Solar Roofing

Solar Power for Homes: How Does a Solar Panel System Work?

how a solar power system works
How a home solar panel system works in 4 steps
  1. Solar cells convert photons to electricity: All photovoltaic solar power systems like the traditional solar panels, BiPV solar shingles and tiles, and thin-film solar laminates contain photovoltaic solar cells designed to convert solar energy to electricity. When the sun shines, the energy carried by the photons gets absorbed by the solar cells that convert it to direct current (DC) electricity.
  2. Inverter converts direct (DC) current to alternating current (AC): All rooftop solar panel systems are normally connected to an inverter by a licensed electrician during the installation. The inverter inverts (converts) the direct current (DC) electricity generated by the solar cells to alternating current (AC), which is the kind of electricity people use in their homes.
  3. Alternating current flows through the electric panel into your home: Alternating current from the inverter flows through the electric panel (circuit breaker box) into your home, powering things like home lighting and appliances.
  4. Any unused electricity gets sent back to the electric grid: Any excess electricity that is not used domestically, passes through the electric meter and gets sent back to the grid, usually for electricity credits via net metering.

Net Metering: If you live in one of the 41 states that have adopted Net Metering rules, you can sell any excess solar-generated electricity back to the local electric grid for credits.

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Federal Solar Investment Tax Credits – All You Need to Know!

Federal tax credits for the installation of solar power equipment remain in effect, and there is significant money to be saved.

This guide to the Federal solar investment tax credits gives you what, how, and how much can be saved when you install solar electric panels or BiPV solar tiles aka solar photovoltaics or a solar hot water system on your residence. Saving money at tax time has never been easier – and this is a very good time to consider going solar.

What is the Federal Solar Investment Tax Credit?

Since Congress passed the Energy Policy Act of 2005, the Residential Renewable Energy Tax Credit has allowed homeowners to deduct a percentage of the installed cost of a solar PV system for their home. It was originally set to expire after 2007 but has since been extended several times. The current expiration date is December 31, 2032. Will it be extended again? Probably, but it’s a risk to wait.

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Are Solar Panels Worth the Cost? The Answer Might Surprise You

When evaluating whether residential PV solar panels are worth the cost, there are 10 main factors you should consider as part of your cost-benefit analysis. Let’s dive right into it.

  1. Rapidly rising electricity costs
  2. Federal tax credits and local incentives
  3. Solar resource – global solar irradiance
  4. Ample solar exposure
  5. Net Metering rules
  6. You will need a new roof soon or you have a metal roof
  7. Home value appreciation
  8. High-efficiency solar panels vs. polycrystalline
  9. Energy storage for power access during blackouts
  10. Solar payback period

When Solar Panels May Not Be Worth the Cost:

  1. Limited sun exposure
  2. Middle-aged roof
  3. You might be moving soon
  4. Cannot afford a battery pack and no backup power generator in an area with frequent blackouts
  5. Stagnating or declining local real estate values

1. Rapidly rising electricity costs

Let’s face it, domestic electricity costs are rising rapidly across the nation, especially in Los Angeles, California where residential electricity rates have increased by over 10% from June 2020 to June 2021. Across California, prices have risen by 7% in the same time period.

There is no reason to expect that the rapid increase in electricity and home energy costs will be curtailed any time soon. In fact, with the rapid adoption of sustainability and ESG policies such as moving away from coal and fossil fuels, domestic energy costs are likely to continue to rise over the next decade, especially in states with limited natural resources.

A growing adoption of electric (BEV) and plug-in hybrid electric (PHEV) vehicles also puts an increasing demand on the electric grid and existing infrastructure. Expanding and upgrading the existing infrastructure to support rapidly rising number of BEVs and PHEVs on the road will likely continue driving up electricity rates over the next 5-10 years. – These dynamics are projected to accelerate as states like Washington, Oregon, California, and others incentivize or mandate policies that foster adoption of electric vehicles by 2030 and/or beyond.

If you are concerned about the rising electricity rates in your home state, then investing in a PV solar power system will help offset the effects of rising energy rates while also reducing or even eliminating your current electric utility bills.

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