There are many ways of reducing your electricity bill when you go solar in Massachusetts. You can save money with a help of local, state and federal rebates and incentives. The state of Massachusetts offers various solar tax rebates and incentive which are available to homeowners that purchase a solar panel system.
If you are wondering whether is time or not to invest in solar panels in Massachusetts you have to know that in years to come, with the generosity of both federal and state goverment of Massachusetts, incentives and rebates will decrease.
From now to March 31, 2018 is likely the most affordable time there will ever be to go solar in Massachusetts.
Starting in April 2018, the Solar Renewable Energy Credit (SREC) program will be replaced with a new incentive, dubbed Solar Massachusetts Renewable Target (SMART). Despite the clever name, calculations show that SMART will lower total incentives by roughly $8,000.
Find out the details for each of the incentives that are available to you here in the Bay State:
State Residential Renewable Energy Income Tax Credit: The Massachusetts Department of Energy Resources (DOER) offers a state income tax credit of 15% of installation costs, up to $1,000.
Solar Carve-Out/SREC II: A Solar Renewable Energy Credit (SREC) is created when a residential solar system produces 1,000 kWh of electricity. This credit can then be sold on a market to buyers needing to achieve clean energy regulatory compliance, such as your utility. Each credit is sold for the current market price, which typically ranges from $250-300 each. As credits are generated over time, thousands of dollars are paid out to homeowners.
NOTE: This program will only be available for those who install before April 2018. For those who have installed before that date, it will continue to be available in future years.
Federal Solar Tax Credit: Claim a tax credit for 30% of the cost of your home solar system. Eligible costs include equipment, labor, and all associated costs. The ITC will drop to 26% on January 1, 2020, followed by a drop to 22% at the start of 2021. On December 31, 2021, the ITC for residential solar installations will come to an end. Installing before this offer is phased out will save you several thousand dollars on total costs.
Net Metering in Massachusetts: Net metering is a great incentive for residential solar in Massachusetts. The utility company will give you bill credits for excess energy that your system produces. At times when your system is producing far more energy than you use, you can expect your electric bill to be at $0, and you will be accumulating credit that will be rolled onto new bills. This is especially true for residences with larger capacity installations. When your panels produce excess clean energy for your neighbors, you should be compensated for it, and net metering is the mechanism to make sure you are.
If you are an Eversource utility customer you can be eligible to receive net metering credits.
In addition, National Grid offers online application for their net metering program.
SMART: This incentive will replace SREC II in April 2018. It features a block-based compensation for solar energy that will decrease over time. Over ten years, the SMART program reduces incentives for homeowners by 45% compared to SREC II. This new program is more supportive of large-scale utility solar rather than homeowners.
Mass Solar Loan Program: Lenders offer 10-year fixed-rate loans between $3,000 and $35,000 with guaranteed low-interest rates. This program aims to make solar energy affordable for everyone.
State tax exemptions: The State of Massachusetts exempts all solar equipment from state sales tax. The value added to your home by a solar installation is 100% exempt from property taxes for 20 years.
Interested in getting exact prices for the cost solar for your home? Get competitive solar quotes from qualified, trusted installers in your area. To see an estimate for how much you could expect to save and how much a solar system would cost, try our solar calculator.