Massachusetts solar 101: must read before you buy solar panels

The Solar Investment Tax Credit (ITC) allows homeowners to claim 26% of the cost of their solar power system installed until 2022 as an income tax deduction. For example, if your solar system costs $20,000, you are eligible for $5,200 (26% of the total gross cost) in tax credit. Solar system cost comprises not only the money spent on solar panels, but also freight shipping costs, professional installer fees, tools bought or rented, and so on. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

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.

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 25 kW receive around 29-31 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.

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 five years at your primary residence.

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 2019 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.

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.

It is legal to install solar panels on your house in Massachusetts. However, there is no statewide legislation that makes it unlawful to restrict the installation of solar PV systems, so it’s best to contact your homeowner’s association (HOAs) to be certain of any regulations that may be in your area. HOAs in Massachusetts define a neighborhood’s aesthetic rules. You may have to submit your project for approval before changing the exterior of your house. The board may ask you to hide the system from view, reduce the number of panels or just reject your proposal.

Storm activity is typical from June 1st through November 30th. Located right on the east coast, Massachusetts residents should always be prepared for a hurricane. In 2012, Hurricane Sandy left more than 385,000 customers without power across Massachusetts.Solar panels are manufactured to withstand most hurricanes, and in any power outage, solar panels will help you survive a blackout. As stated by the Environmental Protection Agency our climate is changing and natural disasters are becoming more frequent, but by powering your home with solar energy you will no longer have to worry about blackouts.