Issue Date: September 16, 2007

Going solar

1. Determine whether you have an appropriate site. "Your home needs an unshaded or unobstructed roof facing south, east or west," says Rob Powell, of verdeenergy.com, a network of renewable energy professionals. You'll also need an average of 600 to 700 square feet of roof space for an electricity-producing system. A thermal system, which heats the home's water supply, or a pool-heating system requires 100 square feet.

2. Familiarize yourself with solar energy types and price tags, says Meagan Anderson, of SunTechnics Energy Systems in Sacramento, Calif. Most people start with a solar thermal system, which costs an average of $6,000 and pays for itself in about five to seven years. Solar pool heaters average $5,000, paying back their cost in three years. A typical 5-kilowatt photovoltaic (PV) system, which generates electricity, costs about $40,000 and generally pays for itself in six to 12 years.

3. Examine your current utility bill, says Adrienne Henzmann, of the Florida Solar Energy Center. If you're paying 15 cents per kilowatt hour or more, then installing PV is a cost-saving option. The website pvwatts.org has a calculator that can tally your savings.

4. Hook up to a utility. Net metering arrangements allow the PV system to send excess electricity into the utility grid. "The meter will actually run backward," says Rhone Resch, president of the Solar Energy Industries Association. Check to see whether your power company credits customers for any excess power they produce. PV systems make sense in places where electricity rates vary throughout the day. "Because PV generates electricity during the most expensive time of day -- peak power -- you're selling surplus power into the grid at retail prices and drawing from the grid at off-peak prices," Resch says.

5. Get some money back. Federal tax credits, state rebate programs and utility company incentives can shave 50% or more off the price tag, Resch says. The website dsireusa.org maintains a comprehensive database of incentives for using renewable energy.

-- Mary Forsell

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