Solar energy can be defined rather simply as the conversion of sunlight into usable energy. Currently, solar energy is used to provide electricity to homes, businesses, schools, universities and space vehicles used by NASA. As traditional energy prices rise, solar energy use is growing at a rate of 25 percent a year.
Solar Energy Advantages
- The power source of the sun is absolutely free.
- The production of solar energy produces no pollution.
- The technological advancements in solar energy systems have made them extremely cost effective.
- Most systems do not require any maintenance during their lifespan, which means you never have to put money into them.
- Most systems have a life span of 30 to 40 years.
- Most systems carry a full warranty for 20 to 30 years or more.
- Unlike traditional monstrous panel systems, many modern systems are sleeker such as Uni-Solar rolls that lay directly on the roof like regular roofing materials.
- In 35 states, solar energy can be fed back to the utilities to eliminate the need for a storage system as well as eliminating or dramatically reducing your electric bills.
- Solar energy systems are now designed for particular needs. For instance, you can convert your outdoor lighting to solar. The solar cells are directly on the lights and can’t be seen by anyone. At the same time, you eliminate all costs associated with running your outdoor lighting.
Solar Energy Disadvantages
The primary disadvantage to solar energy is the upfront cost. Once installed, you can expect next to nothing on the system during the 40-year life span. The installation, however, can be price. Outdoor solar lighting will cost you no more than normal lighting, but large solar energy systems for your entire home can run from a minimum of $15,000 to a more likely figure of $25,000 to $35,000. While this isn’t cheap, state and federal governments have created significant ways to offset this cost. The federal government wants as many people to covert to solar as possible. The goal is to have a million solar roofs by the year 2010 to ease the stress on electrical grids across the nation. To promote this, the federal government offers the following incentives: Up to a $2,000 tax credit in year of installation. Importantly, a tax credit is applied to the actual amount of tax you owe, not a deduction from your gross. If you prepare your taxes and find you owe $10,000, this tax credit will reduce the amount to $8,000. The federal government offers incentives in home loans. If you go solar, lenders will give you breaks under the Energy Efficient Mortgage or Energy Improvement Mortgage programs. The specific savings depend on the details of your home. State governments are also interested in promoting solar energy use. To promote solar, 35 states allow you to sell excess solar energy to utilities. Known as net metering, your solar system is tied into your utilities. During the day, the system feeds power into the grid and you can watch your meter run backwards! Net metering can effectively eliminate your utility bills for the life of the solar energy system. Think about that. No utility bills for 30 or 40 years!
State governments also promote solar by providing tax credits and rebates. Each state does there own thing, so you’ll need to investigate. Nonetheless, you can expect to get a tax credit or major deduction.
As with anything, solar power has advantages and disadvantages. The advantages, however, significantly win out when you consider just the impact on your bank account. Throw in the environmental positives and solar energy is clearly a winner.
