All of the USA states now have some kind of incentive program to encourage people to use solar energy.

One of the most ambitious states is California. However many of the other states are also launching their own programs. The incentives range from tax rebates to cash back from the purchase or your solar panels.

There are also schemes that offer a premium price when buying back your excess solar power. (These are called production incentives.)

Being connected to the grid, (also called grid-tied) means you can sell this energy directly back to the power company who supplies your electricity. This is called net metering and has to be arranged with power companies. Some states have legislated that all power companies have to have some measures in place for people who are able to sell their excess solar electricity back.

Recently, a change means that you have a chance to get premium rates for your solar energy. This is because the most solar electricity is generated in the middle of the day. This is (in the week times) the time when most people are out of the house and not drawing energy.

So your peak production of excess solar power is also the power companies’ peak demand time. With new TOU (time of use) meters being introduced, this means you can earn premium rates on your solar power if you have these meters and this kind of agreement with your power company.

The Official Government Solar Rebate Site

This site (DSIREusa.org) gives all the government and state rebates currently available. These are not just solar energy rebates. DSIREusa includes rebates for wind energy and energy efficiency.

Solar Investing is one of the interesting emerging markets. It ranges from buying stock in green energy producing companies, to funding research into new technologies, to trading Renewable Energy Credits.

The solar technology stock market is growing fast - estimated 20% growth yearly since 2005. This makes it an area where some investors are willing to take risks. Other experts are quick to point out that solar energy has been promising to overtake coal in $/kw for the last twenty years. Why should it be different now?

The proof lies in investors like Ausra, Google, Infinia, Solel and Florida Power and Light investing significant amounts into solar technology. These companies have been at the forefront of technology booms before, and now they’re betting millions that the solar technology has come of age.

Sites about solar investing:

Green Chip Stocks

Solar Energy Investing

I think that’s probably the first question that comes into people’s minds when considering buying solar panels for their home.

How much will it cost? And will it save me more than it costs?

To know this, you will need to calculate the photovoltaic cost per kilowatt for a home.

Because the cost of photovoltaics, or any solar panel, is not just the initial cost. It’s calculated over its lifetime. It’s rather like buying a house. You could say ‘is this an expensive house?’

And the answer at the time could be yes, that’s quite pricey for the market. However, if in three years all the prices of houses around have gone up, that house at the same price from three years ago would be a bargain.

Similarly, solar energy prices are relative. As other energy prices change (like coal, gas or hydro-electric,) solar energy becomes relatively more or less expensive. So at the moment oil prices are rising. That makes solar electricity a bit cheaper compared with oil. However coal is still relatively less per watt than solar.

Recently, several companies have announced that they can produce solar electricity that is cheaper than coal at cents/watt. This is a large claim, and has yet to be produced in the market place….watch with interest.

So once you know how much electricity your solar panel produces each year you can then see the cost per kilowatt. Multiply the kilowatts per year by 25 (or whatever the warranty of the panel is.) Then divide by the price of the panel. This will give you how much it costs to produce one kilowatt of electricity with your solar panel.

That’s the attractive thing about solar energy - it is possible to ‘fix’ its price for many years. After all, it would be hard to charge for raw sunlight. So if you have installed your own solar panel, then you can know approximately how much energy is available each year.

So how do you know your solar panel output before you’ve installed a panel? That involves a bit more research, but it can be done.

As a starting point, you could try out our new solar calculator

This calculator takes into account the inflation of electricity prices, as well as the fact that solar panels add value to your house.

There are a few ways to analyze the return on investment of a solar power system.

1. Payback time. This is a simple measure of the money you save from your power bill. This can be money that you didn’t spend, or money you made by selling your solar electricity back to your power company. The payback time depends on how much power you use, your utility rates and how much electricity your solar panels make.

2. Cost of connection. This only applies to new home owners who have houses located off the grid. In some cases, it costs less to install a solar panel system than to connect to the grid. Off-grid systems need batteries to provide power at all times. This raises the cost, however money spent on connecting to the grid offers no other benefit. In effect, this is money spent for power that you then have to pay for.

3. Increase in property value. Studies of house sales have shown that adding solar power to your home increases the value. A way to estimate of this increased valueis to take your yearly savings, and multiply by 15. In some cases, the increase in value means that your solar system is profitable (on paper) from the moment it is installed.

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  • Free Solar Power Manual - What most people want to know before investing in solar power. Includes solar panel costing, sizing, solar rebates and solar payback time.
  • Solar Calculator - Find out the Payback Time of a Solar Panel System for Your Home
  • Solar Trading Main Site - More Solar Info, Calculators and Usefulness