The Ultimate Guide to Residential Solar Panels: Everything You Need to Know

For California homeowners who enjoy an abundance of sunshine in the Golden State all year long, solar panels present a golden opportunity. By harnessing the power of the sun with residential solar panels, you can significantly reduce your carbon footprint and transform your home into a power station that generates free, renewable electricity. This shift does more than just light up homes with green energy; it also translates into substantial savings on electricity bills, making solar panels a popular choice among homeowners.

While installing solar panels is a wise long-term investment, it’s also a big purchase. That’s why it’s important to learn as much as possible to ensure you make a well-informed decision. In this guide, we’ll review the process of solar energy generation, explore the available financing options, provide strategies to maximize your savings, and much more.

Understanding How Solar Panels Work

Solar panels convert sunlight into electricity in a process that involves photovoltaic (PV) cells, the fundamental building blocks of a solar panel. These cells are made up of two layers of semiconductor material, usually silicon, which is combined with other elements to create an electric field.

When sunlight, composed of tiny packets of energy called photons, hits the PV cells, it excites the electrons and knocks them loose from their atoms. This action creates an electric field across the layers of the cell. The electric field pushes these electrons out of the silicon and into a circuit built into the solar panel. As these electrons flow through this circuit, they generate electricity that can then be used to power your home.

The beauty of this process lies in its simplicity and efficiency. It’s a direct conversion of sunlight into electricity, with no moving parts involved. This means that solar panels require minimal maintenance and have a long lifespan, often up to 25-30 years.

With advancements in technology, modern solar panels have become increasingly efficient. Today’s solar panels can convert up to 22% of the sunlight they capture into electricity. This figure, known as the panel’s efficiency rating, is a key factor in determining how much electricity a solar panel can produce. The higher the efficiency rating, the more electricity the panel can generate from a given amount of sunlight.

Evaluating Your Home’s Suitability for Solar Panels

While solar panels are designed to work in all climates, the suitability of your home for a solar system depends on several factors. These include the age and condition of your roof, its size, shape, and slope, and the amount of sunlight it receives. Solar panels perform best on south-facing roofs with a slope between 15 and 40 degrees. 

However, even if your roof is not ideally suited, you can still benefit from solar energy through ground-mounted systems. A professional solar installer like Solar Technologies can provide a detailed assessment of your home’s solar potential. They will consider factors such as shading, roof orientation, and local weather patterns to determine the potential productivity of a solar system based on your location.

The Step-by-Step Process of Going Solar

Transitioning to solar energy involves several steps. It begins with setting up a solar consultation to determine if your roof is suitable for solar panels, get all your solar installation questions answered and review your current and future home energy needs.

Through this process, you’ll end up with several solar quotes from the local solar companies you meet with in your area. Once you’ve chosen a provider, they will conduct a site visit to confirm the suitability of your home and design your solar energy system. 

The system size will depend on your energy needs and the available space on your roof. After this, your solar company will install the solar panels on your roof and connect them to your home’s electrical system. The entire process can take anywhere from one to three months, but the long-term benefits of solar energy and the savings that come with it make it well worth the wait.

Financing Your Solar Panels: Understanding Your Options

There are several ways to finance your solar panels. You can purchase the system outright, which will give you the greatest long-term savings but requires a significant upfront investment. Alternatively, you can take out a solar loan, which allows you to spread the cost of the system over several years. 

Another option is to enter into a solar lease or power purchase agreement (PPA). These arrangements involve making regular payments to the company that owns and maintains your solar panels. The best option for you depends on your financial situation and your long-term energy goals, so it’s important to consider all your options before choosing the one that best fits your budget and lifestyle.

The Wide-Ranging Benefits of Solar Panels

Solar panels offer a multitude of benefits. One of the most immediate and tangible benefits of solar panels is the significant reduction in your electricity bills. Once your solar panels are installed and operational, they’ll start generating free electricity for your home. This means you’ll draw less power from the grid, which will lead to lower monthly electricity bills. Over time, these savings can add up to a substantial amount, helping to offset the initial cost of the solar system.

In some cases, your solar panels may generate more electricity than your home needs. When this happens, the excess power is fed back into the grid. Many utilities offer net metering programs, which allow you to earn credits or even cash for this excess power. This means that your solar panels could not only reduce your electricity bills, but also become a source of income.

Solar panels can also increase the value of your home. Multiple studies have shown that homes with solar energy systems sell for more than those without. In today’s environmentally conscious market, many buyers view solar panels as a desirable feature, making your home more attractive to potential buyers.

Moreover, solar panels significantly reduce your carbon footprint, helping to combat climate change. Traditional sources of electricity, such as coal and gas, emit large amounts of carbon dioxide and other harmful pollutants when burned. In contrast, solar panels produce electricity without any emissions, making them a clean, green alternative. By switching to solar power, you’re not just saving money; you’re also making a positive impact on the environment for future generations.

Incentives for Solar Panels: Maximizing Your Savings

There are numerous incentives available for homeowners who install solar panels. If you invest in a solar photovoltaic (PV) system within a given tax year, you become eligible for a Federal Solar Investment Tax Credit (ITC). This can be claimed on your federal income taxes and is calculated as a percentage of the system’s cost. When you claim the federal tax credit, it can substantially lower the cost of your solar panels, making the solar panel cost even more affordable.

In the year 2021, the federal solar tax credit offered a 26% tax credit for systems installed from 2020 through 2022. Moving forward, the ITC has been enhanced to provide a 30% tax credit for systems installed during the tax years of 2022 through 2032.

There are also many state and local incentives, which can be found on the DSIRE website, that can help you save money and make solar power an even more attractive investment. It’s important to research all available incentives or review them with your solar consultant so you understand how to claim them to maximize your savings.

Solar Plus Storage: Maximizing the Advantages of Solar Energy

Solar plus storage refers to the integration of a solar panel system with a battery storage system. This combination is a game-changer in the realm of renewable energy, allowing homeowners to maximize the use of their solar panels and increase their energy independence.

Solar panels generate electricity when the sun is shining, but what happens when it’s not? What about at night or during cloudy days? This is where a battery storage system comes into play. The excess power generated by your solar panels during the day is stored in the battery for use when the panels aren’t producing electricity. This stored energy can be used to power your home during the night, on cloudy days, or during power outages.

The ability to store and use solar power at your discretion increases your energy independence. You’re not just reliant on the sun shining or the grid being available. You have a store of power that you can tap into whenever you need it, which is particularly beneficial during power outages to ensure you have a reliable power supply at all times.

Moreover, in some areas, utility companies offer Time-of-Use (TOU) rates or demand charges, where electricity prices vary based on the time of day or the amount of electricity used during peak times. With a battery storage system, you can store the electricity generated during off-peak times and use it during peak times, potentially saving money on your electricity bills.


Solar power is a smart, sustainable choice for homeowners in California. By understanding how solar panels work, the benefits they offer, and the incentives available, you can make an informed decision about whether solar power is right for you. 

If you’re ready to explore the benefits of solar for your home, our Bay Area team has more than 25 years of experience in designing and installing the right size of home solar system to reduce your monthly energy bills. Schedule an online appointment today to learn more.

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