Adding solar panels and switching rate plans can lower your National Grid Massachusetts electric bill
Updated: October 22, 2020Installing solar panels can help reduce your National MA bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
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Are solar panels worth it for National Grid Massachusetts customers?
Absolutely, yes! With the state’s 15% solar tax credit, generous SMART solar incentive program, (including an available low income solar plan), and sales and property tax exemptions, solar panels make a lot of sense for National Grid customers in Massachusetts. National’s net metering policy also ensures you get credited on your power bill at full retail rates for the excess solar electricity your panels produce. Your credits are rolled over and applied to your next month’s bill.
Does National Grid Massachusetts offer net metering credits for exported solar power?
Yes, National Grid Massachusetts offers net metering credits.
Under the National Grid Massachusetts net metering program, solar panels will first send energy to your home. Any excess solar energy is sent to the grid and purchased in the form of a bill credit. The credit value is determined by the Tri-Party Net Metering Power Purchase Agreement. KUA customers are billed for all of the electric energy delivered to them by the company.
What incentives, tax credits, and rebates are available to National MA customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a National MA customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$6,035 |
|
Net metering
(State)
Customers of investor-owned utilities can export excess energy to the grid for kWh credits on their energy bills. |
Varies |
|
Solar Massachusetts Renewable Target (SMART) Program
(State)
*The per kWh incentive rate for this calculation was pulled from the Eversource East number for Block 6, which is the largest remaining block by MW (i.e. affects the largest number of people)* The SMART program is a descending block incentive program that requires utilities to play a flat, per kWh rate that remains the same for 10 years. Renewable energy credits generated on the SMART program are retained by the utility. |
Varies |
|
Renewable Energy Equipment Sales Tax Exemption
(State)
State law exempts equipment directing relating to any solar which is being utilized as primary or auxiliary power system for the purpose of supplying energy from state sales tax |
Varies |
|
Renewable Energy Property Tax Exemption
(State)
Cost of system exempt from property taxes for 20 years. |
Varies |
| Residential Renewable Energy Income Tax Credit (State) | -$1,000 |
| TOTAL | -$7,035 |
*Based on 7.32 kW system, average installation cost $21,115
How much does installing solar panels save the average National Grid Massachusetts residential customer?
If you input the details for a National MA customer with a power bill of $210 per month into the best online solar panels calculator, it tells you that you need a 7.32 kW solar system that will produce 9,151 kWh per year and that this system will return the owner a $83,911 profit after repaying the cost of the system.
The solar savings possible for you as a National MA customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical National MA customer with a $210 per month electric bill prior to solar and who installs a 7.32 kW solar system.
How much do residential solar panels cost for National MA customers?
Showing data for:
Prices based on a 7.7kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$73,018-$89,244
Payback period
3.3-4 years
Recommended size for the selected utility bill
7.7kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 7.32 kW |
|
Annual Power Generation 9,151 kWh |
|
Pay-back time (assuming Cash purchase) 3.5 Years |
|
Internal Rate of Return (IRR) on Investment 22.5% |
|
Gross cost $21,115 |
|
Total Upfront Incentives and Rebates -$6,490 |
|
Net Cost of System after rebates and incentives $14,625 |
|
Total Cost of Utility Power Avoided over 25 years $82,064 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of National Grid Massachusetts customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a National Grid Massachusetts customer installing a 7.32 kW solar system on their property:
A solar system generating 9,151 kWh per year will save you money AND make the world a nicer place
Saves you
$3,356
on average per year
Reduces CO2 emissions
4.53
tons per year
Equivalent to planting
32 trees
per year
Equivalent to driving
10,021 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for National Grid Massachusetts customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.88 per watt or $14,625 for a standard 7.32 kW solar system after the customer claims the 30% federal solar tax credit.