Many homeowners are familiar with the benefits of solar energy, but few understand how the solar panels are installed on their roof or in their yard. We researched the leading solar energy providers and the solar industry at large to bring you this guide. We’ll outline the step-by-step process of installing solar panels, including necessary permits, required equipment, and final steps for activation. 

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Planning for a Solar Panel System

Before installing solar panels, you must evaluate your home’s energy needs and design to determine if a solar photovoltaic (PV) system is right for you.

Monthly Electric Bill

Solar energy helps homeowners reduce their dependence on costly fossil fuels. This offsets electricity costs and reduces your energy bills. To determine whether installing a PV system is a worthwhile investment, consider the following factors related to your monthly electric bill:

• Energy consumption: Homes with high electricity usage benefit more from solar power generation
• Electricity rates: Higher electricity costs from your utility provider can make solar power more financially attractive
• Net metering programs: Some states and utility companies have net metering programs that allow homeowners to sell excess solar energy back to the grid, offsetting electricity bills
• Estimated payback period: Crunch the numbers to determine your expected payback period
• Future energy needs: Think through how your energy needs might change in the future, as this will impact your system requirements and return on investment (ROI)
• Sun exposure: The more hours of peak sunlight your property gets per day, the more energy your system will generate and the fewer panels you will need

Some states, such as Hawaii, Connecticut, and California, have higher than average electricity rates and high sun exposure, making those areas particularly suitable for a solar PV system. However, homeowners in areas with lower electricity rates may still benefit from the installation of a solar PV system depending on the peak sun hours and available incentives in the area.

Roof Space and Design

Most homeowners opt for a rooftop solar installation to maximize their exposure to daily sunlight. However, these installations require ample roof space and may not be suitable for everyone. Here’s what to consider:

• Sun exposure: South-facing roofs receive the most sunlight in the Northern Hemisphere (and vice versa in the Southern Hemisphere). East or west-facing roofs can still be viable, but they may generate less electricity.
• Shading: Excessive shade from trees or nearby structures can significantly reduce solar energy production.
• Slope: A 15-40 degree slope is ideal for solar panels, but flat roofs can also be suitable with proper mounting systems.
• Obstructions: Any roof obstructions, such as skylights, vents, or chimneys, will reduce your available space for solar panels.
• Roof condition: Your roof should be in good shape and have sufficient lifespan to support the solar panels.

For homes in the Northern Hemisphere, a shade-free, south-facing roof with solar panels placed at a 30-degree angle is ideal for production. This is not to say that having a roof that is partially shaded, or east- or west-facing, puts a solar PV system out of the question. You may simply need to invest in more efficient panels or a ground-mounted solar system. An experienced solar installer can help you determine if rooftop panels are right for your home.

Selecting the highest-quality solar panels for your home, such as monocrystalline panels, provides the best sunlight conversion rates and power output. These panels have the highest efficiency ratings, which measure how well solar panels convert the sun’s energy. An efficient PV system can effectively power your home with fewer solar panels. 

Solar Incentives and Credits

Research available solar incentives, credits, and rebates to reduce your total solar panel installation costs. These incentives, offered at the federal and state level, provide federal solar tax credits, tax exemptions, or one-time rebates to motivate homeowners to go solar. For example, the federal solar tax credit allows customers to claim up to 30% of their installation costs on their federal taxes. 

You’ll need to legally own your PV system to qualify for most incentives. Paying with a lump sum or taking out a solar loan makes you the legal owner. Other solar panel financing options, such as solar leases or power purchase agreements (PPAs), keep the ownership with the solar company, resulting in a third-party-owned (TPO) system. It’s important to note that in cases with TPO systems, the TPO typically receives the incentives.

Solar Providers and Installers

A solar company or consultant can help with the process of determining whether a PV system will benefit your home. Once this is established, your solar provider will analyze your energy usage and home needs to build the right PV system.

As you shop around for the right system and installer, keep the following factors in mind:

• Reputation of the solar installer: Choose a reputable and experienced installer with good customer reviews.
• Warranty length and coverage: Ensure your chosen system comes with a robust warranty for panels, inverter, and installation.
• System cost and ROI: Initial installation costs can be high, but tax credits and other incentives can help offset the cost. Plus, installing solar panels can increase home value.
• Financing options: Explore loans, leases, or PPAs to spread the cost over time.

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Installing Your Solar Panels

A typical installation takes one to three months due to the permitting and inspection process. When we surveyed homeowners about solar installations, 65% of respondents said the entire installation process took less than two months, from requesting a quote to activation. However, it’s not uncommon to experience delays due to paperwork, communication issues, or unforeseen problems.

We’ll break down the installation steps you can expect when working with your solar installer.  

1. Engineer site visit

After you sign an agreement with a solar company, a staff engineer will conduct a site visit. They’ll either be a part of the company’s in-house staff or a third-party contractor, depending on your selected installer. The engineer will evaluate your electrical system and verify its compatibility with your planned solar energy system.

The engineer will also check your roof’s integrity and its ability to support solar panels and mounting equipment. Depending on your roof’s design, you may need specialty mounting equipment to install your panels at the proper angle. Specialty mounting equipment may also be needed to ensure compatibility with your roof type.

You’ll need to make any necessary repairs before installation if your roof is in poor condition. However, the solar company will typically include the price of the repairs in the contract. You may also need to upgrade your electrical panel if your current electrical panel is not sized to accommodate the new solar generation.

2. Permits and additional paperwork

Before installation, you’ll need to apply for all necessary permits and complete certain paperwork for your solar PV system. Your solar installer will handle most of this paperwork. Here’s some of the necessary paperwork:

• Electrical and building permits: You need to submit these permits to the local Authority Having Jurisdiction (AHJ) for approval. The local government ensures your new solar array meets the local fire code required for your area. 
• Interconnection agreement: This agreement allows you to connect your solar panels to the grid system through your local utility company. You can also apply for net-metering programs, which allow homeowners to sell excess energy back to the grid for electric bill credits and payouts.  
• Federal and state incentive program applications: If you’re paying up-front or taking out a solar loan, you may qualify for solar incentives, credits, and rebates available in your area. Your solar installer usually assists with this paperwork to ensure you maximize your savings.
• HOA approval: You may also need to apply for solar panel installation with your homeowner’s association (HOA). Some HOAs have special bylaws to protect a neighborhood’s aesthetics and property value. Check with your HOA for details about their solar panel regulations. 

Application time can vary depending on the area. Some permits are approved in under a week, while others can take several weeks or longer. Of the homeowners who participated in our survey, 35% experienced delays from paperwork and approvals. Check with your solar company for updates on the application status and approval. 

3. Equipment ordering

Once your paperwork and permits have been approved, your installation contractor will set an installation date and order your solar equipment. Your equipment should include your selected solar panels and inverters, which help convert the sun’s energy into usable electricity. You can add a battery backup system or electric vehicle (EV) charger to expand your system’s capabilities and provide power in the case of a utility outage. Your installer will help you choose the best equipment for your energy needs.

4. Installation day

On your installation day, the assigned installation team will arrive with all the necessary equipment. They’ll begin by measuring and marking your roof for the racking system. Any open holes in your roof shingles will be sealed to prevent leaking. The installer will then install the solar panels to the racking and connect the electrical wiring. They’ll also install any additional equipment, such as an inverter or battery bank.

Many solar installers can complete installation in just one day. More complicated installations can take three or more days.

5. Final inspection and activation

Once installation is complete, the PV system must be inspected and approved before activation. A municipal government representative in your area completes this inspection. They will check the wiring, racking system, and electrical work.

The utility company representative will then conduct a final inspection before your PV system is connected to the power grid. If you pass the inspection, your system will receive official approval, known as permission to operate (PTO), and activate your PV system. The final activation timeline varies in each area. Expect to wait anywhere from two weeks to several months.

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DIY Solar Installations

Several solar panel manufacturers offer do-it-yourself (DIY) installation kits for solar projects. These kits include solar panels, inverters, wiring, and other needed equipment. There are also solar panel kits for smaller installations, such as on a recreational vehicle (RV), small garage, or shed. 

However, DIY solar installations are not recommended for the casual handyman. DIY solar can be financially worthwhile, but you’ll have to take on the burden of a complicated installation where many things can go wrong. You’ll still need professional assistance, including a licensed electrician, to properly install your panels. We recommend using a certified solar installation company to ensure a safe and proper installation. When performing a DIY solar installation, be sure to select the optimal angle for your solar panels.

For a visual walk-through of what goes into installing solar panels, check out the video below. Solar installer Anukene Warda demonstrates the process for This Old House energy expert Ross Trethewey.

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Our Conclusion

Installing solar panels helps homeowners save money and invest in cleaner energy. To prepare for an installation, determine your energy needs and home compatibility with a solar panel system. The installation requires complicated electrical work and paperwork that any reliable solar installer can handle. Although DIY options are available, hiring a professional solar company is best to ensure your panels are correctly and safely installed. Once your panels are installed, be sure to keep up with basic solar panel maintenance for maximum performance.

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FAQ About Installing Solar Panels

Can I install solar panels myself?

Yes, it’s possible to install your own solar panels. However, DIY installations require electrical skills and advanced knowledge of solar energy that most DIYers don’t have. We recommend hiring a reputable solar installation company to ensure your system is safely and correctly installed.

What type of solar panel should I install?

You should install whichever type of solar panel provides adequate power to support your home. Your solar installer can help you determine the right choice. More efficient solar panels, such as monocrystalline panels, offer the best power output and efficiency.

What are some benefits of installing solar panels?

Some benefits of installing solar panels include lowering or eliminating your energy bills, reducing your carbon footprint, and granting you access to tax credits and rebates. A PV system can also boost your property value, make your home more appealing to homebuyers, and provide backup power in the event of a grid outage (if paired with solar batteries).

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