Sunny Massachusetts is a nice place to go solar which means generating your own energy, and enjoying profits from it. And to enjoy it even more, take advantage of solar incentives in Massachusetts and bring down the cost of your PV system!
Key takeaways
- Massachusetts is a great state to generate clean power and reduce your electricity payments. With multiple solar incentives and rebates you’re eligible for, it is even more profitable. Learn more information and how to qualify.
- Massachusetts residents can claim a 30% federal tax credit on the total cost of their solar system installation, including solar panels, battery storage systems, and work of the installer.
- Net metering allows homeowners to sell excess solar energy every month back to the grid for credits from utility companies. Eversource is highlighted for its program, including virtual net metering.
- SMART Program provides financial benefits to customers of National Grid, Eversource, and Unitil. Pays PV system owners for electricity generated. Residential systems under 25kW receive around 30 cents/kWh for 10 years. Higher rates for low-income residents.
- Massachusetts Personal Tax Credit offers 15% or $1,000 of renewable energy system cost coverage, whichever is less. Must not exceed personal income tax for the year. System must operate for at least 5 years at primary residence.
- The added value of a solar PV system is exempt from property taxes for 20 years. Property value increases by approximately 4%. Exemption laws may vary by county.
- Many components of solar generating equipment are exempt from sales tax. This includes solar modules, inverters, and batteries.
- Solar easements protect solar systems from shading. Voluntary agreements between property owners. Must be a written and legal contract.
Save 30% of your PV system cost with Federal Solar Tax Credit
The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.
Sell excess electricity with net metering program
The net metering policy in Massachusetts has made it easier for its customers to sell unused electricity back to the grid instead of storing the energy in batteries. Your PV system will pay for itself primarily through the net metering program by selling solar energy you haven’t used into the commercial grid and gaining credits from your utility company.
One of the top net metering utility programs in Massachusetts is by Eversource. Any unused electricity will be stored as credits which can help even out future bills. If you have too much unused electricity it can be sold to Eversource customers in areas based on your neighborhood, this is known as virtual net metering.
Be smart and apply for SMART
If you are installing a new solar energy system in Massachusetts you can help pay back the costs by applying for the Solar Massachusetts Renewable Target (SMART) Program. The SMART program offers financial benefits to National Grid, Eversourse, and Until customers which pay PV system owners for the electricity their systems generate. Those homeowners whose solar systems are under 25kW receive around 30 cents (depending upon the location and utility) for each kilowatt-hour (kWh) their solar panel system produces for the first 10 years. There are also higher rates for low-income residents.
Cut off up to $1,000 from your solar system cost
Massachusetts personal tax credit incentive offers 15% or $1,000 of renewable energy system cost coverage whichever is less. To claim the coverage, it must not exceed personal income tax for the year and your system must be intended to remain in operation for at least 5 years at your primary residence.
Raise your property value but not your taxes
Massachusetts property owners will not have to pay any additional property taxes on the added value their solar system brings to their home due to the property tax exemption for renewable energy systems. However, any such home improvement will definitely make it about 4% more valuable on the property market, says the Zillow report.
Massachusetts ensures any new PV system installed and its equipment will not be part of your property tax for a period of 20 years from the date of the installation. However, Massachusetts' property tax exemption law can vary from county to county, so check with your county's tax assessor for accurate exemption in your area.
Massachusetts sales tax exemption makes solar equipment cheaper
4%
this is how much solar panels increase the value of your house
Many components are exempt from your sales tax under Massachusetts sales tax exemption for solar generating equipment. According to the law, you don’t have to pay sales tax on products directly involved in the production of electricity, including your solar modules, inverters, or batteries.
Protect your solar panels from shade with Solar Easements
A solar easement contract is a written agreement between you and another party, for example, your neighbor that helps you protect your solar space from different types of vegetation or buildings. This type of contract will ensure that your PV system always has adequate sun exposure, protecting you from potential obstacles. It is voluntary and can not be canceled unless a specific clause is included in the document.
What are solar incentives, and why do they exist?
Solar incentives are essentially financial aids provided by governments to encourage people to install solar energy systems. These aids help to reduce the cost of installing solar panels on homes or businesses. Governments offer these incentives because they wish to increase the use of clean energy sources. The primary obstacle for many people considering solar energy is the expense involved in setting up the system. Incentives are designed to help overcome this initial financial barrier.
The financial assistance can take several forms. One common form is a tax credit. This means that when you file your income taxes, you can deduct a specific amount from the total taxes you owe. This directly lowers your tax burden. In some situations, if the tax credit exceeds the amount you owe, you might receive a refund. Another frequently used incentive is a rebate. This is similar to getting a cash refund after you have purchased and installed your solar system. You might receive a check in the mail, or the rebate could be applied to reduce the upfront cost of your solar installation.
Another type of incentive is called a feed-in tariff. This works a little differently. It allows you to sell any excess electricity that your solar panels generate back to the electricity company. This means you can earn money by producing clean energy, which can help to pay off the cost of your solar system more quickly.
Governments provide these financial aids because they recognize the benefits of transitioning to solar energy. It helps to decrease pollution, which is beneficial for both our health and the environment. It also creates employment opportunities within the solar industry, which strengthens the economy. Additionally, by reducing our reliance on traditional power plants, we lessen our dependence on foreign sources of oil and gas, thereby enhancing our energy security.
For individuals who install solar panels on their homes or businesses, this translates to substantial long-term savings. Not only do you receive assistance in paying for the solar system, but you also reduce your monthly electricity bills. Furthermore, with feed-in tariffs, you can even generate income. Essentially, solar incentives make it easier and more affordable to adopt solar energy, allowing you to save money while contributing to environmental preservation.
Is it the right time to go solar?
The financial aspects are very important. Your electricity bill can be seen as a constant expense that seems to grow. Solar panels help to manage this expense. The cost of solar panels has decreased significantly, making them more affordable. Simultaneously, the cost of traditional electricity from the power company tends to rise. By generating your own electricity, you protect yourself from these increasing costs. This can be viewed as securing a low energy price for the future. Additionally, there are often government programs that provide financial assistance. These incentives, like tax credits, help to lower the cost of your solar system. This makes it a financially sound decision.
The technology of solar panels has improved greatly. Solar panels are like small energy-producing units on your roof. These units are becoming more efficient, meaning theёy can convert more sunlight into electricity. This allows you to generate more power from the same amount of sunlight. When the sun is not shining, batteries become useful. Batteries that store excess solar power are also improving. They can store more power for longer periods, ensuring you have electricity even at night or on cloudy days.
When we burn coal or gas to produce electricity, it creates pollution. Solar power is a clean energy source. It uses sunlight, which is a natural and abundant resource. By installing solar panels, you help to reduce pollution and contribute to a healthier planet.
Solar panels can increase the value of your home. Many people prefer homes with solar panels, and they are willing to pay more for them. This means your home could be worth more if you install solar panels.
Having solar panels gives you more control over your energy usage. You become less dependent on the power company, which can provide a sense of independence. In the event of a power outage, you might still have electricity if your solar system includes battery backup.
Many people believe that solar energy is only effective in very sunny areas. However, this is not accurate. Solar panels produce energy wherever sunlight is available. Even on cloudy days, solar panels generate energy. Furthermore, technological advancements are making solar panels more effective at capturing energy in low-light conditions.
Check out solar panels near you!
Looking to build a home solar system? Check out solar panels that we have for sale in Massachusetts
SHOP SOLAR PANELSYears of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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