Six Easy Steps to Estimate Cost of a Solar Power System - parts 4,5

Step 4: Size your system

In general, solar photovoltaic systems sized between 1 to 5 kilowatts are usually sufficient to meet the electricity needs of most homes. One advantage of grid-tied systems is that you can use solar PV to supplement or offset some of your electricity needs; therefore you can size your system to match your budget and always add to the system later if needed.

Also as a side note, here's a rule of thumb to remember to help you estimate the physical space your PV system might need: one square foot yields 10 watts. So in bright sunlight, a square foot of a conventional photovoltaic panel will produce 10 watts of power. A 1000 watt system, for example, may need 100 – 200 square feet of area, depending on the type of PV module used.

Step 5: Know your rebates

Many states and local jurisdictions offer rebates, tax credits and other types of incentives to homeowners for installing residential photovoltaic and solar domestic water systems. To view a comprehensive database of the incentives available for renewable energy visit http://www.dsireusa.org.

At the Federal Level, you can take advantage of a 30% tax credit (of up to $2,000) for the purchase of a residential solar system at least until December 31, 2008.


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