Rooftop solar is more and more common. In 2020, nearly 4% of US homes had solar panels, a number that’s certainly grown since.
Still, if exactly how all those solar panels got on all those roofs is a little murky to you, that makes sense. Since solar panels can last for decades, having them installed isn’t something people do frequently.
This complete guide breaks down the home solar development and installation process into five simple steps, with all the information you need to make the switch and start saving.
See how much you can save by going solar with Palmetto
Residential Solar 101
Before we go any further, let's review a few residential solar basics to make sure everyone is on the same page.
Defining residential solar panels
Residential solar panels use sunlight to generate electricity for homes. They are typically installed on the rooftop or as a ground-mounted system. Residential solar panel systems are usually interconnected with the local utility power grid. Your home can use solar power when the sun is out and grid power when you need it.
The benefits of switching to solar at home
Millions of Americans have switched to solar to save two main things: money and the environment.
With emission-free electricity production, solar panels can reduce pollution and greenhouse gas emissions, when they decrease demand for fossil fuels. They can also help save money on long-term electricity costs. That's a win for both the planet and your pocket.
Incentives, rebates, and other programs help homeowners financially benefit from switching to solar.
While the federal tax credit for solar panels is available nationally (worth up to 30% of total installation costs), the total costs and value of a home solar installation will always vary.
The key components of a residential solar energy system
Here's a quick peek at the vital pieces of equipment of a residential solar panel system.
- Solar panels: Solar panels produce the most energy locations that receive direct sunlight all year long.
- Inverter system: The inverter system converts your direct current solar power into the alternating current electricity used by your house and the grid. Today, residential solar panels utilize a central inverter or many microinverters, located at each panel.
- Grid connection and battery storage: When your solar panel production exceeds the energy usage in your home, the surplus power must be routed to another destination. Solar panels can be installed with a smart meter (to send that power to the grid), battery storage, or both.
The 5 Steps to Residential Solar Panels
Okay, without any further ado, let's look at the five steps you can take to switch to residential solar.
Evaluate Your Home's Potential to Install Solar Panels
Like snowflakes and DNA sequences, every solar system is unique, and exactly how a system works for you depends on a few variables.
Location, Location, Location
Where you live will influence the value of solar panels, due to the "solar-friendliness" of your state and utility energy policies, as well as local weather and sunlight conditions.
For example, a single solar panel installed in San Diego, California, would generate more than in Green Bay, Wisconsin, thanks to the annual difference in available sunlight in each location.
Likewise, the value of solar energy exported to the grid varies by local utility rates. Many state governments require major energy utilities to offer a net metering program for solar producers to be compensated for electricity generated and shared.
So, before committing to a decades-long solar project, make sure you understand how solar energy works with local regulations and incentives in your area.
Suitable Property Features to Install Solar Panels
It is fairly easy to perform a basic solar assessment on your property to determine its suitability for solar. A Palmetto solar advisor can offer expert advice, here are a few quick checks you can do on your own.
- Roof orientation. Here in the northern hemisphere, southern-facing roofs are ideal for solar panels because they receive the most direct sunlight per day throughout the full calendar year. In the US, significant amounts of solar energy can also be generated on east, west, southwest, and southeast-facing rooftops.
- Roof size and features. There must be enough usable roof space (free of obstructions like vents and chimneys) to accommodate all of the equipment. While ground-mounting solar panels is an alternative, this can also require a large amount of yard space.
- Shading. Panels are most productive in full sunlight conditions. Although small amounts of shade throughout the year can be managed, significant shading from trees or neighboring buildings may prevent solar panels from being a viable investment.
If you want to take a detailed look at your property, use our home solar feasibility checklist to learn more.
Design Your System and Weigh Contract Options
For safety, most homeowners must work with a certified professional to pass utility and building inspections for a grid-tied solar panel system. Besides meeting legal requirements, a solar professional can help you explore all the options open to you and design the best solar system for your specific situation.
Design Your Solar Energy System
Residential solar system design is all about meeting your home's energy needs.
For most homeowners, this means installing the approximate number of solar panels to generate the same amount of electricity consumed on the property each year.
Although roof space can be a limiting factor, most utilities allow homeowners to oversize their solar energy system capacity slightly beyond expected annual home electricity consumption. This excess solar energy production can help offset the energy demand of future home upgrades such as appliance electrification or EV charging.
See how solar panels will perform on your property with Palmetto.
The Cost of Residential Solar Panels
The total cost of solar panels varies for every project, with expenses in a few primary categories.
- Equipment: First, there is the cost of your solar panels, inverters, battery bank (if present), wiring, mounting materials, system protection, and other associated hardware. Pay attention to the value the manufacturer's warranty brings.
- Labor: Residential solar panel systems are often physically installed in one or two days. Labor costs can make up a significant chunk of total project expenses, even more so if you have a complicated roofline.
- Overhead: Depending on what you classify as overhead, there are many additional solar project expenses beyond equipment and labor that are good to know upfront. Overhead costs can include permitting, inspection, interconnection, transportation, financing, and administration.
Paying cash for your energy system typically has the lowest total investment costs and most valuable lifetime savings.
Loans, Leases, and Power Purchase Agreements.
When paying cash simply isn't an option, homeowners can take advantage of loans, leases, and power purchase agreements (PPAs) to bypass the high initial costs of solar panels. With $0 down in many instances, these methods enable immediate savings from solar electricity production and consistent monthly payments in place of escalating energy bills.
Each of these purchasing models is different, and it is important to understand your unique contract terms before signing up for solar panels at home.
Loans for solar panels
Financing solar panels allows you to own your system and all of the energy it produces. Residential solar loans are available from many different providers with varying terms, rates, and considerations, including programs with special financing for income-qualified households.
Solar Leases & PPAs
Solar leases and PPAs are slightly different, though both fall under the umbrella of "third-party ownership." With third-party ownership, a company owns the solar panels on your roof while you make monthly payments for the solar electricity you consume. In both cases, lease terms and PPA rates are designed to cost less than grid-supplied electricity.
With Palmetto’s LightReach Energy Plan, you get the benefits of solar for low, predictable payments alongside proactive system monitoring and a production guarantee.
See how much you can save by going solar with Palmetto
Finalize Your Solar Energy System Decisions
After you decide whether to buy or lease solar panels, consider how to maximize your residential solar system's value, both now and well into the future.
Explore Solar Energy Incentives
Nationally, the Residential Clean Energy Credit (also known as the federal solar tax credit) can earn you income tax credits worth up to 30% of total project costs. Before you go solar, talk to your installer as well as a tax professional to see if you will qualify for this incentive.
Locally, there are also many tax credits, rebates, and other financial programs sponsored by states, cities, and utilities throughout the US. Solar energy systems are exempt from sales tax in 25 states and property tax in 36.
Note: This is not tax advice and is meant to be strictly educational.
Protect Your Investment
It may be worth it in the long run to prepare for what might go wrong during your solar systems 20 year lifespan. With 24/7 customer service nationwide, Palmetto Protect customers can lock in production guarantees, proactive monitoring, and extended warranty coverages for parts and labor for the lifetime of their system.
Prepare for Your Residential Solar System Installation
After finding the right system design and installer and signing a contract, the solar installation process can be officially set in motion. The total solar system installation process (from contract to interconnection) generally takes between 2 and 6 months, depending on the speed of local permitting procedures, installer queues, and other project variables.
Site Assessment and Next Steps
To get the ball rolling on your installation as quickly as possible, a physical site visit is usually scheduled shortly after a contract signature to take measurements, address unforeseen property variables, and finalize your system design.
After the site assessment, your solar company will send your project's technical drawings and specifications to your local building authority and electrical utility for approval. Then, if all systems are go, you can schedule your installation.
What to Do on Installation Day
On the day of your installation, be prepared to meet early in the morning with a representative from the company installing your solar panels. Although the work will be primarily performed outside, in some cases, a member of the installation crew may need to access your attic to complete the project safely.
Most companies recommend remaining at home throughout your residential solar installation to be present for any questions or concerns.
Sit Back and Track Your Solar Savings
After your installation, there is one last round of approvals necessary for your solar panels to begin generating cost-saving renewable electricity. Once your system is approved by your utility and interconnected to the grid, you will be able to see your solar energy production reflected on your electricity bills and your system's monitoring equipment.
Using the Palmetto App, homeowners can track every aspect of their solar panels' performance, including daily, weekly, and monthly production reports and savings information. In the event of any less-than-stellar system performance, the app also makes it easy to contact customer support or schedule a maintenance request.
Further Reading
If you’re interested in learning more about going solar at your home, reach out to one of Palmetto’s solar experts today, or keep reading any of the following.
- 20 Questions To Ask Your Solar Installer
- The Solar Panel Installation Process
- All of our clean energy blog posts
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Brian ChurchWriterBrian is a writer, NABCEP PV associate and outdoor enthusiast living in Denver, Colorado. As a freelancer, Brian has written hundreds of articles to help individuals, businesses and our planet benefit from solar power and sustainable energy systems.
