There are benefits both in cost and in helping the environment for switching to a solar power system. Over the long term, solar energy will save you money and help reduce greenhouse gases. But an overall plan that reduces energy consumption can make solar an even bigger winner. Maximizing efficiency through insulation, thermal windows, new CFL light bulbs, and specially designed passive solar windows can greatly reduce the amount of energy you need to get from your solar panels. This is a win-win combination.
If you have a south-facing wall available, not shaded by trees, you can utilize passive solar windows that will use sun rays in winter to heat a room, but keep out rays in summer so the room is cooler. This is an investment that can reduce your energy use for both heating and cooling, and help the efficiency of solar panels. If installing high tech windows is too expensive for now, you can still reap similar benefits from south-facing windows with curtains open in winter but closed in summer.
You can easily find your monthly electricity consumption by looking over your past year's bills from the electric company. They will show how many kilowatt hours you used each month. This is the amount your solar panels will need to provide in the future--unless you take conservation measures like those mentioned above. Replace old appliances with new Energy Star ones that use far less electric power. Replace old light bulbs with new Compact Fluorescent Light bulbs that use much less energy. Add insulation wherever possible. Close all leaks around doors and windows. These measures will reduce your energy consumption considerably and increase the likelihood that solar panels can provide all your energy needs and truly get you "off the grid." And don't forget the simplest energy saver of all: turn off lights and appliances when not in use.
Your hot water heater is a big user of electricity. A solar hot water heater can be installed separate from your photovoltaic panels. Solar water panels receive water piped into them, heat it through the sun's rays, and return it to your hot water tank. Of all the individual steps, this is the biggest saver in electricity. Many people install a solar water heater even when they do not do whole house solar energy. There are many ways you can use solar partially. It can be used to heat a swimming pool. It can power a single appliance such as a refrigerator. If an entire conversion to solar power in your home is beyond your means or impractical, you can still benefit from solar energy in these smaller ways.
All these conservation measures will help make solar energy work efficiently for your home. This is especially helpful in a northern climate where you receive less sun energy in the winter. Conservation will reduce the amount of electricity you draw from the grid during the winter. It will keep your house warm and cozy even during the coldest weather.