That 30 percent tax credit on solar panels that was supposed to expire this year? It’s been extended, all the way to [2030]. To get the full Solar Investment Tax Credit (ITC), we’ve got to get our panels purchased and put up in the next three years. After that, the credit fades out, so the time really is now. Need more of an incentive? The price of solar panels is down — in fact, it’s fallen by more than 75 percent since 2009. Still, the initial cost of buying and installing a full system, including panels and supporting parts, can be a steep investment for most consumers.
There’s more than one route to the best solar panels.

- Buying Outright — If you own your home, and you can afford it, buying your panels outright is the best option. It’s the only way to take advantage of the ITC and other incentives, and it’s the only way to earn renewable energy credits — actual income from selling your excess power back to your local utility. Plus, according to EnergySage, panel payback time is approximately 8 years, and they last an upward of 25 years, leaving you with a potential 17-plus years of savings.
- Leasing -- When you lease solar energy, the company you lease from will install panels on your roof at no charge. It’ll take care of maintenance, and you’ll pay a set monthly fee for the length of your lease, which will likely be about 15–20 years. The company, not you, will get to claim the ITC and other benefits.
- Power Purchase Agreement -- The PPA option is very similar to leasing; instead of paying a subscription, you’ll pay per kilowatt-hour (kWh) of solar energy that you use.
Leasing, and its sibling the PPA, sound like lower commitments than buying. You have no up-front cost, and maintenance is included, which can feel like a big weight off your shoulders. But with a solar lease, you’re usually signing up for 20 years, which would have been long enough for you to purchase your own panels through a loan — and the subscription you’d have paid during that time could actually be more than the loan payments you would have made.
If you aren’t in a position to buy right now, keep an eye out for community solar.

Community solar (or a shared renewable energy arrangement) lets you use solar energy without having to install panels on your property. Instead, you’d use energy from panels on a solar farm. The energy generated by the farm goes into the grid and is disbursed to members through a credit system. This option isn’t just the lowest-commitment model out there — it’s also available for apartment dwellers who are interested in switching to green energy.
Don’t leave any credits or rebates on the table.

In addition to the big ITC, there are often state and local credits to cash in on. Database of State Incentives for Renewables & Efficiency (DSIRE) and Solar Power Rocks are helpful to get a general sense, but ask your local resources for help; your installer, utility, and local government will have the most up-to-date and definitive information.
If you’re living on a limited or fixed income, you might qualify for even more. Many groups, like the Association of California Community and Energy Services (ACCES) work with state and federal low-income energy programs. These operate under the philosophy of energy equity, the belief that we should all have equal access to efficient, clean energy. In fact, at the end of the year, the power company might even pay you.
Your panels are usually going to be connected to the grid, and when they produce more energy than you need, the excess energy flows into the grid and serves other customers in your area.
Meanwhile, your meter measures your energy use. If your utility provides net metering, when you produce more energy than you need, your meter runs backward, subtracting from the energy you used. You will only be charged for your net use. If at the end of the billing year, you have produced more than you used, you will be paid for that extra energy — that is the utility will buy your energy off of you in the form of a renewable energy credit (REC).
If you’re living on a limited or fixed income, you might qualify for even more. Many groups, like the Association of California Community and Energy Services (ACCES) work with state and federal low-income energy programs. These operate under the philosophy of energy equity, the belief that we should all have equal access to efficient, clean energy. In fact, at the end of the year, the power company might even pay you.
Your panels are usually going to be connected to the grid, and when they produce more energy than you need, the excess energy flows into the grid and serves other customers in your area.
Meanwhile, your meter measures your energy use. If your utility provides net metering, when you produce more energy than you need, your meter runs backward, subtracting from the energy you used. You will only be charged for your net use. If at the end of the billing year, you have produced more than you used, you will be paid for that extra energy — that is the utility will buy your energy off of you in the form of a renewable energy credit (REC).
Ready to go for it? Find the right manufacturer.

Consider these four key factors when searching for a solar panel manufacturer:
1. Longevity. In this new, and rapidly evolving industry, companies can come and go before your warranty has a chance to run its course. Look for manufacturers that have been around for at least 10 years and seem likely to stick around even longer.
2. Power. Your roof only has so much space, and not all of it will face the right direction, or have the right angle or exposure to accommodate solar panels. Having fewer, more powerful panels will maximize your roof space and lower your installation costs. Go for panels that pull in at least 230 watts each.
3. Efficiency. Again you’ll want fewer, more powerful panels. The magic number here is at least 16.5 percent — it’s the average efficiency rating of the best solar panels, so scoring even higher means your panel is doing its job pretty well. (Efficiency is a measure of the power output in relation to the panel’s surface area and power input from the sun.)
4. Customer Service. Hopefully, you’ll only ever need to contact your installer, not your manufacturer. But if your installer happens to go out of business, the only way you’ll be able to take advantage of your warranty will be through your manufacturer. The manufacturer’s website should be easy to navigate and it should have a way for you to call or email.
If you find a manufacturer that checks off all your boxes, call to find its preferred installer in your area.
1. Longevity. In this new, and rapidly evolving industry, companies can come and go before your warranty has a chance to run its course. Look for manufacturers that have been around for at least 10 years and seem likely to stick around even longer.
2. Power. Your roof only has so much space, and not all of it will face the right direction, or have the right angle or exposure to accommodate solar panels. Having fewer, more powerful panels will maximize your roof space and lower your installation costs. Go for panels that pull in at least 230 watts each.
3. Efficiency. Again you’ll want fewer, more powerful panels. The magic number here is at least 16.5 percent — it’s the average efficiency rating of the best solar panels, so scoring even higher means your panel is doing its job pretty well. (Efficiency is a measure of the power output in relation to the panel’s surface area and power input from the sun.)
4. Customer Service. Hopefully, you’ll only ever need to contact your installer, not your manufacturer. But if your installer happens to go out of business, the only way you’ll be able to take advantage of your warranty will be through your manufacturer. The manufacturer’s website should be easy to navigate and it should have a way for you to call or email.
If you find a manufacturer that checks off all your boxes, call to find its preferred installer in your area.
The Bottom Line
Remember: buying your panels is not the only way to go solar. Lease or enter a power purchase agreement and you can get still score major savings without any initial investment.
This article originally appeared on The Simple Dollar. For the complete version, visit:
http://www.thesimpledollar.com/best-solar-panels
http://www.thesimpledollar.com/best-solar-panels
Further Reading
Below are links to downloadable documents that have more in depth information:
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