The Average Cost to Go Solar on a House

Two Types of Solar Energy Systems

• The two types of solar energy systems for your home are Solar Water Heating (SWH) and Solar Electric or Photo Voltaic (PV). SWH systems can cost between $2,000 and $6,000 to install, as of August 2011, depending on how large it is, whether it is static or circulating and whether you're using it to heat your home as well. Using a SWH system for both your hot water needs and heating your home saves money and is healthier for your family and the planet.

Solar Electric or Photo Voltaic Energy System

• The way this works is quite simple. From the solar rays hitting them, PV cells, whether in solar panels or embedded in your roofing tiles, generate direct current (DC), which is then converted into alternating current (AC) and used for your home's energy needs. If you have an electric-powered vehicle, you can use the excess energy generated to power it, thus saving you more money.

Cost of Going Solar

• According to the U.S. Department of Energy, the average house requires a 3 kW system, requiring a 300 square-foot south-facing area of your roof. Contact a certified solar installer for this $24,000 solar installation. Local rebates and incentives might run from $0 to $12,000. In addition, the Emergency Economic Stabilization Act of 2008 gives you a tax credit of 30 percent of the installed cost, further reducing your cost up to more than half.

Other Savings to Impact Cost

• Depending on where you live, your state and/or local utility company may offer incentives for installing solar energy systems to further reduce your cost. While your PV system is generating electricity, your house is off the power company grid, and you are saving money. Generally, this pays off the cost of installation within seven years. After that, you can use your power to heat and air-condition your home -- and everything else that requires energy -- at no cost.

Other Benefits

• Going solar in your house automatically increases its value and its "saleability." You can use the excess electricity to power your adapted vehicle, saving the cost of gas, and your home will be easier to maintain. If you use radiant heating provided by your SWH system, you save on doctor's bills because it's a contained clean system, and you have saved the planet from tons of greenhouse gases.