiver converts into steam the concentrated solar energy. The steam is stored on tanks which will be used to turn the turbines and generate electricity.

The whole process does not involve any burning of any fossil fuels. Thus, solar power plants do not contribute to global warming.

The increase in the use of solar energy will bring down the demand for oil.

Today, there are more than 10,000 households with solar energy systems and the number is constantly increasing. If the demand for solar energy as well as other forms of alternative energy, the demand for oil will drop and the cost fuel will likely to follow.

Residential solar energy system can turn your electric meter backwards. Given that you are connected on a power-grid, the excess energy that your solar energy system produces will go to the electric lines to be used by other homes. As a result, any excess energy you give will be reflected on your bills. Your electric supplier will even pay for the electricity you supplied.

Residential solar energy system can save you money.

While the initial cash out for installing solar energy system at home is big, the device will pay for itself in the long run. Not only you will save money on solar energy system, you also help the environment by not contributing to carbon emissions.

Solar energy systems are reliable and can last for a very long time.

PV cells are last from 25 to 40 years. Many manufacturers of solar panels give 25 years product warranty. This is the assurance that solar panels are very dependable.

In addition, solar panels require little or no maintenance and the can be installed on most places where there is sunlight throughout the year.