Benefits of Solar Energy
Solar energy comes with multiple advantages. Let's look at a few of them.
- Better energy independence: Solar panel systems with battery backups and storage systems operate through power outages and emergencies, and you won't have to rely on the grid for your safety and well-being.
- Reduced carbon footprint: Using solar is a surefire way to reduce your carbon footprint and home fossil fuel dependency.
- Smaller power bills: Producing some or all of your own energy will save you money on your electric bills long-term. Plus, some states provide net metering programs that enable you to sell your surplus energy back to the grid, generating additional credits toward your energy bill.
What Solar Incentives Are Available to Boston Homeowners?
Massachusetts homeowners who choose solar could qualify for tax credits, rebates, reimbursements and special financing. Here are just a few of the area's incentive offerings.
Incentive Type: Property Tax Incentive
Website: in.govIncentive Amount:
Solar energy systems used for heating or cooling: out-of-pocket expenditures by the owner for the components and labor
Wind, hydroelectric, geothermal, solar thermal, solar PV, and other solar energy systems: the assessed value of the system
Incentive Type: Personal Tax Credit
Incentive Amount:
15%
Incentive Type: Sales Tax Incentive
Website: mass.govIncentive Amount:
100% exemption
Incentive Type: Industry Recruitment/Support
Incentive Amount:
100% deduction
Incentive Type: Rebate Program
Website: capelightcompact.orgIncentive Amount:
Appliances
Refrigerator and Freezer Recycling: $125
Electric Clothes Dryers: $50
Clothes Washer: $350
Dehumidifiers: $30
Room Air Purifiers: $40
Room Air Conditioner: $40
Heating & Cooling
Oil Heating System: Up to $800
Propane Heating Equipment: Up to $2,300
Oil Water Heater: Up to $400
Propane Water Heater: Up to $800
Heat Pump Water Heater: Up to $600
Central AC/Heat Pump: Up to $250/ton
Mini-Split Heat Pump: Up to $250/ton
Programmable Thermostats: Up to $25
WiFi Thermostat: Up to $100
Solar Domestic Hot Water heater: $500 - $1,500
Home Electronics
Advanced Power Strips: Varies
Home Insulation
Limited Time Enhanced Incentive: 75%
Year-Round Tenant Incentive: 100%
Enhanced Residential Program: 100%
Lighting
LEDs: Varies
Home Energy Assessment: Free
Incentive Type: Loan Program
Website: masssave.comIncentive Amount:
$25,000 ($50,000 for some expanded HEAT offerings)
Incentive Type: Performance-Based Incentive
Website: masmartsolar.comIncentive Amount:
(Base compensation rate + compensation rate adders - greenfield subtractor) * total kWh generated - value of energy generated
Incentive Type: Loan Program
Website: masssolarloan.comIncentive Amount:
Maximum required: $35,000; maximum possible: $60,000
Incentive Type: Rebate Program
Website: masscec.comIncentive Amount:
New GSHP Rebate: $2,000 per ton with adders to eligible applicants
Retrofit Existing GSHP Rebate: varies with installation costs
Incentive Type: Rebate Program
Website: masscec.comIncentive Amount:
Standard Residential:
Pellet Stove: $1,000 - $1,750
Catalytic Woodstove: $750 - $1,250
Non-Catalytic Woodstove: $500-$1,250
Fully Automated Wood Stove: $1,500 - $1,750
Low-Income Residential:
Pellet Stove: $2,500 - $3,250
Catalytic Woodstove: $2,250 - $2,750
Non-Catalytic Woodstove: $2,000-$2,750
Fully Automated Wood Stove: $2,750 - $3,250
Incentive Type: PACE Financing
Incentive Amount:
Financing amount locally determined; 20-year financing term
Incentive Type: Solar Renewable Energy Credit Program
Website: mass.govIncentive Amount:
Varies, depending on market supply and demand
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Boston
The purchase price and efficacy of solar panels often rely on the solar company that installed them. Here are some key items to keep in mind while shopping for a solar specialist.
Licensing and Training
Massachusetts requires new solar photovoltaic systems in the Commonwealth to be installed by a licensed electrician and new solar water heaters to be installed by a construction supervisor. Check for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar industry's most credible trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Boston
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power and generally have the highest quality. Polycrystalline panels provide a lower price point but produce less power. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.
Additional accessories, such as battery storage and electric vehicle (EV) chargers, will increase your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not every solar company includes these extras, so look for a contractor that installs them if it's a priority for you.
If you're a resident of Boston and are looking into a five-kilowatt solar energy system, you could expect to pay about $20,300 for materials and labor. See more information on specific component and solar panel costs in the table.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,233 |
Solar Polycrystalline | $961 |
Thin-Film | $562 |
Solar Battery | $789 |
Solar Home EV Charger | $2,958 |
Financing Solar Energy in Boston
Solar providers use multiple different financing options to increase your savings and lower your costs. Though some providers offer unique payment plans, the most common are cash payments, solar loans, power purchase agreements (PPAs) and solar leases. Most solar experts recommend a cash payment or using a solar loan. Cash payments demand a large up-front sum, but they save you from paying interest, grant you system ownership, and qualify you for cost-saving solar incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Like an auto or home loan, you'll pay a set monthly rate with as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) allows you to pay a monthly rate determined by the energy you use, akin to an electric bill. We usually don’t recommend these two choices because you won't own the system and cannot use solar incentives. We suggest working with an installer that offers multiple financing options. Ask each agent about what's available, and acquire more than one estimate for the best odds of staying within your budget.
The table below lists the average payback periods for different capacities of solar systems in Boston.
A 26% federal solar tax credit applies to recently-purchased solar equipment purchased through 2032. Extra incentives may be available through local governments, usually in the form of rebates and special financing programs.
Solar System Capacity | Estimated Payback period |
---|---|
1 kW | 2.0 years |
2 kW | 3.9 years |
5 kW | 9.8 years |
10 kW | 19.6 years |
Ready to Get a Quote on Your Solar Project?
Please enter a valid 5-digit zip code!
Frequently Asked Questions About Solar in Boston
How much money could I save by going solar in Boston?
Is solar energy easily accessible in Boston?
Should I anticipate a property value increase after going solar?
What can I do to calculate my home's solar viability?
What size should my new Boston solar system be?
What is the average payback period for Boston solar panels?
What is "net metering," and how does it work?
How are a solar lease and PPA different?
You don't own the panels with either option, though you can choose to "buy out" of the contract for a fee.
To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.