Though residential solar panels are a great way to harness alternative energy for your home, the main impediment to actually installing the panels is the prohibitive cost–upwards of $25,000 per home. Some cities are trying to work with consumers to mitigate the expense, with Annapolis providing loans repayable with low-interest fees thrown onto tax bills, and Berkeley also giving out solar grants to homeowners. But now, the state of Massachusetts is trying something that may be even more cost-effective for homeowners. The Boston Globe reports that Massachusetts residents will be able to lease solar panels for their homes at a fraction of the cost of buying them.

Instead of paying $25,000 or more to buy solar panels, homeowners will have to shell out only about $1,000 to install the energy collecting devices on roofs. The companies involved in the leases say most homeowners will be able to recoup the initial cost within seven years through electricity savings - and then save money on future bills by locking in the rate they pay for the electricity generated by the leased panels.

The leases are being offered through a private company, which in turn receives subsidies from both the federal and state level to offset its costs. Basically, the company comes out, assesses your home, charges you the $1,000 upfront fee, and then locks in your energy rate for 18 years, which sounds pretty awesome. Any power you use outside of the solar panels you pay to the traditional electric company. One estimate has a home’s energy bill being $133 a month under this plan, while going just through the traditional grid will run about $151. So the savings can be well over the initial investment in just one year. And, because the resident doesn’t own the panels, maintenance is a lot like renting an apartment.

Homeowners who sign up for the leasing program do not have to worry about upkeep of the solar panels: If a panel breaks, it is replaced at no extra charge. They are also freed of other details, such as tying the panels in to the electric grid or applying for the rebates and subsidies. The company - not the homeowner - gets the state and federal subsidies because it owns the panels.

The governor of Massachusetts, Deval Patrick, hopes that the solar industry will be responsible for 250 megawatts of power by 2017–an ambitious goal seeing as the state now creates only 9.7 megawatts of power from solar sources. So, once again, we see how going green can save consumers money. Even though I’ve already given you over 400 words on the topic, it’s worth checking out the entire Globe article for some more details.

photo credit: mjmonty’s flickr photostream/Creative Commons