In very basic terms, a solar panel is a device that will produce a flow of electricity under sunlight. Solar power is a renewable energy resource that harnesses sunlight to generate electricity. It is the most popular renewable energy technology because it produces energy on demand, so it can be used for a wide range of applications.
The majority of residential solar panel systems are grid-tied, which means they’re still physically linked to the local utility firm. The perk of remaining connected is being able to take advantage of net metering and having a backup power source for times when the sun isn’t shining.
A grid-tied residential solar system is made up of three technologies: solar panels, an inverter, and a utility meter.
- Photovoltaic solar panels absorb energy from the sun and convert it into electricity.
- The inverter takes the raw energy and makes it usable for our needs.
- The utility meter serves as the connection between the system and the grid.
- The fourth, optional component is a battery. This stores solar energy generated at home instead of sending it to the grid. Batteries are important for backup power in case of a grid failure.
Saving energy saves money. By transitioning to solar panels, you will:
- Save money on your utility bill
- Participate in environmental governance
- Become eligible for state and federal tax credits
The government-sponsored solar energy tax credit covers a large chunk of the cost of installing solar panels. All US homeowners are eligible for a 30% federal tax credit on the total cost of their solar system, regardless of income or location.
There is no maximum amount you can spend with this system, and there are no limits to how many properties (including second homes) you can own. New construction will also be eligible for the tax credit which is claimable at 30%. This particular tax credit decreases by a few percentage points every year until it expires in late 2021.
While many states have yet to join the federal solar policy, some have taken quick action and offered a 30% credit! Additionally, your local utility provider may give you additional benefits for going solar. With the sheer amount of power companies operating in our 50 states, there’s no way to accurately cover each policy on this website; however, if you’re seeking further knowledge we strongly recommend consulting with a local expert. When you’re interested in speaking with someone about these policies, we’d be happy to get the conversation started.
While many states have yet to join the federal solar policy, some have taken quick action and offered a 30% credit! Additionally, your local utility provider may give you additional benefits for going solar. With the sheer amount of power companies operating in our 50 states, there’s no way to accurately cover each policy on this website; however, if you’re seeking further knowledge we strongly recommend consulting with a local expert. When you’re interested in speaking with someone about these policies, we’d be happy to get the conversation started.