Is Solar Power Cheaper Than Electricity?
The Department of Energy states that solar is the fastest growing and most affordable source of new energy in America. However, it is a common misconception that solar just doesn’t work on Cape Cod and The Islands because of the varying climate. In actuality, there are an average of 200 sunny days a year here, making it a great option for Cape Cod homes.
Solar power has come a long way and can be more cost-effective for homeowners and businesses than electricity. There are also several solar energy incentives available in Massachusetts, making solar more affordable than ever. Find out if a solar panel installation from My Generation Energy is right for you.
Why Go Solar on Cape Cod?
There are many reasons why people choose to go solar, like lowering your carbon footprint with 100% clean energy. Here are a few other top reasons homeowners and businesses choose solar vs. electricity:
- Solar panels will generate electricity throughout their entire lifetime—which is usually more than 20 years—and will pay for themselves after about 4.5 - 6 years.
- Even if solar panels don’t completely eliminate your electricity bills, they will greatly reduce them.
- Solar increases property value. According to a study conducted by Zillow, homes with solar panels sell for 4.1% more than those without.
How to Compare the Cost of Solar vs. Electricity
There are upfront installation costs associated with a solar panel installation that you don’t have to worry about if you buy your electricity from the grid, but it pays off over time. Here are a few key factors to consider when you’re deciding if solar is the right choice for your home or business:
Local Electricity Rates
While the rates of electricity vary by location, Massachusetts has some of the highest electricity rates in the nation. Rates have been on a steady incline over recent years, and they’re only expected to keep rising. If your local utility company has expensive gas or electricity, solar could be the solution for you.
The more power you use, the more you will benefit from a solar installation. Homes with pools and hot tubs, for example, use a lot of energy. Going solar can significantly reduce the cost of operating heavy loads like a pool pump, pool heater, or hot tub.
Amount of Sunshine
If your home or business receives plenty of sunlight with very little shading, solar power is likely a good fit. The more sunlight your panels receive throughout the day and year, the more power they will be able to produce, increasing their value.
Home or Business Size
Large homes and commercial properties use a lot of energy for heating and cooling, lighting, and more. Going solar offsets expensive electricity costs for large homes and buildings. Smaller properties can also benefit greatly from a solar installation. The less power your home or business needs, the fewer panels you’ll have to install. This can reduce upfront costs and make solar viable for small properties.
Solar Energy Incentives
There are currently several solar energy incentives available to residents of Cape Cod, the South Shore, and the South Coast that can make going solar even more affordable. Here are just a few of them:
Inflation Reduction Act (IRA) Solar Tax Credit
The Inflation Reduction Act of 2022 provides a federal solar tax credit that is worth 30% of your total installation costs. Here’s what’s covered:
- Solar PV (photovoltaic) panels
- Mounting equipment, wiring, and inverters
- Solar installation costs
- Solar permitting and inspection fees
Renewable Energy Credits (RECs)
Renewable energy certificates (RECs) are clean energy credits that are tied to the amount of power your solar PV system generates and sends back to the electrical grid. One megawatt hour of energy generated equals one REC.
Renewable energy credits can be traded and purchased by companies and organizations, and are a valuable resource for solar owners.
Solar net metering is a solar incentive that allows homeowners and businesses to earn credit on their electric bills for any excess energy their system produces and is sent to the grid. The credits can be used at times when your solar panels aren’t producing energy, like at night and on cloudy days. Both Massachusetts and Rhode Island have net metering programs.
Save on Solar With My Generation Energy
My Generation Energy has been in the solar business for 14 years, completing over 1,200 solar installations for both residential and commercial clients. We provide start-to-finish solar services throughout Cape Cod, Greater Boston, and Rhode Island. Our team of experts designs and installs custom solar arrays that are customer-owned, never leased. We will also guide you through qualifying for the several solar rebates and incentives available.