Guest MindSetter: Emma Bailey: The Benefits of Solar Power in MA

Tuesday, April 21, 2015

Emma Bailey, GoLocal Worcester Guest MINDSETTER™

Homeowners in Massachusetts who are looking to reduce their dependence on local utility firms often turn to solar power. Indeed, Massachusetts ranked fourth in the nation in solar electric capacity installed in 2014 despite being ranked only 14th in population and 44th in area. With April being Earth Month, now is the perfect time to think about the environmental and cost benefits of solar power generation.

The equipment needed for using solar power at home is often pricey, but many people are able to afford it through “solar leases.” Through this pricing model, customers don't have to pay anything upfront. Instead, they allow the solar installation company to set up panels on their roofs for free then buy back the energy produced at a locked-in, low rate. Typically, homeowners end up paying significantly lower direct energy rates than they would through standard utilities.

SolarCity, which is chaired by famous entrepreneur Elon Musk, is a pioneer in solar leases and serves many states, including Massachusetts. Other companies that offer similar leasing arrangements in Worcester, MA, include SunRun, which is based in California, and Solar Systems MA, which has an office in Attleboro. SolarCity also offers zero-down-payment loans for those who wish to own their own solar panels rather than leasing them. These loans are paid off by electricity generation over time.

Of course, some people who like DIY projects wish to purchase and configure their own equipment. To do so, you need to evaluate the size of solar panels you'll need, determine if a ground-based or roof-mounted system is best, and then purchase all the needed components. You may have to file for permits, and in some cases, only a licensed electrician is allowed to do the wiring work. It's therefore much easier for most people to simply agree to a solar lease, which will allow them to get started without having to do all the work or put any money down.

The Massachusetts government is encouraging people to switch over to solar through a series of incentives. Homeowners who install solar equipment will receive a break on their property taxes along with tax credits for a portion of the installation cost. In addition, there's no state sales tax on new solar units. As electricity is produced by the solar panels, homeowners will receive valuable Solar Renewable Energy Certificates, which can be traded or sold.

All is not rosy in the world of solar energy, however. Traditional utility companies, perhaps fearing for their profits if customers control their own means of energy generation, have been trying to fight back. Salt River Project in Arizona has decided to hit customers who have rooftop solar systems with a $50 monthly charge. This had led to a virtual standstill in new solar installations within its service area. The rationale for this fee is that rooftop systems impose grid costs that would otherwise have to be borne by the rest of Salt River Project's customer base. However, many industry observers feel that this $50 sum is an order of magnitude higher than the true costs and was really instituted to drive the competition out of the market. SolarCity has filed suit against Salt River Project, claiming that it has run afoul of antitrust legislation. As this case plays out, the decision will have dramatic effects on solar energy uptake throughout the country.

With plenty of options for acquiring solar energy systems, from leasing or paying for installation to DIY projects, ordinary people have the chance to easily participate in this potentially revolutionary and ecologically sound technology. There will probably be a few bumps in the road towards mainstream solar adoption, but it's very likely that solar will represent an increasing percentage of home electrical generation in the years and decades ahead.

Emma Bailey is a Midwest based blogger with a keen interest in technology, politics, and pop culture