When you think of Massachusetts, you may think of Boston, its Revolutionary War history, or its championship sports teams. Now, it’s time to add a new association to the list – Massachusetts is becoming known for its great solar incentives and programs, which are considered some of the best in the country. Here’s why solar panels are such a great investment in Massachusetts.
What are the best Massachusetts solar incentives?
Let’s take a look at the top MA solar incentives that we recommend to the prospective solar shopper:
Residential renewable energy income tax credit
When it comes to clear cut state solar incentives, it doesn’t get a lot simpler than the MA renewable income offer. Under this credit, the owner of renewable energy systems get a 15% coverage of the system cost against his or her MA income tax with a $1000 maximum credit amount.
Solar Renewable Energy Credits II
A strong solar incentive across the board, SRECs are especially ideal in Massachusetts where homeowners can receive payments for their solar energy usage at a peak rate of $496 per megawatt-hour (MWh). In other words, if you own a typically sized 5 kW system that generates 5 MWh/year, you could make as much as $2500 each year by selling each of those SRECs back to the utility so they can reach their Renewable Portfolio Standard goals.
Net metering in Massachusetts
When solar homeowners receive bill credits from their utility for the energy they are sending back to the grid, they are benefitting from one of the best incentives in solar - net metering. Though there have been several net-metering battles in Massachusetts, this incentive is still available for now so make sure you cash in on it.
Additional benefits of solar power in Massachusetts: solar programs
Mass Solar Loan program
This new, innovative state-level incentive allows residential homeowners to own a solar PV system by making fixed, low-interest loan payments. This financing program is a major reason for solar’s rising popularity in Massachusetts where legislators wanted to incentivize homeowners to get the best value out of their solar panel installation - by owning it rather than getting into complex third-party ownership agreements.
Massachusetts solar tax exemptions
There are two major tax exemptions for solar homeowners to note in addition to the income tax exemption: the sales tax and property tax incentives. Both of these tax breaks are attractive ones because they ensure 100% tax exemption from both sales and property tax payments which certainly add up over time.
The federal ITC is a top MA solar incentive
Taking into consideration the recent extension of the Federal Investment Tax Credit (ITC) for solar, the horizon of incentives in Massachusetts broadens even further. In addition to the state-specific incentives and programs available in MA, you will still get an additional discount of up to 30% on the total cost of your PV solar energy system thanks to this great government subsidy. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or solar loan).