The cost of a solar system depends on the size of your home, the orientation of your property, and your electricity needs. But for a standard medium-size house it can run from $20,000-$40,000 before rebates.  The national average per installed watt is around $6/watt.  This may seem expensive and you might ask yourself, why not wait until the price drops even more.  Well, the answer is simple… Rebates and incentives are geared down so that the rebates typically decrease as the cost of the panels go down.  Taxes can provide incentives to the person installing panels, but the program isn’t there to give people an extra cash reward.  All in all, the cost of installing solar panels after rebates is pretty close to what the person will pay if they stay with fossil fuels.

Many state and local governments offer incentives for solar installation that can significantly reduce the costs. Rebates coupled with federal tax credits can knock thousands off of your initial investment, sometimes cutting it in half! Be sure to check with your local government for these offers. To see a list of state and local incentives please visit: http://www.dsireusa.org/

One way to cut the cost of a solar electric system is to reduce your electricity use before installing the system. Such measures as replacing light bulbs with compact fluorescents and upgrading old appliances can cut your electricity use (and also your solar investment) in half. You’ll spend a bit of the savings on the new items, but you’ll have that brand new stainless refrigerator you’ve been craving too. Low Impact Living’s In-Home Environmental Assessment program will help you understand what cuts can be made before you go solar and therefore save you thousands of dollars – click here and sign up to receive more information.
You can also finance solar installation using home equity. This approach offers the possibility of making you “cash flow positive” from day one, especially if you live in an area that has high power prices, good exposure to the sun, and solid local rebates.

If the cost of a full house solar system is daunting, a very attractive option can be heating your water with the power of the sun. A solar water heating system will save a typical California family $1000 in power costs. The payback period on these units is typically under five years.

Other great lower-cost solar options are distributed solar applications. You can get attractive solar lights to illuminate your yard or garden. You can also power a nice fountain or heat your pool using solar energy. See great low-cost solar options