As a homeowner, you may be looking for ways to add value to your home. Perhaps, it’s because you want to sell your home, or you just want to build as much equity as you can within it. You may already know some things that add value to your home, such as excellent curb appeal, location, renovations, local schools, and square feet. However, you probably didn’t know that solar panels in Massachusetts add value to your home. Read on to learn how you can benefit from installing solar panels in your home.
Did you know that Massachusetts is one of the top ten states for solar power? So, there is no time like the present to invest in solar energy for your home or business in Massachusetts. And with electricity prices spiking in the area this year, this makes it even more of a good time for residents and business owners to consider getting solar power and relying less on traditional electricity.
You may be wondering how solar panels save money. The way it works is that after a solar panel company installs the panels and the inverter in your house, you will still be connected to the main grid, but your electricity will come from the solar panels. As the sun shines, this energy will go into your panels and through your house as DC (direct current) energy. The inverter will convert the DC energy into AC (alternating current) energy. This is the type of energy used in most homes to power appliances and other items.
Since you will be using your own power supply, you will be less dependent on the power grid on which everyone else relies. However, sometimes, you may have so much solar power that it adds to the grid and helps energy companies power other homes through the use of your grid. When this happens, energy companies will reduce your energy bill by crediting you for the power that your solar system adds to the grid. This process is called net metering.
So how does solar power add value? For one, it adds value by saving you money on your electricity. As you can see with net metering, you can reduce your electricity bill substantially by having the electric company credit you for your excess solar power. This credit may considerably reduce the amount of your energy bill, or you may not have one at all for the month. Remember that since you are on the grid, you are still using some electricity, particularly at night when the sun isn’t out. Also, when the sun isn’t shining because of rain or cloud cover, your home may have to rely more on the electrical grid. So, this may explain the fluctuations in your costs each month.
Another way that solar power can add value is by taking advantage of the many incentives that currently exist for those who want to convert to solar energy. Both the federal government and the state of Massachusetts are offering incentives to encourage homeowners to convert to solar power. These incentives are meant to help you offset the initial costs of installing solar panels. Keep in mind that some of these costs occur at purchase and others during tax season.
For instance, Massachusetts doesn’t collect sales tax on solar equipment. So, you will experience savings upfront here. The federal government offers up to 26 percent off solar energy installation. However, this is redeemed during tax season as a tax credit. So, you will receive savings on the back end. To better understand the tax benefit, it would be a good idea to speak with a tax professional about the federal savings details for solar energy.
Unfortunately, there are times when solar panels may not provide value, mainly when you are selling your home. Therefore, it is a good idea to weigh all your options before purchasing. If you don’t foresee selling your home, leasing panels could be a good option. The solar panel company installs leased panels at no cost, while you pay a monthly fee. Since they still own the panels, they will receive the tax benefit. However, if you plan to sell your home, this option could lower the value of your home. Some buyers may not want to take over the lease on your solar panels. Therefore, this may reduce the amount of interested buyer pool for your home.
If taking over the lease for your solar panels doesn’t present a problem for buyers, then there is no need to worry. Also, if you purchase your solar panels instead of leasing, you won’t have too much trouble when selling your home. But, ultimately, before proceeding with a solar installation, it is a good idea to examine all of the advantages and disadvantages. It’s also a good idea to speak to tax professionals and other experts to learn the benefits of solar installation since every person’s situation is unique.
Would you like to get started with learning more about installing solar panels in Massachusetts? Our experts are standing by to tell you more about your options. Now is the best time to install solar panels because there are many federal and state incentives available to reduce the costs. If you need a reputable solar power company to install your system, count on the experts at Go Solar MA. We offer world-class services in Boston, Worcester, Springfield, Cambridge, and Lowell. To get started, call us today to schedule a consultation and get a FREE quote on solar panel installation.