Users Guide for Powering Your Home With Solar Energy

Have you noticed your electric bills are going up and up? No matter what we do to combat rising energy costs, keeping warm in winter and cool in summer gets more expensive every year.

That’s why some of our neighbors are “going solar” in a move that could pay dividends down the road. But how do you even begin to consider making the switch?

Let’s start with that electric bill and a few other numbers. Take a typical home of 2000 sq. ft. of interior space and a roof unobstructed by the sun’s powerful rays. A basic 5-kilowatt (kW) photovoltaic (PV) renewable energy system should be able to deliver about 90% or more of a home’s required electricity. A new system may cost roughly $15,000 – for solar panels, inverters, charge controllers, wiring and installation.

A typical monthly electric bill in the U.S. is $110 or $1320 a year (some studies show it’s about $97/month in Washington). Simple math will tell you that by shifting the 90% of solar-power energy off the electric grid, a homeowner may be able to save about $1188 a year from a power bill. In other words, the basic cost of the solar system could be paid off in about 12 years. (Prices and scenarios will vary, and they don’t count the possibility of having neighbors share in your solar usage and costs.) 

Most solar panels are guaranteed for performance for about 25 years (along with equipment warranties of about 10 years). That adds up to a potential net gain of about $15,000 over the life of the system, assuming no utility-rate increases or additional equipment costs (which are huge assumptions). 

Further helping the homeowner’s bottom line is a federal solar tax credit, which in 2022 is 26% (22% in 2023) for an eligible system. That means a household is credited $3900 in federal taxes on a $15,000 purchase in 2022. The solar credit is expected to expire in 2024.

Many homeowners deliver excess solar power back to the local energy grid for additional savings. Systems are smart enough to know when to save energy for the home and when to export surplus power to the grid – known as “net metering.” 

The City of Seattle requires all homeowners using solar systems to participate in the net metering program and an interconnection agreement for full transparency. The city will credit owners’ electric bill for every kW returned to the City Light grid. Puget Sound Energy has a similar program known as Solar Choice.

Some municipalities and third-party businesses offer financing and leasing options for solar systems. If the costs have not deterred you, then ask yourself this: Does your property receive a good dose of sun without too much shade from trees or buildings? The solar panels won’t work effectively if the sun is filtered or blocked.

Do you have the funds to leverage the sun? Great! Let’s start planning.Solar PV modules come in many types and sizes. They should include a warranty of at least 20 years and have industry standard approvals (UL, CE or CSA). An electrician knowledgeable in solar-ray installation and local permitting should be hired for the project.

The experts will determine how many panels are required to meet a home’s energy needs. Consider factoring in neighbors’ needs (even if only in an emergency) when determining the scope of the project. Installers will likely plan for worst-case scenarios, in the cold of winter with the least amount of natural sunshine and a neighbor tapping into your outside electrical outlets.

By measuring need at a surge point of the year, an electrician can estimate the number and type of solar panels and home batteries required. Both types of batteries on the market – lead-acid and lithium-ion – are suitable for storing and delivering energy to the home. 

Looking over the horizon, the question is who is going to drive energy-efficient technology through this century and bring every household along for the ride? Will it be the local utility company that benefits from delivering electricity and other power? Maybe. Will a large company with shareholders monitoring the bottom line take the lead? Possibly, but is that a good thing for households on a fixed income? 

The cost to switch is not cheap. In addition to the basic hardware to harness the juice from the sun, it’s essential to have a sturdy roof that can support solar panels and wiring. In addition, there must be dedicated space – preferably in a cool, dry place – to hold a number of batteries that collect and convert solar power.

“Solar and wind are now the cheapest bulk power sources in 91% of the world, and the International Energy Agency expects renewables to generate 90% of all new power in the coming years,” Amory Lovins, adjunct professor of civil and environmental engineering at Stanford University, told The Guardian newspaper in March. “The energy revolution has happened. Sorry if you missed it,” added Lovins, who wrote his first paper on climate change in 1968.

An affordable alternative to adding solar to your home is “community solar” – ideal for both owners and renters. Solstice, for example, is a company that allows households and businesses to support solar farms without upfront costs. Legal in about half of the U.S., customers earn credits by investing in a local solar farm while continuing to use existing power sources. A typical home saves about 10% of its energy costs by participating in this energy-use model and it’s available to any qualifying household (multi-family or single-family homes).

Are you ready for solar power in your home?