A solar panel installation home is a house that generates most or all of its electricity from a rooftop solar power system. It can save you money on your energy bills and increase the value of your home, though the precise financial benefits will vary depending on your state, local installer costs and available state and utility incentives.

The four main types of solar homes are grid-tied, off-grid, hybrid and passive. The most popular is a grid-tied system that combines the solar panels with a backup battery and the electric utility grid for backup power.

Adding a solar system to your home requires three main components:

Evaluating the Cost of Solar Panels in Ireland: Budgeting for Renewable Energy

Panels, inverters and batteries. Solar panels convert sunlight into direct current (DC) electricity using photovoltaic technology, while an inverter changes the DC to the alternating current (AC) that your household appliances and plug-in devices need. The battery stores the generated electricity for use during cloudy days or at night, and a net meter measures your consumption and credits you for the excess energy that goes back into the grid.

If you’re considering buying a home with a solar system, be sure to understand the terms of any solar contract that may be attached to the property, especially if it’s a PPA or lease agreement that lasts for up to 20 years. You should also ask the seller about the manufacturer of the panels, and find out if it offers warranties and replacement parts. Solar systems are relatively durable, but like any part of your home, they will need maintenance and replacement over time.