Residents of Massachusetts who are alarmed by ever-increasing energy costs and concerned about environmental pollution are switching to solar electricity: free, clean energy from the sun that is produced by photovoltaic (PV) cells without burning fossil fuels. It’s important if you are considering investment in solar power facilities to review your Massachusetts home insurance policy to ensure that you are fully covered.
Homeowners in Massachusetts who invest in home solar power installations may qualify for a range of financial incentives including state and federal tax credits, exemptions from property tax and sales tax, state rebates, and Solar Renewable Energy Credits that are based on energy produced. A homeowner has two options: solar panels to generate electrical energy needed to heat the home’s hot water requirements, or a solar power installation to provide all or most of a home’s electrical energy needs.
Because up to 40% of the electricity consumed in a home is used to heat water, a home PV installation designed for water heating can achieve significant savings on energy bills. Installing solar electricity generating equipment for all of a home’s requirements produces further savings, particularly if the installation is connected to the electricity grid and feeds surplus energy back into the grid. The state of Massachusetts has net metering regulations, so that electricity meters record the flow of electricity in either direction; householders are billed only for net energy consumed and are credited with the full retail rate of electricity fed into the grid. Net metering means that a solar power installation becomes even more cost effective.
Installation of solar electricity generating facilities is an opportunity to save money. Don’t be tempted to save more by doing it yourself; unless your PV installation is undertaken by a licensed solar installer you will not qualify for some incentives.
When you do have your solar system installed, make sure you let your insurer or agent know about your new asset. That way you can make sure that damage to it would be covered by your Massachusetts home insurance.