How Solar Works

Understanding how solar energy works can empower you to make informed decisions about installing a solar photovoltaic (PV) system on your property. Solar panels absorb the sun’s energy throughout the day and convert it into direct current (DC) electricity. Most homes and businesses run on alternating current (AC) electricity, so the DC electricity is then passed through an inverter to convert it to usable AC electricity. At that point, you either use the electricity in your house or send it back to the electric grid.

Going Off-Grid with Solar Panels

When you install solar panels on your property, you will still be connected to the grid. This allows you to draw from the grid when your system is not producing all of the power that you need, and send power back to the grid when you produce more than you use. It is possible to go off the grid with a solar energy system that includes battery storage, but it will cost a bit more.

Solar Panels During a Blackout

If your solar panel system is connected to the grid, it will shut off in the event of a blackout. This is to prevent emergency responders and electricity utility repair-people from being injured by your panels sending power back to the grid. However, there are certain inverters you can buy that provide backup power in a blackout when paired with a battery.

Will I Still Receive an Electric Bill if I Have Solar Panels?

Unless your solar energy system includes battery storage and you are fully off the grid, you will still receive a bill from your utility. However, for duke energy it is a flat $14 rate to stay connected to the grid.

Solar Panel Maintenance and Costs

Solar panel systems are made of durable tempered glass and require little to no maintenance for the 25 to 35 years that they will generate power. In most cases, you don’t even need to clean your solar panels regularly. If something does happen, our equipment manufacturers include warranties for the full 25 years.

Solar Energy Rebates and Incentives

Solar rebates and incentives vary depending on where you live. The most significant is the 26 percent federal investment tax credit (ITC), which allows you to walk away with a 26% credit/check of the cost of your solar energy system from your taxes.

Buying vs. Leasing Solar Panel Systems

Whether you should buy or lease your solar energy system depends on your reasons for going solar. If you are interested in maximizing the financial returns of your solar energy system, buying the system is probably a better decision for you. However, if you prioritize an easy, maintenance-free way to help the environment without increasing your home value, not receiving the tax credit and still renting your energy then leasing is an option but usually ideal for homes that don’t have a south facing slope and can’t support solar panels. But like leasing a house vs. buying a house, you save way more money in the long run buying.

Solar System Sizing

The size of your solar energy system will depend on how much electricity you use on a monthly basis.

Roof Replacement Prior to Solar Installation

Solar energy systems can last for 25 to 35 years, and it can be costly to remove and reinstall them if you need to replace your roof. If your roof needs maintenance in the near term, you should complete it before you finish your solar installation.

Longevity of Solar Power Systems

In general, solar panels are very durable and capable of withstanding snow, wind, and hail. The various components of your solar power system will need to be replaced at different times, but your system should continue to generate electricity for 25 to 35 years.

Selling a House with Solar Panels

If you own your solar energy system, your solar house will sell at a premium: studies have shown that solar increases property values. However, if you lease your system, that is not the case. You will need to either buy out your lease before you sell your home, or work with your leasing company to transfer the lease agreement to the home’s new owner.

Solar Batteries: To Install or Not to Install?

Solar power systems that include solar batteries, known as solar-plus-storage, are increasingly popular, but can be pricey. Luckily, batteries are not necessary for most solar homeowners. As long as you are connected to the grid, your system does not need a battery: excess power goes back into the grid, and you can draw from the grid if you need more electricity than your panels can generate.

Secured vs. Unsecured Solar Loans

The primary difference between secured and unsecured solar loans is that secured solar loans require that you promise an asset, usually your home, as collateral for the money that you borrow. Unsecured solar loans do not, but their interest rates are generally higher to compensate for the increased risk taken on by the lender.

Solar Energy’s Impact on Property Values

Studies have shown that homes with solar energy systems sell for more than homes without them. However, your property value will only increase if you own, rather than lease, your solar panel system. In most parts of the country, going solar will actually increase your property value more than a kitchen renovation.

What is Net Metering?

Net metering is the system that utilities use to credit solar energy system owners for the electricity produced by their solar panels. With net metering, you only pay for the electricity that you use beyond what your solar panels can generate.

Environmental and Financial Benefits of Solar Energy

Solar power, like other renewable energy resources, has many environmental and health benefits. Going solar reduces greenhouse gas emissions, which contribute to climate change, and also results in fewer air pollutants like sulfur dioxide and particulate matter, which can cause health problems. When you install a solar energy system on your property, you save money on your electricity bills and protect yourself against rising electricity rates in the future. How much you can save depends on the utility rates and solar policies in your area, but going solar is a smart investment regardless of where you live.