Solar Electricity for Home

A few years ago, solar panels cost about $5 per watt but as the supply of the silicone needed to make those panels has increased, the price of manufacturing solar panels has declined. Currently, the price per watt is sitting between $3 and $4 but First Solar, a panel manufacturer in Tempe, Arizona, made an announcement in February, 2009, that they'd achieved the ability to produce panels at $1 watt.

The company was profiled in a Popular Mechanics article. It's important to understand this is the manufacturing cost, not the retail cost, but we need the manufacturing costs to come down in order for the retail costs of those panels to drop.

Until recently, the price of the solar panels has been sitting around $3 to $4 per panel. Researchers believe that the cost of those panels needs to be less than $3 to make the transition profitable for a home owner. Has First Solar taken us there faster than projected? The last published predictions were that we'd achieve this level of competition by 2015 - really not all that far away anyway, but getting there faster will allow us to save money more quickly. Better yet, we need these other forms of energy in order to reduce our drain on other natural energy sources.

Photo by waynenf / CC BY 2.0

Just because the production process has become less expensive doesn't mean that savings will be passed to consumers very soon. First Solar supplies large, commercial entities with panels, not the average consumer. This is where the government has stepped in to help boost the use of solar power.

The economic stimulus package introduced by President Obama extended and expanded the tax credit residents receive for implementing other sources of energy for their home. The tax credit is 30% of the cost of the materials and installation and an existing cap has been removed, making it much more of an incentive to us all. The term of this credit was also extended to 2016. The IRS published an announcement explaining the credit and qualifying criteria.

Understanding that solar electricity for the home is about to become an item of interest for more and more home owners also means that demand for solar panels will begin to increase. Those that understand the potential and are comfortable with installing the technology will certainly be first in as will those who can afford to have a system installed by professionals. What about the rest of us? We need some quick lessons in order to take advantage of these opportunities.

Photo by tventano / CC BY-SA 2.0

Professional installation is available in most cities but it's extremely expensive, costing thousands of dollars for even a small home system. In this economy, we're looking for ways to reduce expenses, not increase them. We need solar electricity systems that are more inexpensive and save us money.

So, how do we as homeowners take advantage of these energy supplies whether we want to reduce our electricity bill or help the environment without going broke? Fortunately, many smaller companies are making it possible for us to take steps to implement solar electricity without taking out a loan.

Don't miss this tool: Find Solar. It's rather addicting. Just punch in a few pieces of information and the calculator will tell you the cost of a professionally installed solar home system. It even calculates in federal and state tax credits.

For a home my size, after all incentives and credits, it would cost me almost $25,000 for a system to offset only 25% of my electricity! Yikes! Worse, I live in Arizona where I have nothing but sunshine.

Instead, we need to look at the do-it-yourself route. There are small solar electricity kits available even through Amazon and Home Depot. Better yet, those in the know are writing how-to guides that walk us through every step of the process. Let the big companies tackle the large, commercial projects. We homeowners are a resourceful bunch. We'll follow the cutting edge and get there first.

Photo by dominicspics / CC BY 2.0

Find out the solar electricity secret more and more consumers are using to cut their own electric bill today!