Ownership Economics 2017-08-07T05:46:20+00:00
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Residential Solar Ownership Economics

Solar Tax Credits, SREC’s, State Rebates

Owning your solar panels is similar to setting an investment account but with more certain and solid returns ranging from 11% to 24%.

With net metering credits, federal tax credits (ITC), SRECs and state rebates, your solar energy costs are much less than your energy from your local utility.

You are currently paying $0.17 to $0.27 per kWh to utility (MA & NH rates). The cost of your owned solar kWh can be as low as $0.02 to $0.07 depending on roof orientation and exposure to sun.

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Federal Solar Incentives

  • Investment Tax Credit (ITC): 30% uncapped federal tax credit on total system installed cost for solar photovoltaic (PV) systems through 2019, after which it will fall to 26% in 2020, 22% in 2021 and 10% in 2022

Massachusetts State Solar Incentives

  • Residential PV: State income tax credit of $1,000.
  • SRECs (Solar Renewable Energy Certificates): are available as an income stream. However the Massachusetts Department of Energy Resources (DOER) is developing a successor program to SREC II incentives early 2017. We will update this section once we have clarity.

A roof-mounted 5.4 kW solar system (18 x 290W solar panels) on a roof in Boston, MA can offset a monthly energy bill average of $136.

Net Cost after Tax Credits $9,962
Gross Cost $15,660
Federal Investment Tax Credit (ITC) 30% $4,698
Massachusetts Tax Credit 15% up to $1,000 $1,000
Annual Cash Flow*
Solar Renewable Energy Certificates (1st year SRECs) $1,481
Energy Offset (Eversource territory) $1,630
Simple break even Year (Net Cost/Annual Cash flow) 3.2 years
25 Years Cash Flow $$$

Updated info can be found on DSIRE (Database of State Incentives for Renewables & Efficiency) which has in-depth information and IRS documents for each of the incentive programs.

Federal Solar Incentives

  • Investment Tax Credit (ITC): 30% uncapped federal tax credit on total system installed cost for solar photovoltaic (PV) systems through 2019, after which it will fall to 26% in 2020, 22% in 2021 and 10% in 2022

New Hampshire State Solar Rebates

  • Residential solar PV install: $0.50/watt up to $2,500.
  • RECs (Renewable Energy Certificates) available as an income stream. Currently, you can get $0.05 for each solar kWh your system produces. This incentive accelerates your payback.

A roof-mounted 5.4 kW solar system (18 x 290W solar panels) on a roof in Concord, NH can offset a monthly energy bill average of $112.

Net Cost after Tax Credits $8,662
Gross Cost $15,660
Federal Investment Tax Credit (ITC) 30% $4,698
New Hampshire Rebate $0.50/W up to $2,500 $2,500
Annual Cash Flow*
Renewable Energy Certificates (1st year RECs) $374
Energy Offset (Eversource territory) $1,346
Simple Break even Year (Net Cost/Annual Cash flow) 5.0 years
25 Years Cash Flow $$$

Updated info can be found on DSIRE (Database of State Incentives for Renewables & Efficiency) which has in-depth information and IRS documents for each of the incentive programs.

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