Massachusetts Solar Incentives
Many people have the misconception that solar systems do not work in Massachusetts, due to New England's diverse weather conditions. However, the experts agree that Massachusetts is an excellent location for solar systems.
Solar power in Massachusetts has been increasing rapidly, due to state grants for installations and the sale of SRECs for $0.30/kWh, which allows payback for the system within 5 or 6 years, and generates income for the life of the system.
Massachusetts is consistently ranked in the top ten in terms of home solar power because generous solar incentives help in offsetting some of the highest electricity rates in New England.
Solar renewable energy credits, or SRECs, are another way that Massachusetts helps homeowners save on solar. Keep in mind, SRECs are only available when you purchase your system.
Massachusetts also has an income tax credit if you buy a home solar system. The Residential Renewable Energy Income Tax Credit will cover 25% of the cost of a solar system, maxing out at $1000.
On top of Massachusetts' state tax credits and SRECs, solar system owners are also eligible for the Federal Investment Tax Credit, or ITC, if you buy your own solar system outright. The tax credit amounts to 30% of the cost of purchasing your solar system, but only after deducting the value of your state rebates. However, ITC credits will begin stepping down from 30% at the end of 2019. The tax credit for systems in service after 12/31/19 will drop to 26%. After 12/31/20, it’ll drop even further to 22%.4 That's why the time to go solar is now!
To summarize, buy solar NOW to take advantage of the generous incentives!
Federal Solar Tax Credit (ITC) - 30% of the total system cost
Residential Renewable Energy Income - 25% Tax Credit (of total system cost) or up to $1,000
Massachusetts Solar Renewable Energy Credit (SREC) - Depends on market value