Every homeowner that makes the switch to solar becomes part of the solution to sustainably meeting the world’s energy needs. To ensure that your residential solar system is not only kind to the planet, but to your finances as well, avoid these seven mistakes when installing solar panels.

For help finding contractors, or for pricing on a system, click here.

1. Hiring the Wrong Contractor

Choosing the wrong solar contractor can lead to multiple mistakes. An awesome contractor will not only advise you about the right system to choose, where to install it and how many solar panels you’ll need, but can help with financing, incentives and other cost-cutting options. The right contractor will assess your home’s energy usage and show you how to make the system as efficient as possible.

2. Picking a Bad Location

Ideally, a home solar system should be installed on a south-facing roof that is not shaded by other structures or trees. In sunny areas, other roof locations can make a home a good candidate for solar as well. If a good roof location isn’t available, your solar contractor will provide you with information other alternatives, such as ground-mounted PV arrays.

3. Buying the Wrong-Sized System

Homeowners need to be clear about what percentage of their home’s energy needs they expect to be met with a new home solar system. Even a small system can save homeowners money, but it’s important to understand what they should expect before signing a contract. A good contractor will know the efficiency ratings of the solar panels that they install and can explain how efficiency ratings affect performance.

4. Missing Out on Incentives

Incentive and solar rebate programs offered on the federal, state and local level are always subject to change. While a great solar contractor will keep up to date on them, it’s important for you to do your homework as well. Depending on where you live, you may be able to save up to 60 percent on installation costs by taking advantage of incentive programs.

5. Not Getting the Most Out of Solar

Learning about how net metering systems work with home PV systems helps homeowners make the most out their solar systems. Since many utilities charge different rates at different periods of the day, you can enjoy additional savings by taking advantage of your solar array’s peak efficiency periods.

6. Missing Out on Financing

A careful assessment of your home’s energy needs and your household’s financial health can help determine whether it’s more advantageous for you to purchase or lease a system. Other types of solar financing options are available as well, including home equity loans.

7. Missing Out on Property Tax Exemptions

Home improvements can trigger a new tax assessment on your property, but many states exempt renovations that increase a home’s energy efficiency or that use renewable energy. Check with your state’s board of equalization department for details.

Even as the cost of home solar falls, the cost of conventional electricity continues to rise. The Energy Information Administration predicts that energy consumption will more than double by 2035 worldwide. Homeowners are starting to look at solar energy as protection against future price increases.

Fortunately, there are many solar options that will not only immediately reduce your monthly energy bills, but save you even more money over time. Here are five of the best.

For pricing on home solar power, click here.

1. Solar Water Heating Systems

Solar water heaters can cut your hot water costs by more than 50 percent. That kind of efficiency means that you’ll recoup the initial installation costs in around 5 years. Since the solar panels for these systems last 20 years or longer, you’ll enjoy many years of extra savings. A number of rebates and incentive programs can substantially reduce upfront costs as well. In fact, in many areas, there are more programs offered for solar hot water than there are for home photovoltaic (PV) systems.

2. Small Residential PV Systems

Even a few residential solar panels can make a significant impact in monthly electric bills, particularly if your utility company has a tiered-rate system. Utilities typically offer a base rate to cover basic electrical needs, but as your consumption increases, so do the rates. Many utilities increase rates further during peak-demand periods. The time of day when electricity is most in demand is usually in the afternoon, when solar panels are at their highest efficiency. As solar panels are modular, you always have the option to add more later.

3. Ground-Mounted (Backyard) Systems

If you’d like to go solar, but your home’s roof simply isn’t a good candidate for solar panels, consider a ground-mounted system. In the past, ground-mounted systems were considered more expensive, as they require extra equipment. But more and more solar contractors are offering ground-mounted systems that operate with GPS technology, enabling them to tilt towards the sun as it crosses the sky. This increased efficiency can offset the additional costs.

4. Solar Shingles

If you’re considering installing a new roof on your home, incorporating solar shingles into the design is another affordable way to work solar energy into your life. You’ll spend less than if you purchased a roof and a home PV system separately.

5. Solar Leases

Solar leases make it possible for just about any homeowner to enjoy lower electrical bills for little or no money down. The solar provider will install a system for you, maintain and insure it, and you just pay the provider for the electricity that the system produces at a locked-in rate, protecting you from rising energy costs.

Have You Gone Solar?

Have you made the switch to solar? What type of system did you go for, and why? Let me know in the comments!

There’s never been a better time to go solar, and solar has never been more affordable, either. Here are 10 cost-cutting ways to join the movement to make the world run on clean, green, renewable energy.

1. Get a Home Assessment

The first step is getting your home assessed for solar potential. The only way to know for certain if solar is right for you–if it will indeed save you money–is to have it inspected by a licensed solar contractor.

For free solar estimates, pricing and contractor info, click here.

Another good tip is to get an energy audit. Energy audits save homeowners money by identifying how an individual home is using, and perhaps wasting, energy. Some states offer rebates for energy audits. In fact, Californians may be eligible for a $500 rebate from the California Energy Commission.

2. Start Small

Solar panels are modular. Extra panels can be added over time. In areas with tiered electrical rates, even a small residential solar photovoltaic (PV) system can save you money. Tiered rates include a low base rate that covers the primary amount of electricity homes use. The addition of a small PV system can lower usage enough to keep you paying that low base rate.

3. Low-Income Programs

Some states offer special solar grant programs for low-income homeowners, paying for all or some of the upfront costs. The household’s income is compared with median incomes in the area to determine eligibility. Funding for these programs, however, is limited.

4. Solar Leasing

Homeowners can lease home solar power systems for little or no money down. The solar company purchases, installs, maintains and insures the system. The homeowner usually pays the company for the electricity that the system produces, typically less than they were paying before for traditional electricity.

5. Home Financing

Some solar contractors, financial institutions and banks offer solar financing, energy-efficiency home equity loans, or mortgages at discounted rates.

6. Group Buying

Companies like 1BOG organize group buying opportunities for homeowners by collecting names of interested residences in a neighborhood online. The company then negotiates for a discounted group rate, typically around 20 percent lower than most solar installations.

7. Incentive Programs

Homeowners can save up to 50 percent or more by taking advantage of solar rebate and incentive programs available in their areas. The federal tax credit program alone covers up to 30 percent of installation costs.

8. Solar Renewable Energy Credit

About 39 states give homeowners Solar Renewable Energy Credits (SREC) for each megawatt-hour of electricity their residential solar power systems generate. The SRECs operate as a financial instrument, sold to either utilities or solar energy markets. Depending on the state, prices range from around $200 to $700. They can drastically offset your electric costs.

9. Net Metering

Net metering allows you to send surplus electricity that a home solar system generates back to the electric grid. A few states will pay you directly for the excess electricity, while some credit your electrical bill.

10. Time-of-Use Metering

Many utilities use Time-of-use metering that allows them to charge customers more for conventional electricity used during peak-demand periods. Peak demands periods usually occur during the afternoon, when home solar systems are operating at the most efficient levels, allowing homeowners to avoid using high-rate conventional electricity.

Having the right resources can make going solar easy and affordable. And we’ve got a few tricks up our sleeve to help you do just that.

Below is a list of industry-leading resources for residential solar installation. Not only can these organizations help you learn what type of home solar power system you’ll need, but even which financing options and solar rebate programs are available, as well as tips to find the right solar contractor for you.

You’ve dreamed about it. You’ve poked around online looking at solar costs and types of panels. Now you can take that extra step to finally wean your home off fossil fuels, cut your electrical bills now, and save money for years to come.

Here are 7 killer resources for going solar in 2012.

1. Finding Contractors

At CalFinder, we’re in the business of connecting you with great solar contractors. We know each contractor, we carefully review their work, and we match them with interested homeowners nearby. All it takes is a few minutes to get your home assessed for its maximum solar potential.

For pricing and solar contractor referrals, click here.

2. Solar Incentives

Funded by the U.S. Department of Energy’s Office of Energy Efficiency and Renewable Energy, the Database of State Incentives for Renewables & Efficiency (DSIRE) is a good source for information on state, local, utility and federal incentive programs that can sometimes cut the cost of residential PV installations by up to 60% or more. The programs are periodically reviewed, but sometimes the site may contain outdated information or broken links. Still, DSIRE remains the most comprehensive source for information about incentive and rebate programs.

We also maintain a list of solar rebates broken down by state, but in a more easy-to-understand format. Solar incentive data can be difficult to digest, so we’ve done our best to make it accessible to all.

3. How Much Electricity Should You Offset with Solar?

The first step to going solar is to determine whether your home is a good candidate for a home solar power system. Part of that process is calculating how much electricity your home is using now. The U.S. Energy Information Administration (EIA) collects, analyzes and reports on energy information, including statistics about how much electricity the average American home consumes.

Check out their user-friendly FAQ page to access specific data. The Energy Department has some basic information about how solar works and what to consider before making the decision to go solar.

4. Top Solar Panel Brands

Wikipedia offers a list of the top 10 solar manufacturers, gleaned from an annual report put out by Photon Magazine, an industry subscription publication. Another industry organization, Solar Buzz, also reports annually on the rankings of solar manufacturers.

5. Industry Information

The Solar Energy Industries Association (SEIA) is the leading national trade association of the U.S. solar energy industry. SEIA releases quarterly reports on the state of the industry. In addition, a contractor who is an SEIA member is likely to be experienced and reputable. SEIA recently merged with the solar advocacy organization Solar Alliance.

6. Solar Price Calculators

CalFinder has links to a number of online calculators that can help you calculate what sized system you’ll need for your home. We also provide info on how many solar panels you’ll need.

7. Solar Chat Forum

Solar Panel Talk offers a online forum for people interested in learning more about solar energy systems. From conventional residential solar systems, to off-grid and DIY applications, you can chat about it all.

Did we miss anything?

Pipe up! We’re happy to hear your suggestions in the comments.

As anyone who has taken on a remodeling project knows, more time can be spent preparing for the project than for the actual installation. Homeowners who try to install a residential solar photovoltaic (PV) system often face complicated processes to get the permits that will not only ensure that their projects are up to code, but that they’ll be eligible for solar rebates and incentive programs.

For many residents of New York, going solar is about to become a whole lot simpler. In fact, a process that once took months could now take less than two weeks.

Streamlined Path to Solar

The Long Island Power Authority (LIPA) recently announced that they are partnering with planning commissions in Nassau County and Suffolk County to create a streamlined and standardized permitting process for residential PV systems and solar hot water systems throughout Long Island.

The regional collaboration that helped formed the new initiative included government officials, industry representatives and advocates for renewable energy. The regional initiative is believed to first of its kind in the country.

For solar pricing on a system in your area, click here.

LIPA, a not-for-profit electric utility that provides electric service for more than 1 million customers in Nassau County, Suffolk County and the Rockaway Peninsula, has been a significant player in the nation’s push to become less dependent on fossil fuels. The company’s solar programs have rebated over $100 million for over four thousand PV installations.

Formerly, each town and village had their own set of regulations for PV installations. This not only created confusion among homeowners and solar installers, but caused delays and frequently added to the expense of the installations as well. The new solar permitting process is expected to cover more than 80% of new solar installations.

New Incentives for New Yorkers

To incentivize municipalities to join the effort, LIPA offered $15,000 to each township and $5,000 to villages that adopted the key components of the plan by the end of 2011.

Here’s what homeowners in the area can expect from the new initiative:

• Application fees will be minimal or waived.
• Permits will be accepted or denied with 14 days of submittal.
• A “Solar Energy System Fast Track Permit Application” will replace existing building permit forms.
• A central registry of all solar installations will be created.
• Safety warning labels will be standardized.

Gordian Raacke, Executive Director for the not-for-profit group Renewable Energy Long Island, praised the new program. “Inconsistent local permit requirements can add hundreds of dollars to the cost of installing a solar electric system,” he said.

Raacke expects that the new permitting system will not only make installing a home solar system easier and cheaper, but will help ensure that the systems are properly designed and installed as well.

Michael Hervey, LIPA’s Chief Executive Officer agrees. Hervey expects that the streamlined permitting process “to act as a catalyst to encourage more homeowners to take advantage of LIPA’s solar programs and save money, while at the same time helping to foster new jobs in the local solar market.”

Photo: Long Island Sunset by Benson Kua

News about the reduced price of solar is rarely covered by mainstream media, often leaving you to draw conclusions about the technology from outdated facts and figures.

But today’s residential solar installations are far less expensive than many people realize. In fact, photovoltaic (PV) solar installations are 43% cheaper than they were just a dozen years ago.

It would be hard to name another technology of home solar power‘s scale and magnitude that has experienced such a substantial reduction in price.

But don’t take our word for it.

Check solar prices to see the drop firsthand.

To get solar panel pricing in your area, click here.

Here are the top five reasons why solar has become affordable for almost every homeowner.

1. Savings Through Incentives

A variety of solar rebate programs offered at the federal, state and local levels offer significant savings to homeowners interested in installing a residential solar system. The federal tax credit incentive program is the most generous, covering up to 30% of all installation costs.

Other incentive programs vary from state to state. Some states offer a flat rebate. Other states, like California, work with public utilities to offer per-watt rebates. A few states even offer solar grants and programs for low-income homeowners.

2. Hidden Savings

Most people know that once they install a residential solar system, they can expect to save big on electric bills, but may not realize that they may actually be paid for the electricity their systems produce. Some states offer a Solar Renewable Energy Credit (SREC) for every megawatt-hour a home PV system generates. SRECs are financial instruments that can be sold in a number of ways, through a broker, to a utility company or on the SREC market. Prices for SRECs range from $200 to over $600.

Even with a small solar system, you may enjoy months where the only charge you see on your electric bill is a nominal service charge. When a home PV system produces more electricity than it is currently using, the excess is sent back into the electrical grid. In some states, utility companies either pay for or give credit for the surplus energy. In sunny climates, this can add up to substantial savings.

3. More Hidden Savings

In many areas, utilities used a tiered rate system, charging a base rate for the first 10 kilowatt-hours used each day and increasingly higher rates for additional kilowatt-hours. By offsetting conventional electricity with solar energy, homeowners reduce the expense of higher rates.

4. Even More Hidden Savings

Many utility companies also use Time of Use (TOU) metering systems. Customers are charged a higher rate during the times that power is in high demand. Typically, the highest peak period occurs during the afternoon, when a home solar system is operating at its highest efficiency.

5. Leasing Instantly Lowers Monthly Bills

When the initial costs of purchasing a home PV system are a barrier, you can still enjoy monthly savings on your electric bills by leasing a system for little or no money down. Solar contractors will install, maintain and insure a residential solar system, only charging you for the electricity the system produces, which is typically less than conventional electricity.

“These guys did a gorgeous job on the installation,” solar homeowner Duncan Mathison says of his low-profile Kyocera panels.

While finding information on the basics of residential solar systems is a piece of cake, it’s not often that an opportunity presents itself to learn firsthand (and in exciting detail) from a homeowner who has installed one.

The good folks over at Greenwala did just that, interviewing Duncan Mathison, a homeowner in San Diego, California, who installed not one, but two solar systems on the roof of his home. Mathison talked about why he decided to go solar and what steps he took to choose the right solar contractor.

Treating the High Energy Bill Blues

Duncan Mathison, his wife, and two teenage children enjoy an air-conditioned home and a heated pool, but Mathison did not enjoy the energy bill blues that accompanied those amenities. A close examination of his electric bill revealed that the home was always in the most expensive “top tier” rate category. Most electric utilities have a tiered-rate system.

The lower, base rate is intended to cover the fundamental electrical needs of a home. When homeowners go over that basic amount, rates increase. Mathison installed a new, energy-efficient air conditioning system and replaced the home’s lighting with low-energy bulbs, but the electrical bill remained staggeringly high.

Mathison had been following advances in solar technology and realized that the available solar rebate programs, which greatly reduce installation costs, might never be better than they are now. Two friends had already gone solar, and their enthusiasm, combined with a growing consciousness that his family’s carbon footprint was getting out of hand, convinced him to put panels on his home’s south-facing roof.

Finding a Solar Installer with Integrity

The next step was finding the best solar contractor to install the panels. Mathison followed the recommended advice to get estimates from three different contractors. He based his choice not only on the quoted prices, but on the knowledge that the contractors exhibited during the inspection. REC Solar, one of CalFinder’s own certified installers, impressed Mathison with their integrity.

(For pricing, or to locate an installer in your area, click here).

Mathison questioned them about possible corner-cutting, money-saving shortcuts, and REC Solar took the time to explain alternatives honestly and in detail. “He was a real pro,” Mathison said of the REC Solar representative. Mathison also took the time to research the company’s reputation, finding only one complaint, and that complaint had been immediately resolved.

While Mathison didn’t indicate how many solar panels were required, it’s a 10.9-kilowatt system, large enough that it needed two inverters (the mechanisms that convert the panels’ DC electricity into the AC electricity that homes use). REC Solar gave the Mathison’s an estimate on how much they’ll save each month, but the family is discovering that they are saving much more.

Their monthly electric bill has been reduced by around $400 per month. The PV system is providing between 70 and 100% of the electricity that their home uses. “At that rate, the system will pay for itself in about 7-8 years,” Mathison said.

Mathison summed up the experience simply: “I love to watch the electric meter spin backwards!”

Congrats to all!

Low-income residents of California are getting some help to lower their electric bills, through a state-run program overseen by the Public Utilities Commission.

The Generating Renewable Ideas for Development Alternatives, called GRID Alternatives for short, was created to help bring solar power options to low-income homeowners. The program is funded by utilities, private corporations and non-profit organizations, as well as through a public benefit fee paid by public utility customers.

GRID is the administrative branch of the Commission’s Single-Family Affordable Solar Homes (SASH) program.

San Jacinto resident Thomas Slayton III and his family were chosen to help spread the news of the program’s expansion into Riverside County, near Los Angeles, CA. A residential photovoltaic (PV) system was installed on the roof the Slayton home through GRID funding.

Slayton became disabled after an accident in the 1970s. To protect his health, his home must be kept at an even temperature, resulting in high energy bills. He and his wife, Missy, have five children, making it difficult to keep up with the bills.

Both grants and loans are used to fund GRID residential solar projects. Generally, a free 1-kilowatt solar system is available for families who are earning less than 50 percent of an area’s median family income, as defined by the U.S. Department of Housing and Urban Development.

For pricing on a home solar system in your area, click here.

For families earning between 50 and 80 percent of the area median income, rebates between $4.75 to $7.00 per watt are available. This amounts to a practically free home solar system. Owners must be occupying the home, and the home must be served by one of three public utilities, Pacific Gas and Electric, Southern California Edison or San Diego Gas and Electric.

While the Slayton family’s income and PV system size were not made available, it’s possible to estimate the cost and savings of the family’s system from known data. According to a GRID administrator, the Slayton’s PV system is currently meeting 30 percent of the home’s electrical needs, and a 2-kilowatt size system would likely cover that percentage. The gross upfront costs for the system would be about $16,000.

The federal incentive solar rebate program reduces the cost of installing a home solar system up to 30 percent, resulting in a $4,800 rebate for the system, lowering the gross cost to $11,200.

The Slaytons are customers of Southern California Edison, which currently offers a $.65 per watt rebate to all customers who install solar panels. For the Slaytons, that results in a $1,300 rebate, further lowering the cost to $9,900.

The additional GRID rebate would likely reduce the cost to zero. The Slaytons will continue to enjoy savings throughout the life of the 25-year PV system:

• Average Monthly Utility Savings: $75
• Average Annual Utility Savings: $905
• 25-year Utility Savings: $22,634

For the Slaytons and a thousand other low-income families like them, reduced energy costs helps keep homeowners in their homes and families together. “Me and my family are very, very grateful for the gift of solar energy,” Slayton said.

In Hampton, Virginia, resident Ben Cuker never pays the local power company more than $8.25 a month. What’s more, several times a year the utility sends him a check for $200. His neighbor, Max Buzard, enjoys a similar arrangement.

Both Cuker’s and Buzard’s homes are powered by solar energy systems, systems that provide all the electricity they need.

“Dominion charges us about $8.25 a month for staying tied to the electrical grid,” said Cuker, a professor of marine and environmental science at Hampton University.

The potential to earn extra income with residential systems isn’t some futuristic dream. For photovoltaic owners like Cuker and Buzard, it’s happening now.

The two are teaming up to spread the word, becoming part of this fall’s annual National Solar Home Tour, organized by the American Solar Energy Society, a non-profit organization that promotes green energy. Cuker and Buzard will be on hand to answer questions about the Solar Renewable Energy Credit (SREC) program.

For each megawatt hour of renewable energy production, homeowners earn one SREC. Utilities are mandated by law to invest in renewable energy. They meet that mandate in part by purchasing clean power generated by residential solar.

Some utility companies enter into an agreement with residential customers to purchase the SRECs. Otherwise, the homeowner can sell the SRECs on the open market.

Prices for SRECs vary from state to state. In New Jersey, SRECs can sell for as high as $700. In Virginia, SRECs sell for about $200.

And although Cuker’s home consumes almost all the electricity that his PV system produces, Dominion still pays him for it. “The fact that it was done without burning dirty fuels is what is traded,” he said.

For pricing on a solar system in your area, click here.

Other utilities purchase renewable energy using an arrangement based on net-metering. When homes with solar systems produce more energy than a home is using, it flows back into the grid, making the electric meter run backward.

Many states mandate utilities to buy this net excess generation, or NEG, from homeowners, typically at the same rate as conventional electricity.

Buzard, who sells solar panel systems through Royer Technical Services in Hampton, stated that a 10-panel PV system, after installation rebate and tax credit incentives, along with annual SREC sales, would cost about $14,000 and pay for itself in 10 years.

The PV systems at the homes of Ben Cuker and Max Buzard are about twice the size of the average system. Their systems already provide all the electricity they need. Once they’ve recouped their initial investment, those SRECs become sheer profit.

Since PV systems last from 20 to 30 years, that’s at least a decade of free electricity, and at least a decade of $200 checks every few months from Dominion.

So, what do you think? Want to see how much you can save with solar? Talk to a contractor today.

You know those mythical stories where the hero harnesses the power of the sun? Well, little by little, we’re getting there. Solar power is amazing. Innovative advances in technology are allowing us to access solar power on a greater and greater scale.

The potential is endless. Think of this: enough sunlight hits the earth’s surface in a single hour to meet all of humanity’s energy needs for a whole year. The mind reels with this information. Solar energy. It is clean, sustainable—and it’s everywhere.

Yet few people know how to get the most out of solar. Not only does it require a knowledgeable contractor, it requires knowing if your state and city offer solar rebates. The task can seem daunting, to say the least.

Going solar one step at a time

The good news: the future looks to solar. You’ve heard about real people in real homes using solar power for more manageable costs. Huge advances are being made to bring residential solar to an affordable level for the masses. Photovoltaic panels continue to get smaller and more affordable. Costs per watt and equipment fees are dropping every day.

To get pricing on solar panels in your area, click here.

This is a trend that won’t sway the other direction, since solar is the next big energy we’re turning to globally. Policymakers are waking up to the socio-economic and ecological benefits of a more decentralized power grid, allowing communities to share access to solar energy (check out our recent post about solar gardening.) Even new building codes will reflect the new reality of solar power brought into residences as well as businesses.

Some benefits of this solar trend that you can access now? You can use that free energy now, you know. Of course, these vary according to your location, needs and budget. But they are great food for thought.

1. Small-scale solar panels

No, you don’t have to cover your whole rooftop with paneling. Consider that many smaller solar kits include simply a panel, controller and battery. You can start going solar as soon as this weekend.

2. Tubular skylights

Energy efficiency isn’t just about CFLs and LEDs. Consider a skylight that will bring solar power in its most undiluted form to your living area, reducing your need for heating and lighting. Solatube is one such product.

3. A clothesline

Basic, right? A dryer is one of the hungriest home appliances, and using a clothesline can reduce your bill by around $200 annually. Put the clothes out on a line (oh, the aesthetics! oh that fresh scent!), and watch the magic happen before your eyes.

4. Solar attic fans

With temperatures rising as high as 150 degrees in your attic, a solar-powered attic fan will help reduce the cost and waste of cooling your home in warm temperatures.

5. Solar cookers

Feel like barbecuing for the big game? Consider the Ultimate Solar Tailgate Party featuring a simple solar cooker, which you can buy or even make yourself.

Each of these projects comes in at under $500, and is no more involved than a weekend or two. This is a sunny look at DIY solar projects. And, considering the power of solar energy, its ability to be accessed globally, and its sustainability, we say to these immediately-available solar improvements: hallelujah.