Massachusetts residents have access to a wide variety of solar tax incentives which can reduce the overall cost of your solar panels. These include two tax exemptions, a state tax credit and even a cash payment per kilowatt-hour generated. All these incentives can be combined with the 30% federal tax credit. The state of Massachusetts provides information on current solar programs, so you can check what is available to you.
Residential Renewable Energy Income Tax Credit
- Incentive Value: 15% of home solar systems costs, up to $1,000
- Frequency: Single use, when installing your solar panels
Massachusetts has offered an income tax credit for renewable energy systems since 1979. The benefit covers many types of clean energy technologies: solar photovoltaic systems, wind turbines, solar water heaters and solar space heaters. You can claim 15% of your solar project costs as an income tax credit, up to a maximum amount of $1,000.
Sales and Use Tax Exemption for Solar Power
- Incentive Value: You don’t pay the 6.25% sales tax
- Frequency: Single use
Massachusetts normally charges a state sales tax of 6.25%. However, there is a sales tax exemption for renewable energy equipment such as solar panels, wind turbines and heat pumps. For a home solar system with a price of $16,500, the sales tax exemption is equivalent to $1,031.25.
Renewable Energy Property Tax Exemption
- Incentive Value: 100% property tax exemption for 20 years
- Frequency: Continuous
If you go solar in Massachusetts, the increase in home value resulting from your solar panels is exempt from property taxes for 20 years. If you own a $500,000 home and install a $25,000 solar panel system, your property taxes will still be calculated for $500,000, even if the actual property value has now increased to $525,000.
Solar Massachusetts Renewable Target (SMART)
- Incentive Value: Payment per kilowatt-hour generated; varies by location and utility company
- Frequency: Continuous
The Massachusetts SMART Program is one of the best solar incentives available in the U.S. If your home solar system qualifies, you get a bonus payment for each kilowatt-hour of electricity generated over a 10-year period. The SMART incentive is available for Massachusetts homeowners served by the three largest utilities in the state: Eversource, National Grid and Unitil.
The exact payment per kilowatt-hour is determined based on your location and the size of your solar energy system. Homeowners with rooftop solar arrays can expect to get 20-30 cents/kWh, and even higher rates are available for low-income households. Increased incentives are also available for solar power systems with battery storage.
The SMART Program is managed by the Massachusetts Department of Energy Resources (DOER).
This post was originally published on 3rd party site mentioned in the title of this site
