Even as the cost of home solar falls, the cost of conventional electricity continues to rise. The Energy Information Administration predicts that energy consumption will more than double by 2035 worldwide. Homeowners are starting to look at solar energy as protection against future price increases.

Fortunately, there are many solar options that will not only immediately reduce your monthly energy bills, but save you even more money over time. Here are five of the best.

For pricing on home solar power, click here.

1. Solar Water Heating Systems

Solar water heaters can cut your hot water costs by more than 50 percent. That kind of efficiency means that you’ll recoup the initial installation costs in around 5 years. Since the solar panels for these systems last 20 years or longer, you’ll enjoy many years of extra savings. A number of rebates and incentive programs can substantially reduce upfront costs as well. In fact, in many areas, there are more programs offered for solar hot water than there are for home photovoltaic (PV) systems.

2. Small Residential PV Systems

Even a few residential solar panels can make a significant impact in monthly electric bills, particularly if your utility company has a tiered-rate system. Utilities typically offer a base rate to cover basic electrical needs, but as your consumption increases, so do the rates. Many utilities increase rates further during peak-demand periods. The time of day when electricity is most in demand is usually in the afternoon, when solar panels are at their highest efficiency. As solar panels are modular, you always have the option to add more later.

3. Ground-Mounted (Backyard) Systems

If you’d like to go solar, but your home’s roof simply isn’t a good candidate for solar panels, consider a ground-mounted system. In the past, ground-mounted systems were considered more expensive, as they require extra equipment. But more and more solar contractors are offering ground-mounted systems that operate with GPS technology, enabling them to tilt towards the sun as it crosses the sky. This increased efficiency can offset the additional costs.

4. Solar Shingles

If you’re considering installing a new roof on your home, incorporating solar shingles into the design is another affordable way to work solar energy into your life. You’ll spend less than if you purchased a roof and a home PV system separately.

5. Solar Leases

Solar leases make it possible for just about any homeowner to enjoy lower electrical bills for little or no money down. The solar provider will install a system for you, maintain and insure it, and you just pay the provider for the electricity that the system produces at a locked-in rate, protecting you from rising energy costs.

Have You Gone Solar?

Have you made the switch to solar? What type of system did you go for, and why? Let me know in the comments!

5 Simple Home Solar Power Options

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San Jose added more residential solar photovoltaic (PV) systems last year than any other city in California, according to the latest PV Solar Report, a quarterly analysis conducted by solar company SunRun.

San Jose’s number of home solar systems in 2011 was up 45.4% from just the year before, a dramatic increase that points to the rising popularity of home solar.

Out of the 960 home PV systems installed last year, 648 of them were leased systems, what SunRun calls “solar service.”

In total, nearly 7,500 home solar systems were installed in California last year.

SunRun, the nation’s top residential solar power company, installs over $1.5 million in solar every day.

SunRun president Lynn Jurich credits the company’s success to the growing popularity of solar leasing, stating that solar service “allows homeowners to make the switch for zero or very little money upfront, and they lock in a low rate for clean electricity.”

For home solar power pricing, click here.

Beginning in June 2011, solar leasing in California began to outpace purchased systems. In December 2011 alone, over 70% of solar installations in the Golden State were leased systems.

The appeal of leasing reaches beyond lower monthly electric bills. Many Californians are glad to find affordable ways to support technologies that reduce the nation’s reliance on fossil fuels.

San Jose residents can take advantage of incentive programs as well, including the federal tax credit program that can cut installation costs by up to 30%.

San Jose Pacific, Gas & Electric (PG&E) customers are also eligible for per-watt rebates from the utility. The current rate for PG&E rebates is $.25 per watt.

For a 4 kilowatt-sized home PV system in San Jose, rebates can cut the upfront costs from $33,000 to $22,000, with a payback period of about eleven years.

PG&E customers in San Jose can take advantage of net-metering, too. By reducing their conventional electrical use, they can often stay in the base-rate range, avoiding higher rates during peak demand periods.

Whenever the home is generating more power than the home is using, PG&E will credit the surplus to their monthly bill.

The PV report not only looked at the number of solar installations added, but the fastest-growing California solar cities, such as Hemet and Apple Valley.

“We thought it was important to not just look at which cities have the most solar installations,” said PV Report founder Stephen Torres, “but also those that are growing the fastest.”

San Jose: The Fastest-Growing California Solar City in 2012

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San Diego Gas & Electric (SDG&E) has filed two proposals with the California Public Utilities Commission (CPUC) that, if approved, may allow you to choose electricity generated by solar energy instead of fossil fuel-based energy, whether you own a home or not.

SDG&E is applying to begin two pilot programs. Information for each of them (and they’re worth checking out) is detailed below.

Note: for pricing on a residential solar system, click here.

Share the Sun Solar Farms

The first program, called “Share the Sun,” would allow solar contractors to purchase and install their own “solar farms” on their own or purchased property. San Diego customers would then be able to purchase a portion of the electricity generated from the provider installations.

You would be able to choose the size of the portion you wish to acquire, and would receive credit on your electricity bill for the value of the solar energy generated. In effect, this program would be similar to group-buying or community solar gardens.

Get a percentage of solar energy through SunRate

The second pilot program, called “SunRate,” would indirectly allow customers to purchase solar electricity produced by SDG&E’s own solar projects. SDG&E would establish a “green” rate that would reflect the cost of the solar energy generated by these projects.

In a twist that puts the power right in your hands, you could choose to have 50 percent, 75 percent or 100 percent of your electricity at the new, green rate. Although you would have to agree to a year’s subscription, the price (and reduction in energy costs) would be guaranteed for the term of the contract.

Why are utilities going solar?

In California, a utility’s renewable energy portfolio must represent 20 percent of that utility’s total energy distribution by 2013, and 33 percent by 2020. SDG&E has been showing progress towards reaching those goals, with several solar farms of their own up and running–and with more planned.

Recently, however, SDG&E proposed that the CPUC allow them to demand a “network usage charge,” a $20 to $30 a monthly fee, on homeowners who own or lease residential solar photovoltaic (PV) systems. The CPUC struck down the proposal.

SDG&E provides service to 3.5 million customers in San Diego and Orange County. The company is a subsidiary of Sempra Energy. Recently, Sempra Energy stock hit a new 52-week high. Before applying to the CPUC for the two pilot programs, SDG&E met with solar providers, community leaders and policymakers for input.

SDG&E is also proposing that the CPUC oversee a series of workshops where interested parties would be able to help shape the pilot programs to ensure transparency. Homeowners in San Diego can already save quite a bit on solar costs due to rebates, incentives and the like.

Should the CPUC approve the two pilot programs, many residents in the area will have the opportunity to go solar without installing a home solar power system at their own homes. As solar energy produced by larger solar installations typically costs less, residents may have the chance to lock in cheaper rates for their electricity, proving, once again, that going green can add green to the wallet, too.

In San Diego, You Can Go Solar Without Owning a Home

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In Vermont’s state legislature, a bill is under consideration that will help owners of residential solar photovoltaic (PV) systems put more green into their pockets.

It’s not a rebate or an incentive program to reduce installation costs, but a change to net-metering policies–a change that can reap substantial savings for Vermont residents.

For pricing on a home solar system, click here.

What Is Net Metering?

When a grid-connected, residential solar system generates more electricity than the home is currently using, the home’s electrical meter literally spins backward, sending the surplus energy back into the electrical grid. In many states, the customer then gets a credit for that energy on the monthly electrical bill.

Net metering is one of the primary reasons that going solar has become so affordable. Even with a small home solar system, there are periods of the day when it will generate more energy than the home needs. When that excess electricity is credited to a home energy bill, it cuts down on the costs of the conventional energy that a homeowner may need to supplement the PV system.

Why is Vermont’s Net Metering Policy Changing?

Across the nation, public utilities are mandated to invest in renewable energy. Many utilities partially meet these mandates through net metering, but states are allowed to dictate the percentage of solar-generated electricity that utilities credit their customers. Last year, Vermont raised the cap on the amount that utilities can get from net-metered PV systems to 4 percent.

This, along with Vermont solar rebates, was good news for residents, but the new law restricted the size of eligible solar panel systems to only 5 kilowatts. In Vermont, the average home PV system is around 7 kilowatts, leaving most homeowners ineligible to take advantage of the extra savings without undergoing a taxing application process.

House Bill 475, which just passed in the state’s house of representatives, allows for a simple application process for PV systems sized up to 10 kilowatts. Best of all, the bill also credits customers with home solar systems more money per kilowatt hour for surplus electricity. The bill must still pass the state’s senate.

What About Other States?

Almost every state has programs in place that garner extra income for PV system owners. In many areas of California, for example, net metering savings can be augmented by taking advantage of tiered and time-of-use (TOU) rates. Tiered rates are those that rise as the customer uses more energy. TOU rates increase during peak-demand periods. Home PV systems typically generate enough electricity to keep customers in the lower, base rates.

Other states like New Jersey award home solar system owners a Solar Renewable Energy Credit (SREC) for each megawatt-hour of electricity that their systems produce. New Jersey SRECs are currently selling for $675 each.

Cutting installation costs through rebate and incentive programs is only the beginning of solar savings. Programs like net metering not only offer ongoing savings for homeowners, but decrease the payback period for their systems. Once that period is over, those savings become sheer profit.

For more assistance paying for a home solar system, check out solar lending programs, offered in Vermont and across other states as well.

Going Solar in Vermont is about to Become Profitable

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