360Chestnut's Home Energy Efficiency Blog

Getting Paid To Go Solar

Solar photovoltaic (PV) systems are very expensive, but federal tax credits and state rebates and incentives can make this renewable technology a profitable investment. Homeowners who install solar PV systems are eligible to receive the Investment Tax Credit (ITC) that’s worth 30% of the system cost. The ITC is uncapped and is valid until 2016. In addition, there are state and local incentives for solar PV. 

photo by Pink Dispatcher on Flickr

Here are some solar PV incentives in Massachusetts:

• Commonwealth Solar II

• This is a direct rebate for homeowners who generate their own electricity using solar PV.  

• Solar Renewable Energy Credits (SRECs)

  • Owners of solar PV systems can earn one SREC for every megawatt hour (MWH) of electricity they produce. These SRECs can be sold to electric utility companies that are required to obtain a certain amount of electricity from renewable sources.   

• Net Metering

  • This regulation allows homeowners who generate their own electricity to sell their unused electricity back to the utility company at a retail rate instead of the lower wholesale rate. 

Finally, some important factors to consider when purchasing a solar PV system are the amount of solar radiation your roof receives and the size of your roof. In order for solar to be a worthwhile investment, your roof must receive a sufficient amount of sunlight and be large enough to install the number of solar panel required to satisfy your energy needs.  

See Related Article: Eric's Solar Energy House 

Dan Chen