SHELD offers solar project incentives

South Hadley Electric Light Department is now offering residential customers substantial incentives to install solar photovoltaic (PV) and solar thermal energy projects at their homes. The unique package of incentives, the first of its kind in Massachusetts, is part of a new solar program adopted by SHELD to encourage local residents to consider solar energy installations.

"Our program is unique because it offers incentives for both PV and thermal installations," said SHELD Manager Wayne Doerpholz. "We’re offering choices so our customers can choose the application that works best for them."

Incentives are based on the size of the system installed. For PV projects, which create electricity from the sun’s energy, there is an incentive of $1.50 per watt, plus an additional $.50 per watt if the project uses equipment manufactured in Massachusetts, up to a maximum of $5,000. An average three-kilowatt system costs about $18,000. The program is limited to systems of 10 kilowatts or less.

For solar thermal projects, which use the sun’s energy to heat water, the incentive is 25% of the project’s total cost, up to a maximum of $3,000. Thermal project incentives are only available to customers who currently have electric water heating. Typical solar thermal installations cost about $8,000 to $8,500.

In addition, there are both state and federal tax incentives in place to help defray the cost of solar installations.

Payback periods vary based on individual circumstances. Both types of projects have the potential to reduce electric bills. PV projects have the potential to earn additional credits for generating renewable energy. PV projects can also take advantage of SHELD net metering, which credits customers for their excess electricity.

"Along with individual advantages and environmental benefits, solar installations in South Hadley can help hold down the town’s demand for expensive peak-use power, which helps hold down power costs for everyone," Doerpholz said. "We hope as many people as possible will consider solar."