Many years ago when solar power was introduced onto the home market, the costs for equipment were so high that there was no way for it to compete with simply hooking up to the local electric company. With all the advances in technology and the demand for solar power rising, today's prices have lowered, and the government also offers incentives that help to offset the expense of installing your own solar power. Solar power is now becoming affordable.

People who set up home solar power systems in the early days did so because they believed in helping the environment. They were willing to pay a higher price for their electricity to know that it did not require fossil fuels to generate the power for their home. Others turned to solar technology in places where traditional power off the grid was not available.

Equipment Costs are Lower
In the last ten years the costs for solar panels has been dropped by half. The panels themselves are also smaller and more efficient making installations cleaner and better looking. Amazing advances like flat panels that are flexible are now on the market. They can be adhered directly onto metal roofs with adhesive. Bulky frames are no longer needed to hold solar panels, and the frame fasteners that caused leaky roofs are a thing of the past. Currently, products are being tested that will replace traditional roofing materials. They incorporate solar cells in the building materials themselves. This means more affordable solar power because you are not buying a roof, then covering it up with a second layer. Less materials to buy equals more savings.

Rebates, Incentives and Deductions
Federal, state and local governments are now offering incentives and tax deductions for people who install solar panels on their homes, making affordable solar power possible. These incentives come in the form of direct rebates or tax deductions for the initial cost of the equipment and installation. All upgrades and maintenance may also be eligible for incentive programs.

In some areas, the government has a program that pays you based on the amount of power that your solar panels generate. This is in addition to any money you get from the utility company for power that you generate. It may seem strange that the utility company would pay you to generate a product that they are in the business of selling, but they are required to use a certain percentage of alternative power and having customers using solar energy is cheaper for them than having to build large solar facilities themselves. Some utility companies will install a separate meter for monitoring the energy they are purchasing from you, or they will put in a special meter that can run backwards when you are generating more power than you use.

Costs
After taking a look at current costs and incentives, it will cost between twenty and forty thousand dollars to install a complete solar power systems. The final cost will depend on the size of your house and where you are located. On the good side, you can expect a solid ten percent return on your money. This is a better return than you can expect from the stock market! And after the system is paid off, you will continue to make money in addition to never paying an electric bill again!