As a homeowner, powering your home is a significant monthly expense. Installing solar panels can affect your costs and your lifestyle. You can either purchase a solar energy system outright or lease a system. When a third party owns the leased system, you host it on your roof and buy back the electricity.

In both the United States and Canada, tax credits can be claimed when installing solar energy systems. In the U.S., the federal tax credit is 30% (set to decrease to 26% in 2033). Canada has a 30% tax credit on the capital cost of investments made by taxable entities in wind, solar PV, and energy-storage technologies (through to 2034). You should also check to see if there are additional local tax incentives to install solar energy systems.

Here are some other benefits of using residential solar energy to generate electricity:

• Saving money on monthly bills. Depending on how much energy you consume and how much power you can generate with a solar energy system, you have the potential to save money on your monthly bills.
• Decreasing dependence on the local power grid. By generating your solar power, you are limiting the effect of local power outages on your home. If you also invest in a system with battery storage, you can get power from your system regardless of the time of day or weather.
• Increase the value of your home. Many people consider solar panels an upgrade to a home and are willing to pay accordingly.

Installing solar panels is not as simple as buying a new appliance or calling the power company. The U.S. Department of Energy recommends these steps if you want to install a solar energy system (read the complete guide):

• Do a home energy audit to see where you are wasting energy. See if you can make improvements to your efficiency before moving to solar. Your energy needs will affect the amount of solar energy you need, so anything you can do to increase efficiency will make your solar project more affordable.

• Check your solar potential. The amount of power you’ll be able to get from your solar panels depends on both direct and scattered sunlight. You’ll need to take things like nearby shade trees into account. You should also consider the age of your roof and if you plan on replacing it anytime soon. Also, ensure your neighborhood or homeowners' association allows the changes you want.

• Research the options. Purchasing and installing your solar panel system is not the only option. And even if you don’t own your home, you can still use solar energy. There are also leased and community systems shared with other people who may not own their homes (or have other reasons that sharing makes sense). Consider all the options to see which is best for you.
  
  
• Estimate your energy needs. Review your electricity bills to track your needs. Be sure to allow for seasonal variations and any upcoming changes affecting your power needs. Make sure you have this information available for your solar power installer as it will help them determine what size and type of system you need.

Once you’ve determined your needs and are ready to move forward with your solar project, hiring a solar power installer is much like hiring any contractor. Make sure you get multiple estimates based on the same criteria, get referrals, check your installer’s certification, and get everything in writing.

Solar panel installers are specialists and should be able to help you with permitting. They will also help you determine the correct size for your solar energy system and ensure the equipment is installed correctly to maximize the energy received and produced by your panels.

For more information

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