A solar (photovoltaic or PV) system creates carbon-free electricity. Solar arrays can be installed on rooftops or in ground-mount infrastructure. Depending on the size of the array, the out-of-pocket cost after all tax credits and incentives can be as much as $15,000–18,000, according to EnergySage (a service to help homeowners compare their solar options). The average residential PV installation is estimated to reduce carbon emissions by approximately 2.5 tons/year.
Solar panels generate renewable electricity. Panel prices have dramatically decreased over the past few years and financial incentives have remained high — a combination that makes solar an excellent investment for many homes and other buildings.
Through 2023, more than 610 homeowners in Acton had installed a total of 5,150 kW AC of rooftop PV systems, up 40% since early 2021 when EnergizeActon was started, with an average size of 8.4 kW AC. There were also at least 15 larger or non-residential projects operating, including the 1,590 kW array at the Acton Transfer Station; the 8 projects since the start of 2020 average 920 kW in size. This total operational solar capacity in Acton is about 15,000 kW (or 15 MW), more than double the capacity installed in early 2021 when EnergizeActon was started. There are also several additional large, non-residential projects in development.
Here are a few options to buy or finance your solar array:
• Purchase outright: this provides you 100% of the savings from the sun’s rays, plus (for 2021) a 22% federal tax credit, a Massachusetts tax credit of up to $1,000, and a quarterly credit from the current MA SMART solar program (the amount of which depends on your system’s kWh [kilowatt hour production).
• Finance with a loan: this provides all the benefits of outright purchase, but also means you have a loan payment. Some banks offer low-interest-rate solar loan programs for terms of 5–7 years. The Commonwealth also offers solar financing options, and more information can be found at EnergySage. This means that, typically, a solar array will have been paid for within that 5–7 year term. This will depend somewhat on the production of the system (which depends on the orientation and shading of the panels, which affect solar gain). But all the electricity produced is essentially free for the life of the panels — usually 25 years (or more).
• Pay nothing up front: this option means entering into a Power Purchase Agreement (PPA) with with an approved third-party company. With a PPA, that third-party entity owns and maintains your on-site system for the length of the agreement, and you contract to pay that entity for your electricity during the term of the agreement. During the term, that party gets all the tax and SMART program benefits of the purchase options described above. Depending on the terms of the PPA, you may save 10–20% off your electric bill during the term of the PPA (which can be as long as 20 years). At the end of the agreement, you own the system, get all the economic savings from electric energy from the sun, and power your home entirely with free, clean, renewable electricity.
Retirees or single-earner families with lower incomes may qualify for Mass Solar Loan incentives and see even quicker paybacks. See Retired and Don’t Think You can Afford Solar? Think Again.
Solar PV panels, depending on the size of the array, may be able to power all or much of your home’s entire electricity needs with clean energy that can be used for all your lights and appliances, for “cold climate” electric heat pumps for home heating and cooling (thus reducing the operating cost of heat pumps), and for charging your electric vehicles.
