When solar power was first introduced to the residential market, the equipment costs were so high that it could not compete with the traditional manner of buying electricity off the grid. With all the advances in technology and the demand for solar power rising, today's prices have lowered, and the government also offers incentives that help to offset the expense of installing your own solar power. Solar power is now becoming affordable.

People who set up home solar power systems in the early days did so because they believed in helping the environment. They didn't mind paying more because their goal was to use an energy that was not based on fossil fuels. Others turned to solar technology in places where traditional power off the grid was not available.

Equipment Costs are Lower
Over the past ten years, the cost of the solar panels has been cut in half. The panels are now smaller and more efficient, making installations smaller and more attractive. The new flat, flexible panels can be affixed directly to a metal roof using an adhesive. This eliminates the needs for bulky frames to hold the panels and fasteners going through the roof where they could potentially cause leaks. Testing is currently being done for new roofing materials that will incorporate solar panels automatically. With this innovation, solar power will become even more affordable since it can be installed when you install your roof.

Rebates, Incentives and Deductions
Incentives and tax deductions are now being offered by many local governments as well as state and federal governmental programs. These incentives come in the form of direct rebates or tax deductions for the initial cost of the equipment and installation. All upgrades and maintenance may also be eligible for incentive programs.

In some locations, government also pays based on the amount of power you are able to generate. This is in addition to any money you get from the utility company for power that you generate. It may seem strange that the utility company would pay you to generate a product that they are in the business of selling, but they are required to use a certain percentage of alternative power and having customers using solar energy is cheaper for them than having to build large solar facilities themselves. Some utility companies will install a separate meter for monitoring the energy they are purchasing from you, or they will put in a special meter that can run backwards when you are generating more power than you use.

How Much Does it Cost?
Using the current costs and incentives that are available, it will likely cost between twenty and forty thousand dollars to install an solar power systems system at your home. This cost will vary depending on the size of your home and your energy needs. You can expect around ten percent return on the money you spent, which is a better deal than you get from many investments today. Once the system is all paid for, you'll still be able to make money from your system as well as never paying another electric bill again.