solar panel, alternative power, subsidy

The cost of installing solar panels on one's house has been slowly falling, and the government's been helping to reduce the price. Over the last 10 years, costs of installing solar panels to power a home have been cut in half. A house typically requires 2.5-3 kilowatts of power generation to function. The wholesale price of solar power generation has fallen over that 10-year period to $3.60 from $5.31, cutting the price of installing solar panels for a typical house to approximately $19,000 to $23,000.

What's more, state governments are beginning to get into the solar power market. California offers $2.80 per watt, and an additional $4.50 per watt tax credit. New Jersey offers a $5.50 per watt credit, Nevada pays $4, and Ohio pays $5 per watt of solar power generation. Some states also offer a "power buyback," in which the power from the solar panels on a residence can be bought back by the state during peak periods, making the installation of solar panels a potential moneymaker.

One financial analyst in New Jersey installed solar panels on his home for $50,000, and only paid about $15,000 of that after the credits. Furthermore, he earns about $170 each six weeks in power generation purchased by the state. His investment will be paid off through the buyback in about 4 or 5 years, according to his estimates.