Is Now The Right Time For Solar Energy?   by Gary S. Best

For Massachusetts residents, the answer is a convincing yes!

As a result of the numerous incentives at both the state as well as the national level to purchase solar panels, there really has never been a more rewarding time to go green with solar energy. Just about all residential units have the ability to pay for themselves in about five years.

The typical asking price for a 5 kilowatt solar panel system is around $25,000. A system of this size will give off about 6,000 kWh of power every twelve months here in Massachusetts and supply almost 60% of the average residential home's energy needs.

There's a Commonwealth Rebate which will subtract $2,000 off that price. In addition to that, if you reside in a moderate house or earn a moderate salary, you most likely will receive a further $2,000 reduction. Or if you happen to have been unlucky enough to have your residence damaged during last year's tornadoes, you will be given a further $5,000 off.

You will also receive both federal as well as Massachusetts state tax credits. The IRS tax credit sits at a massive 30 percent and the state credit is good for $1,000. Following the rebates as well as the tax credits, you will be able to obtain a 5 kilowatt solar panel array for $16,000, less if you should qualify for the moderate income or moderate home value adders.

A complete system of that size in Massachusetts should provide an average of just about 80 dollars worth of electrical power monthly to get a yearly savings of $1,000.

But the best long-term revenues derive from selling your SRECs. Each megawatt hour (1,000 kWh) earns you one SREC and a 5 kilowatt solar panel array should probably yield just about 6,000 kWh yearly. Because the state has forced the electricity companies to produce a certain quantity of their total electrical power using renewable techniques, they will provide you with around $400 for every one of your 6 SRECs so they can say that you are producing electrical energy on their behalf. And so that's an additional $2,400 in tax-free revenue right into your wallet annually.

So now you can see just how a $16,000 solar panel system can be paid off in slightly less than 5 years as it nets $3,400 annually between electric bill savings together with SREC income.

Solar panels are also one of the better home improvement choices available to the Massachusetts resident. For a selling price of $16,000, it will up the value of your own house by $20,000. Now that is a 125% return on investment. Just about all home improvement projects never pay for themselves fully. Solar panels not only increase the value of your residence more than they run you, they are able to bring in revenue every year too. They are even exempt from property taxes for the next 20 years.

And additionally let us keep in mind the primary reason these types of stimuli exist to begin with - to save our planet. A five kilowatt solar panel system will reduce your carbon footprint by over 100 tons of carbon dioxide across 25 years, the equivalent of planting 800 trees. Every year, it is going to stop the equivalent of about 3 tons of coal or 20,000 cubic feet of natural gas from being burned to generate electricity.

As you can see from the many stimuli currently available that now indeed would be the best time for solar panels. The Commonwealth Rebate along with the federal and state tax credits cut down your initial expenditures. Plus the electric power savings and the SREC program add significant revenue and bolster your home's resale value.

Furthermore there's no way to tell just how much longer each of these incentives are going to be around. The Commonwealth Rebate has already been reduced once and the federal tax credit has been endangered yearly.

Lastly, while this business grows, a greater number of financing options are becoming available to homeowners, making solar energy economical for everybody. Without a doubt if you have always desired to get solar panels, there really has never been a better time than now!