Making the decision to go green by changing over to solar energy is certainly a positive one. Obviously you would have to consider the costs beforehand which will assist you in finding out the best way of going about it. There are a few things you should take into account before even starting such as, how much power does your household require, where your home is situated, how much sun does it get and you would also have to consider the system you decide to operate, as that also will have a major impact on the cost of solar energy.

To find out how much energy you require for your home you would have to start by checking your electricity bill and making a note of your total monthly or annual kw usage. I would also suggest you seek advice on all your options available for government funding and privileges to consumers who are ready to convert over to solar energy. Some of these incentives will be different depending of which state or geographical province you are residing.

Once you have established all of the above you will have a better idea of the potential budget, then you will be ready to decide on which system you are going to look at installing. Even though solar energy itself won’t cost you anything the tools required to set yourself up are not. A 1.5 kw to 3 kw system will be required for an average american family living in a three bedroom home. A photovoltaic 1kw solar energy system can be priced at anywhere between USD $8000 to $10,000 which is before government rebates and tax credits are paid out.

As you can see before rebates kick in the cost can be quite high. Another example, if your home requires a 2.5 kw system then you are looking at around USD $10,000 to $ 30,000 for installation. The cost of solar energy can be reduced considerably once the government rebates and tax credits are reimbursed, also keep in mind that incentives depend on what system you decide to go with. You would usually be looking at approximately 7.5% of the system cost after rebate.

For reference purposes lets just take a quick look at two examples of rebates, which may differ from state to state. Here we are going to use a California rate.

Example A: For a 1 kW system, the possible rebate can be calculated as followed: 1kW = 1000 Watts x $2.80 per watt = $2800. The possible tax credit can be calculated as followed: $8000 – 2800 x 7.5% = $390.

Example B: For a 3kW system, the possible rebate can be calculated as followed: 3kW = 3000 watts x $2.80 per watt = $8400. The possible tax credit can be calculated as followed: $30000 – $8400 x 7.5% = $1620.

By applying the rebate and tax credits to the cost of the solar system and to the installation we can achieve an approximate price.

By researching what you are entitled to you would be amazed at how much this would reduce the set up costs, as incentives and rebates are plentiful. But there are also other options available to those who cannot afford the set up costs. If you are determined to convert to using renewable sources of energy then you shouldn’t give up just yet. Actually there are many people all over the world who have welcomed the DIY approach. Rather than spending $1000’s on the set up costs for installation on a solar energy system they have gone out and purchased for themselves a step-by-step all inclusive guide for constructing one of their own from scratch, and at a very small fraction of the cost.

Although it would seem a lot easier to just sit back and enjoy the professionals doing the installation for you, sometimes this option may not suit everyone. Whats more building your own system can be just as efficient in terms of performance and a very rewarding experience for some. Anyone who is currently looking at the costs of solar energy don’t forget to look at energy required for your home/business and also to make sure they consult all accessible incentives and another great bit of advice is to read up on testimonials and reviews from other people who have already succeeded in building their own solar energy system and hold the wisdom of experience.

I hope this article has helped you, while you are here maybe you should take a look at The Future Of Solar Energy After all the future is certainly heading more and more in this direction.

Make sure you check Earth4Energy Guide Review Hey you just never know, you may surprise yourself and save $1000’s and wonder what took you so long!!