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Solar Incentives Fueling Growth in Massachusetts
Thursday, February 2nd 2012 2:28 PM
By GetSolar Staff.
 The country has seen growing interest in solar power from a growing range of locales as more and more states put effort into making solar available to more people. The earlier states to really invest in solar incentives, from California to Colorado to New Jersey, have already seen major growth in solar installations over the past few years. But now a new wave of states are moving steadily into the solar sector.
Where Stephen M. lives in Greenfield, Massachusetts, rooftop solar installations might not seem as obvious a choice as they do in places like sunny southern California. But Stephen was around to see the town announce the very first utility-scale solar installation in the state to take advantage of the new Solar Carve-Out guidelines presented in Massachusetts' Renewable Portfolio Standards, according to the Yale School of Forestry & Environmental Studies.
The Database of State Incentives for Renewables and Efficiency notes that the state's policy already requires utility companies to produce at least 7 percent of all electricity sales from renewable sources for 2012. The Solar Carve-Out, meanwhile, requires that utilities produce at least 0.163 percent of all electricity from solar energy, whether it is comes from utility-scalle, residential or commercial solar installations.
For the town of Greenfield, this meant the addition of a 2-megawatt solar plant on the town's capped landfill at no cost and a contract to purchase all 2.4 million kilowatt-hours the system will produce at 1 cent per kilowatt-hour. That amounts to 45 percent of the town's energy needs and annual savings of roughly a quarter-million dollars.
For homeowners like Stephen, however, those policies mean the creation of a market for solar renewable energy certificates, or SRECs, which represent the production of 1,000 kilowatt-hours of solar electricity. SRECTrade.com reports that these certificates are selling for $550 each in Massachusetts, giving homeowners another way to help pay for their solar installations in addition to the wide variety of utility, local, state and federal tax rebate programs available.
According to the Solar Energy Industries Association, these policies appear to be proving effective. In 2010, Massachusetts narrowly missed breaking into the top 10 states for added solar capacity, despite substantial additions from utility-scale solar plants. Through the first three quarters of 2011, the state has seen major growth in both commercial and residential solar installations, moving into eighth place in the third quarter.
One of those additions was a 28-panel rooftop solar installation on top of Stephen's house, put together by Massachusetts solar installer Real Goods Solar. At 180 watts each, the system gives Stephen a peak capacity of 5.04 kilowatts, enough to produce around 6,500 kilowatt-hours each year. That represents 6.5 SRECs, which represents more than $3,500 in annual incentives just by itself.
But the key point of a solar power system is to produce electricity for a home to use. With the U.S. Energy Information Administration reporting that the average Massachusetts resident was paying 14.77 cents per kilowatt-hour through November of 2011, Stephen's new solar installation could save him as much as $960 in one year.
The EIA notes that electricity rates in the state have fallen substantially from their recent high in 2008, in part because that year represented a major spike in energy costs but also because natural gas prices have plummeted recently. But this plunge, spurred by over-investment in hydraulic fracturing or fracking, is unlikely to continue for long. As electricity prices once again begin their steady climb, Stephen could find himself saving even more.
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