Benefits of Solar Energy
Solar energy has multiple advantages that will enhance your home for years to come.
- Reduced carbon footprint: Using clean solar power reduces your dependence on fossil fuels, which release greenhouse gases that damage the environment.
- Better energy independence: Solar panel systems can keep your home functioning through emergencies and blackouts, giving you additional security. You can use your solar energy anytime with an optional battery storage system.
- Lower utility costs: Producing some or all of your own electricity will save you money on your electric bills long-term. Plus, some states provide net metering programs that allow you to sell your extra energy back to the grid, generating additional credits toward your energy bill.
What Solar Incentives Are Available to Cambridge Homeowners?
Governments and power companies often reward homeowners for switching to solar. Here are some of the tax credits, rebates, or other programs you could qualify for.
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: 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 Cambridge
The more informed your company investigation is, the better your solar installation will ultimately operate. Here are some important factors to keep in mind while shopping for a solar provider.
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 sector's most respected trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Cambridge
Your photovoltaic panels' model will influence how much energy you can generate. Monocrystalline panels are among the highest quality and perform the best but cost the most. Polycrystalline panels generate less, but they're a great traditional option for low budgets. Thin-film panels are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.
You can also add electric vehicle (EV) chargers and battery backup systems. These will increase your total installation cost, but they can enhance your solar system's performance. Not every solar company includes these extras, so look for a provider that installs them if it's crucial for you.
Most Cambridge homeowners opt for solar systems sized for five kilowatts (kW) of electrical capacity. These systems cost about $20,300 to set up, considering both materials and labor. You can see more specific solar cost information in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,241 |
| Solar Polycrystalline | $968 |
| Thin-Film | $566 |
| Solar Battery | $794 |
| Solar Home EV Charger | $2,978 |
Financing Solar Energy in Cambridge
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, solar leases and power purchase agreements (PPAs). Though it requires a large up-front payment, cash is the most cost-effective choice because it doesn't accrue interest and qualifies you for incentives. Solar loans are the runner-up option. As with a home or auto loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for money-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases let you rent your panels for a set monthly rate, while PPAs let you pay only for the energy you use, akin to an electric bill. Both options disqualify you for solar incentives and don't grant you system ownership. Solar experts generally don't recommend them, but they might be suitable in some cases. Look for contractors that offer several payment plans to find the right fit for your financial needs.
The table below lists the average payback periods for different capacities of solar systems in Cambridge.
The IRS allows you to claim a 26% federal solar tax credit on your new solar panels, so long as you purchase it before 2032. City and state governments and utilities might also offer their own incentives, financing programs, and rebates that could save you more money.
| 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 |
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Frequently Asked Questions About Solar in Cambridge
How much energy and money could I save per year by switching to solar?
How popular is solar energy in Cambridge?
Will a solar PV system improve my Cambridge home worth?
What if I live in a heavily-wooded or dark
What can I do to predict my home's solar potential?
What is the average payback period for Cambridge solar panels?
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.
How are traditional solar loans and PPAs different?
In contrast, solar loans can come from specialty lenders, installer, the government and local banks. You'll need to pass a credit check to qualify for most of them. While the upfront costs are larger, and you'll be responsible for upkeep, you'll also have total ownership and can apply for many more incentives.
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