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

Post-tax return on investment: When making the calculations, remember that the return on the investment for a solar power system is after tax. That can mean that a lower return of 5% would be comparable to a 7% to 8% pretax return. It's also a much safer investment than many others, since return is dependent on electricity rates rather than a fluctuating stock market.

Reduced energy use: While it can be difficult to calculate when looking at whether a solar power system makes financial sense, the "gained knowledge factor" will likely come into play.

Households that can see how much power they generate, as well as how much they use, tend to be more aware their energy consumption. This often results in them lowering the amount of energy they use compared to when they didn't have a solar power system.

For those interested in determining whether solar power might be right for you, a good initial step is to use an online solar power estimator. This will give you some basic numbers of how much you can expect to pay for a system and how much you will be able to reduce your electric bill.

Even if it doesn't make financial sense to go solar today, keep checking each year. If energy prices stay high, a combination of better incentives, technological improvements and installation cost reduction should bring solar energy prices down fairly quickly in the years to come.