Solar energy systems grow in popularity every year in the U.S. The country’s current solar capacity is about 210 gigawatts, which is enough energy to power 36 million homes. Solar’s popularity grows each year, but even with a growing demand, the cost of solar is declining. In the last decade, the cost of installing solar power systems has dropped by about 40%.
Solar energy provides numerous benefits for homes because it’s clean, renewable, and cost-effective. Installing solar panels can reduce utility costs and increase home value.
Commercial and residential solar systems are great for the planet and your wallet. So, what information about solar panels should you know?
What Do Solar Panels Do: Basic Definition and Functionality
By definition, a solar panel is a panel made to absorb the sun’s rays to produce electricity and other forms of energy. These panels convert energy from the sun into power for homes and other structures. It’s a popular form of renewable energy around the world, especially in the U.S.
What is a Solar Panel?
Solar panels usually consist of a semiconductor material like silicon, which is placed in a metal frame and covered with glass. These panels are installed in spots that receive the most sunlight, such as rooftops facing south. When the panels sit in direct sunlight, they collect energy to convert into power.
How Solar Panels Work
Solar panels work using the photovoltaic effect. The photovoltaic cells (also known as solar cells) in your panels generate voltage or an electrical current when sunlight strikes the solar panels. Here’s a step-by-step process for how that happens:
- The atoms in the silicon cells of the solar panels have electrons surrounding them.
- When sunlight hits the silicon, the electrons release and bounce around, leaving electron-sized spaces behind.
- When an electron finds an empty space left behind by another electron, it creates energy.
- The solar panels collect that energy and convert it into electricity.
DC vs. AC Power
There are two primary forms of electrical power: alternating current (AC) and direct current (DC). The main difference between the two is how the electrons flow. With AC, the electrons don’t maintain a consistent direction, but with DC, they always flow in the same, steady direction.
DC power is usually much more efficient for renewable energy like solar panels. The consistent current of DC makes it better for solar energy because there’s less energy loss.
Since there are two types of electrical power, it’s essential to have an inverter with your solar panel systems so they can convert between DC and AC. While DC is more efficient for solar panels, the grid uses AC. So, an inverter can convert DC to AC as needed.
Types of Solar Systems
You can set up solar panels on all types of properties, including residential, commercial, and off-grid. Since solar systems are grid-tied, you’ll need a backup battery if you want to collect solar energy off the grid.
Backup power can keep energy in your home without relying on the grid, which is perfect for remote locations and power outages. Most off-grid households choose between a generator vs battery backup.
Components of a Solar Panel System
Solar panels generate electricity because of all the components they’re made of. Each part of a solar panel plays its own role.
Solar Cells
Solar panels are made with materials like silicon, cadmium telluride (CdTe), and copper indium gallium selenide (CIGS) because they’re excellent semiconductors for solar cells. These materials help the solar cells convert sunlight into electricity. Common types of solar cells include monocrystalline, polycrystalline, and thin-film.
Inverters
An inverter is a device that’s usually kept in a garage or utility room. It converts DC electricity collected from the sun into AC electricity that the grid can use.
Mounting Systems
Solar panels use metal racks to mount them to rooftops or the ground. Rooftop solar panels typically attach to the existing structure of your roof, but the exact process can vary based on the shape and style of your roof. For a ground mounting system, the metal frames are driven into the ground.
Batteries
If you want energy independence with your solar power, such as if you live off the grid, you’ll need batteries. A solar battery backup can keep your light on even if the grid goes down. Lithium-ion, lead-acid, nickel cadmium, and flow batteries are a few popular types.
Different Types of Solar Panels
Not all solar panel types are equal. Consider your needs and your property’s layout to determine which type is best for you.
Monocrystalline
Monocrystalline is popular because it has the highest efficiency, longevity, and performance. However, it’s also the most expensive. If you have limited space for solar panels, monocrystalline can be a great choice because it produces more electricity than other panel types of the same size.
Polycrystalline
Polycrystalline is a more affordable solar panel type, but it only has moderate efficiency and performance. If you’re looking to save money on upfront costs or if you have enough space to put up extra solar panels, polycrystalline might be a good choice for you.
Bifacial
Bifacial solar panels have active solar cells, either monocrystalline or polycrystalline, on both the front and back for added efficiency. This layout potentially offers up to 30% more energy production than traditional solar panels. While they have the same initial investment, they can offer better long-term returns because of the increased energy yield and durability.
Thin-Film
Thin-film is a unique solar panel type. It’s lightweight, flexible, and portable while having moderate efficiency and performance. These panels work well for unique spaces that aren’t suitable for other types of solar panels. They’re most commonly used for commercial and industrial spaces.
How Solar Panels are Installed and Integrated with Home Systems
While a professional can handle everything, it’s a good idea to know installation information about solar panels so you have an idea of what to expect.
Installation Process
The exact process will vary based on your property and the type of solar panels, but here are some steps to expect:
- Get a personalized quote for your solar energy system.
- An expert will visit your property and assess the best way to install solar panels.
- Receive permit approval for your solar project.
- Professionals will install the solar panels by attaching mounting systems in the desired spots.
- After installation, the installer will walk you through the equipment and answer any questions.
Integration with Home Energy
Your system’s inverter connects your solar system to the grid and converts the sun’s energy into electricity the grid can use. One of the main benefits of this is net metering, which gives you credit for sending excess power to the grid, offsetting your energy bills.
Energy Storage
Comprehensive energy systems include batteries for storing energy, providing backup power, and helping with cost-efficiency. Energy storage options are perfect if you live off the grid or want to remain energy independent during power outages.
Factors Affecting Solar Panel Efficiency
Two homes using the same solar panel type might not experience the same efficiency because of external factors.
Sunlight Exposure
Solar panels function best in direct sunlight. Whether they’re on roofs or the ground, their placement should be in the area that gets the most sunlight. South-facing panels at a 15 to 40 degree angle typically perform the best.
Temperature
High temperatures can make solar panels less efficient. As the environment gets hotter, the speed of the electrical current slows down, causing less solar electricity.
Shading
If shade covers part of your panels, they’ll be exposed to less solar radiation. For best results, make sure the panels are placed in areas with no potential obstructions, such as trees. Even if the shade only covers one panel, it can greatly reduce efficiency.
Maintenance
Monitor your solar panels using an app to get notified about failing panels right away. These alerts can help you notice concerns early on and request professional repairs to solve the issue.
The Cost of Solar Panels and Available Incentives
The upfront costs of solar panels typically range anywhere from $15,000 to $30,000, but the exact amount varies based on the details of the installation. While those numbers might seem daunting, Washington state offers lots of incentives to make the initial costs worth it, such as the following:
- Sales Tax Waiver – Washington waives about 10% of sales tax on solar power installations (depending on the municipality).
- Federal Tax Credit – Washington residents can receive a 30% federal tax credit on clean energy projects because of the Inflation Reduction Act of 2022.
- Net Metering – You may be able to use net metering to offset your electric bills by sending excess power produced to the grid for credit.
For further assistance with solar panel costs, consider financing home solar (but avoid predatory financing practices).
Environmental Impact and Long-Term Benefits of Solar Panels
One of the biggest benefits of modern solar panels is the environmental impact. Solar power can help reduce the carbon footprint, reduce the need for fossil fuels, make your home and community more sustainable, and increase your home’s value.
The United States has enough renewable energy resources to produce over 100 times the amount of energy people use annually. For solar energy, the amount of sunlight that reaches the planet’s surface for only an hour and a half is enough to provide energy to the world for a full year. So, we need to be taking advantage of the solar industry wherever we can.
Energy from the sun is abundant, free, and clean, unlike fossil fuels. A solar panel can pay back its carbon footprint in only six months to two years, making it a sustainable and eco-friendly option. Solar panels are warrantied for 25 years, but they can last as long as 40 years.
Solar Panels for Commercial Properties
Solar power is for more than just homes. It can also be beneficial for businesses.
Why Solar is Beneficial for Businesses
Commercial solar is a great addition to businesses because it can reduce operational costs and save the company money. Using sustainable energy can also improve a company’s brand image, making it more appealing to customers who care deeply about the environment.
Differences Between Residential and Commercial Solar Systems
Residential and commercial solar can have similar benefits, but the scale and system size are drastically different. Commercial installations are much larger, requiring a unique approach to planning and equipment usage. Commercial buildings usually have much higher energy demands, making solar energy a great tool for long-term savings.
Types of Commercial Solar Solutions
There are three main types of solar installation for commercial properties:
- Rooftop Systems – If your business has lots of roof space, this is the most common setup option.
- Ground-Mounted Systems – Businesses with unused land can choose to install on the ground, which could accommodate a larger solar array.
- Solar Carports – These installations offer shaded parking spots, giving them multiple purposes.
Financial Incentives for Businesses
Like residential properties, Washington offers solar incentives to businesses. For qualifying businesses, the Federal Investment Tax Credit offers a 30% credit. Companies also have the potential for accelerated depreciation because of the Modified Accelerated Cost Recovery System (MACRS).
If businesses want to avoid upfront costs, they can look at Power Purchase Agreements (PPAs) and leasing options for solar installation.
Is Solar Right for You?
Now that you know the answers to questions like “what is a solar panel?” and “what do solar panels do?”, it’s time to decide if solar power is right for you. Solar technologies provide renewable energy, more affordable utility bills, and increased home value.
When making your decision, consider your budget, personal energy needs, and home/business conditions. For further assistance, compare solar quotes.
