Solar Panels for the Home: The Complete Homeowner’s Guide

Solar Panels Guide: Everything You Want to Know

By Kami Turky of Solar Energy Hackers

The rising costs of energy along with the falling prices of solar panels have made solar energy an increasingly attractive option for many homeowners and businesses.

Throw in the tax incentives and environmental benefits, and it’s easy to see why many are making the switch.

In this guide, I’ll walk you step by step through the intricacies of solar energy, from understanding its basic principles to the installation process and maintenance.

See our resource hub: Sustainable Construction: A Comprehensive Guide

For further reading, see our related articles focusing on solar energy:

Key Takeaways

  • Solar panels harness sunlight, converting it to electricity via semiconductor materials in a process called the photovoltaic effect.
  • Solar energy offers financial gains through tax credits, reduced energy bills, and potential home value appreciation.
  • Assessing a home’s solar suitability involves checking sunlight exposure, roof integrity, orientation, and understanding local energy policies.
  • The solar installation process includes consultation, site evaluation, custom system design, permitting, and post-installation monitoring.

How Do Solar Panels Work?

Solar panels work by harnessing the energy from sunlight and converting it into electricity. 

This process is facilitated by the use of solar cells, which are the primary components of solar panels.

These cells are typically made from semiconductor materials, most commonly silicon.

When sunlight hits the solar cells, it excites the electrons present in the semiconductor material. 

This excitement of electrons creates an electric current. The process by which this happens is known as the photovoltaic effect. 

Essentially, the photovoltaic effect is the phenomenon where voltage or electric current is produced in a material upon exposure to light. It’s the foundational principle behind the functioning of solar panels.

Inside each solar cell, there are two layers, each with a specific role. 

One layer is designed to have a positive charge, while the other has a negative charge. 

When sunlight hits these layers, it causes the movement of electrons between them, creating an electric current. 

This current is then captured and channeled through a circuit, producing electricity that can be used to power homes, businesses, and other applications.

Solar Panels for the Home: The Complete Homeowner's Guide

Is Solar Energy a Good Financial Investment?

Solar energy is a good financial investment, and its financial viability is a topic of interest for many homeowners. 

The introduction of incentives, such as the Inflation Reduction Act, which offers a 30% tax credit for the cost of solar system installations, has made solar panels more accessible to the average homeowner.

Coupled with the decreasing prices of solar panels and the rising costs of traditional energy, the return on investment for solar installations can be realized within eight to 12 years.

However, the benefits of solar panels extend beyond just financial savings. 

They offer homeowners the chance to power their homes outside the electrical grid, leading to significant savings on energy bills. 

If a solar system produces excess energy, homeowners might even receive credit on their bills from their electric utility through net metering. 

Another financial advantage of solar panels is their potential to increase a home’s resale value. 

Prospective buyers often view solar installations as a valuable addition, given the long-term energy savings they promise. 

Moreover, solar energy is a renewable resource, allowing homeowners to reduce their carbon footprint and contribute to environmental conservation.

Financing options for solar installations have also become more diverse and accessible. 

Homeowners can either pay for the entire project upfront and later receive a tax credit from the government or opt for solar financing options with competitive interest rates. 

The federal residential solar energy credit grants a 30% credit to homeowners who install solar panels, further reducing the overall cost. 

For those who might not have the means to finance the system, solar leases and power purchase agreements (PPA) are available. 

These options allow homeowners to benefit from solar energy without owning the panels, although they might miss out on some tax credits.

How Can I Determine If My Home Is Suitable for Solar Installation?

Determining the suitability of your home for solar installation is a multifaceted process. 

One of the primary considerations is sunlight exposure. The effectiveness of solar panels hinges on the amount of sunlight they receive.

For homes that are shaded or get limited sunlight due to obstructions like tall trees or neighboring buildings, the benefits of solar installations might be diminished.

Another crucial factor is the condition and orientation of your roof. 

South-facing roofs in the Northern Hemisphere are particularly advantageous as they tend to receive the most sunlight throughout the day. 

However, the structural integrity of the roof is equally important. 

If it’s nearing the end of its lifespan or requires significant repairs, it might be more cost-effective to address these issues before proceeding with solar installations.

Before making the transition to solar energy, you should also assess your energy consumption patterns. 

By analyzing past energy bills, you can estimate the size and capacity of the solar system required to meet their needs. 

Moreover, enhancing a home’s energy efficiency through insulation, replacing outdated windows, and using energy-efficient appliances can reduce energy consumption. 

This, in turn, might mean fewer solar panels are needed, potentially reducing the installation cost.

Local policies and incentives also play a pivotal role in the decision-making process. 

For instance, net metering policies, which allow homeowners to sell excess electricity generated by their solar panels back to the grid, can lead to significant savings or even additional revenue. 

Solar Panels for the Home: The Complete Homeowner's Guide
Solar panel technician with drill installing solar panels on roof.

What Steps Are Involved in the Solar Installation Process?

The solar installation process involves a series of steps to ensure a smooth transition to renewable energy for your home. Here’s a breakdown of the typical steps involved:

  • Initial Consultation: This is the first step where a solar provider assesses your energy needs, reviews your appliances’ consumption & energy bills, and determines the feasibility of solar installation for your property.
  • Site Evaluation: A technician visits your home to assess the roof’s condition, orientation, and any potential obstructions like trees or other buildings. 
  • System Design: Based on the site evaluation and your energy consumption, a custom solar system design is created. This design outlines the number of panels, their placement, and the system’s expected energy output.
  • Permitting: Before the installation begins, necessary permits must be obtained from local authorities. This ensures that the installation meets local building codes and regulations.
  • Installation: Professional installers mount the solar panels on your roof. This process also involves setting up electrical wiring, inverters, and other necessary equipment.
  • Inspection: After installation, local inspectors may review the system to ensure it meets all safety and regulatory standards.
  • Connection to the Grid: Once approved, your system can be connected to the local power grid. This step often involves coordination with your utility company.
  • Monitoring and Maintenance: After the system is operational, ongoing monitoring ensures it’s working efficiently.

How Much Does a Solar System Cost and What Savings Can I Expect?

On average, the cost of solar panels was about $3 per watt in 2022 for an 8 kW system when installed by professionals. 

This means an average-sized system might cost around $24,000 before any incentives or tax credits. 

For those not keen on purchasing the system outright, solar leases and power purchase agreements (PPAs) offer alternative solutions. 

With a solar lease, homeowners pay a fixed monthly cost to a company that retains ownership of the solar system. 

In contrast, a PPA allows homeowners to pay for the electricity generated by the solar panels rather than the system itself.

In terms of savings, homeowners who purchase or finance their solar system can benefit from a 30% tax credit through the Inflation Reduction Act

However, the actual savings from solar panels will depend on your energy consumption, the efficiency of your solar system, and local electricity rates. 

Furthermore, solar panels can increase the value of a home. Studies have shown that homes with solar panels often sell for about $10,000 more compared to those without. 

This added value, combined with the potential savings on electricity bills, makes solar energy a compelling financial proposition for many homeowners.

How Do I Maintain My Solar System and Monitor Its Performance?

In general, solar panels are designed to be durable and long-lasting, often with warranties guaranteeing their use for 25 to 30 years

Over time, they naturally become less efficient, but this decline is gradual. 

For instance, a typical manufacturer’s warranty might guarantee that your solar panels won’t lose more than 2.5% efficiency in the first year and not more than 0.5% per year for the next 24 years

This means that even after 25 years, your panels could still be operating at around 84% of their original capacity. Some panels even set a higher benchmark, like 92%, after 25 years.

In terms of maintenance, solar panels require minimal care. The primary task is to keep them free of obstructions like dirt, leaves, and snow. 

This is especially important in areas with frequent dust storms or heavy snowfall. 

Monitoring the performance of your solar system is also crucial. 

Many solar installation companies provide homeowners with monitoring systems that allow them to track their solar panels’ energy production in real time. 

This real-time tracking can help identify any potential issues early on, ensuring the system operates at its best. 

If there’s a sudden drop in energy production, it might indicate a problem that needs addressing, such as a malfunctioning inverter or a shaded panel.

What Are the Key Benefits of Using Solar Energy?

Solar energy, harnessed from the sun’s rays, offers a plethora of benefits, making it one of the most promising and sought-after renewable energy sources in the world. 

Here are the key benefits of using solar energy:

  • Environmentally Friendly: Unlike fossil fuels, solar energy does not emit greenhouse gases or pollutants during electricity generation. This means it plays a crucial role in reducing the carbon footprint and combating climate change.
  • Reduction in Electricity Bills: Installing solar panels allows homeowners and businesses to generate their own electricity, leading to significant savings on utility bills. In many regions, there’s also the possibility of selling excess electricity back to the grid, providing an additional revenue stream.
  • Low Maintenance Costs: Once installed, solar panels require minimal maintenance to ensure they operate efficiently. There are no moving parts, which reduces wear and tear, and occasional cleaning and routine inspections are generally all that’s needed.
  • Job Creation: The solar industry has been a significant source of employment. From research and development to manufacturing and installation, the sector offers a wide range of job opportunities, fostering economic growth in regions that invest in solar energy.
  • Energy Storage: Solar energy can be stored for use during nighttime or cloudy days using batteries, ensuring a continuous power supply even when the sun isn’t shining.
  • Diverse Applications: Beyond electricity generation, solar energy can be used for a variety of applications, including heating water, powering vehicles, and even in desalination processes to produce clean drinking water.


How Do I Know Which Solar Panel Is Best?

To know which solar panel is best, evaluate its efficiency, durability, and manufacturer reputation, while also considering cost and warranty terms.

Do Solar Panels Need Direct Sunlight or Just Daylight?

Solar panels need direct sunlight for optimal performance, but they can still generate energy from diffuse daylight, though at a reduced efficiency.

How Many Solar Panels Does It Take to Run a House?

You need about 16-25 solar panels on average for a typical home, but the exact number varies based on energy consumption, panel efficiency, and local sunlight conditions.


As promised, we’ve covered the essentials of solar energy, shedding light on its workings, benefits, and broader implications for our environment and economy.

If you ask for my advice, I’d recommend starting with a thorough assessment of your home’s solar potential. 

Consult with local experts, evaluate the orientation and condition of your roof, and consider your region’s sunlight exposure.

Do you still have questions? If so, feel free to drop a comment below and I’ll try my best to answer.

1 thought on “Solar Panels for the Home: The Complete Homeowner’s Guide”

  1. In this comprehensive solar panels guide, the emphasis on eco-friendly and sustainable energy solutions is commendable. While exploring the world of solar power, it’s vital to consider every aspect of the process, from installation to maintenance. I’d love to see an inclusion of recommendations for roofing materials suppliers that align with home-building naturally, ensuring the synergy between energy efficiency and sustainable construction. This holistic approach would greatly benefit those looking to embark on a green energy journey while making environmentally-conscious choices in home building.

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