Could Now Be The Perfect Time For Solar Panels?
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by: GaryS.Best | Total views: 42 | Word Count: 678
For Massachusetts residents, the answer is a convincing yes!
As a result of the many 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 panels. Just about all residential systems are able to pay for themselves in less than 5 years.
The asking price for a five kilowatt solar panel system is approximately $25,000. This system is going to emit about 6,000 kWh of electrical energy every twelve months in Massachusetts and supply almost 60% of the average residential household's energy needs.
There is a Commonwealth Rebate which will deduct $2,000 off the top of the price. Moreover, if you reside in a moderate home or earn a moderate salary, you will receive a further $2,000 reduction. Or if you happen to have been unfortunate enough to have your home damaged in last year's tornadoes, you shall be given a further $5,000 reduction.
You'll also be given both federal as well as state tax credits. The federal tax credit is currently a fantastic 30 percent while the state credit is for $1,000. After the rebates coupled with the tax credits, you'll be able to acquire a 5 kW solar panel system for $16,000, less should you qualify for the moderate income or moderate home value adders.
A system of that size in Massachusetts should provide an average of close to $80 worth of electrical energy monthly yielding a yearly savings of $1,000.
But the best long-term profits derive from selling your system's SRECs. Each megawatt hour (1,000 kWh) is equivalent to 1 SREC and a 5 kW system will produce somewhere around 6,000 kWh annually. Since the state has forced the utility companies to produce an explicit percentage of their total electrical energy from renewable methods, they will be compelled to provide you with about $400 for every one of your 6 SRECs so they can say that you're generating electricity on their behalf. So that's a further $2,400 in tax-free revenue right into your wallet every year.
So now you can see how a $16,000 solar panel system can be paid off in less than five short years when it brings in $3,400 annually between electricity savings coupled with SREC proceeds.
Solar panels are also among the best home improvement possibilities open to the Mass. home owner. With a selling price of $16,000, it should increase the value of your residence by $20,000. That is a 125% return on investment. Just about all home improvement projects won't pay for themselves totally. Solar panels not only raise the value of your own house in excess of what they can run you, they are able to make you money every year on top of everything else. They're also exempt from property taxes for the next 20 years.
And additionally let us keep in mind the key reason each of these incentives exist in the first place - to save our planet. A 5 kW solar panel system will slash your carbon footprint by at least 100 tons of carbon dioxide over twenty-five years, the equivalent of growing 800 trees. Each year, it is going to prevent the equivalent of 3 tons of coal or 20,000 cubic feet of natural gas from being burned to produce electricity.
As you can see from all of the stimuli currently out there that right now indeed would be the right time for solar energy. The Commonwealth Rebate as well as the federal and state tax credits cut down your startup expenditures. Plus the electricity savings together with the SREC program add significant returns and also boost your home's resale value.
What's more there's simply no way to tell just how much longer all of these stimuli are going to be in existence. The Commonwealth Rebate has already been lowered once plus the federal tax credit has been threatened annually.
Lastly, as this industry grows, a growing number of financing approaches are becoming available to homeowners, making solar panels economical for everyone. If you've always wanted to buy solar panels, there has never been a more rewarding time than now!
About the Author
Gary S. Best lives in Massachusetts and spent months researching the various incentives and financing options prior to 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 get free estimates and save up to $500 off their own installation.
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