As of 9/1/ 2023
If your town has full net metering, a PV solar install can reduce your electric bill or even eliminate it. Full net metering means that the credit for a kwh sent to the grid is equal to the cost of a kwh from the grid. You will be storing energy (credit) on your electric bill. Partial net metering will put only half to a third credit on your bill. In Massachusetts all investor owned utilities (Eversource, National Grid and such) are required by law to have full net metering. Municipal Owned Light Plant towns, such as South Hadley, are not. After 2017 SHELD voted not.
At an average of $27,000 (see here as of 2022) for a 10 kilowatt (kw) array the cost is something most of us can’t afford to do with cash. There is a delay on the rebates so that the homeowner has to have the money up front. The delay is smaller if you have the install done at the end of the year. Some banks have low interest PV loans which can help with this problem. There are energy incentives to help reduce the cost of PV solar. If you live in areas which do not have full net metering, such as South Hadley, a 5kw solar install would probably serve you best.
PV SOLAR INCENTIVES IN Mass of 10/1/2023
MA state tax incentive 15% up to $1,000
The Massachusetts SMART program – This is for investor owned utility customers (Not in Municipal Owned Light Plants such as South Hadley). Generally speaking, for each kwh a system produces, it will trigger ~$0.06. So if a system produces 5 kwhs a year, that system will generate $300 per year in income. A 10 kW system could be expected to provide ~$600 per year in income. The $0.06 will vary based on which utility, the rate code, and whether or not the system has energy storage associated with it. I don’t know of any website out there with a succinct description of the program unfortunately. Income generally starts to come in about 4-5 months after a project is up and running. The payments continue for ten years.
From Tom Kelly NE Solar
For Municipal Light Plant customers – there was a very good Mass MLP Solar Rebate Program. In South Hadley it meant a payout of $6,000 for a 5 kw system which might cost as little as $14,000 installed. In S. Hadley the funding was used up in two weeks. More may happen but none is on the horizon. Call SHELD at 536-1050.
Tax Credit – Federal income tax credit of 30% as of 9/1/2022. The credit can be carried over several years if one does not have enough tax liability.
See Solar LINKS for details
Power Purchase Agreement – In the PPA model, you get solar installed under an agreement where the installing company owns the PV system on your roof and the homeowner gets electricity for a fixed (low?) price for twenty years. The homeowner pays nothing up front but the installer gets the incentives. It is a not a good idea for home owners! PPAs are not allowed in Municipal Light Utility (MUNI) towns such as South Hadley.
Solarize Mass. – Residents of a town join together and get a group rate from one installer through Mass CEC. Not available to MUNIs such as South Hadley.
Non profits can get most of the rebates that make solar less costly as of the IRA in 2024 with point of sale payments.