Just before Christmas the government revised its position of the energy feed-in tariff. It seems that although the decision to encourage solar power was sound, the practicalities of making energy companies pay such a high rate were causing problems, namely the fact that consumer bills were going up to compensate for their losses. As a result it was deemed prudent to lower the feed-in rate from 43p/kW to 21p/kW. As such there’s slightly less incentive to go solar.

The feed in tariff was a system whereby energy companies had to pay premium rates for any excess electricity generated by a home-owner’s solar panels. This was great for England’s energy concerns, as it presented consumers with a good reason to take green energy generation into their own hands. It was such a good deal in fact that some solar panel companies offered to install the PV generators for free in return for the feed-in tariff profits, meaning completely free energy for the homeowner.

But is a drop to 21p/kW all that bad? The short answer is no it isn’t. Companies are still likely to make a good profit by offering to install panels for free, or at least at a reduced price, and taking all the feed-in gains for themselves. There’s also nothing to say that the feed-in tariff won’t go back up again – it’s still under consultation – because it might still prove to be a good energy solution for the country if the price of other sources, such as oil, were to become untenable.

On a personal level there’s as much reason as ever to make the switch to solar. It is a very green way of generating power, and it puts you in control of your energy costs – you won’t find that you’re subject to fluctuations in the price of other materials. Also after that initial payment for PV conductors you shouldn’t need to spend much more on it, so after about eight years you’re only making profits on your energy with the feed-in benefits.

Not every house is suitable, and not everyone can afford the starting costs, but once you have solar you’ve got something that will pay off for you in the future. Whatever the recent changes in the feed-in tariff, it’s still a good time for you to consider this more efficient, greener energy for your home.

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If you live in Massachusetts, the answer is a resounding yes!

Due to the numerous incentives at both the state as well as the national level for solar panels, there has never been a better time to go green with solar power. Most residential units have the ability to pay for themselves in less than five short years.

Currently the asking price on a five kilowatt solar panel system is just about $25,000. A system of this size is going to give you about 6,000 kWh of electrical energy every twelve months in Massachusetts and provide close to 60 percent of the standard residential home’s energy requirements.

There is a Commonwealth Rebate which will subtract $2,000 from that selling price. Moreover, if you live in a moderate house or have a moderate salary, you should receive a further $2,000 reduction. Or in case you were unfortunate enough to have your residence damaged during last year’s tornadoes, you shall be given an additional $5,000 reduction.

You’ll also be given both national and Massachusetts state tax credits. Currently the federal tax credit sits at a whopping 30% while the state credit is for $1,000. Following the rebates together with the tax credits, you’ll be able to purchase a 5 kilowatt solar panel system for $16,000, less if you should qualify for the moderate income or moderate home value adders.

A complete system of that size here in Massachusetts will provide an average of close to 80 dollars worth of electrical energy monthly yielding an annual savings of $1,000.

But the best long-term profits derive from the sale of your system’s SRECs. One megawatt hour (1,000 kWh) is equivalent to one SREC and a 5 kW system will ideally emit somewhere around 6,000 kWh annually. Because the state has required the utility companies to acquire a small percent of their total electrical energy from green techniques, they will be compelled to pay you around four hundred dollars for every one of those 6 SRECs so they can say that you are producing electrical energy on their behalf. Consequently that’s another $2,400 in tax-free revenue straight into your pocket annually.

Now you can have an understanding of how a $16,000 solar panel array can easily be paid in full in slightly less than 5 short years when it earns $3,400 annually including electricity savings as well as SREC compensation.

Solar panels are also among the best home improvement options open to the Mass. resident. For a selling price of $16,000, it should up the value of your house by $20,000. Now that is a 125% ROI. The vast majority of home improvement projects don’t pay for themselves totally. Solar panels not only raise the value of your house above what they cost, they are able to make you money each year in the process. They’re also exempt from property taxes for 20 years.

And additionally let us bear in mind the reason why all of these stimuli exist to begin with – to save the Earth. A 5 kW solar panel system is going to lessen your carbon footprint by about 100 tons of carbon dioxide over 25 years, the equivalent of planting 800 trees. Each year, it is going to prevent the equivalent of three tons of coal or 20,000 cubic feet of natural gas from being used to generate electrical energy.

As you can tell from the many incentives presently out there that now undoubtedly is the perfect time for solar power. The Commonwealth Rebate together with the federal and state tax credits cut down your initial expenses. Plus the electric bill savings and the SREC program supply significant returns and boost your home’s resale value.

Furthermore there is no telling just how much longer each of these promotions are going to be around. The Commonwealth Rebate has already been decreased recently and the federal tax credit has been endangered annually.

Additionally, while this market grows, a growing number of financing alternatives are becoming offered to homeowners, making solar power affordable for everybody. Without a doubt if you’ve always wanted to get solar panels, there has certainly never been a better time than right now!

Gary S. Best lives in Massachusetts and spent months researching the various incentives and financing options prior to deciding to purchase a five kW solar panel system in 2011. He has since created a website, www.MassSolarInfo.com, educating residents about solar energy in Massachusetts and providing them with a means to easily get free estimates and save up to $500 off their own installation.