For Massachusetts residents, the answer is a convincing yes!
Due to the variety of incentives at both the state and federal level to purchase solar panels, there has never been a more rewarding time to go green with solar energy. Just about all residential units can pay for themselves in about five short years.
The installation cost for a five kilowatt solar panel system is around $25,000. This system should give off about 6,000 kWh of power every twelve months here in Massachusetts and supply just about sixty percent of the usual residential home's electrical energy needs.
There's a Commonwealth Rebate which will subtract $2,000 off the price. Moreover, if you should live in a moderate home or have a moderate income, you most likely will be given an additional $2,000 off. Or in case you were unfortunate enough to have your residence damaged during last year's tornadoes, you will receive a further five thousand dollars off.
You'll also receive both national and Massachusetts state tax credits. Currently the federal tax credit sits at a whopping 30% and the state credit is good for $1,000. After the rebates and tax credits, you will be able to purchase a 5 kW solar panel system for about $16,000, even less for those who qualify for the moderate income or moderate home value adders.
A complete system of that size here in Massachusetts ought to provide an average of about $80 worth of electricity monthly yielding a yearly savings of $1,000.
But the long-term earnings derive from auctioning off your system's SRECs. One megawatt hour (1,000 kWh) earns you 1 SREC and a 5 kilowatt solar panel array should yield about 6,000 kWh yearly. Since the state has forced the utility companies to generate a certain amount of their total electrical power via renewable sources, they will be compelled to provide you with about $400 for every one of those six SRECs so they can say that you are generating electrical power for them. Thus that's another $2,400 in tax-free income right into your pocket each year.
So now you can see how a $16,000 solar panel array can easily be paid off in less than five years as it nets $3,400 annually between electricity savings in addition to SREC compensation.
Solar panels are also among the best home improvement options open to the Massachusetts home owner. For a selling price of $16,000, it should raise the worth of your residence by $20,000. That is a 125% return on investment. Just about all home improvement projects don't pay for themselves totally. Solar panels not only raise the worth of your own home more than they can cost you, they are able to bring in revenue every year on top of everything else. They are also exempt from property taxes for 20 years.
And let us keep in mind the primary reason these types of incentives exist in the first place – to save the Earth. A 5 kilowatt solar panel system will lessen your carbon footprint by at least 100 tons of carbon dioxide during the next twenty-five years, the equivalent of growing 800 trees. Every year, it's going to stop the equivalent of around 3 tons of coal or 20,000 cubic feet of natural gas from being burned to generate electricity.
Needless to say from the many incentives currently out there that right now absolutely would be the perfect time for solar panels. The Commonwealth Rebate and the federal and state tax credits cut down on your initial expenses. And the electricity savings and the SREC program add significant income and bolster your home's resale amount.
Plus there is no telling just how much longer these types of stimuli will be around. The Commonwealth Rebate has already been reduced once plus the federal tax credit is threatened every year.
Additionally, as this business matures, a greater number of financing alternatives are becoming available to homeowners, making solar energy cost-effective for everybody. Without a doubt if you've always desired to buy solar panels, there has certainly never been a more rewarding time than now!
Gary S. Best lives in Massachusetts and spent months investigating the various incentives and financing options before deciding to purchase a 5 kW solar panel system in 2011. He has since started a website, www.MassSolarInfo.com, educating residents about solar energy in Massachusetts and providing them with a means to easily receive free estimates and save as much as $500 off their own installation.