Massachusetts/Federal incentive and rebates Flashcards
Massachusetts Solar tax Credit
The state offers a 15% tax credit off the net costs of your solar system, but only up to a maximum of $1,000 (net costst meaning cost minus the federal 30% tax credit).
Massachusetts Utility Solar Rebates
Chicopee Electric Light $.50/watt, up to $2,500 Must meet additional requirements
Concord Municipal Light Plant $.625/watt, up to $3,125 Must meet warranty requirements
Hudson Light & Power $1 or $1.25/watt, up to $6,000 Rebate amount subject to panel orientation. Must meet UL standards and warranty requirements
Ipswich Municipal Light Department $.80/watt, up to $4,250 Additional incentive for USA-built components, subject to other requirements.
Reading Municipal Light Department $1.25/watt, up to $2,000 Additional incentive available for locally-manufactured equipment
Taunton Municipal Lighting Plant %1.50/watt, up to $4,500 Subject to residency requirements and other factors.
Solar Power Performance Payments
SREC is proof of 1 megawatt-hour (MWh) of renewable energy generation.
Average Cash Cost: $270
5 kw system produces about 5 SREC per year
Those fines are what makes SRECs valuable. The 2016 utility fines are set at $350, and SREC prices hover a little bit below that number. After all the moneychangers extract their pounds of flesh from transacting the business of SREC sales, solar panel owners end up with about $270 per SREC.
What does this mean for you? Well, a typical 5-kW sized solar system on your Massachusetts roof will earn close to 6 SRECs in a year, which means about $1,700 in SREC sales. Every. Year. But know this: As the SACP goes down, so does SREC value. About $12 per year in the next 10 years.
The best news of all is that SRECs contracts are written for a decade, so, your 5.85 SRECs per year will end up netting you $14,561 during your contrac. Can you say “cha-ching!?”
To get more information about how this all works, we strongly recommend connecting with our network of experts who can help get you a customized quote, free home evaluation, discounts, and even system financing. Just fill out our contact form and we’ll be in touch.
Property Tax Exemption
100% for 20 years
Reason 3: Solar can increase your property value. The average installed solar system can add about $4 per watt to the value of your home. Given that the average home in New Mexico needs a 5 kilowatt system, that translates to $20,000 in added value to your property.
This means when the Massachusetts property tax man or woman cometh to assess your new solar home, they can’t assess you another dime for 20 years – despite the fact that you’ll be adding roughly 20 times your annual electricity bill savings to your property value. In the case of our 5kW example, that adds up to about $19,890 (20 times your annual electricity savings of $995).
About solar property tax exemptions: Property tax exemption status is a pretty big factor when putting together your investment considerations. Many argue that solar power adds approximately 20 times your annual electricity bill savings (if you are owning the system and not leasing. Leasing still has a positive impact on the ability to sell your home though, in our opinion).
For many average-sized solar power systems on a house, that can mean $20,000 to your home value. (Edit April, 2014: Some companies, like Solar Mosaic, are starting to offer traditional style equity-based home loans for such a thing). An additional $20,000 in property tax basis in many states amounts to a big chunk of change owed back to the state. However, many states have complete exemptions from added taxes when you install solar on your home!
Sales Tax Exemption
100%
Federal Tax Credit
30% of system total cost
No Limit
USDA Tax Credit
25% net system cost (after federal tax credit is subtracting)
USDA Renewable Energy for America Program 25 percent grant
(must be farm, ranch, or rural business to qualify; renew- able system must be attached to farm, ranch, or rural business meter — no house meters)
Massachusetts Solar Power Rebates
None At this time
