Top Three Ways to Lower the Cost of Solar Energy

Installing a solar power system for your home is a great way to lower your electricity bill and help the environment. However, the huge upfront cost of solar energy systems is a hurdle that homeowners will need to overcome to realize these benefits.

According to the U.S. Department of Energy, the average installed cost of a 2kW solar power system in 2008 was $18,000 to $20,000. But with a little planning, you can significantly reduce the cost of going solar.

Here are three methods you can use to lower your solar power costs...

Become Energy Efficient

The first way homeowners can lower the cost of their solar power system is to make their home as energy efficient as possible. By making your home energy efficient, you will be able to reduce the amount of electricity your system will need to generate. As a result of your lower electricity demand, your solar power system will not need as many solar panels, which are it's most expensive components. A home energy audit can help you identify and prioritize which home energy efficiency improvements you should make.

Use Solar Power Incentives

The second way a homeowner can reduce the cost of their solar power system is to take full advantage of the solar power incentives provided by the government and the solar industry. The most significant incentive is the federal tax credit, which provides a 30% credit for your system. Other incentives include solar power grants and solar energy rebates.

Consider Solar Rentals

The third way homeowners can lower their upfront costs for going solar is to "rent" their system instead of purchasing it. Solar rentals are also known as Power Purchase Agreements (PPA). These were first utilized in the commercial sector, but are now available for residential solar energy systems in some areas.

With solar rentals, a solar energy provider will install a solar power system at your home. The solar energy provider owns the system and will maintain it. They will provide you with solar electricity at a fixed rate for an agreed upon length of time. While your neighbors rates increase year after year, your rates will remain constant. Your only upfront cost is a small deposit. Using solar rentals, you can take advantage of solar energy's benefits without any large upfront costs.

Installing a solar power system is a great way to reduce your electricity bill while helping the environment. To reduce the upfront costs of a home solar power system you can make your home more energy efficient, use solar power incentives, or use a solar rental agreement.

For more information about the cost of solar energy for homeowners, please visit www.solar-energy-at-home.com