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How to Offset the Cost of Solar Panels
Public concern about global warming and rising energy costs has led to an increased interest in clean, renewable energy. Solar energy is a particularly attractive alternative to petroleum dependence. Solar energy is a clean, reliable and endlessly renewable energy source, and new technology has made it more affordable than ever to homes and businesses.
Even so, the initial cost of buying and installing a solar energy system can be daunting. A typical solar installation for a single family dwelling could cost $20,000. Though using solar power saves money on utility bills, eventually giving a complete return on your investment, the initial cost can be prohibitive to many consumers.
Fortunately there are numerous financial incentives at the federal, state and local level that can significantly defray the cost of installing a solar energy system.
Incentives are available from federal, state and municipal governments, from local and regional groups including non-profit and private organizations, and from local utility companies.
At the federal level, the Renewable Energy and Energy Conservation Tax Act of 2005 provided funding for tax incentives for residential and commercial applications. This Act seeks to support the development of energy efficiency and energy independence.
The Act provides two federal tax incentives for homeowners. The Residential Solar Fuel Cell Tax Credit is a personal tax credit which applies to solar hot water systems, photovoltaic, or PV systems (solar electricity), fuel cells, or other solar technologies.
Homeowners can receive a credit for 30% of the cost of installing a solar energy system, with a cap of $2,000 for a PV system, and an additional $2,000 for a solar hot water system; and a cap of $500 per .5 kW generated by fuel cells.
Excess credit, that credit which amounts to more than the taxpayer’s liability, can be carried forward to the next tax year. Installation must be certified by the Solar Rating and Certification Corporation, or SRCC; or by a comparable rating system endorsed by individual states.
Additionally, at least one-half of the residence’s energy needs must be provided by the solar technology.
The federal government also allows a Personal Exemption : the Residential Energy Conservation Subsidy Exclusion. This exemption applies to solar and other efficiency technologies, including solar hot water, solar space heat, and Photovoltaic.
Owners of single and multi-family dwellings can deduct any subsidies provided to them by public utilities for energy conservation. That means that any increase in a homeowner’s income due to a subsidy or rebate from a utility company as a result of the installation of an “energy conservation” measure, will not be taxed.
“Energy conservation” has not yet been explicitly defined by the IRS, though in practice it is understood to include solar technologies. It would wise, however, to consult with a tax advisor about this matter.
The federal government also provides federal loans, both residential and commercial. These are Energy Efficiency Mortgages, or EEMs, that home and business owners can use to finance energy efficiency improvements to existing buildings.
EEMs are available through the FHA and the VA. FHA loans allow lenders to add 100% of the costs of energy efficiency improvements to existing mortgages, by insuring loans of up to 5% of the appraised value of a home, or $4,000, whichever is the greater, with a cap of $18,000.
VA loans can be used to purchase an existing home or to refinance a mortgage for energy efficiency improvements.
EEMs are also available through Energy Star, Fannie Mae and Freddie Mac. Energy Star loans are not guaranteed by the federal government, but they currently provide a listing of 49 financial institutions that will provide loans specifically for energy efficient new homes or improvements to existing homes.
Private lenders such as Fannie Mae and Freddie Mac also provide conventional energy efficiency mortgages as well.
Federal grants are also available to commercial and agricultural entities to promote the development of energy efficiency and energy independence. Unfortunately, the Federal Renewable Energy and Energy Conservation Tax Act is due to expire at the end of 2008.
The most recent energy bill, passed in December 2007, did not extend funding for renewable energy. While the matter of funding for renewable energy will no doubt come up again, and be vigorously debated in the next budget, as of now, its future is in doubt at the federal level.
Luckily, federal funding is only one facet of the broad array of financial incentives available. At the state level, there are tax incentives, state loans, grants, and rebates, municipal, regional and local rebates, utility rebates and credits, private funding, and non-profit funding.
State and local incentives vary greatly. Some states have taken the lead in offering financial help to home and business owners who want to develop energy independence. Other states clearly lag behind, though in some cases, private, non-profit and utility incentives pick up the slack from state governments.
Each state has its own tax law, and tax incentives range from tax rebates of thousands of dollars for each system (for example Vermont offers up to $8,750 for a PV system and another $8,750 for a solar hot water system), to tax exemptions.
Two types of tax exemptions found are sales tax exemptions, a one time exemption; and property tax exemptions, which carry into successive years. Property tax exemptions allow any increase in the value of a property due to the installation of renewable energy systems to be exempt from taxation.
In addition to tax incentives at the state level, there are other sources of financial aid such as low interest loans, grants, and rebates from state and municipal governments, utility companies, and various private and non-profit organizations. Eligibility varies as widely as incentives do.
So how can a consumer find what types of financial incentives are available in his state?
The best source of information is the Database of State Incentives for Renewable Energy, or DSIRE. DSIRE is a comprehensive listing of financial incentives for renewable energy. DSIRE offers information about financial aid on the federal and state level.
To find information about your state, simply click your state on the map, and any incentives offered in your state are listed, including tax breaks, loans, grants, local or regional incentives, and rebates offered by public utility systems. Links to further websites and contact information are also provided.
Additionally, there is an easy link to federal tax information from each state page. DSIRE is the go-to site for determining what financial assistance you may be eligible to receive.
Don’t overlook consulting with an experienced solar energy installation specialist. He or she should be familiar with any funding that is available in your area.
Also, do consult with a tax advisor to ensure that you correctly claim the right credits and exemptions on your tax return.
With all the financial incentives currently available, installing a solar energy system is more affordable than it has ever been. There’s never been a better time than right now to invest in solar energy.
Gina Buss is a biologist and freelance environmental writer.
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Solar Panel Efficiency – DIY Solar Panel
Whenever something technical becomes popular, junk science appears. Solar energy is one of those subjects littered with junk science. Junk science is often behind the specifications given for solar energy systems, such as the key figure of efficiency. Sales people are very creative in how they specify the efficiency of the system they are trying to sell you. They may talk about the conversion efficiency of their solar cells in a photovoltaic (PV) system, or the efficiency of the power inverter that converts the DC output from solar cells or batteries to AC for use in the home, or the optical efficiency of the mirrors in a concentrating solar power system. Those are important numbers for the system designer, but not for the end user. So ignore all that and look at the basic measure of efficiency.
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The basic measure of efficiency of any energy conversion system such as solar is simply the output power divided by the input power, a simple ratio that must always be less than 1. Simple. You just need to know those two numbers. Normally the output power is readily available. It’s usually the first spec given by the data sheet for the system or by the salesman. But what about the input power? Although the marketing types might make it sound complicated and mysterious, determining the input power is very simple.
The input power is the amount of solar power striking the collection area. There are two numbers you need to know to figure that out, the size of the collection area, and the amount of solar power per unit area striking the earth’s surface. The size of the collection area is easy to calculate. It’s the size of the solar panel, that is, length times width (for a rectangular solar panel which is typical). The second number is even easier to obtain because it is a well established number for the amount solar power that strikes the surface of the earth. That number is 1,000 watts per square meter of direct normal solar insulation at sea level. The number varies somewhat depending on your altitude and weather conditions. And depending on the type of collector the solar energy system uses there may be some other contributors to the total energy collected. But this standard number is sufficiently accurate for use in evaluating solar energy systems.
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So how might this knowledge be useful to you? Here is a real example. At the time of this writing there is a company demonstrating a solar panel with a claimed output power of 3,000 watts. The company claims they have breakthrough technology that makes it many times more efficient than existing solar panels available from other companies. They are seeking investors to help them build a factory and ramp up production. Sounds like a hot investment, doesn’t it? Let’s look at the basics of their product.
The solar panel being demonstrated measures 3 feet by 5 feet. That is 15 square feet or 1.39 square meters. So the maximum input power available, based on that standard number of 1,000 watts per square meter at the earth’s surface, is 1.39 X 1,000 = 1,390 watts. The claimed output power is 3,000 watts. So the efficiency is 3000/1390 = 2.16 or 216%. That’s impossible. Efficiency can never be greater than 1. You cannot get more power out than you put into an energy conversion system. I just saved my self from making a very bad investment!
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Build Your Own Solar Panel at Home
Energy crunch is on, fuel prices have hit the roof and they are slated to break through the roof soon. Days are not far when utility companies will jack up the electricity rates to a point where you will have to run for cover. Everybody is looking for ways to install some alternative energy system at home. Solar power system is one of the popular alternatives. A solar power system comprises of three basic components, apart from the mandatory disconnects and safety accessories:
1. The solar panel;
2. Battery, for storing the energy generated, and necessary charger;
3. Inverter, to convert stored DC power to AC power.
Cost of a solar power system capable of supplying power to all household appliances can be quite substantial and solar panel makes a significant proportion of it. Fortunately the solar power system can be made in a modular fashion; you install the basic requirement and gradually as the time and the cost permit, carry on adding to it. Your own solar panel can be assembled by you; the other components mentioned above will be procured as required from the local suppliers.
What you need
The actual process of assembling your own solar panel is not very difficult. You need a certain amount of guidance on some aspects such as:
How to assess the solar panel power rating to meet your needs Where to buy the solar cells from
How to interconnect the cells to obtain the desired voltage and current capacity
How to assemble the solar panel
How to install the solar panel, etc
There are many guides available to provide such information. These guides cost about $25 to $40. A small search on the internet will get you website addresses at which these guides are available. These guides give step-by-step assembly and installation instructions with pictures/photographs where necessary. Obtain one of these guides, study thoroughly and now you are ready to get going! To assemble your own solar panel you require the following materials:
Solar cells
A sheet of plywood of suitable size
Sheets of glass
Copper wires
Few simple tools such as pliers, screwdriver, hand-drill machine, a soldering iron (with solder, flux, etc) will suffice.
Solar panel assembly:
• Arrange the solar cells in rows on the plywood sheet, with the back of the cells on the plywood and in the configuration suggested in the guide book.
• Drill holes in the plywood sheet so that the wires connecting the cells can be taken through to the back. Interconnect the cells as per the instructions.
• Put a backing board on the back of the plywood so that the interconnected wires are held in place and sealed
• Place the sheet of glass over the top of the solar cells
• Put a framing piece over this assembly (as would be done in framing a photograph)
• Seal the edges of the assembly, and your solar panel is ready.
The assembly procedure described above is the basic process of assembling your own solar panel. Of course you can improvise on it so as to make your assembly more sturdy, make it impervious to ingress of dust, water, etc, make it strong so that its installation outdoor will not cause any problems. A self assembled solar panel can bring about a substantial saving. You can save about 50% or more of the cost of solar panel by doing your own assembly.
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Creating Renewable Energy with Solar Panels
Getting enough solar energy to power your entire home can be an expensive project. It is not uncommon for homeowners to pay $ 20,000 or more to outfit their house with solar energy. In general, people who are to invest in large solar panel systems that take 20 years to see their investment paid back by the current energy savings. ==>Get Best Make Solar Panel and Make Wind Turbine Guide<== But there are plenty of cheap solar energy options that will provide a better cost-benefit to homeowners. For much money do you get your whole house with solar power, but only for a little money, you can own a part of your house power. Here is a look at a cheaper solar power options.
The components of the Solar Power Projects
The Solar Panel: This is the heart of any solar power system. There are two ways to affordable solar cells. If you have a little hand, you can make the solar panels themselves. All you have to buy the photovoltaic solar cells themselves – you can buy it from eBay and many other places around the web. You can buy damaged cells, for less money, but these cells are not always guaranteed to work, and at least they are less energy. A quick spin eBay shows prices for solar cells go to about $ 25 for a handful of cells, up to $ 200 for an entire group of cells plus wires. Even after moving to the cost of additional hardware (2 x 4s, Plexiglas, etc. add), it is still cheaper to build your own solar cells, as a buy – by far.
If you decide to build your own solar cells, I would recommend you get a guide to help you. Two well-known solar DIY guides on the Internet are Green Energy and DIY Home Made Energy. (Let’s have evolved from their cruddy sales style websites frightened.) These do-it-yourself panels generate anywhere from 60 W – 120 W of energy. Total cost, including hardware and materials should be less than $ 200. For the price, this is the best deal around. ==>Get Best Make Solar Panel and Make Wind Turbine Guide<== However, if you do not want the time to buy a DIY manual and decide to take to save time and money by purchasing a commercial-grade solar panel, it will cost you much more. The price for a 75 W panel runs about $ 300.
You can link together your solar panels. For example, if you can build a panel, which is building 60 W of energy, this link with two other similar panels and generate 180 W of energy.
Batteries: The next component is the battery, where you saved your solar system for future use. There are a few options that you choose here. One possibility is to regular, 12-volt batteries (get at least two). The cheap end of these batteries to be approximately $ 60 years old, high-end batteries can cost as much as doubled.
Otherwise, some may 6-volt golf cart batteries, which you can record for under $ 50 at a place like Sam’s Club. Four batteries hooked together provide enough energy to power a small home or a few rooms in a larger house. Golf cart batteries last anywhere from two to seven years if they are properly maintained.
Charge Controller: charge controllers are required to “on” the power from the battery. Charge Controllers will examine how effectively run your solar system. The best charge controllers are called MPPT maximum power point tracking. They are the best, but they are also the most expensive. A standard 6-amp charge controller is capable of three 32 W panels or 96 W treated as a whole.
A good charge controller for a home solar Morningstar is a 6-amp charge controller. This costs about $ 40, and you only need one.
Inverter: In addition to controlling the load from the battery, you also need an inverter, which) to deliver changes from DC (direct current, the possibility of AC () alternating current. In the United States, AC devices, from light bulbs and refrigerators to laptops, and stereos. A standard inverter costs around $ 40 – $ 70
Final Price Tag
Described the final price of an affordable solar power system days, as the above, is less than $ 600. If you build your own solar cells, you can reduce the final cost of your solar system, while simultaneously increasing solar power bang for your money. ==>Get Best Make Solar Panel and Make Wind Turbine Guide<==
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DIY Solar Panels
DIY solar panels, or do it yourself solar panels are increasing in popularity. Many individuals are finding out more information on just what it takes to design and construct the panels for his or her home. In many situations these DIY solar panels can be installed very easily with the use of various kits sold on various web sites via the Internet today. In addition, some home improvement stores will sell these kits locally as well and all are very reasonably priced.
Amazingly, there are those individuals however that are even more creative and have designed DIY solar panels with the use of simple cardboard and 12v car batteries. Of course, these designs are on a more simple idea and also should be read fully when being constructed so no mistakes or misjudgments are made. Otherwise the panels will not work properly or could cause damage.
DIY solar panels have the same unique concept as many of the commercial solar panels seem on large factories yet with a design that homeowners and consumers can easily use and install without having any outside professional’s assistance.
The power saved from the usage of the panel literally pays for the panels soon after they are installed on a home and in many situations the local utility company will purchase the power that is not used by the homeowner as well. Many individuals are embracing this popular idea in order to become more eco-friendly too and as more people do, the better the environment will be for future generations to come.
DIY solar panels can normally be installed, designed and constructed for under $500.00 and the kit used to assist individuals is sold for $100.00 or less! This is a small price to pay for the end results of saving so much money in the future on power expenses.
It is estimated that in the next five to ten years over half of the homes in a town or city will have some type of solar panels installed on them, and many of these solar panels are going to be those that are DIY.
For additional information about these DIY solar panels an individual can check Earth4Energy that offers details as well as price listings for the kits needed to design and install the solar panels too. With so many people choosing this form of power it is only a matter of time and it will be an idea so popular that DIY solar panels will be in high demand. Check out Earth4Energy Review
Solar Cells For Sale ? – Shocking Report !
Be sure to check out this brief report if you’re curious about solar cells for sale, i think you’ll be really inspired. I’ll share several constructive tips on how you can equip your house with a limitless source of free energy, as well as earning cash for it. Don’t you believe me? You’ll be glad you took the time to scan the information that follows.
Why make the power company richer while you count pennies when you can generate your own power with simple solar panels and a converter, easy to build, easy to install, and quick to provide benefits? And no, it doesn’t cost a fortune; it was considered an extravagance for many years, but times have changed.
How did i learn all this? Some time ago, i was getting interested in solar energy and was doing web searches for solar cells for sale and i discovered that a considerable number of people – in our country as well as thousands of miles away – had found success with state-of-the-art green technology which gives them the power to turn sunshine into electricity in just a couple of days. A quick research on that reveals another amazing fact – it can be done with the purchase of a few everyday materials, at a cost that is possible even if you are on a tight budget. At long last, we can all take advantage of a state-of-the-art technology that enables us to have plenty of clean, green energy as sure as the sun will shine.
Whatever your situation – seriously interested in or just mildly curious about solar cells for sale – be sure to double-check the exciting facts about it – not only will you benefit from an abundant, free energy supply, here’s the best part of it – the power company will no longer be necessary to dole out your required electricity. Yet another benefit of this – it’s a widespread practice to get compensated by your local utility company for all excess energy over and above what you require. And in addition to the benefits of saving and making money, by using green energy the final reward is that you’ll be helping to improve the planet now and for centuries to come.
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