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For years we've been considering going solar and having solar panels installed on our home. Finally, in January we decided to pull the trigger. Because I was pretty far behind the curve when it comes to solar energy, I had to learn a lot quickly. I thought it might be worthwhile sharing my experience, not only with solar panels, but other follow-on purchases. Beyond helping the environment, there are several ways that a homeowner can benefit from a solar electric system. The first is called "net metering". In a traditional electric supply, the electric meter on your home goes up as you use electricity from the grid. With solar, the meter runs both ways. When you use electricity from the grid such as at night or on cloudy day, the meter goes up just as before. But when you produce more solar energy than your home is able to use, the electricity is exported to the grid and the meter runs the other way. You don't pay for the electricity you produce that goes directly to your home and any electricity exported to the grid offsets electricity provided by the electric company. In March, our first full month of using solar, we came very close to breaking even, ending up having to pay about $3 for electricity. The second financial benefit comes from solar renewable energy credits (SRECs). Electric companies such as PEPCO are required to use a certain percentage of renewable energy each year. To meet that requirement, PEPCO purchases renewable energy credits. Solar energy producers, including homeowners, can sell credits reflecting their production. An SREC is created for each megawatt-hour of electricity your system produces, whether you use that energy or not. SRECs are sold on markets similar to stock exchanges, but the markets vary by state which each state having its own rules. The District of Columbia has very high prices for SRECs, maybe the highest in the nation. I was able to sell the first SREC our system produced for $430 minus a $2.50 fee for the exchange. In addition, we are eligible for a federal tax credit for 30% of the cost of the system.