If you’re shopping for a solar energy system, one of your first questions is probably, “how much will it cost?” Prices depend on the size of your system, the type of equipment you choose, and the state that you live in, but reviewing prices for a 2 kilowatt (kW) system is a great place to start for many smaller homes. Learn more about how much a 2 kW solar system costs, how much electricity a 2 kW system will produce, and the smartest way to shop for solar.
If you’re considering whether going solar is a worthwhile financial move for your home, there are essentially two factors that you should look at: 1) the costs associated with solar power, and 2) the rates you pay for electricity from your utility. Going solar makes economic sense when solar electricity costs less than grid electricity.
As for solar, it is clear that costs are coming down. Rooftop solar panels are now more affordable and accessible than ever. This is why more and more households are having solar energy systems installed: going solar is a great way to reduce your power bills.
But what about the future cost of grid electricity? If electricity rates are going up, then of course going solar makes sense. As you’re probably aware, however, utility electricity rates fluctuate seasonally and annually. “What if utility electricity rates go down instead of up?” you might be asking yourself. Would it still be worth it for you to go solar? This article seeks to address this question and put to rest any idea that grid electricity rates could be going down. Continue reading
You may be looking for the cheapest solar panels available in 2018 in order to really cash in on solar power. And sure, when you install solar on your home or business, you can save thousands on your electricity bills. But going solar isn’t automatically cheap: buying solar panels to install on your roof typically costs thousands of dollars. It’s no wonder that the cost of solar is among the most important considerations for today’s homeowners. If you’re thinking about going solar and worried about prices, you’re probably wondering: what are the best value solar panels and will solar get even cheaper?
As the United States has continued to witness remarkable solar growth over the past decade, Massachusetts has continued to rank consistently in the top ten for solar panel installation. In recent years, the Bay State has become known for its great solar incentives and programs which are considered some of the best in the country. Cities like Boston can benefit from these programs – in this article we’ll explain why Boston, Massachusetts is a great spot for solar power and how Boston homeowners can maximize their solar savings.
As of early-2018, the average price for solar panels in Boston was $3.67 per watt. Thus, since the typical system size in the U.S. is 5 kilowatts (5,000 watts), the average cost of a solar panel system in Boston is $18,350 before any rebates or incentives.
Though this price may already look attractive, it’s missing a major incentive that bolsters the economics of solar in the U.S.: the federal tax credit for solar energy systems. The solar ITC signifies a huge price reduction thanks to a hefty 30 percent rebate offered to both residential and commercial markets. Check out this data table that shows the cost of solar at different system sizes with the ITC factored in:
| System size | Boston Average solar system cost (after ITC) |
|---|---|
| 3 kW | $8,652 |
| 5 kW | $13,265 |
| 7 kW | $17,444 |
| 10 kW | $23,800 |
| 12 kW | $26,880 |
The above table shows the discounted price for a solar panel system in Boston after the solar ITC is included. The data draws from real quotes submitted to homeowners on the EnergySage Solar Marketplace over the past year. Keeping in mind the typical system size for a U.S. homeowner is 5 kilowatts (5,000 watts), a solar panel system will cost just over $13,000 in 2018.
Net metering has faced recent legislative battles in Massachusetts but remains one of the biggest incentives for going solar in the state. All MA solar homeowners are eligible to participate in the program, which means that they can receive bill credits from their utility for the excess solar energy that they send back to the grid.
In addition, Massachusetts offers a state tax credit for solar and other renewable energy systems worth 15% of the system cost up to $1,000. This tax credit is in addition to a sales tax and property tax break incentives which ensure 100% tax exemption from both sales and property tax payments for solar homeowners.
Another great solar incentive in Massachusetts is Solar Renewable Energy Credits (SRECs), where homeowners can receive payments for their solar energy usage at a peak rate of $496 per megawatt-hour (MWh). In other words, with a typically sized 5 kW system that generates 5 MWh/year, homeowners could make as much as $2500 each year by selling each of those SRECs back to the utility so utilities can reach their Renewable Portfolio Standard goals. This program will end in early 2018, so if you’re a Massachusetts homeowner interested in solar now is the time to explore your options.
Finally, Massachusetts homeowners and businesses have access to low-cost solar financing through the Mass Solar Loan Program. This incentive allows Massachusetts residents to purchase a solar system by making fixed, low-interest loan payments. This financing program is a major reason for solar’s rising popularity in Massachusetts where legislators wanted to incentivize homeowners to get the best value out of their solar panel installation by owning it rather than getting into complex third-party ownership agreements.
Though Boston residents will see solar prices in the country continue to decline over the next five years, low prices aren’t necessarily the biggest selling point. When it comes to going solar, the long term ROI and savings from avoided bill payments is often the biggest deciding factor – and the figures can be staggering even in states where utility rates are reasonable.
In 2018, solar quotes received by Boston homeowners yielded 20-year savings estimates of over $67,286 on average. Checkout the breakdown of average net savings by solar system size:
| System size | Average solar savings over 20 years |
|---|---|
| 3 kW | $36,329 |
| 5 kW | $53,452 |
| 7 kW | $73,016 |
| 10 kW | $98,566 |
| 12 kW | $121,566 |
As with any big ticket purchase, shopping for a solar panel installation takes a lot of research and consideration, including a thorough review of the companies in your area. A recent report by the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) recommended that consumers compare as many solar options as possible to avoid paying inflated prices offered by the large installers in the solar industry.
To find the smaller contractors that typically offer lower prices, you’ll need to use an installer network like EnergySage. You can receive free quotes from vetted installers local to you when you register your property on our Solar Marketplace – homeowners who get 3 or more quotes can save thousands on their solar panel installation.
The bigger isn’t always better mantra is one of the main reasons we strongly encourage homeowners to consider all of their solar options, not just the brands large enough to pay for the most advertising. A recent report by the U.S. government found that large installers are $2,000 to $5,000 more expensive than small solar companies. If you have offers from some of the big installers in solar, make sure you compare those bids with quotes from local installers to ensure you don’t overpay for solar.
National-scale installers don’t just offer higher prices – they also tend to have fewer solar equipment options, which can have a significant impact on your system’s electricity production. By collecting a diverse array of solar bids, you can compare costs and savings based on the different equipment packages available to you.
There are multiple variables to consider when seeking out the best solar panels on the market. While certain panels will have higher efficiency ratings than others, investing in top-of-the-line solar equipment doesn’t always result in higher savings. The only way to find the “sweet spot” for your property is to evaluate quotes with varying equipment and financing offers.
For any Boston homeowner in the early stage of shopping for solar that would just like a ballpark estimate for an installation, try our Solar Calculator that offers up front cost and long term savings estimates based on your location and roof type. For those looking to get quotes from local contractors today, check out our quote comparison platform.
Its a great time for consumers considering installing solar panel systems in Massachusetts. Solar PV system prices fell over 64% in the past 5 years. It’s figures like this that have analysts from Deutsche Bank reporting that solar is well on its way to beating conventional generation technologies on cost.
In line with this trend, prices for solar panels in Massachusetts are also on the decline. But how can residents of the Bay State make sure that they’re not paying last year’s prices? We’ve identified three things shoppers can do to make sure they get a good deal based on some analysis of price figures from across the state (summarized in the Chart below). Continue reading
The Mass Save energy assessment program is Massachusetts’ all-encompassing energy efficiency campaign, and is sponsored by both your electric utility and energy efficiency providers. The program is available to renters, homeowners, and businesses across Massachusetts. Here’s the complete breakdown of all the different measures that you can take to reduce your energy use and resultant utility bills through the Mass Save program in 2018.
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In some cases, the bitter cold months are actually the best time to go solar. EnergySage solar shoppers often see the lowest price on solar quotes during winter months
Memories of cold, snowy winters past can be discouraging even for the hardiest homeowner. If you’re considering going solar, you might be wondering whether solar panels and snow are a bad combination. On the contrary, EnergySage marketplace data has indicated that solar shoppers can often find the lowest quotes during winter months when competition is reduced. After all, if you look at solar as an investment, then it should be able to generate returns throughout the year as other investments do. Luckily, plenty of people have both solar panels and snow, and some of the most popular regions in the U.S. for solar have snowy winters. Don’t let winter weather discourage you from going solar!
The best states to go solar in all have at least one thing in common, and that is beneficial net metering policies. Massachusetts’ net metering policy allows property owners to send electricity generated by their solar panel system onto the grid, and receive credit on future electric bills for excess energy produced by the system.
Massachusetts has always been one of the best states for solar. Not only does the Bay State have the high electricity rates that lead to a short payback period for your solar investment – it also has a history of having strong solar incentives for property owners looking to own a solar panel system.
If you have high electricity bills, installing a 3,000 watt (3 kilowatt) solar energy system on your home can be a great way to significantly reduce your monthly costs. In order to maximize your long-term solar savings, you want to be confident that you’re getting a good price for your solar energy investment. The best way to feel confident about your purchase: compare multiple offers for 3 kW solar systems against the prices that other solar shoppers in your area have been offered. Learn more about the cost of a 3 kW solar system in your area, the amount of electricity you can expect your 3 kW system to produce, and the smartest way to shop for solar in EnergySage’s guide to 3 kW solar panel systems.
As of January 2018, the average cost of solar in the U.S. is $3.14 per watt ($9,420 for a 3 kilowatt solar system). That means that the total cost for a 3,000 watt (3kW) solar system would be $6,594 after the 30% Federal ITC discount (not factoring in any additional state rebates or incentives).
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