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If you are going to take advantage of solar energy, you need to know the full cost. Next to the purchase price, putting them up is the second biggest expense.

"But how much does it cost?" is a common question relating to solar energy. This is a difficult question to answer because the amount is dependent on several factors: where you are in the world, how much sun you get, and how much energy do you use.

Where you live in the world determines how much sun you get each day. Since solar power is dependent on sunlight, you must have a certain amount in order to generate enough power. How much sun you get is also related to where the panels are hung on a structure. Angle, direction and shade are the factors to consider. To work best, solar arrays should face south, at angles ranging from 15 to 40 degrees. How much energy you use can be determined using the following process, which was developed at the National Renewable Energy Laboratory (NREL).

Consumers will need their electric bill to figure out the cost of going 100% solar. The first step is to divide the total number of Kilowatt Hours (KW) by 30 in order to get your daily average use (many bills will already have this number broken out, so in that case you can skip the first step). Once you determine your average KWH usage per day, that number is then divided by the average number of full sun hours per day. That quotient should then be multiplied by 1.15 in order to give you a comfortable margin. An example of this formula looks like this: 500 KWH / 30 = 16.67 KWH per day. 16.67 KWH / 7 = 2.38. 2.38 X 1.15 = 2.74 KW or 2,740 watts needed from solar panels.

According to NREL, the average cost of installing a solar system is around $7.00 per watt or $9.00 if you have it installed by a licensed professional. Since some of the rebates require a licensed contractor, the latter is recommended. This average includes the cost of the solar panels, inverters, mounts, wires, and hardware, but it does not include the price of inspection or costs related to getting on the grid with your local electric company. Using the example above, that system would then cost about $24,660 to install, plus another couple of thousand dollars for inspections and fees.

While this may seem like a huge investment, there are federal, state, and local incentives to go solar. There is a yearly federal tax break of about $2000 for solar users. Most states will rebate part of your installation and purchasing costs. Local energy companies will buy your excess energy, which reduces your overall bill for when you need to be "on the grid." And consumers can still reap some of these incentives, even if they only go partially solar to start.

Rick Chapo is with SolarCompanies.com - learn more about solar panels.

PV thin film Solar Panels @ EXPO