It is easy to understand the continued appeal of solar panels for use in residential energy. Once a system is installed, and the sun is visible, the system works. There are no additional fuels required, no pollutants emitted, and very few parts to maintain. Solar panels can be used to generate straight electricity, thereby reducing the strain on the city electrical grid, as well as reducing the energy costs of the homeowner. Other panels convert solar energy into heat instead of electricity, providing low-cost heating for the entire house, a specific room, or even the family swimming pool. However, solar power is obviously not a one-step solution to residential power requirements. It is a complex technology that requires understanding and proper use to be completely effective. Residents thinking of installing a solar system should do careful research, and ascertain whether solar panels are indeed the solution to their energy needs.

Solar energy is both passive and intermittent. Passive energy means that no additional steps are required to collect it - the solar panels simply react to the presence of sunlight, and convert it to either electricity or heat. Intermittent refers to the fact that the sun is not always out, and is not always in the same spot. Therefore, energy is collected at different rates throughout the day, with the most energy being produced when the sun can shine directly on the solar panels. The way this energy is used depends on the type of panel installed.

Photovoltaic (PV) solar systems convert sunlight energy directly to electricity, specifically Direct Current (DC). This is then converted to Alternating Current (AC), which is the standard to which homes and appliances are built. PV systems are usually installed as a supplement to a standard utility electricity package (called on-grid systems), and are used to decrease the amount of energy homeowners are required to buy. Some PV systems include batteries that store extra energy, allowing homeowners to continue using power even in the event of a local power outage. 

Solar heating systems use solar collectors to gather up light energy, and then convert it to heat for use in various household applications. The energy is collected and then stored for future use, be it to heat up a home in cooler temperatures or for hot water to use in bathing and cleaning. Users can purchase an active system that rotates the water regularly, or a passive system that relies on hot water's tendency to circulate itself over time. Solar pool heating is also possible, reducing the costs required to keep a swimming pool at an agreeable temperature. Pool heating units do not store their energy, but use it as it is generated. This is accomplished by connecting the pool's filtration system to the solar panels, and running the pool water through the panels, which transfers the heat to the water before depositing the water back in the pool.

The installation of solar panels for the home is not an inexpensive proposition. Solar pool heating panels, for example, cost as much as ten thousand dollars, depending on the size of the pool. Solar electricity systems can cost up to thirty five thousand dollars, depending on location and size of the unit installed. In addition, it is not just a matter of nailing the panels to the house roof and calling it a day - installation is a complicated process, requiring special mounting equipment, possible inspections of the premises, and a host of non structural concerns. For example, one's location on the planet directly affects at what angle sunlight interacts with a home. Greater distance from the equator means the sun is less likely to directly strike the house from above, and thus the engineers will need to inspect the home to determine exactly which facing is most feasible for installation, if indeed any are. Thus, solar installation can become a lengthy and expensive process, and is not to be attempted lightly.

Very few solar systems are set up to account for one hundred percent of a home's energy needs. As mentioned before, larger installations are extremely expensive, and take up greater amounts of space. Indeed, some homes may not have the available space to support a fully solar-powered lifestyle. The best course of action for homeowners is to examine their local power costs per kilowatt hour, determine the rate at which various proposed sizes of energy or heating generation will reduce their monthly and yearly costs, and select their solar package accordingly.

Homeowners seeking to install solar panels for your home should be ready to address other concerns as well. Some homeowner's associations encourage or discourage solar paneling for various reasons, and homeowners are advised to consult before constructing. Some state or local governments provide incentive packages to reduce installation costs. As with any solar panels for home investment, thorough, complete research will help homeowners make the most of their opportunities.