how does rooftop solar protect against the rising costs of electricity

How Does Rooftop Solar Protect Against Rising Costs of Electricity

May 18, 2022

Electricity prices almost always go one way. Up.

As a homeowner, it can be frustrating to constantly budget for the increasing costs of utilities simply to continue living your everyday lifestyle. Luckily, there is a solution: rooftop solar.

Continue reading to find out how rooftop solar protects your wallet from rising electricity costs.

The (Always) Rising Costs of Electricity

Utility Bills

Doesn’t it seem like everything is getting more expensive lately? Especially when it comes to powering your home. But why is this happening?

The cost of electricity is directly related to the costs of fossil fuels and natural gas. Local utilities rely on fossil fuels to provide energy to properties throughout the area. In fact, New England heavily relies on natural gas for power production, more than most other regions in the country.

Even in a deregulated market, such as right here in Massachusetts, fuel prices impact electricity costs due to utility and third-party companies having to buy more expensive power to distribute to their customers. Often, customers (you) foot the additional costs in your monthly bill.

According to the US Energy Information Administration, as of February 2022, “New England, averaged $20.55 per million British thermal units (MMBtu) during January 2022—the highest monthly average price [of natural gas] since February 2014.”

Global events, such as the 2022 Russian Invasion of Ukraine, are driving natural gas shortages and causing historically high energy prices.

To put it plainly – electricity costs a lot of money and it’s not going down anytime soon.

So How Does Rooftop Solar Hedge Against These Costs?

sleek solar panels on a modern home

This can all seem very grim. But luckily, rooftop solar can potentially provide a solution for your rising electricity costs. As we know, solar panels provide clean, sustainable energy for your home, reducing your need to purchase electricity from the grid. But there are also a few key programs in Massachusetts that can further drive down costs. Here’s how:

Net Metering

Net metering remains one of the top benefits of owning rooftop solar. And it’s easy to see why. Net metering allows solar owners to reduce and even nearly eliminate the amount of expensive energy they purchase every month.

When your solar system produces more energy than your home uses, it sends that energy back into the grid. In exchange, your local utility company (if participating) will grant you monthly credits that can be used on your energy bill. In Massachusetts, these credits carry over month-to-month and never expire.

The SMART Program

Additionally, rooftop solar owners in Massachusetts can take advantage of the Solar Massachusetts Renewable Target (or SMART) Program. Here’s the official definition of the SMART program via Mass.gov.

“The SMART Program is a 3,200 MW declining block incentive program. Eligible projects must be interconnected by one of three investor-owned utility companies in Massachusetts: Eversource, National Grid, and Unitil. Each utility has established blocks that decline in incentive rates between each block.”

The program allows solar homeowners to cover most (or all) of their electricity needs while creating a sustainable buffer against the always-rising costs of electricity.

Rooftop Solar Also Increases Your Home’s Value

Battery Storage for your Solar Panels

Another way rooftop solar can protect against the rising cost of electricity is that solar systems can increase your home’s value. In today’s age of cost-effective sustainability, homebuyers are more likely to purchase homes with solar installations and at premium prices.

In fact, according to the EERE (The United States Office of Energy Efficiency & Renewable Energy), “buyers across the country have been willing to pay a premium of about $15,000 for a home with an average-sized solar array.”

So as you can see, there are many ways that rooftop solar panels can help ease the rising costs of electricity. If you’d like to learn more about going solar in eastern Massachusetts or to get your personalized solar estimate, please contact our office today!