Solar Power's Great, but Is It Worth It?

This article was originally published June 12

With energy prices at all time highs, should you be looking to solar power to help your pocketbook?

When it comes to politics, there aren't many issues where more than 90% of Republicans, Independents and Democrats can agree -- but that's exactly how things stand when it comes to developing solar power.

According to a recently released SCHOTT Solar Barometer report, 91% of Republicans, 98% of Independents and 97% of Democrats believe it's in the vital interest of the U.S. to develop solar power.

Companies such as BP(BP), First Solar(FSLR), Trina Solar(TSL), Canadian Solar(CSIQ) and LDK Solar(LDK) are working to propel alternative energy even further, but there's a household angle, too.

With energy costs taking more and more out of paychecks, many people are asking whether it makes financial sense to invest in a solar power system for their home to lower their electric bill.

The answer depends on a number of factors.

Start-up costs: The biggest deterrent for most homeowners is the initial cost involved when installing solar power. It can range anywhere from $10,000 to $100,000 or more to install a solar power system depending on the size of the house and how much power you hope to generate.

Due to the large initial costs, solar power needs to be viewed as a long-term investment where it will take years to recover the costs involved.

Incentives: The incentives offered by your local utility and state can make a big difference as to whether or not installing a solar power system will make financial sense.