You CAN afford to go solar!
Electricity rates are rising, and the cost of installing solar for your home is plummeting therefore making solar more affordable. Tax incentives, Solar Renewable Energy Credits (SRECS) and free electricity make solar an excellent investment, and the MassSolar Loan makes solar an option for everyone. If you are not looking into solar for your home, you are missing out!
Owning your solar electric system outright is best (whether this is through a cash purchase or a loan)
There is a 30% federal tax credit, $1,000 MA state tax credit (primary residences only), AND you make money from every kilowatt hour your solar system produces for ten years through Solar Renewable Energy Credits (SREC’s). Most solar systems pay for themselves after 4 – 6 years. After that, it’s all good. You are getting free electricity, plus a quarterly check for the sale of your Solar Renewable Energy Credits (SREC’s). It’s a win, win for you!! If you want to be cash flow positive at the end of year one, you can take advantage of the MassSolar Loan Program.
MassSolar Loan Program:
Many of our customers have taken advantage of the MA Solar Loan program, even if they have the cash for an outright purchase. It makes sense. A low interest loan (currently at 3.99%) requiring NO DOWN PAYMENT is a good thing. And there is an additional component of the program called Income
Based Loan Support. For example, if your gross annual income, for a household of two, is under $88,926, you may be able to receive additional assistance to reduce the loan principal up to 20%. If the household income is lower then up to 30% of the principal buydown is available. In other words, the MassSolar Loan Program will pay for 20%-30% of the gross cost of your solar system if you qualify income-wise. Please see the table below to find out if you qualify.
Leasing…too good to be true?
Skeptical about leasing a PV System for your home? You should be! Beware of a leasing company’s sales pitch that sounds too good to be true.
It is true that you can save money on your electric bill with a solar lease, but you are missing out on an opportunity for much greater savings, and an excellent investment opportunity. You are also exposing yourself to complications when you go to sell your home.
Purchasing a solar system is a large upfront cost, but it is an excellent investment. Once the system is paid off (typically 4-6 years), not only will it reduce or eliminate your electric bill, but you will make money each year. Do not give away the rights of your roof to a solar leasing company!
People who lease their solar systems save far less than those who buy them outright or with a loan (they also miss out on federal tax benefits and local incentives). Check out this consumer report:
Many leases contain an escalator clause that can further reduce savings by increasing payments 3% per year. So if you’re paying 12 cents per kWh in year one, with a 3% escalator, you’ll be paying 18.2 cents per kWh in year 15. That means if the cost of energy doesn’t rise as quickly as the contracted lease payments increase, your savings could evaporate.
The leasing company is also getting your SREC’s and you cannot take the 30% federal tax credit. What is really happening is that the leasing company is using your roof and making a ton of money doing that. Money that could be in your pocket instead.
With the Solar Loan, Tax Credits & SRECs, and increasing electric rates, there has never been a better time to install a solar system. You CAN afford to go solar!
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Solar is a great investment if it’s right for you! Folks in heavily wooded areas would be an exception of course but I advise getting solar energy for more reasons than just the savings alone. Helping the planet be greener by doing your part makes a huge impact, one person at a time!
One person at a time, is right! Thanks for the feedback!
This is very interesting and entertaining post solar affordable solar loan leasing tax credits. There are best . It’s so helpful for all electricians. Thanks for this type of information.
Thanks for your feedback!
Thanks for the resource! It is really great to see the expansion in market interest for residential solar. Here in CA it really doesn’t make sense to keep paying the electric companies with the cost of solar being so affordable and the amount of sun we get.
Hi Jim, agreed! Thanks for the feedback!
This is great news to share with my customers. The more quality education we can release the better prepared people can be when considering the large purchase but yet understand the investment aspect of it. Thanks!
Thank you for the feedback Laurence!
Fantastic info. I’m always looking for ways to educate our customers of the benefits of buying vs leasing solar. With all the tax incentives and great financing options it’s a no-brainer for those of us in the industry. Especially considering the federal tax incentives will start to decline in the upcoming years.
You’re absolutely right with the declining tax credits. Now is a great time to purchase a system outright. Here on Cape Cod, our electric rates have increased to ~$.24/kWh!
Good day, Meredith! I am thankful that you shared such an amazing article Solar is More Affordable Than You Think. It is very helpful for those who think that solar is costly. Thanks for an awesome and informative blog. Keep Going.
Thank you Steve! Always good to hear from you. Looking forward to longer, sunnier days to come!
We thought solar was expensive until we bought it and it eliminated our electric bill and raised our home value!
That’s great news! It’s such a great feeling not having an electric bill. Congratulations!
We just started our solar company and came across this article. Totally with every point mentioned on why to go solar! Not just the savings cost, but the convenience of having accessible energy in case of power outages when you decide to install a solar backup generator. Not to mention it is safer for the environment altogether. Thanks for sharing!
Thank you for the feedback. Best of luck. To a sunny future!
This is a great news. Thanks for sharing.
Thank you for the feedback!