Is Now The Time For Solar Power?
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by: GaryS.Best | Total views: 14 | Word Count: 675
If you live in Massachusetts, the answer is a convincing yes!
As a result of the variety of incentives at both the state as well as the national level for solar panels, there has never been a more rewarding time to go green with solar energy. The vast majority of residential units are able to pay for themselves in less than five short years.
The typical retail price for a five kilowatt solar panel system is approximately $25,000. This system is going to give off about 6,000 kWh of electrical energy every twelve months in Massachusetts and provide over sixty percent of the normal residential household's energy needs.
There's a Commonwealth Rebate which will subtract $2,000 off the top of the price. Additionally, if you happen to reside in a modest home or earn a moderate salary, you will be given an extra $2,000 reduction. Or if you happen to have been unfortunate enough to have your home damaged in last year's tornadoes, you shall receive an additional $5,000 off.
There are also both federal as well as state tax credits. Currently the IRS tax credit is currently a whopping 30% while the state credit is for $1,000. Following the rebates and additionally the tax credits, you should be able to invest in a 5 kW solar panel array for only $16,000, less for those who qualify for the moderate income or moderate home value adders.
A complete system of that size here in Massachusetts should provide an average of just about 80 dollars worth of electrical energy monthly to get an annual savings of $1,000.
But the long-term profits derive from selling your SRECs. Each megawatt hour (1,000 kWh) earns you 1 SREC and a 5 kilowatt system will emit nearly 6,000 kWh yearly. Since the state has forced the utility companies to generate a certain percentage of their total electrical energy using renewable methods, they will pay you about four hundred dollars for each of your six SRECs so they can say that you're generating electrical energy for them. So that's an extra $2,400 in tax-free income right into your pocket each year.
So now you can understand how a $16,000 solar panel array can be paid off in less than 5 short years when it nets $3,400 annually including electricity savings and SREC revenue.
Solar panels can also be among the best home improvement choices open to the Massachusetts resident. With a cost of $16,000, it will up the worth of your house by $20,000. That is a 125% return on investment. Nearly all home improvement projects won't pay for themselves totally. Solar panels not only increase the worth of your own house above what they can cost you, they will bring in revenue every year as well. They are even exempt from property taxes for the next 20 years.
And we should bear in mind the main reason each of these incentives exist at all - to save the Earth. A five kilowatt solar panel system can lessen your carbon footprint by at least one-hundred tons of carbon dioxide over twenty-five years, the equivalent of planting eight hundred trees. Each year, it's going to stop the equivalent of around three tons of coal or 20,000 cubic feet of natural gas from being burned to produce electrical power.
As you can tell from all the incentives presently offered that now unquestionably is the perfect time for solar panels. The Commonwealth Rebate together with the federal and state tax credits trim down your startup expenditures. And the electricity savings plus the SREC program supply significant returns and also boost your home's resale amount.
Plus there's simply no way to know just how much longer these types of stimuli will be in existence. The Commonwealth Rebate has already been reduced recently plus the federal tax credit has been threatened every year.
Additionally, while this business grows, a greater number of financing options are becoming available to homeowners, making solar power economical for everyone. Without a doubt if you have always wanted to purchase solar panels, there really has never been a more rewarding time than now!
About the Author
Gary S. Best lives in Massachusetts and spent months investigating the different 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 receive free estimates and save as much as $500 off their own installation.
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