Could Now Be The Ideal Time For Solar Energy?

For Massachusetts residents, the answer is a resounding yes!

On account of the numerous incentives at both the state as well as the federal level for solar panels, there has never been a more rewarding time to go green with solar energy. Most residential systems will pay for themselves in about 5 short years.

The typical asking price for a 5 kilowatt solar panel system is just about $25,000. This system will give you close to 6,000 kWh of electricity annually in Massachusetts and provide over 60% of the average residential household’s electrical energy needs.

There's a Commonwealth Rebate that will deduct $2,000 off the top of the selling price. Moreover, if you happen to reside in a modest house or earn a moderate income, you should receive a further $2,000 off. Or in case you were unfortunate enough to have your residence damaged in last year’s tornadoes, you shall receive a further five thousand dollars off.

There also are both federal as well as Massachusetts state tax credits. The IRS tax credit is currently a whopping 30% while the state credit is for $1,000. After the rebates coupled with the tax credits, you'll be able to purchase a 5 kilowatt solar panel system for only $16,000, less should you qualify for the moderate income or moderate home value adders.

A complete system of that size in Massachusetts ought to provide an average of about $80 worth of electricity monthly for a yearly cost savings of $1,000.

But the long-term earnings come from selling your SRECs. One megawatt hour (1,000 kWh) is equivalent to one SREC and a 5 kilowatt system will yield somewhere around 6,000 kWh yearly. Since the state has required the utility companies to acquire a small portion of their electrical power from renewable sources, they will be compelled to give you about four hundred dollars for every one of your 6 SRECs to say that you're generating electrical power on their behalf. Thus that’s an additional $2,400 in tax-free revenue right into your wallet each year.

Now you can see how a $16,000 solar panel system can easily be paid off in less than five short years as it nets $3,400 annually including electricity savings in addition to SREC compensation.

Solar panels are additionally among the best home improvement possibilities available to the Massachusetts home owner. With a price of $16,000, it should up the worth of your house by $20,000. That is a 125% return on investment. Most home improvement projects won't pay for themselves totally. Solar panels not only raise the value of your own residence above what they run you, they will bring in revenue each year as well. They are also exempt from property taxes for 20 years.

And let us keep in mind the reason why these incentives exist to begin with – to save the Earth. A 5 kW solar panel array is going to reduce your carbon footprint by at least 100 tons of carbon dioxide during the next twenty-five years, the equivalent of planting eight hundred trees. Every year, it will stop the equivalent of around three tons of coal or 20,000 cubic feet of natural gas from being burned to create electrical power.

As you can see from the many incentives presently in existence that now unquestionably is the right time for solar panels. The Commonwealth Rebate as well as the federal and state tax credits cut down your startup expenditures. Plus the electric bill savings along with the SREC program supply significant revenue and boost your home’s resale value.

Plus there is no way to know just how much longer each of these stimuli are going to be around. The Commonwealth Rebate has already been reduced once plus the federal tax credit gets threatened each year.

Lastly, as this business grows, increasingly more financing approaches are becoming available to homeowners, making solar panels affordable for everybody. If you've always desired to buy solar panels, there's never been a more rewarding time than the present!