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Yes, solar panel installation will require permits. The required permits will depend on where you live, as some states and cities have solar-specific permits, while others only require electrical permits to connect to the grid. In either case, it’s best to hire a reputable solar installer in your area, as a representative should handle all of the necessary permitting for you and will include the cost of the permits in your initial solar estimate.

The best way to save money on solar panels is to take advantage of federal and state solar incentives. For example, the solar investment tax credit (ITC) offered by the federal government can save 30% of your total—if you can take the entire credit, which is based on income taxes owed—or an average of around $9,000. You can check the Database of State Incentives for Renewables and Efficiency (DSIRE) for state and local incentives that could save you even more.

Not all homes are suited for solar panel systems. Older roofs or those in poor condition may need repairs or replacement before solar panels can be installed. Some other factors to consider are the amount of sunlight your roof receives, the roof’s orientation and pitch, and any shading from nearby trees or buildings.

Ideally, you want to place them facing true south. This is different from what a compass shows, which is called the magnetic south. You can find true south by using an online calculator as long as you know the longitude and latitude of your property. Solar panel placement is key to maximizing the energy you generate, so this is an important step.