If you are like many Massachusetts homeowners, you are looking forward to putting the frustrations and follies of 2020 behind you, and starting fresh in a new year that feels a little more “normal”. So, what will the new year hold for you and your family? What has this year taught us about how we keep our families safe, and how we can live sustainably in our own homes?
This upcoming year is sure to bring some changes—here are some of the reasons that 2021 is the year you and your family should consider partnering with a solar installer near you to add solar power to your home energy.
Of the multiple economic benefits of installing solar energy, the federal solar tax credit is one you definitely don’t want to miss. And while this credit was due to drop from 26% to 22% at the end of 2021, it has since been extended and will remain at its current 26% level through the end of 2022.
At Boston Solar, we have been informing homeowners and business owners about the tax savings of the solar tax credit, or federal Investment Tax Credit (ITC), for many years. The federal solar tax credit allows for a reduction in your federal taxes owed, based on a percentage of your total solar panel installation costs. Since 2019, the value of the solar tax credit has been declining from its original 30%.
In 2021, the solar panel tax credit allows homeowners to claim 26% of their total solar installation costs from their federal tax liability if they install and have their solar PV system in service by the end of the year. This also includes solar plus battery storage systems. For a $35,000 solar panel installation, that’s a tax credit savings of $9,100!
The extension gives homeowners two additional years to save big on solar, but under the new extension plans, the federal ITC will be eliminated entirely for residential solar energy systems in 2024. However, businesses will still be able to claim a 10% tax credit from 2024 onwards.
Learn more about how the Federal Investment Tax Credit works.
Massachusetts is a top state for solar, and in addition to the solar savings at the federal level, there are solar incentive programs specific to Massachusetts that will further decrease your net solar installation costs, provide monthly returns, and reduce the time it will take to payback your renewable energy system in energy savings:
In addition to saving on your federal taxes, you can reduce your MA state taxes after installing solar as well. The Massachusetts state tax credit can total 15% of your solar installation costs, up to a $1,000 value.
Plus, in Massachusetts solar installations are exempt from property and sales taxes! This means that while solar may increase the value of your home, it won’t increase the value of your property taxes and with the sales tax exemption, you automatically save the MA 6.25% sales tax upfront.
Have your utility pay you for your solar energy production for a change! Through the SMART incentive solar program, you could earn monthly incentive payments up to 10 years! Think of what you could spend that extra income on from your own energy production. The level of incentive depends on when you install and enter into a specific SMART block, which is on a first come, first served basis. The earlier you sign up, the more money you’ll stand to make each month over the next ten years!
Here in Massachusetts, we also benefit from net metering. Increase your energy savings through net metering from the excess solar energy you don’t end up using that gets sent back to the grid. With net metering, you’ll receive an energy bill credit that can offset your electricity bills for any grid-supplied energy you may still need to use, like at nights when your solar PV systems won’t be generating renewable energy for you to use at home. Depending on the size of your system, this could eliminate up to 100% of your electricity costs!
If you’re a customer of National Grid, you can also take advantage of this solar battery incentive here in Massachusetts. When you have a solar battery storage system, you could participate in National Grid’s ConnectedSolutions program and receive benefits in exchange for discharging your battery during certain periods. This program aims to help the grid here in Massachusetts to reduce peak demand periods, that in turn will help lower energy costs for all and has longer term benefits like reducing air pollution. At Boston Solar, we can ensure your solar batteries also qualify for the Federal solar tax credit and other solar incentives in Massachusetts.
2020 has fundamentally shifted how we work and live, turning homes into multi-use structures for families across Massachusetts and the US. Millions of Americans have transitioned their daily commute to a home office, a home school, a gym, and more, and many of these changes are likely sticking around in a more permanent way. The more time you spend in your house working, teaching, and living, the more energy your home will require.
While we can’t predict the future (did anyone see 2020 coming?), solar is a way to take control of your home’s energy for decades to come. Investing in the 25+ years of energy savings that come from installing solar or solar with backup energy storage will set you up for years of energy savings, greater resilience from rising energy prices and power disruptions, and secure a more sustainable future for your home and family.
As the number one Massachusetts based solar installer with more than 4,300 solar installations, we take pride in finding customized solar solutions for every type of home, and business. We have helped customers across Massachusetts just like you be cash positive while spending $0 down on solar installation, as well as helping customers benefit from all the lucrative solar incentives available to make going solar as affordable as possible.
From the North and South Shore to Central Mass, and everywhere in between, we will work with you to design a customized system of solar PV panels, or solar plus storage system, to meet your energy needs now and in the future. It all starts with a free solar quote!
Take control of your home’s energy and start saving in 2021 with solar installation for your home or business! Call Boston Solar to schedule a free solar quote at 617-858-1645 or get in touch here.
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