March 2009

• Introduction
• A PV system in detail
• Incentives
• Evaluating your home for PV
• Selecting qualified installers
• Maintenance considerations
• Download the full article as a

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Producing your own electricity with a rooftop solar photovoltaic (PV) system can have several benefits, including reducing your electric needs from the local utility grid and buffering you from volatile energy costs. A typical residential system can cost between $10,000–$30,000, but there are a number of rebates, tax breaks and other incentives that can significantly reduce the cost of installing a PV system. For those who have the tax liability to take advantage of the state and federal tax credits available through 2016, solar PV systems can make good bottom-line sense.

Today, a residential PV system will cost $7 to $10 per watt of output power (or about 20 to 35 cents per kilowatt-hour, without factoring in available tax credits), including all parts and installation. Although some power electronic components may require periodic replacement, the system can run virtually maintenance-free in any climate for 25 years or more.

Remember that efficiency is cheaper than PV and serves as an important building block toward smarter energy consumption and lower monthly costs. Spending tens of thousands of dollars to generate electricity to power inefficient lights, appliances and electronics simply doesn’t make sense. So before installing a PV system, a home energy audit is a smart idea. Purchasing Energy Star appliances, lighting and other electronics is also a good way to save energy. Even turning off the lights and minimizing air-conditioning usage will go a long way to reducing your overall energy needs and could help you make a smaller, less-expensive PV system the best choice.