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

States and utilities that offer generous help make it much more likely that installing a solar system will pay for itself over time. They will vary greatly, but can be tens of thousands of dollars in some areas.

The federal government currently offers a $2,000 tax credit for solar-power systems.

You can check what offers are available in your area at sites such as solarelectricpower.org or dsireusa.org.

What you pay for energy: Another major factor in determining if solar power makes financial sense depends on the rate you pay per kilowatt hour for the energy you use. The cost per kilowatt hour varies widely across the U.S., but the more you pay, the more likely that switching to solar power will make financial sense.

Connected or not: When you set up a solar system, it will either be a standalone system or a system connected to the power grid.

If it's a standalone system, then you must make do with the power that the solar power system provides. If it's a connected system, you'll be able to draw backup power when needed from the utility company.

Better yet, if you produce more power than you need, in many cases you can sell the excess to the power company and actually earn money.

Where do you live: While your location doesn't necessarily dictate whether solar power will be financially beneficial, there are general trends.

Southwestern states, where the sun is out often and shines brightly, usually will give a better financial return than states where the sunlight is less intense and it's often rainy.