Solar power is no longer just for the bleeding edge "green" crowd. It now makes good financial sense. Several years ago, the technology was unproven, the costs were high, and traditional energy was cheap. All of that has changed, and now solar power makes sense for just about anyone who owns their home, lives in CA, HI, AZ, CO, NY, NJ, MA (and a few other states), and has an energy bill over about $50.

"High Efficiency" solar panels have reached a point where the efficiency of the panel, that is, how effective they are at turning sunlight into usable energy, is no longer the limiting factor. In most residential cases there is enough roof space that the current generation of solar panels can produce all the power you'll need without even filling the roof. So while more efficient panels may take up a bit less space, they won't make a major difference since at the end of the day, most people only look to offset 50% or 60% of their power, which often takes less than a full roof. Why only 50-60% of power usage? Currently utilities will buy back the excess power that you produce and can offset your bill, but at most they'll offset 100% of your bill. They're never actually cut you a check if you offset more than 100% of your bill. Therefore, putting in a system that produces more power than you actually use will cost you more money to install, but won't allow you to make money beyond just offsetting your energy bill.

Solar panels also now last 20-25+ years, which is plenty long. Currently the weak link is the inverter, which inverts the DC power from the panels into AC power which is usable by household appliances. 10-15 years is about how long an inverter lasts before it needs to be replaced.

Currently solar power systems cost around $8,000 - $10,000 per kW (kilowatt). So if your monthly electric bill is $150 that translates to about 4kW, which would means the list price for an installed solar system would be between $32,000 and $40,000. However, the local, state, and federal government have many different incentive programs in place to help you adopt solar for less.

Federal Rebates: Currently the US government currently offers a 30% tax credit on residential solar systems through 2016, which no upper limit. That means that if your system cost $40,000 you would get a $12,000 tax credit. Not a deduction but a tax credit. That means that if at the end of the year you previously owed $15,000 in federal taxes, that would be reduced by $12k and you'd end up only owing $3,000 in federal taxes.

State Rebates: These vary by state and the details for each state can be found at the "Database of State Incentives for Renewables & Efficiency" http://www.dsireusa.org/

Local Incentives: Like the state incentives, local incentives vary widely. Currently in CA, PG&E offers a $1.55 per watt rebate, but that is likely to go down to $1.10 per watt in the next few months. So possibly as soon as October 2009.

Currently in San Francisco, CA, if you had that $150 monthly energy bill and wanted to put in a 4mW solar power system, it would list for $40,000. But once you take into account the federal, state, and local incentives and rebates the price would literally be cut in half. That $40,000 system would actually only cost closer to $20,000, and with the right financing you'd be paying for the system and any excess energy that you need from the grid all for less than your current electric bill.

The technology is there, the rebates are there, and looking at historical averages, traditional utility energy prices seem to be going up at a rate of about 6% a years. Given that you can now get home loans, unsecured loans, same as cash loans, solar leases, and ever "power purchase agreements", there are all sorts of ways to buy or lease a solar system such that you're paying for the system and any additional energy you need for the grid for an amount that is less that your current energy bill. That means that in 10-15 years when the system is paid for you will have paid less for your energy, increased the value of your home via your solar panels, decreased our dependence on coal and foreign oil, and helped clean up the environment by using clean, renewable energy. And from that point forward you'll effectively be making money from your solar system. Given the 20-25+ years that the system will last, there's a whole lot of money to be made while you're getting clean energy from the sun!

To learn more, or to get a free solar evaluation for your home, check out www.ResidentialSolar101.org.