Massachusetts is one of the most popular residential solar markets in the United States, with many options available to help homeowners afford the installation of solar energy systems. Thousands of homeowners have already installed solar energy systems, thanks to Massachusetts solar incentives making this state a strong leader in the American solar industry.
Thanks to these solar incentives for Massachusetts, installing a home solar energy system has remained a highly beneficial option for homeowners looking to save money on their monthly utility bill, and is considered as one of the most lucrative returns on investment among home improvement projects. The success of solar energy can be attributed to the annual flux in fossil fuel and natural gas prices, which make solar incentives in Massachusetts a very attractive offer.
Furthermore, Massachusetts has one of the top ten most expensive residential electricity prices in the United States (EIA). For example—November 2016 residential electricity rates reached an average of $19.15 Kilowatt Hour (kWh). The fact that homeowners can use programs such as Net Metering to save money on their power bills makes installing solar panels very pleasing and profitable.
Massachusetts has one of the best solar policies in the country and its lawmakers continuously ensure renewable energy generates growth and provides the highest returns for the state and the homeowner. These policies govern the numerous state and federal rebates and incentives that defrays upfront costs and improve payback periods.
Provided by the Massachusetts Department of Energy Resources (DOER), this tax credit helps offset the cost of investment towards the installation of a solar energy system. With this credit, the solar energy system owner can effectively deduct a personal income tax credit of 15%, up to $1,000 from state income taxes. The credit is available to any owner or tenant of a residential property. It’s that simple.
Read more about this incentive and how to apply here.
Net metering allows homeowners to offset the cost of electricity they consume from the utility grid. By using special bi-directional meters installed in their homes, homeowners can push back surplus or unused electricity produced by their solar panels onto the grid. This is made possible because Massachusetts utility companies are required to participate in the net metering program. This helps homeowners with a solar energy system reduce their monthly bills when solar panels produce more energy, which is deducted from current monthly bills or credited toward future bills.
Read more about this program and how to apply here.
SREC credits are generated when solar panels produce electricity. An SREC credit is created for every megawatt-hour (MWh) of electricity produced by a solar energy system. The homeowner can decide to sell the SRECs in Massachusetts at the rate of about $350 per megawatt-hour (MWh) to electrical utilities, who need to purchase them in order to comply with the state’s renewable portfolio standard or RPS. For example, if a homeowner’s solar energy system of about 5 kilowatts (kW) happens to generate 5 MWh per year, this homeowner could make up to $1,750 just by selling the SRECs. It’s important to note here that SRECs are sold separately from the electricity produced by the solar energy system.
Learn more about SRECs and the Renewable Portfolio Standard here.
Massachusetts participates in the federal Investment Tax Credit (ITC) for solar which can help homeowners reduce the upfront cost on a solar energy system by up to 30%. This is a personal federal tax credit for residential installations on a dwelling used as a residence by the taxpayer. If the federal tax credit exceeds the tax liability, the excess amount may be carried forward to the next taxable year. However, this incentive only applies to homeowners with cash or loan purchase of a solar energy system. This very generous incentive is extended till 2019 where it will steadily decrease through 2021.
Learn more about the ITC and how to apply here.
Rebates and Incentives for solar energy systems whether offered by federal or state governments can be paid in a lump sum or provided to the installer as part of the installation price. Let us help you decide which payment option is the most realistic for you. You could consider one of our $0-down solar loan options, which offers some comparable returns without the upfront cost, or you could go with a cash payment. Contact us today to explore these options. According to the Solar Energy Industry Association (SEIA), 340 MW of solar electric capacity was installed in Massachusetts in 2015, through an $803 million investment. Massachusetts currently has more than 1,199 MW of solar energy installed, which ranks Massachusetts 6th in installed solar capacity. This is enough solar electricity to power 191,000 homes.
Massachusetts surpassed is set a goal to install 400 MW overall capacity in four years way ahead of schedule. With a new goal of 1.6GW by 2020m Massachusetts is a “true solar state.” There are numerous ways to pay for the installation of a solar energy system on your roof in Massachusetts. Various options from loans and leases to power-purchase agreements, with each unique option for every homeowner. The key is to understand the best option that comes with the most incentives and rebates to yield the highest return on investment. Electricity prices in recent years are set to continue upwards by 3-5% per year. Going solar in Massachusetts is a sure path towards saving on electricity bills, whether through an upfront payment or a power purchase agreement. The high-yielding solar panels which produce much more electricity and the short payback times (5-8 years) for solar energy systems make solar a secure investment in Massachusetts. Plus, installing a solar energy system on your roof regardless of the means of payment increases the value of the property.
Massachusetts Solar Incentives make going solar more affordable than ever before. Make your move toward a lower energy bill today and rest assured knowing that Trinity will be there every step of the way – see if you qualify here. You can also help champion your community—follow this link and for every family you help go solar through our referral program, you get paid.