The inverter converts the electricity into usable electricity that can power everything in your home, from your lights to your fridge. To sum it up, sunlight hits the solar panels and shakes up the electrons within the cells, which creates a flow of electricity that is then sent to the system’s solar inverter. What are solar panels and how do they work? The calculator above will also show you what your payback period is likely to be based on your location and energy use. The residential solar calculator above will help you determine whether solar panels are suitable for your home and give you local information about costs, savings, tax credits, and other local incentives. However, this is not the case in every situation. In some areas, installing a solar panel system on your house can now offer a better return than traditional investments like property or shares. Will installing solar panels on my house be a good investment? The kilowatt rating of a system is a measurement of the maximum generation capacity of the system. Note for new solar enthusiasts: Solar system capacity is measured in watts and kilowatts. With a solar loan, you own the system so this is not necessary. ![]() With solar leases, the leasing company gets tax credits, and if you sell your home, the buyer needs to accept the assignment of the solar lease. We recommend solar loans rather than leases because you keep the solar tax credits. Luckily, there are many zero-down solar financing options available, like solar loans, that allow you to go solar and start saving the minute the panels are turned on without having to worry about any large upfront costs.
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