Top 4 Renewable Energy Sources to Power Your Home

by Tyler Castle

13.1 min read

Top-4-Renewable-Energy-Sources-to-Power-Your-Home-Featured-Image

Interested in powering your home with renewable energy sources? You’re not alone! According to the U.S. Energy Information Administration (EIA), renewable energy sources will account for 42% of U.S. energy generation in 2050 — up from 21% in 2020. Most of that growth will come from wind and both small- and large-scale solar generation.

If you’re looking to make the switch from fossil fuels to renewable energy for your home, you might be considering options that range from rooftop solar panels to choosing a commercial energy provider that allows you to purchase alternative energy sources. Whether you end up going off the grid or buying your renewable energy — or a combination of both — depends on a variety of factors, including:

  • Where you live
  • How much time and money you want to invest in home or property upgrades
  • The availability of affordable energy alternatives through local providers

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We’re here to provide information about your options to help you make the best decision for your budget, lifestyle, and values.

Why switch to renewable energy?
The 4 top alternative power sources
1. Solar power
2. Wind power
3. Hydroelectricity
4. Geothermal power
Off the grid vs. on the grid
How much money can you save by switching?
How much can you reduce your carbon footprint?

Why switch to renewable energy for your home?

In the face of climate change, it can be easy to feel helpless or overwhelmed. But the choices we make as individuals and families about where we get energy to power our homes have a big impact.

According to research published in the Proceedings of the National Academy of Sciences (PNAS), residential energy use accounts for roughly 20% of greenhouse gas emissions in the United States.

In addition to reducing your carbon footprint, there are many reasons why now is a great time to shift some or all of your home energy consumption to environmentally friendly options:

  • It’s easier than ever to switch to alternative home energy. EIA data shows that production of renewable energy in the U.S. has doubled since 1990. That means more renewable energy is available from on-the-grid providers.
  • On-grid renewables are cheaper than ever, and depending on market conditions they can be more affordable than non-renewable sources. According to a 2021 study by the International Renewable Energy Agency (IRENA), “the share of renewable energy that achieved lower costs than the most competitive fossil fuel option doubled” to 62% of total renewable power generation.
  • Technology advances have made off-the-grid options more feasible. Solar panels are currently the most popular option for taking your home off the grid, and the past few decades have seen huge changes in the expense of going solar. According to Fast Company, from 1976 to 2019 the cost of a solar panel “dropped from $106 per watt to $0.38 per watt.”
  • Government incentives can further offset the costs of renewable home energy. For example, in 2023 households can receive a federal tax credit to cover 30% of the costs of installing rooftop solar panels.
  • Going green can increase the resale value of your home. In 2019 Zillow found that “homes with solar-energy systems sold for 4.1% more on average than comparable homes without solar power.” As a result, homeowners can expect roughly $9,274 more for selling a median-value home.

“Renewable energy offers so many benefits, from cleaning the air and reducing pollution, to lowering prices and taking us off the destructive boom-and-bust merry-go-round of fossil fuel prices.”
— Marty Spitzer
Director for U.S. Climate and Renewable Energy Policy, WWF

The 4 top alternative power sources for home electricity

Although transitioning to renewable home energy can seem complicated, in reality there are only four major sources of clean renewable energy:

  1. Solar power
  2. Wind power
  3. Hydroelectricity
  4. Geothermal power

Let’s take a look at your options for both off-grid and on-grid renewable home energy

1. Solar power

How it works
There are two main types of solar energy technology: photovoltaic (PV) and concentrating solar-thermal power (CSP). The solar panels most of us are familiar with use PV technology. When the sun shines onto a solar panel, the PV cells absorb energy, which creates an electrical charge. Electricity flows when the electrical charge from the sun moves in response to an internal electric field in the PV cell.

CSP technology, on the other hand, uses mirrors to convert sunlight to heat, which can be used to produce electricity. This type of solar technology is used mainly in very large power plants, so if you buy on-grid solar from your home energy provider, you might be purchasing CSP.

Sources of solar power for home electricity

  • Small solar electric systems. You can install solar panels on your roof, or on a free-standing structure on your property.
  • Solar A/C. If a whole-home solar installation isn’t in the cards, you might consider switching part of your home energy consumption to solar via an A/C system that runs on solar power. According to the EIA, HVAC systems account for about 16% of total home energy use in the United States, and 6% of total U.S. energy consumption — so powering your A/C with solar energy can have a big impact.
  • Solar water heating. Water heating is another great option for partial solar power. Solar water heaters use sunlight to heat a water reserve, which can be used for both hot water and radiator heat.
  • Solar ovens. A solar oven is just what it sounds like: an oven that traps sunlight to create heat to cook food. While ovens typically use less energy than your A/C or water heating system, switching to solar does reduce your overall dependence on other energy sources.
  • Large-scale solar. You can also purchase commercial solar power through many home energy providers. This is a great option if it’s not feasible for you to power your home through residential solar panels, or if you need a back-up power source to bridge any gaps in your home’s solar production capacity.

Pros and cons of solar energy for the home

 Pros

  • Cost savings. By generating your own electricity through solar energy, you can reduce or even eliminate electrical bills.
  • Availability. Solar energy is one of the most widely-available sources of alternative home energy.
  • Low maintenance. Solar panels require very little maintenance, and they’re designed to last for decades.
 Cons

  • Upfront costs. Home solar energy systems can save money in the long run, but the average cost of installation is $16,000, which can be prohibitive for some.
  • Dependence on sunlight. Obviously, abundant sunlight is a requirement for solar power, and this makes them unfeasible for some homes and locations.
  • Space requirements. You need a good amount of roof or ground space for solar. If you live in an apartment or condo, buying solar from your energy provider may be your best option.

2. Wind power

How it works
Wind power is super simple. When wind turns the blades of a turbine, it spins a generator to create electricity.

Sources of wind power for home electricity
Home wind turbines. While wind power is most commonly produced through large-scale wind farms both onshore and offshore (see below), it is possible to install a wind turbine on your property to power your home. You’ll need a good bit of real estate, accommodating local laws and zoning regulations, and, of course, plenty of wind.
Large-scale wind farms. With wind power becoming more available and affordable, purchasing this renewable energy through your home energy provider is a great way to reduce your carbon footprint without building your own turbine.

Pros and cons of wind energy for the home

 Pros

  • Reliability. If you live in a windy area, wind power can be a more stable source of home energy than solar.
  • Availability. Commercial wind energy is widely available through many home energy providers.
 Cons

  • Upfront costs. Installation and equipment costs can be expensive. According to North Dakota State University, a residential wind turbine costs roughly “$50,000 before incentives.”
  • Dependence on wind. If you don’t have consistent high wind speeds, you’re not likely to make back your initial investment in a home wind turbine.
  • Aesthetics. Wind turbines can be unsightly and they make a lot of noise.
  • Local legal limitations. Your local laws and zoning regulations may not allow you to install a wind turbine on your property.

3. Hydroelectricity

How it works
Hydroelectricity works on the same principles as wind power, except in this case running water turns the blades of a turbine, which spins an electrical generator.

Sources of hydroelectric power for the home

  • Home hydro power generators. Most hydroelectric power is produced by large-scale dams (see below). However, if you have a source of running water on your property, you may be able to harness it to generate your own electricity by diverting the flow vertically through a turbine.
  • Large-scale hydroelectric power. The United States is home to many large-scale hydroelectric power plants. The biggest and most well-known power plants produce large amounts of power for the American west, but hydro power is available commercially in other parts of the country as well. The Hoover Dam, located on the border between Nevada and Arizona, supplies power to utilities in Ohio, Illinois, Pennsylvania, Michigan, and Indiana.Other sources of hydroelectric power for these states include the Kinzua Dam in Pennsylvania, the Algonquin Generating Station in Illinois, and the Ludington Pumped Storage Plant in Michigan.

Pros and cons of hydro power for home electricity

 Pros

  • Reliability. Hydro power is more reliable than both wind and solar power.
  • Availability. Hydro power has been around for a long time, and it’s widely available through home energy providers.
  • Affordability. States that get the majority of their electricity from hydropower, like Idaho, Washington, and Oregon, have lower average energy bills than the rest of the country.
  • Price stability. Hydro power isn’t dependent on unpredictable market conditions.
 Cons

  • Upfront costs. As with other renewable options, there is a significant up-front cost. Green Living Nation estimates that you can expect to spend around $20,000 to install a fully functioning hydro power system.
  • Environmental impacts. Diverting water for a hydroelectric power system can disrupt the environment. You’ll have to assess this impact before you move forward.
  • Local legal limitations. It’s illegal to build a power plant on a river or stream without permission from local authorities. You’ll have to jump through a lot of hoops and clear a lot of red tape to make this option feasible for you.

4. Geothermal power

How it works
Geothermal power draws from the natural heat of the Earth by drawing heated underground fluids to the surface to produce steam, which is used to turn a turbine that generates electricity.

Sources of geothermal power for the home

  • Home geothermal heating and cooling systems. While it’s not currently feasible to harness enough geothermal power to generate your home’s electricity, you can both heat and cool your home using geothermal power — which reduces your overall dependence on electricity. These systems work by pumping heat from the ground into the air to heat your home, then releasing it back into the ground to cool your home.
  • Large-scale geothermal power. Commercial geothermal power is feasible only in areas with large amounts of geothermal activity — think hot springs, volcanos, and earthquakes. Northern California is by far the largest producer of geothermal power, followed by Oregon, Idaho, and Nevada. If you don’t live in one of these states, it’s still possible that your local utility provider might purchase geothermal power as part of its overall renewable energy mix. Check with your energy provider to see if geothermal power is available as part of a renewable energy plan.

Pros and cons of geothermal power

 Pros

  • Reliability and affordability. In areas where geothermal power is plentiful, it is both reliable and affordable.
 Cons

  • Limited availability. Geothermal power plants can only be built in areas with high geothermal activity, which limits their widespread use.
  • Environmental impacts. Geothermal power plants can impact local ecosystems and wildlife. Although cleaner than fossil fuels, the release of geothermal fluids from power plants can still contain pollutants and greenhouse gasses.
  • Resource depletion. Geothermal power isn’t truly “renewable” in the way that wind, solar, and hydropower are. Over time, geothermal resources can be depleted by power plants.

Off the grid vs. on the grid: What’s the best choice for home renewable energy?

The short answer to this question is that there is no one “best” choice. Whether you choose to go off the grid or purchase renewable energy from your local utility provider will depend on a number of factors, including cost, feasibility, and personal preference.

It also doesn’t have to be all or nothing. While some people choose to go completely off the grid, many more combine some home-generated alternative energy with energy purchased from the grid. The great news is that utility providers are increasingly responding to consumer demand for renewable home energy by offering affordable alternative energy plans.

For example, let’s say you have solar panels installed on your roof. Because of varying conditions throughout the day and throughout the year, sometimes your solar panels will produce more energy than you need to power your home — and sometimes (like at night) they won’t produce any energy at all.

In this case, you can choose to store your excess energy using a battery system (such as a Tesla Powerwall) that will power your home on a cloudy day or when the sun is down. Or, you can sell your excess power back to the grid, and draw from the grid when you need to.

How much money can you save by switching to an alternative energy source for your home?

How much money you’ll save by switching to renewable home energy depends on the source of the energy, and whether you’re purchasing it or producing it yourself. Here’s a general breakdown:

Cost savings of producing your own alternative home energy

Solar
According to Forbes
Wind
According to TheRoundup.org
Hydro
According to Mother Earth News
Geothermal
According to Popular Mechanics
Upfront Cost* $16,000 average $30,000-$75,000 $1,000-$20,000+ $30,000
% Energy Savings Up to 90-100% Up to 90-100% Varies ~50% of heating and cooling costs
Time to Recoup Investment 6-10 years 5-15 years Varies ~10 years

* Not including government incentives or subsidies

Cost savings of purchasing renewable energy for your home
The cost of buying renewable energy through your local utility provider depends on a number of factors including changing market conditions. This is a guide to the relative costs of renewable vs. non-renewable energy for home use for a few states. As you can see, according to Energy Choice Ohio and Wattbuy, the cost of renewable home energy is generally comparable to non-renewable energy.

Ohio Illinois Pennsylvania
Average non-renewable energy costs $0.07-0.13 /kWh $0.17 /kWh $0.10-0.12 /kWh
Average renewable energy costs $0.06-0.14 /kWh $0.08-0.29 /kWh $0.09-$0.21 /kWh

How much can you reduce your carbon footprint by switching to renewable energy for your home?

According to the U.N., switching to renewable home energy can “reduce our collective carbon footprint by up to 2.5 tons annually.”

Let’s see how that works on an individual level by using the EPA’s Carbon Footprint Calculator:

U.S. Average Carbon Footprint for a Family of 4 Carbon Footprint for a Family of 4 Using Renewable Home Energy Carbon Saved by Switching to Renewable Home Energy
34,108 lbs. per year 13,436 lbs. per year 20,672 lbs. per year

To put that into context, that’s the equivalent of…

Interested in switching your home to a renewable energy source?

If you want to reduce your carbon footprint and potentially save money by switching your home to renewable energy, we can help. Check out Santanna Energy Services’ Earth-Friendly Electricity plans to explore how you can start reducing your dependence on fossil fuels now, without the upfront costs of solar panels or other off-the-grid home construction projects.

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$40 per month

*Prices vary. Monthly prices are dependent on home address. The rate listed here is not available to all.

Tyler Castle

Tyler is an experienced energy professional, having worked for Santanna Energy Services, for the past four years. He is passionate about renewable energy and believes that diversifying the energy grid is the key to a sustainable future. Tyler is dedicated to supplying consumers with the best possible energy solutions and works diligently to make sure that Santanna can deliver the highest quality service.

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