Solar Savings

How solar puts cash in your pocket

  • A rooftop solar system can slash the typical residential electric bill by well over $100 per month. (Contact us for commercial savings)
  • These savings can pay for the system cost in as little as 4-6 years— after which you enjoy not only free electricity, but you get paid for any excess electricity your solar system puts into the power grid!
  • In many states, including Massachusetts, when your solar energy system produces more than you need, the power company must buy that extra electricity from you!
  • A Lawrence Berkeley National Lab study found that a solar system will add an average $17,000 to the home's market value. Should you decide to sell your home, that's nearly enough to recoup the installed cost of the panels.
  • That extra home value is exempt from property taxes.
  • Solar equipped houses sell 20% faster than comparable homes, a great advantage in any real estate market.
  • Some states award Solar Renewable Energy Credits (SRECs) to producers of clean energy.
  • You earn one SREC for every 1000 kWh of electricity your solar system produces.
  • Sell your earned SRECs to the utility for cash (at an average price of $270 per credit).
  • The Federal government has extended the Solar Investment Tax Credit (SITC) of 30% on solar installations through 2023. This is not a deduction, but rather a dollar-for-dollar reduction in your Federal income taxes. In effect, the SITC reduces your solar system cost nearly one-third.
  • There are additional federal, state and local solar tax incentives that our energy specialists can outline for you.
The answer depends on a number of factors including, but not limited to, the following:
  • The state and local incentives
  • Direction and pitch of your roof modifies how much electricity your system will produce
  • The financing options in which you have selected
  • If you are purchasing the system outright, then the solar savings sample to the right, provide an illustration of the costs and incentives one would receive for a solar system that produces 5kW

Savings Example

 System Size
5kW 
System Production, kilowatt-hours 6150 kWhrs
Annual Electric Savings
($0.18/kw electric rate)
$1,100
 Annual SREC Income
(conservative,MA); $270/SREC
 $1,647
 Total Annual Income  $2,747
 Cost of system  $22,000
 Less 30% Federal Tax Credit
Less MA Credit
 $7,200
$1,000
 Cost after tax credit  $13,800
 Return on Investment
Pay-off Time
 20.1%
4.9 Years