Everything You Should Know Before You Buy Solar

Going solar has many benefits, from lowering your electric bill to reducing your carbon footprint. Installing a solar system is an investment, but it can boost your home's value and there are rebates you can take advantage of to lower the cost. On the other hand, your local electric companies may offer community solar, which doesn't require installing your own solar panels. You have options, so make sure you find the best electric plan for you. Here are a few things you should know before making a decision:

Your home should (ideally) already be energy-efficient.

Before you make the switch to solar, are there any other areas of improvement you can tackle first? If your home isn't energy-efficient already, you'll still end up wasting electricity — even if it's at a lower rate. Check your windows and doors to make sure they have a proper seal. You may need to replace old, drafty windows. Consider updating appliances like your washer/dryer, refrigerator, and dishwasher. The most important thing is your HVAC system, though. A solar installation is only part of a good green energy plan — make sure the rest of your home is on par to really reduce your electricity usage.

Compare electric providers and incentives.

Solar energy has been around for a while, but it's still hard to access in some places. U.S. energy markets are still mostly monopolized by a few utility companies. In areas where electric companies have monopolies, it may be harder to get access to solar power (but not always). Some places have pushed for energy deregulation to create competition and lower electric rates. With deregulation, more electric suppliers can offer different energy plans, including solar options. You'll be able to compare electricity plans and find the best energy rate for your new system.

Your government may provide certain rebates to incentivize people to make energy-efficient upgrades to their homes. In Australia, you could get substantial discounts on energy-saving appliances through home energy incentive programs. Other renewable energy incentives can offset the price of a solar installation. It doesn't stop there, either. Once you have a solar system installed, you could get paid for any surplus energy created with feed-in tariffs.

There are different types of solar power systems.

Once you've made sure your home is energy-efficient and that you can install solar panels, you need to decide what type of system is best for you. The three main types of solar power systems are:

Off-grid: Also known as stand-alone systems, these are not connected to a power grid. Off-grid systems require a large battery bank that can power the home when the sun isn't shining. This means higher installation and maintenance costs, but it can be ideal for those in rural areas or who wish to be self-sustainable.

Grid-tied: These systems are connected to utility lines and are the most common and practical today. Solar energy produced at the home supplies electricity and offsets your monthly electric bill. The downside is that your solar system will not generate electricity during a power outage.

Hybrid: New technology could allow you to have the best of both worlds. Smart inverters and bidirectional battery storage could give your grid-tied system the backup power it previously lacked.

Some energy providers offer community solar options.

Community solar is a great option for those who can't afford a full solar installation, don't own their home, or don't have a suitable roof. Instead of installing individual home solar panels, renewable energy is generated at solar facilities. Subscribers then receive a credit on their energy bill based on their share of the community resources. This option allows business owners, renters, and lower-income residents access to renewable energy and its benefits.

As you can see, you have quite a few energy plan options. Finding the right plan for you is going to take some due diligence. Check your local rules governing energy markets, look for incentives, and consider community solar if installation isn't right for you.