Solar panels seem to be all the rage these days. With solar installations totaling greater than 1,020 megawatts (MW), Massachusetts is one of the nation's top ten solar states, according to the Solar Energy Industries Association (SEIA). his is enough to power 163,000 homes!
What Is It?
Solar panels are solar photovoltaics that harvests energy from sunlight to create a sustainable alternative to other forms of electricity.
Common Reasons To Invest
– Reduced electricity bills
– Energy independence from utility companies
– Environmental friendly (going green)
– Less likely to experience blackouts or brownouts
Perhaps you've encountered a door-to-door salesman, on television, received advertisements in the mail, and even been approached by solar companies at your local home improvement store. Before jumping on the bandwagon of renewable home energy, consider these important tips for Massachusetts residents.
1.) Although you may lower your electricity bill, you still need to pay a monthly fixed charge.
2.) For maximum efficiency, solar panels should be placed on a flat roof facing the south where they will receive the most sunlight.
3.) You don't always have to outright buy your solar panels. You can also lease a solar system. If you lease, the leasing company is responsible for maintenance but you may be forced into a longer contract period, some lasting 20 years.
4.) Solar companies must be approved by the North American Board of Certified Energy Practitioners (NABCEP). The solar installer must be a licensed electrician and registered as a Home Improvement Contractor (HIC) under The Office of Consumer Affairs and Business Regulation (OCABR).
5.) Be sure to shop around for the best price and quality. Get a written estimate from multiple bids.
6.) Some variables that could affect your price estimates include up-front costs, the longevity of your system, who has the burden of maintaining the system, and any tax breaks you may qualify for.
State Tax Incentives
Massachusetts provides a sales tax exemption for purchases of solar panel systems. You can get a 15% coverage of the price of the system for your income tax with a maximum of $1000 credit. There's also the Solar Massachusetts Renewable Target Program (SMART) in which the state will pay a fixed rate per kilowatt-hour (kWh) for the next 10 years if you are a customer of Eversource, National Grid, and Unitil. The SMART program has also taken steps to be accessible for families that qualify as low-income.
Federal Tax Incentives
If you are purchasing a solar energy system, you can receive a federal Investment Tax Credit (ITC). This will lower the cost of the system by 26%.
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