Top 5 Uses of Solar Energy for Homeowners

Solar energy can be used in many different ways to keep your home running efficiently and with minimal reliance on traditional power grids. Over time, this can allow your house to function independently of power outages, while reducing your carbon footprint.

Understanding Solar Energy: How It Works and Its Advantages

Solar energy is a renewable power source that relies on solar panels to convert sunlight into electricity. Using solar panels in conjunction with solar batteries can help homeowners power their houses and store excess energy for later use. This naturally replenished energy source offers a cost effective way for homeowners to power their homes and become more energy independent without producing excess pollutants like greenhouse gasses.

Although the upfront cost seems expensive at first, many states offer incentives and tax credits to reduce the financial strain it can put on you. Using these incentives alongside federal support through the federal investment tax credit (ITC) can help reduce installation costs even more. This makes switching to cleaner energy more affordable and accessible to the average homeowner.

Top 5 Uses of Solar Energy for Homeowners

Over time, using solar energy can reduce your utility bills and allow you to be completely independent of the traditional power grid. While keeping the lights on in your home is the primary use of solar energy, it’s not the only one.

Solar energy can be used for…

Residential Electricity Generation

Rooftop solar panels are generally made of silicon photovoltaic (PV) cells. When the sunlight hits these cells, they convert the sunlight into electricity that can be used immediately or stored for later. Since this energy isn’t grid-tied, or connected to your local power grid, you’ll have reliable access to energy even if there’s a power outage in your area as long as you have enough energy stored in your solar battery system.

Even as you store energy within your battery system, your solar panels will likely generate excess energy. If you’re enrolled in net metering, this excess energy is sent back to the grid. Your utility company may count that energy as credit toward your bills, which could reduce the cost, or simply pay you for the extra energy.

The beauty of having solar energy is its flexibility. If you’re not interested in buying a solar battery system for energy storage or your panels aren’t generating enough power, you can always rely on the grid as a backup system. This can be a cost-effective way to explore alternative energy systems, while still relying on the stability of a traditional power grid when necessary.

For those who are fully committed to renewable energy, they can go completely off-grid and rely on their storage systems and panels to keep their homes powered.

Solar-Powered Climate Control

In addition to keeping the lights on, solar energy can keep your home cool in the summer and warm in the winter.

You can choose to buy solar thermal panels, also called solar collectors, or keep the standard solar PV panels. The standard PV panels primarily produce electricity, but, if used to power an electric heater or heat pump, they can warm your water and home. This can give you more flexibility and versatility than a solar thermal panel.

Solar thermal panels are specifically designed to convert captured sunlight into heat rather than electricity. This heat can be used to warm water and circulate warm air throughout your home when it’s cold.

Although these same panels can be used to cool your home, they work a bit differently. Rather than trapping cool air, PV panels use the energy to power air conditioners.

Solar thermal panels capture heat then remove moisture from the air to lower the temperature and create cool air. In other instances, it may also introduce refrigerants and absorbents to cool collected hot air.

Solar Water Heating

Solar water heating systems use tanks and solar collectors to produce hot water for your home. The solar collectors capture and convert sunlight into heat, then transfer this energy into the tank where water is stored. Active systems use pumps and controls to circulate the heat throughout the water while passive systems don’t.

Just like with solar energy, solar water heating systems are an eco-friendly way to keep your home comfortable and lower your utility bill. These systems can generally last a long time and require low maintenance.

While both passive and active systems perform well in sunny and mild climates, if you live in colder locations, active systems would be the ideal fit.

Solar Lighting Options for Indoors and Outdoors

Using solar tube lights, or sun tunnels, alongside solar panels can offer a unique lighting experience to your home. Unlike solar panels, which convert sunlight into energy, solar tube lights capture natural sunlight and direct it into your home through reflective tubing. This fills your home with natural, ambient light regardless of whether you’re in or outdoors.

Just like with solar panels, solar tube lights require a battery if you plan on using this energy when the sun isn’t shining.

Outdoor solar lighting is usually easy to install, and comes equipped with sensors that automatically turn on and off at different times of the day to save energy.

Electric Vehicles

Solar electric vehicle (EV) chargers have a solar panel system installed on the roof to channel sunlight directly into energy. Much like regular solar panel systems, the extra energy created here can be stored in a battery for later. Depending on the kind of EV charging station setup, it can be connected to the grid, entirely independent of it, or a hybrid system.

Relying on solar energy to power your EV reduces the amount of money spent on gas, which can help homeowners save a significant amount over time. It can also help you become less dependent on fossil fuels, which can reduce the amount of greenhouse gasses trapped in our air. Additionally, it allows you to repurpose the excess energy you’re already generating with your solar panel.

The Internal Revenue System (IRS) offers credits up to $7,500 for switching to EVs and purchasing home changers. To qualify for the credit, you must:

• Buy the vehicle and/or charging system for personal use
• Use it primarily in the US
• Have a modified adjusted gross income (AGI) that doesn’t exceed:
  • $300,000 for married couples filing jointly or a surviving spouse
  • $225,000 for heads of households
  • $150,000 for all other filers

Depending on when your EV went into service, the way your credits are provided can change slightly. If your EV was placed in service between Jan. 1, 2023 and Apr. 17, 2023:

• $2,500 base amount
• Plus $417 for vehicles with a battery capacity of at least 7 kilowatt hours
• Plus $417 for each kilowatt hour of battery capacity over 5 kilowatt hours
• Up to $7,500 total

If your EV was placed in-service on Apr 18, 2023 or after:

• $3,750 if it meets the critical minerals requirement only
• Another $3,750 if it meets the battery components requirement only
• $7,500 if it meets both

If your EV doesn’t meet either requirement, you won’t be eligible for credit.

The Path to a More Sustainable Home

Switching to solar energy offers homeowners more than just reduced utility bills; it’s a step toward a sustainable, self-sufficient future. Whether it’s powering your entire home, heating your water, or even charging an electric vehicle, the possibilities with solar energy are vast and accessible. As solar technology continues to advance, adopting these solutions today not only makes financial sense but also contributes to a healthier planet for future generations. By making small changes now, you’re helping to create a home that’s both cost-efficient and environmentally friendly, setting a strong foundation for the years ahead.