So much as been made of the new energy economy and the green revolution that many folks have questions about solar power. Many people would like to install a solar power kit, also called a photovoltaic (PV) system, on their home. But most of them don’t know how much these systems cost and how much they can afford. This article will help you determine if a solar power system is in your budget. We’ll start with the questions you need to ask and answer.

How Much Power Do I Use? The first task is to determine just how much energy you are using. See our related articles on energy audits to reduce energy waste. Next, look at your power bill. You should see your monthly and yearly usage. This information will be helpful in determining just how much solar energy you really need. You should also note how much your power us costing you in dollar per kilowatt-hour ($/kw-hr).

Are there Rebates and Tax Credits? The short answer is ‘YES!’ There are hundreds of programs around the country to encourage people t install solar power systems on their homes. The federal government has a 30% tax credit for solar and wind systems. Contact your local power utility for information on rebates that they offer. In some parts of the country the power utilities are offering to pay for nearly half the system. Add this to the federal incentive and you might have 80% of your system paid for by others.

What Size System Should I Get? This question is hard to answer for you. Most people start by trying to cover a percentage of power that they use with solar. Many people start with 25% to 50% of their total power. With the tools you can find on SolarSphereOnline.com and Findsolar.com, you can determine just how large of a system would be need to generate some or all of your power with renewable energy.

If you assume that an installed system will cost about $10/watt, you can estimate a rough budget for the project. For example, if you start with a 1,000 watt system (which is nice place to start for a lot of homeowners) it would cost about $10 x 1000 = $10,000 for the labor and materials. Remember, there are plenty of incentives out there. So if you had a $2/watt rebate from the utility and took the 30% federal tax credit, your actual system cost would be $10,000 – ($2/watt x 1000watts) – (.30 x $10,000) = $5,000. So you could spend the money you saved on something else for your house or even better get a bigger solar power system!

Can I Do a Little Now and Add More Later? One of the best things about solar and wind energy is that they very expandable. You can put in a few panels now, monitor their performance, and then add on to the system as your needs and budget allows. It is generally better to start out knowing you are going to expand later, so that you can plan your space and equipment usage better.

What’s the Next Step? Its always good to talk to a solar professional to evaluate your home for solar panel suitability. There are numerous sites on the internet that can direct you to local, insured, and experienced PV installers.

For more information on Solar Panels and installers, check out our website.

Kriss Bergethon is a solar expert and writer. For more of his useful articles on solar power, please visit Solar Panels, supplier of solar power panels, solar power kits, and more.