Part 2 of Going Solar in Massachusetts (read Part 1 here)
Why it is important that you...
...have access to cash at low interest (e.g. savings) of $1000 or more
Actually, the question in your mind might well be, "only $1000?" In which case, the answer is "yes," but we'll talk about that special case later. If you simply paid cash and didn't apply for a tax credit or any other incentives, a home solar installation might cost (for instance) $5,000 to $25,000. (Installed system costs are currently about $8.50/watt peak power output.
Knock off 1/3 of that as a credit to your federal income tax, and you'd be down to about $1700 to $17,000. Get, say, $1000 to $5000 back from the state, and you'd be down to $700 - $12,000 in this example. Except for one special case, you still have to pony up the full sum up front and get compensated later. If you were to borrow $10K from good old uncle Fred at the usurious family rate of 10% and pay him back a year later, you could do the installation and it would only cost you $100 more to have borrowed the money.
That special case? You can do it for $1000 using a method called a "power buy". With that approach, the installation company owns the solar stuff on and in your house and you agree to buy power from it for, say, 15 years at a rate lower than commercial electricity.
...have a house with a substantially south-facing, sloping roof (or nearby yard) and uninterrupted sun
Solar electricity installations simply don't perform competitively if they don't have excellent exposure to the sun. Generally, you need to have a sloping roof, oriented within 30 degrees of due south and free of any shade for 4-5 hours a day. (Shade such as a branch or utility pole reduces power output more than proportionally to the shade.)
Some angular adjustments can be made using roof frameworks, but these add cost and complexity that diminish your return on investment. Solar cells can also be placed on the ground if a similar slope, compass orientation and exposure can be achieved there without using too much in the way of support frameworks.
...think it is important to carbon emissions to the atmosphere -- or reduce foreign energy imports
Simply put, there are problems with our energy sources; solar lets you be part of the solution. Most electricity is generated using fossil fuel, and no matter how efficient that combustion is, the laws of chemistry dictate that a lot of carbon dioxide must be discharged by the power plant as a result. Carbon dioxide is a known greenhouse gas, contributing to climate change when released to the atmosphere.
In 2000, 89% of electricity in Massachusetts came from fossil fuels, 5% from nuclear, and 6% from renewable resources like wind, solar, biomass combustion and hydroelectric. Less than 1% of that 6% renewable energy (.06% of total Massachusetts energy) comes from wind and solar. Solar cells do require energy to manufacture, but the bottom line is less energy from fossil fuels.
How to put a dollar value on your concern? Some electricity consumers choose to buy their electricity from a commercial generator that uses renewable energy sources, paying a premium to do so out of concern for the climate or US energy security. If you would pay such a premium, decide how much additional you would pay and you can include that value in your financial analysis of the solar alternative.
...have federally taxable income
The biggest thing that makes solar energy financially attractive right now is the 30% tax credit on your federal income tax. For instance, you would get $10K off your taxes for a system that cost $30K (before other incentives). Of course, you need to owe $10,000 in federal taxes before you can take a $10K credit; the feds aren't going to give you the cash, just take it off your taxes. You can also spread that tax credit over two years' returns (2010 and 2011, for instance).
...obtain your power from a stockholder-owned power company (not a municipal power and light company)
Local power and light companies often are not participants in the Massachusetts rebate program, so you wouldn't qualify for a rebate. In addition they may not pay much for electricity you generate for them. The Renewable Energy Trust says, "The Customer (and project site) must be a customer of a Massachusetts electric distribution utility that collects the Renewable Energy Systems Benefit Charge from their customers and deposits those funds into the Massachusetts Renewable Energy Trust." With a few exceptions, as of this writing, in order to get a rebate your power must come from one of the following:
The same holds true for having the power company buy excess electricity from your home ("net metering"). Municipal power companies are not obligated to pay for that power, and may pay very little. The participating power companies above are required to reduce your electric bill by the amount of your excess electricity, at a rate equal to the average monthly market price of generation.
...ask me other questions you may have
Because I love to answer questions! (As long as you understand I am not an expert and you therefore agree I am not responsible for any decisions you make based on my answers. Okay?) If you would like to talk to actual experts, let me know and I can put you in touch with some. I don't get paid anything unless you actually do an installation with them.
Email Dave...
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