Massachusetts is one of the best states in the country to adopt solar. It might not have the largest number of sunny days in a year but it certainly has the best solar programs, incentives, and rebates to make switching to solar the easiest thing to do. Even though Massachusetts ranks low in sun peak hours, solar capacity here continues to grow thanks to the local government’s very rewarding solar policies.
As of October 2019, the state’s usual cost of solar panels per watt is $3.24/W. This makes a market average out-of-pocket price of installation of the 5kW solar panel system of about $16,500. This price does not include Federal Tax Credit or any State incentives or rebates. After applying for all solar programs that the state has to offer, this cost can be cut as much as in half.
The Federal Investment Tax Credit – is the government program also known as Investment Tax Credit (ITC). It allows you to deduct 30 % of the total cost of the solar equipment and its installation on your federal taxes and has no cap on its value.
Massachusetts Solar State Credit – the state offers 15% tax credit off your solar system net cost and has a cap on its value at $1,000.
Property Tax Exemption – the residents of Massachusetts are exempt from the higher property taxes on the increased value of the house for 20 years after solar power system installation.
Massachusetts Sales Tax Exemption – the residents of Massachusetts are exempt from paying taxes on their solar power system and its installation.
Net Metering Program – Net Metering is a program that lets you provide your utility company with your surplus solar power for the credit on your monthly bill. In Massachusetts, any extra power you generated is credited to you and can be used on any of your monthly bills. They can be carried over as many times as needed since they do not expire.
Massachusetts Solar Power Rebates – Depending on where you live, you might be able to use the rebates offered by one of these utility companies.
Massachusetts Solar Performance Payments – Solar Massachusetts Renewable Target (SMART) program – is an incentive program that requires three major utility companies in Massachusetts to pay homeowners who have installed a solar power system on their property. On average, payments are expected to be $0.15/ kWh and will last for 10 years. The owner of a typical home solar system will get over $1,000 in payments per year.
When comparing Massachusetts’s solar energy advantages and disadvantages, it is clear that the advantages significantly outweigh the disadvantages. With solar prices lower than ever, rising utility rates, and the great support from the government and the state, there is no better time to install solar power systems and start saving money on your utility bill while protecting the environment.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.