Residential solar solutions provide homeowners with options that can help lower electricity bills, boost home value and reduce energy dependence. Homeowners interested in going solar can enjoy federal, state and local tax credits, incentives and financing.
Start by determining your household’s power consumption. Then look up your area’s peak sun hours using a national map.
On-Grid
With this system type, solar panels generate electricity and feed excess power to the grid. In most areas, the utility company will compensate you for energy sent back to them through a process called net metering, offsetting your electricity bill.
The solar panels are connected to an inverter, which turns DC into AC power that can be used in your home or business. The inverter also connects to batteries, which can help cover your energy consumption when sunlight is scarce or your solar system isn’t producing enough energy.
This system is the best option for homeowners who want to take advantage of a variety of benefits, such as net metering and cost savings on their electricity bills. In addition, homes with solar systems tend to see higher property values. That’s because property buyers look for properties that have efficient working solar systems in place.
Grid-Tied with Backup
Whole house grid-tie with backup systems are a great option for customers in Florida who want to maximize solar savings and mitigate rising electricity prices. The system also helps to mitigate utility company peak demand, allowing you to save money during these times.
With this solar power system, energy generated by your panels flows into an inverter where it is converted from direct current (DC) to alternating current (AC). This electricity can then be used directly by you or sent back to the utility grid through net metering.
Your utility will give you credit for the AC energy you contribute to their grid during peak energy usage hours. This is what makes grid-tie solar the most economical option for homeowners with a lot of sun exposure and low energy needs. In contrast, off-grid solar systems require extensive energy storage and often include backup generators to keep a home powered during extended power outages. These are typically only recommended for homes located in areas that support full retail net metering and that have a need for reliable backup power.
Off-Grid
Off-grid solar systems provide an entirely self-sufficient energy solution by combining solar panels, batteries, and a charge controller. They typically cost more upfront, but may last longer and require less maintenance than grid-tied systems. Many of these systems also qualify for government incentives, which can significantly reduce their initial costs. Choosing a system with a reputable manufacturer with warranty and support options is key as well. Damage caused by improper installation will void the system's warranty, so it's important to work with professional installers.
The most critical step in selecting an off-grid solar system is assessing your daily power needs. The system will need to be large enough to meet your electricity requirements and have the capacity to store extra energy for the evening or a cloudy day. If you're not ready to invest in a battery bank, consider choosing a 'battery-ready' option that can easily be connected to one later. This way you can benefit from reduced electricity prices while reducing your carbon footprint and creating a more sustainable home.
Financing
There are several financing options for homeowners, and the best one depends on your situation and goals. Make sure to shop around and get quotes from multiple sources to find the best deal. Look for the lowest interest rate, the shortest repayment schedule, and no origination or prepayment fees. Also, make sure you factor in electricity savings to ensure your payments are affordable.
Homeowners can also explore options such as solar leases or PPAs, though they should be aware that these arrangements don’t make financial sense for most. Among other issues, these third-party-owned systems don’t qualify for the federal solar tax credit and they don’t enhance property values like owning a rooftop system does.
The most economical route is paying for the installation upfront with cash. This will allow you to start saving right away and will maximize your energy bill savings. If a cash purchase isn’t feasible, consider a personal loan or a home improvement/home equity loans (HELOCs)—which are secured by collateral and tend to have lower interest rates than unsecured personal loans.
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