Always begin at the end…that’s the right way to approach the beginning of any project.

For example, if you’ve got one of Grandma’s old dressers and you’ve decided to refinish it, it’s good to know before you start what you’re going to do with it when you’re done. Is it going in your bedroom? If so, what does the rest of your furniture look like? Is every other piece of furniture the same wood…with a mahogany stain, or is it oak? Where do you plan to place it? Do you want this dresser to stand out or to blend in?

The same concept applies to building your own solar energy system. Here are some considerations before you start:

* What’s your locale? Beginning with this question can help you determine if solar is a viable option for you. If you live in a part of the country where there’s significant cloud cover a lot of the time, and/or extreme temperature variations, you may decide solar isn’t the right plan. To find the best states for solar, and other basic facts on how to determine if you have a viable solar site, visit http://www.motherearthnews.com. Both active and passive solar energy power systems require sunlight…although not as much as some people think. If there’s a solar expert in your area, get an assessment of both active and passive systems, and what available options might work in your setting.

* Are you building a solar system for your home or your business? Review the facts on both the state and federal level about any incentives and rebates offered. For example, did you know the Emergency Economic Stabilization Act of 2008 provides a 30% investment tax credit (through December 31, 2016) for solar energy investments for homeowners with no cap, with the exception of solar water heating, which has a $2,000 cap. For commercial property, there is also a 30% ITC through December 31, 2016. And, there is a permanent accelerated depreciation allowance. Plus, there is also a building deduction for commercial buildings. Add to that any rebates, state incentives, and utility incentives on net metering (getting credit for excess electricity generated by your system that is sent back to the utility for others to use).

* Do you plan to build an entire solar system to meet all of your heating, cooling and lighting needs, or something much less? This will require some looking at both your commitment to the environment…your current budget…and a good cost/benefit analysis. If you really want to have a full solar system, first – determine the net cost of installation. If it’s an active solar system installation, you’ll have the cost of the installed solar panels, plus any operating equipment required (batteries, inverters and wires…).

* Don’t stop there. Deduct any federate, state, city, and utility rebates. (and if it’s commercial, in addition to the accelerated depreciation deduction there are undoubtedly other city and state rebates or credits). Add any solar equity property increases ($15-$20 for every dollar saved in energy costs) and then you’ll begin to see the picture of your net cost. When you’ve got all of those figures, it’s a lot easier to get a loan. And…you may just qualify for a government loan. Certainly worth asking, wouldn’t you say? Now, if your budget just isn’t going to allow you to do a lot, that’s OK, too.

* You can add a solar hot water heater and seriously reduce your power bill. As the costs for solar hot water heaters continue to decrease, the payback period is getting shorter and shorter…plus, remember to claim your ITC when you file your income taxes. Now take the energy savings dollars you accumulate, put that in a separate account and you’re on your way to accumulating enough to get the rest of the system. Another thing to check, though, before you finalize how much actual money you’ll need for a solar energy system, is the SREC, or Solar Renewable Energy Credit for your state, as well as a program available in some states called PACE, or Property Assessed Clean Energy, as both of these programs are designed to assist in making solar energy systems more affordable.

* Are you building something new…or replacing something old? A solar energy system going into new construction is generally more cost effective than replacing an existing system. But, if your existing system has to be replaced anyway, doing a cost/benefit analysis for a solar energy system if definitely worthwhile.

* Do you plan to use passive and active solar, or one or the other exclusively? For remodels this may not be as critical as for new construction, but look at both passive and active for either scenario. Just taking advantage of passive solar options with south-facing windows and thermal mass storage potential could create a significant solar energy opportunity. Passive solar construction runs about $5 to $10 per square foot higher for construction, but you can offset that cost fairly quickly when you add back your increased home value, and your utility bill savings. Also, remember with solar, you’re significantly reducing any maintenance costs you might have.

* Do you plan to do the work yourself, or hire it done? Professional installation is still pretty expensive in most areas, but before you start the work yourself, check out all of the regulations for your area on what it takes to obtain the tax credits, incentives and rebates. If you’re a good do-it-yourselfer, and decide to do the work yourself, you may be able to do even better than what you could get back from all the current incentives…or not. Be sure to do the math first.

As you go along, you’ll find many more questions of your own, but these are a few good beginning questions that can help you make good decisions before you start. Go on a fact-finding mission to determine what’s right for you, knowing at the beginning what you want at the end. By the way, it’s a fact that solar energy is renewable…and that using it will decrease your carbon footprint.

Learn more solar energy facts. Stop by Timothy Peters’s site where you can find out all about home solar power and what it can do for you.