4 Advice to Choose a Solar Panels
The case for powering your entire home with energy from the sun has never been stronger.
Jump-started by the Inflation Reduction Act, providing a 30% tax credit for the cost of solar panel system installations, along with falling solar panel prices and rising electricity costs, homeowners can expect to see a return on their investment within seven to 12 years.
But solar might not make financial sense for everyone. If your roof gets limited sunlight or you live in a state without net metering, solar might not be for you. For everyone else, here's everything you need to know about buying solar panels.
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How solar panels work
Solar panels are made of photovoltaic cells, which convert sunlight into electricity. The sun emits solar radiation, which is absorbed by the photovoltaic cells. Electrons within the solar cell are energized, escape their bonds and form an electric current. That current, which starts as direct current, is switched to alternating by the solar system's inverter. From there it's used up in the electronics in your home or sent back to the grid.
"It's not a magical technology, but it seems like it because you just stick something in sunlight and it makes electricity for you," said Joshua Pearce, a professor at Western University in Ontario and co-author of To Catch the Sun, a free e-book on DIY solar systems. "Even being a scientist who works on this stuff all the time, it's amazing that these things actually work."
The benefits of solar panels
Why would you want home solar panels?
- Savings on energy: The most direct benefit is that you can gain the opportunity to power your own home outside of the electrical grid. That saves you money, and if you generate extra power, you might even be able to get credit on your bill from the electric utility via net metering. The average payback period for solar panels is six to 12 years, according to some sources.
- Solar is an abundant power source: According to the US Department of Energy, just one hour of noontime summer sun meets the annual US electricity demand. Depending on your situation, turning it into electricity can save on your electricity bill.
- Help with your home value: If you plan to sell your home down the line, having home solar panels can be a major perk to buyers and can help increase your home's value.
- Going green: Since solar is a renewable resource, you can shrink your carbon footprint.
- Independence from electrical grid failures: Some areas have electrical grids that are less than reliable. If you experience frequent power outages in your area, your own solar power can keep the lights on.
- Power your campsite: Some small solar panel arrays fit right onto RVs, or you can take them camping so you have electricity, no matter how remote the location.
Where to buy solar panels
Many businesses specialize in selling and installing solar panels for homes. Search online to locate solar panel suppliers and installers in your area. You can start with CNET's best list of solar panel companies.
Considering Solar Panels?
You can even shop for solar panels at major home goods stores like Home Depot. Stores like this can even set you up with professional installation to help you get a residential solar panel setup.
Major installers often offer solar financing options, too, though you might be best served by shopping around for a loan. Many solar installers also offer solar panel leases or power purchase agreements, which you can enter with no money down (though savings over the lifetime of your panels are typically lower).
Considering Solar Panels?
You can also apply for the federal solar tax credit, that will give you 30% of the cost of your solar back to you on your taxes, assuming you have that much tax liability.
Solar panel installation
Most residential solar arrays are installed by a professional. Installing solar panels yourself is technically possible, but you run the risk of voiding warranties. You should only attempt it if you have the necessary expertise. If you opt for a professional installation, be sure to shop around for the best deal. Compare the warranties installers offer along with price, customer service and how well their proposed plans meet your needs.
A reputable solar installer will advise you on the age of your roof before installation. Replacing your roof before installation may ultimately be the cheaper option, since removing the panels to replace the roof will be an additional expense.
Care and lifespan of solar panels
Many solar panels are warrantied to last 25 years, though their useful life is likely longer. On top of that, they're fairly maintenance free, just requiring that you keep them free of obstructions like dirt, leaves and snow. More extensive repairs may be covered by warranty.
Solar panels get less efficient over time, though that downward trend isn't necessarily a problem for you. A typical manufacturer's warranty will guarantee that your solar panels won't lose more than 2% efficiency in the first year and not more than 0.5% per year in the next 24 years. That means your panels are guaranteed to produce at 84% their original capacity after year 25. Some panels will set a higher benchmark -- like 92% -- after 25 years, but you'll still be getting plenty of electricity out of them two decades on.
Do you need a solar battery?
Installing a solar battery in your home will allow you to store excess energy produced by your panels. However, they are currently almost as expensive as a solar panel system (from $12,000 to $22,000), so while a battery is nice to have, it's not a necessity.
There are instances where a solar battery is worth the investment. Those who live off the grid will need a battery to use solar power. And if your area is prone to frequent blackouts or you have medical needs that require refrigerated medicine or machinery, a battery may be worth the cost.
How to pay for solar panels
There are a breadth of options for paying for the installation of residential solar panels, aided in part by the 30% federal tax credit. Homeowners can pay out of pocket for the entire project, then receive money back from the government. There are also relatively cheap solar financing options, with plans that offer 1.99% APR over 25 years, that also result in the tax credit. Interest rates have shifted higher over the last year or so and you should shop around for the terms that best fit your needs. Other financing options include bank loans or a home equity loan, but given their higher interest rates, consider these financial tools carefully.
For those without the financial means to buy or finance a system, there are solar leases and power purchase agreements. A solar lease is similar to that of a vehicle -- you pay a set amount each month for a system that will be owned by the installer. Under a power purchase agreement, you pay a set rate for the energy generated by the solar panels (the rate may increase after a certain amount of time), rather than the system itself. The drawback of these mechanisms is that you won't own the solar panels yourself, and hence won't get any of the tax credits or have the ability to sell renewable energy certificates.
How the solar tax credit works
The federal residential solar energy credit, which grants a 30% credit to homeowners who install panels on their home through 2032. (If your entire project costs $30,000, you'll be granted a credit of $9,000). The credit applies to homeowners who purchase a system with cash or through financing.
According to the Office of Energy Efficiency & Renewable Energy, you should seek professional tax advice to determine your eligibility, then fill out IRS Form 5695 following the IRS's instructions.
Improve your home's efficiency first
Before you start the process of going solar, you should try to improve your home's energy usage in other ways.
"Solar is an exciting type of infrastructure, but if the ultimate goal is to save money on your electricity bills, I encourage homeowners to think about efficiency upgrades first," said Gilbert Michaud, assistant professor at Loyola University Chicago's School of Environmental Sustainability. "Those could include insulation, upgrading and replacing windows or other things that are maybe less fun, but can help you realize savings immediately and lower costs. Once you've done those efficiency retrofits or upgrades, maybe solar is a good idea."
These upgrades will give you a clearer idea of how many solar panels you'd need to power your home, too. That means you'll likely need less panels -- reducing the cost of the installation -- than if you didn't do efficiency upgrades first. Here's some suggestions.
- Check your insulation: Inside your walls is a layer of material meant to keep hot or cold air where it is. In the winter, this means the warm air from your heating system stays inside your house, and vice versa for cool air in the summer. If there are leaks in your insulation, hot or cold air is escaping or getting in, which makes your HVAC system work harder and costs you more money.
- Upgrade or replace windows: Much like insulation, your windows play a large role in keeping your home heated or cooled. If your windows are out of date, air could be coming in or out, which is not great for your energy bills.
- Replace old household items with efficient ones: If you have older appliances, thermostats or light bulbs, replace them with newer, more efficient ones to realize energy savings.
Solar panel FAQs
How much money will solar panels save me?
Many experts say that homeowners will see a return on investment on a solar panel installation in a period between seven to 12 years. That's when the money saved from paying your energy bills will exceed the initial money spent on a solar project. Those who go solar through a lease or power purchasing agreement should see savings practically immediately.
Is it better to buy or lease solar panels?
If you have the funds, it's better to buy solar panels rather than lease, and that's mostly due to tax credits. The federal government will provide a 30% tax credit for the total cost of the project. This will take a huge chunk off the bill. The sooner solar panels are paid off, the sooner they provide "free" energy. With a lease, you'll get the benefits of reducing your energy bills but not the credits that accompany solar power, and you will typically save less money over time.
Do you need a permit to install solar panels?
It depends on where you live. Within many municipalities (or if you have a homeowners' association), you'll likely need to get a permit before work can start. Most installers take care of this process for you.
How long do solar panels last?
Many of today's solar panels have warranties guaranteeing their use for 15 to 25 years. Panels are likely to still work after this period of time, although at slightly less efficiency.
How much maintenance do solar panels need?
Solar panels need very minimal maintenance. The only care required would be to clear them of any dirt, leaves or snow, but this is not something you'd have to do regularly.
Can you get solar in an apartment or rented home?
That will be up to the property's owner, but even if they're opposed to installing panels there are ways for renters to access solar. There are smaller solar devices you can use at home. You can also check if there are any community solar options in your area, which will allow you to buy electricity from a nearby solar farm to reduce your energy bills.
How Do You Choose Good Solar Panels?
Are you looking for good solar panels for your home? If so, ensure that you choose the right solar panel for optimum efficiency.
In Australia, the market size of the solar installation industry is currently $3.1 billion. Despite the many home solar options in today’s market, take time to choose your solar panel brands and system.
Quality solar panels for your home have several benefits. We all don’t like incurring high monthly electric bills – a good solar system cuts such bills. Good home solar also contributes to environmental protection.
How will you know that you’re buying the best home solar panels? Here is what to know about solar efficiency and other tips for picking quality solar panels.
Solar panel efficiency
This refers to the ability of the solar panel to convert solar energy into electricity. Poor quality solar panels do not meet the required energy conversion rate.
Checking the produced amount of electricity will help you know the panel’s efficiency. You can compare the electricity with the initial solar energy percentage. With this in mind, buy solar panels with more than 20% energy efficiency.
The features on the solar panel can tell you whether it’s efficient or not. Check the outliners on the panel. Don’t buy a home solar panel without outliners on both sides.
The efficiency rate of a solar panel may depend on the size of a home. A solar panel exceeding more than 20% energy efficiency is good for larger homes.
There are reasons to buy a home solar panel with higher efficiency. First, efficient solar panels supply adequate power. Again, the most efficient solar panels cut huge electricity costs.
Warranty/insurance
Whether it’s a commercial or residential property, solar panels need to be protected. Think about PV warranty insurance for your home solar. One of the questions to ask when buying a solar panel is about repair options.
It can be frustrating buying a solar panel, only for it to get damaged within a short time. Buying a warranted solar panel is the only way to avoid such frustrations.
Choosing an insured solar company will help you get warranted solar panels. Insurance is key for the safety of the workers and the customers. This is because it caters to extra costs resulting from unexpected installation accidents.
A warranted solar panel will save you a lot of money in case of unexpected damages. Again, a solar panel warranty comes with peace of mind.
Check the size
Research the available sizes of solar panels in the market. Different sizes of solar panels have varying prices. So, ensure that that size of the panel fits your budget.
You need to be clear on the capacity of electricity your home needs. This is the first step to sizing your desired solar panel. For many homeowners, small-sized solar panels are okay.
To determine your energy usage rate, you should know when your home uses more energy. After this, then estimate the average electric capacity (kWh) you use per month. This will help you find the right-sized solar panel.
You should also know when there is much sunlight. These’re are the sun hours you can use to calculate the size of your home solar panel.
Other things may determine the size of the panel you want. These include the roof mount, the roof surface, and the roof design.
A home solar panel is a long-term investment. Choose the right size to avoid unnecessary replacement costs.
The storage battery
A solar battery is a key component of any solar system. A bad battery shortens the lifespan of a solar system. First, you need to know several things to pick a solar panel with a good battery.
One of them is the available types of solar batteries. Ensure that the solar you choose partners with good solar battery storage brands. Although a trusted brand is expensive, it gives the clients value for money.
The other thing to check is the battery storage capacity. The size of the solar panel may determine this. If you need a large-sized solar panel, ensure that the battery is large, and vice versa.
Also, ensure that your solar system has a long-lasting battery. Well, you can’t tell the lifespan of a solar battery by just looking at it. So, check the technology used to make it.
Many cheap solar systems have poor batteries. Avoid going cheap if you really want a good solar panel.
Maintenance
You don’t want a solar panel that will subject you to extreme maintenance expenses. Before buying a home solar panel system, think of its maintenance tips.
Avoid buying a solar panel that will cost you more on its servicing. You should know whether the seller offers repair and other maintenance services. Again, know the fees charged for the maintenance work.
Proper maintenance of your solar panel can enhance its lifespan. It can also prevent the risks of fire and electrocution.
When buying a solar panel, you can ask about inspection services. Often, home solar panels develop problems without the owners knowing. For easier maintenance, you’d better choose a company that provides inspection services.
Consider the seller
The company you choose will determine the solar panel installation benefits you get. A wrong seller may be cheap at first, but you’ll lose more cash in the long run.
Before making up your mind, do a thorough search. Despite the many manufacturers in Australia, finding the best seller can be challenging.
Check the websites of different solar panel sellers. Read more about their services, prices, and customer reviews. Online reviews are good to know the satisfaction levels of past customers.
Recommendations are also good sources of information. Ask your close friends and family about the best solar companies in Australia. If possible, consult the neighbours weho have good solar panels.
Almost every field also has fraudsters. Please don’t rush to choose a company for your solar system before knowing its reputation. Online reviews can also enlighten you about its reputation.
Experience in the solar panel installation industry also matters a lot. An experienced seller is a competent seller. Choose a trusted solar panel seller and avoid future regrets.
Know the cost of solar panels
The price of the solar panel is another key factor to consider. We all want to save some cash when buying solar panels for our homes. However, cheap is also expensive. Go for quality!
Before choosing a seller, compare the prices from different sellers. This will help you find a quality solar system at an affordable price. Avoid very cheap sellers because they’re likely to sell fake solar panels.
Before visiting a solar panel store/company, you should have a good budget. To create a reasonable budget, check the price estimates of different sellers. A good budget will save you from wasting more money.
Avoid any solar panel seller that doesn’t give a clear price breakdown. Unclear price breakdown comes with hidden costs that will financially strain you more.
If you’re buying a full solar system for your home, the number of panels will determine the price. So, be clear on the modules you want your system to have to avoid overspending.
Types of solar panels
Always be clear on what you want before buying a solar panel. For maximum value for your money, ensure that you choose the best solar panel brands.
There are three options of solar panels – polycrystalline, monocrystalline, and thin-film solar panels. Before making up your mind, check their pros and cons. Go for a durable, efficient, and quality solar panel.
These solar panels have varying prices. Many monocrystalline solar panels are more expensive than other options. So, if you have a large home, they are very suitable options. Polycrystalline solar panels are the best for those intending to save some cash.
Ensure that your solar system is compatible with the solar panel you buy. Besides impacting the system’s functioning, a solar panel may impact its appearance.
Solar panel colour
This may seem unnecessary but is extremely important when buying a solar panel. Check the colour of the back sheet and frame of your solar panel.
The available solar panels are either blue, black, or dark blue. When checking the back sheet, ensure that they are black or white. The black colour of the back sheets increases the heat absorption rate.
The frames can either be black or silver. The colour of the solar panels should improve the aesthetic appeal of your home. So, think about the final look of your home before picking a solar panel.
The colour of the solar panel may also determine its energy-efficiency rate. Any solar panel that doesn’t have these colours might be fake. Check the colour and save some cash.
Consider durability
Everyone wants something that will serve him/her for a long time. Quality solar panels can even serve you for more than two decades.
The longer the solar panel’s lifespan, the more money you save. The longevity of a solar panel determines its quality.
A few things determine the solar panels’ durability. One of them is the cells inside the solar panel. The right solar cells extend the lifespan of every solar panel.
The other thing is the solar panel glass used. A solar panel may fall during installation or inspection. A weak glass will easily break and cause damages to other parts of the solar panel. Ensure that the solar panel has tempered/toughened glass for durability.
Good back sheets and frames protect the solar panels and prolong their lifespans. Again, there should be a good layer of insulation underneath the glass. Check for these features to find a long-lasting solar panel.
Before buying a solar panel, know the common problems and solutions. By this, you’ll easily address the problems that may shorten the panel’s life.
Temperature coefficient
It would be best to consider the solar panel’s protection before buying it. Although sunlight is good, extreme solar can damage a solar panel. So, buy a solar panel capable of reducing the solar output as the temperatures increase.
The temperature coefficient is necessary for protecting the performance of the solar panel. Buy a solar panel with a lower temperature coefficient. This is also a tip for prolonging the life of your solar panel.
Solar inverters
You want a solar panel that can increase energy production while saving energy costs. A good solar inverter is necessary for achieving this. Several solar inverter brands enable solar panels to convert solar energy more efficiently.
You will not have to worry about power interruptions with a good inverter. As solar panels age, they easily get degraded. So, a good solar inverter is necessary for detecting potential defects.
There are several types of inverters you should know about. These include microinverters, string inverters, power optimizers, and others. Before buying a solar panel, check the positives and negatives of these inverters.
You can also consult a professional solar panel installer. Visit a solar panel seller with a deeper knowledge of solar inverters.
Solar panel monitoring
The world is advancing every day. Today, you can know the power generated by a solar system right from your laptop. Because of this, it is easier to see when the solar system has problems.
A good solar monitoring product is necessary for achieving this. Avoid manufacturers selling old models of solar panels. Modern solar panels have good monitoring systems to help the users access the solar power data.
This technology also tracks the usage of electricity. So, this technology can help you make changes that will reduce the electric bills.
You now know how to find solar panel efficiency
When buying a solar panel, energy efficiency is the key factor to consider. Solar panel efficiency is necessary for saving you money.
Other parameters also matter when buying solar panels. Durability, temperature coefficient, and solar panel size are just a few. With this guide, you can easily find the best solar panel for your home.
Are you looking for solar panels in Australia? At Instyle Solar, we help Australian homeowners save with solar power while providing them with the greatest value.
Contact us today for all your solar power needs.
Next Steps…
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