The Commonwealth of Massachusetts is finding itself on the cutting edge with regard to the installation of solar power systems for both residential and business buildings and complexes. For those residents and business choosing to go Solar, they are realizing some tremendous cost savings as well as certain tax incentives and advantages.
As of 2012, almost 3000 solar powered installations have been made throughout the Commonwealth which is bringing electricity to around 8000 businesses and homes. With the initiation of the Solar Massachusetts program, homeowners and business owners are finding themselves in the position of being able to afford the installations.
Normally, a solar power energy conversion consists of the construction of glass panels that are place on a rooftop. The panels are constructed of hundreds of extremely small photovoltaic power cells that will enable the panel grid system to gather in the sun’s radiation and convert it to electricity as well as being able to store it for later use or sale.
The Solar initiative, in conjunction with monies from the federal American Recovery Act, is able to assist with the cost of construction for those businesses and residents who qualify for the program’s savings initiatives. The cost of installing such solar power systems has dropped dramatically in recent years, by nearly 30%, as competition around the world has heated up and become much more competitive with regard to pricing.
The Solar Massachusetts program has pioneered such initiatives as net metering and Solar Renewable Energy Credits. In Massachusetts, the local power and energy companies must produce a certain amount of their electricity from renewable sources. If they cannot make the yearly minimum required, state law dictates that they must buy what they need from homeowners and businesses via the Solar Renewable Energy Credits.
The net metering innovation for homeowners and businesses consists of allowing residents to store their extra electricity and have it credited by the local power and utility companies. In addition to tax credits and rebates, going solar has become an attractive alternative for many citizens and business owners.
The rebate programs include a 15% tax credit up to one thousand dollars on your solar powered energy system as well as a property and sale tax credit. Since Massachusetts is burdened with some of the highest electric rates in the United States, the savings can be substantial. Currently, Massachusetts residents are looking at a cost of more than 15 cents per kilowatt hour while the nation averages in the 11 cents per kilowatt hour range. With the installation for a solar powered system, residents and businesses can see their cost begin to drop down to the 11 cents per kilowatt hour range. Added to these state incentives is a 30% tax credit from the federal government by way of their Federal Tax Incentive Credit program.
In effect, the Solar Massachusetts program has been deemed a success. Along with such states as California, Arizona, and Colorado, Massachusetts is finding itself on the front lines in the effort to turn away from pollution laden sources of energy toward one that is more cost efficient and easier on the environment.