Massachusetts is a national leader in solar energy (we’re currently ranked 8th in the country!) so it comes as no surprise that the state offers excellent solar incentives. Solar panel incentives can help you manage the cost of a solar installation and speed up the payback period by helping you earn money for the energy your solar panels produce.
If you’re thinking about installing a residential solar energy system, make sure you take advantage of these five Massachusetts solar incentives:
The Investment Tax Credit goes by many names—the solar tax credit, the federal tax credit, and the ITC. But no matter what you call it, the ITC is one of the most lucrative solar incentives available to Massachusetts residents. Through the ITC, homeowners can receive a federal solar tax credit worth 26% of the total cost of their solar installation in 2021 and 2022. This can lead to significant savings and make the upfront cost of a solar installation much easier to manage.
The solar tax credit won’t last forever, however. It is on a step-down schedule and will drop to 22% in 2023 before being eliminated for homeowners in 2024, unless a further extension is agreed in the Build Back Better Act. Don’t miss out on solar savings—schedule a free consultation today!
During the day, your solar panels will likely produce more electricity than you need to power your home. Some of that excess electricity can be stored in a solar battery so that you can have access to solar power at night or during a power outage. But the rest is wasted. Net metering allows you to “sell” the extra electricity back to your utility company in exchange for a credit. You can then use your credits to offset any electricity you buy from the utility when your solar panels aren’t producing enough. As a result, you could end up with negative electricity bills!
Solar net metering is not offered in every state, but it is available in Massachusetts!
The SMART solar incentive program supports residential solar installations in Massachusetts by providing homeowners with a monthly payment for the energy their solar systems produce. SMART payments last for ten years!
The incentive amount you receive depends on the size of your solar energy system and the block that you’re in. The SMART program in Massachusetts is on a declining block schedule, with each block offering a lower amount. The sooner you install your solar system and apply for the program, the more money you can earn.
In addition to the federal solar tax credit, Massachusetts homeowners qualify for a state solar tax credit worth up to 15% of their system’s total installation cost (there is a $1,000 cap). Plus, solar panel systems are 100% exempt from Massachusetts sales tax and from property taxes for 20 years.
Solar batteries have an important role to play when it comes to cleaning up and stabilizing the electric grid. In order to support the widespread installation of residential solar battery storage, Massachusetts is offering an incentive. Through the ConnnectedSolutions program, homeowners allow their utility to pull energy from their batteries during peak demand periods and receive a payment in return. There are limits to the amount of electricity the utility can take but you’ll be getting paid for your battery usage and helping the local electricity grid in return!
Boston Solar is the #1 Massachusetts-based solar energy system installer, and we know Massachusetts solar incentives inside and out. If you’re interested in solar energy and want to get as many incentives for your solar panel installation as possible, we are the company to partner with. Our team will install a custom solar system that’s designed to meet your energy needs, and we’ll help you qualify for incentive programs so that you can save as much money as possible while lowering your energy costs and helping the environment with solar!
Don’t miss out on solar incentives! Call 617-858-1645 or contact us to schedule a free solar consultation.