Way back when solar power was first sold to homeowners, the costs for the needed equipment were so high that there was no way it could compete with the low costs of buying electricity from the power company. With all the advances in technology and the demand for solar power rising, today’s prices have lowered, and the government also offers incentives that help to offset the expense of installing your own solar power. Solar power is now becoming affordable.
People who installed home solar power systems early in the game wanted to take care of the environment. They were willing to pay a higher price for their electricity to know that it did not require fossil fuels to generate the power for their home. Others turned to solar technology in places where traditional power off the grid was not available.
Equipment Costs are Lower
In the last ten years the costs for solar panels has been dropped by half. The panels themselves are also smaller and more efficient making installations cleaner and better looking. Amazing advances like flat panels that are flexible are now on the market. They can be adhered directly onto metal roofs with adhesive. Bulky frames are no longer needed to hold solar panels, and the frame fasteners that caused leaky roofs are a thing of the past. Currently, products are being tested that will replace traditional roofing materials. They incorporate solar cells in the building materials themselves. This means more affordable solar power because you are not buying a roof, then covering it up with a second layer. Less materials to buy equals more savings.
Rebates, Incentives and Deductions
Incentives and tax deductions are now being offered by many local governments as well as state and federal governmental programs. These incentives may be direct rebates to the homeowner or tax deductions that they can claim that cover the costs of the equipment or installation. Maintenance and upgrades may also be eligible for more incentives.
In some areas, the government has a program that pays you based on the amount of power that your solar panels generate. This money is added to the money paid by the utility company for the power you create. While it may be a bit unusual for a utility company to pay for power that they are in the business of selling, they must get a certain amount of their power through alternative energy. Buying some of this energy from customers who have installed alternative energy sources is more cost effective for them than building their own facility. Depending on where you live, the power company will either install a separate meter which allows you to sell back to them or they will change your meter to a special one that can run backwards at times when you are generating more power than you are using.
How Much Does it Cost?
After taking a look at current costs and incentives, it will cost between twenty and forty thousand dollars to install a complete solar power systems. The final cost will depend on the size of your house and where you are located. The good news is that you can expect a ten percent return annual return on your money, which is far better than what you would get from the bank or the stock market today. Once the system is all paid for, you’ll still be able to make money from your system as well as never paying another electric bill again.

