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Harnessing the power of the sun’s ray to create energy to power our house is very appealing. But the question is, “Is everything about solar energy good?”

Looking at the current price of fossil fuel-based electricity, it is quite impractical to convert into solar energy system. However, with the growing concern on the state of the earth, there is really a need to find other means of energy aside from what power plants are using right now. Where do you place yourself?

Whether you are an advocate of clean energy or simply care about where your finances go, looking at the pros and cons of residential solar energy system will help you decide on whether to convert or not.

Pros

Solar energy is free. Did you know that the earth absorbs 174 pettawatts of solar radiation? This means that we have more than enough source of free energy to power every house in the world. Unfortunately, most of our energy is still drawn from oil, gas and coal. But in recent years, there is a steady increase of demand for alternative and renewable energy like solar power. It is estimated that the demand for alternative sources of energy will increase by 53% between 1999 and 2020.

Smart home owners for the year 2009 are taking advantage of the renewable energy plan for solar and wind power.

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Solar energy is clean, renewable and sustainable. Because the energy created from the sun’s rays does not produce byproducts like those from fossil fuel power plants (sulfur dioxide, nitrogen oxide, mercury or carbon dioxide), it does not contribute to pollution. Accordingly, the increase in the use of solar energy and other alternative forms of energy will decrease the demand for greenhouse gases-producing power plants.

The price of photovoltaic cells is steadily decreasing. The demand for solar panels has risen by 57% in the United States in 2007 and is steadily increasing on a monthly basis. The increase in demand results to the improvement of solar technology as a whole. The prices of photovoltaic cells have declined on the average of 4% every year over the past 15 years.

Solar panels can be installed on most rooftops, eliminating the problem of finding a suitable place for installation. Solar panels require little or no maintenance. The original photovoltaic cells technology is used for most satellites orbiting our earth today which are not maintained at all. Many solar panel manufacturers give 25 to 40 years warranty on their products.

Because most areas of the country receive a substantial amount of sunlight throughout the year, solar panels can be installed anywhere.

Many states in the country give tax credits and rebates to households who want to install solar energy system. Check with your state government the cost of these incentives.

Cons

While the prices of PV cells are in constant decline, the cost of installation is substantially high compared to the current electric cost. But the good thing is, after your initial cash out, you don’t have to pay every month on electric bills for the rest of your life.

On areas cities and areas with heavy pollution problem, solar energy may not work as fine. Weather can also affect the efficiency of solar energy. If it is raining, overcast weather or if there is a hurricane, the solar panels’ efficiency is decreased.

You are only producing energy during day time.

These are general pros and cons you might encounter when considering the conversion to solar energy system.

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As the cost of living continues to rise, energy reports and broadcasts are crammed with energy saving tips and suggestions. Some energy saving tips require initial investments, some just solicit a change of lifestyle. The best energy saving tips are those that require almost nothing but changing a habit. This one is about the wise energy saving choices.

1. Limit, as much as possible, the use of water. Of course water is not that expensive (at least for now); but saving water saves energy. When cleaning the driveway, the deck or patio, using the broom instead of the hose would save several hundreds of gallons of water a year.

2. A push mower is a good idea to mow a small lawn. Aside from not using electricity or fuel to ride the mowing machine, it is also good exercise.

3. Rakes are good leaf movers. Like the push mower, you do not need energy to fuel up a machine to get the job done. There is also a sense of nostalgia in using this traditional tool.

4. Use compact fluorescent light bulbs to light up your driveway or as a security light. CFLs are one of the most handy and energy efficient products that you can have. If you are worried about bugs sticking to the light, there are yellow CFLs that are available.

5. When shopping, avoid going for the disposable ones. Disposable products need more landfills and landfills emit dangerous gasses. Go instead for items that could be used several times over. Again when shopping, go for products that are made of better quality. They might be a little more expensive but generally, quality products last longer.

6. Bring your own bags when shopping. Paper bags are made from trees; the environment can use more of them. Plastic bags on the contrary are oil based and are not biodegradable. If you bring your bag with you, you do not only help in saving energy, you could also get a discount from your store.

7. Batteries contain toxic materials. They produce heavy metal like zinc, zinc, arsenic, cadmium, mercury etc. Thus, disposal needs proper care. Once the heavy metal in batteries seeped into the ground it has a good chance of contaminating the ground. When buying products that would need batteries, pick those that are rechargeable. That way battery disposal is limited and you save on the cost of buying new batteries.

8. Good thing that SUV sales everywhere are going down (well, at least for the environment and not for car manufacturers). SUVs use much more energy than compact sedans for the same distance. While using SUV’s could be fun, there is also that tinge of indifference to the current energy issues and environmental problems we are facing. Reducing the use of SUVs on the street may not mean much in terms greenhouse gas emissions but is a signal to manufacturers to build more energy efficient vehicles.

9.The use of solar power is an excellent idea if you want to tackle the issues of energy conservation and environment protection. If there is one thing that the world needs most at this time, it is the widespread use of solar power.

10. Energy saving devices may cost a little extra but the pays offs are much more than the extra cost in terms longer life spans and energy saved.

As we sit in spring, most people can’t believe how high their utility bills are. Going with solar energy can lower your bills and you get a hefty tax credit

Solar Tax Credit

Solar energy is a clean, renewable energy source. The production of solar energy on residential and commercial structures creates no pollutants and is starting to make serious financial sense. In 35 states, the concept of net metering is now an established fact. Net metering simply means you can sell energy from solar panel systems back to utilities, thus eliminating or seriously reducing utility bills. As oil and natural gas costs skyrocket, the Federal Government is doing even more to promote the use of solar energy.

In 2005, Congress enacted the Energy Policy Act. As part of the act, a tax credit was established for any person purchasing and installing residential solar energy systems for electric and water heating purposes. If you purchase and install solar systems for either of these purposes, you can take a 30 percent tax credit. If you install systems for both of these purposes you can double the tax credit. To avoid tax abuse, each tax credit has a cap of $2,000.

Importantly, tax credits are far more valuable than tax deductions. Tax deductions are taken from your gross income prior to figuring the amount of tax owed. Tax credits are a dollar for dollar reduction of the actual amount of tax you owe. For instance, if you prepare your tax returns and find you owe $5,000 to the IRS, a tax credit would be deducted from this $5,000 figure. In short, a tax credit gives you a lot more bang for your buck.

To claim the solar tax credit, there are a few restrictions and requirements. First, you can’t claim the tax credit if you use the solar system to heat a hot tub or pool. Second, the system must be certified by a solar rating certification corporation to establish that you, in fact, installed a working system. Third, the system must be activated between January 1, 2005 and the end of 2007. Finally, you cannot claim the credit if the government gave you a grant or financing to purchase the system, to wit, no double dipping.

When solar energy is discussed as a potential alternative energy source, most supporters point to the environmental benefits. Ultimately, the benefits to ones bank account will really make the difference and the solar tax credit is a solid step in that direction.