Solar panels can be broken down into two main categories, panels for solar electric and solar panels for heating water. The systems used with electric solar panels or photovoltaic panels (PV) convert sunlight directly into electricity. These panels have layers of silicone, which can positively and negatively charge electrons for collection. In the northern hemisphere, the panels go on roofs facing south, and the opposite is true in the southern hemisphere. Sometimes people tie their systems into the power grid to allow them to use electricity whether or not the sun is shining. For an off grid system, a person can expect to pay around $15,000-$20,000 for each kilowatt hour but it is cost effective for areas where there is no alternative power source. With an off grid system a person no longer uses conventional power at all. Panels generally cost a great amount initially -one small, panel system, which will produce around 75 watts costs around $900 installed.

Savings will vary significantly as the cost of electricity is greatly varied across the country and the amount of sunlight in different areas is vastly different as well. For the home using around 1000KWH monthly at a cost of $200, installing 250KWH solar panels shaves $50 off the bill.

Solar panels do not emit any pollution and they also lower the amount of natural gas and oil used to heat and powers a home so they have a direct impact on the environment.

There are many things to consider when determining if adding solar panels to a home will be beneficial. Cost and environmental impact are major factors. For a person to decide if using solar energy is right for them they need to consult a good home solar panel guide.