You already know why utilizing solar energy to power your home is an awesome decision: it reduces the need for nonrenewable oil, diminishes greenhouse gas pollutants, and ultimately puts money in your pocket by not being dependent on the utility provider.
Unfortunately, solar panels are like hybrid vehicles: right now most owners are those who have dispensible income and and a concern about the environment. Installing a photovoltaic system (in Greek, “photo” means sun and voltaic refers to power) for the eventual monetary gains is usually not the primary reason people go solar—for most people its more about the environment than anything. The average time period for making back the money you put into the installation is about 10 years, depending on the system size and the state you live in.
But here’s the key: right now most states have incredible public incentive programs that you should absolutely take advantage of. Federal stimulus money has boosted these programs, yet the real spur is the changing attitude among planners and politicians who finally see the need for a renewable energy future. States are drafting plans that mandate the use of a certain percentage of renewable energy within the next five or ten years and there is real momentum in the political arena to encourage citizens to install photovoltaic systems on their homes.
In New York State, for example, the NYS Research and Development Authority is responsible for administering funds to homeowners, businesses, and municipalities. If your application is accepted (which in most cases is almost guaranteed), then your incentive package can cover up to 50% of your total installation cost. On top of that, you can get up to $5,000 in federal tax credits! Municipalities and non-profits have slightly better incentives than homeowners and businesses, yet they are all quite substantial.
What are the limitations for solar incentives from NYSERDA? For residential applications, you cannot get funding for any system larger than 10 kw. That’s okay though, since the average American home doesn’t usually require a system much bigger than that.
But should you procure a system that covers your buildings entire energy load? That depends. You must have enough available roof space with no shading issues. However, you can always get a ground mount if you have ample space in your yard. It is more economically and environmentally effective to go for the larger system, but keep in mind your incentives probably have a cap.
One reason that homeowners might choose to install a system that covers their whole load and then some, is that you can sell back excess energy to the grid. That’s right, with net metering, if you generate more than you use, the utility company pays you. In most cases, you cannot have a grid-tied system that produces more than 110% of your load, so the utility does have some discretion.
A few more reasons to take advantage of such incentives: You will rarely have to maintain or clean your panels (maybe once a year, or if they’re accessible in the winter to brush off the snow) and most come with at least a 30 year warranty. They’re virtually indestructible. The only cost to you is the initial installation price, which varies but on average is in the $10,000 to $50,000 range for an average homeowner. Remember, with state and federal incentives, that number can be cut in half. Incentive money does run out, so plan accordingly. Solar installation is easier than every before and is on its way to becoming mainstream as people recognize the benefits.
