Cost of a Solar Electric System

A solar electric system depends largely on how much sun exposure you get without shading from trees, chimneys and any high objects around your structure (home). Another very important factor would be if you have a roof surface oriented towards true South. This orientation is essential for an optimum performance of the PV system. Increased shifts East and West from this southern orientation may cause a reduction in the percentage performance of these systems.   

Calculating the cost of installing a Solar (photovoltaic) electric system at your home can be approximated as follows:
- A typical residential home consumes about 1,000 - 1,500 KWh per month or 12,000 - 18,000 KWh per year. For this home, depending on how many panels the roof space or mount area can carry, budget limits, and energy requirements; we can for example recommend a 4 KW system to be installed. This 4 KW system will produce about 4879 KWh per year and 406 KWh per month.

- The approximate cost of this specific system will be computed as follows: 4 KW = 4,000 watts, cost of 1 watt is $6.50 This system will cost $26,000.00* before incentives. Please NOTE that this price will vary greatly depending on the cost of the panels in the market at that specific period.

* There will be a cost reduction after incentives, and even further with the SREC. We are a NABCEP certified PV installer and we will work with you through all the available rebate and incentive programs and processes. 

Incentives

Installing a Solar system in Massachusetts saves on two fronts: it saves the environment from all the coal to be burnt in power plants, and may also help you keep more money in your pocket. There are different types of incentives with return to investment measures in place, for installing a renewable energy system and for becoming energy efficient. They are Tax benefits, Renewable Energy Credits, and Net metering.

  • Tax Benefits

Federal Tax Credit: Everyone qualifies for this incentive which is a 30% Federal Investment Tax Credit. This percentage is calculated off the entire cost of your installed system. If your obligations aren't too demanding, and the credit covers them with remains; it can be transfered to the following years. This incentive can greatly help you to reach your return on investment quickly. Click here or contact us for more information.

Commonwealth Solar II Rebate Program: This is a program offered only in the state of Massachusetts by the Massachusetts Clean Energy Council (MassCEC). Its a non competitive program that provides financial assistance for Solar PV Installations. This assistance is offered to individuals, non-profits, businesses, as well as towns and organisations. Click here or contact us for more information.

  • Solar Renewable Energy Credits (SREC)

This program was approved in January of 2010 by the Massachusetts Department of Energy Resources (DOER). Naturally, an installed PV system must be Grid Tied to benefit from this program. Mike Ortolano provides more information on the program in the video below. Click here or contact us for more information.

 

  • Net metering

This program was adopted in July 2009 by the Massachusetts Department of Public Utilities (DPU) when they amended Net-Metering rules. Together with the benefit of obtaining credits for backfeeding power into the grid, you can also enjoy the option of using a "Net Meter". This meter has a unigue function in that it can turn backwards or as its known to be "bi-directional".

When this meter is installed, any power your system produces and is not consumed is back-fed into the grid and makes your meter turn backwards. In this case, when you use energy, say in the night when there is no energy production from your PV system, your Net Consumption = (total electricity consumed) – (total electricity generated), which will indicate the bill you will receive. Please click here or contact us for more information.