Homeowners all over Massachusetts are going solar, but many don’t know about the benefits and solar incentives offered for doing so. These incentives push homeowners to make the switch while giving them an opportunity to gain some money back from their initial investment. If you’re looking to go solar or looking into solar incentives in MA then you’re in luck because we’re going to discuss the top solar incentives in MA.
What Are Solar Incentives?
It’s no secret that the initial investment into going solar can be pricey, which is where solar incentives come in. They help to encourage switching to solar energy by giving homeowners a tax rebate on their initial investment for the solar energy system. These incentives are state or federal run and they vary per state, however, Massachusetts has many different solar incentives that can be taken advantage of. It’s always best to research solar incentives in MA to get more information on how to go about receiving them.
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Solar Incentives In Massachusetts
There are six main solar incentives in MA and they range from loan options, exemptions, and tax credits. There are options for many homeowners in a lot of different situations, so if you’re looking into solar incentives in MA then this is the place to start. Let’s go over the top incentives in MA.
Federal Solar Investment Tax Credit
The Federal Solar Investment Tax Credit, or ITC, is the most common or known incentive for homeowners. This tax credit is at 26% right now for homeowners who have had their solar energy system installed before December 31, 2022. As long as you pay federal taxes and have had your solar energy system installed before that date, with having it active and running, then you should be eligible for this tax credit.
Residential Renewable Energy Income Tax Credit
The Residential Renewable Energy Income Tax Credit is a state tax credit that gives 15% back to homeowners who purchased a solar panel energy system. It does have a limit of $1,000 as the maximum tax reduction. This rebate can save you about $4,000 on a $15,000 solar energy system making it one of the top saving solar incentives in MA.
Solar Massachusetts Renewable Target Program
Solar Massachusetts Renewable Target Program, or SMART, is a program that gives compensation for every kilowatt-hour produced by the system for the first ten years that the system is running. This program gives an incentive to use solar energy full time.
Solar Installation Property Tax Exemption
This tax exemption is great to have in place because it helps to avoid taxes put on the increased value of your home once a solar energy system is installed. Solar panels and having solar energy in general makes a homeowner’s home value go up and so do the taxes, so saving money three can help a lot. However, with this tax exemption it protects your home value from being taxed.
Home Solar Project Sales Tax Exemption
It can be expensive to install a home solar energy system, so this tax exemption is one of the best solar incentives in MA that helps with saving taxes on the initial investment. It saves you about 6.25% on your initial investment by eliminating 100% of the taxes associated with the initial investment of your home solar energy system.
Mass Solar Loan Program
The Mass Solar Loan Program is a program set in place to help low-income homes get a loan in order to install a solar energy system. This is a great solar incentive in MA for families who need assistance with the initial cost, so it’s always best to see if your home qualifies for a loan.
How Much Is It To Go Solar In MA?
When considering all of these incentives it’s still necessary to consider the price of going solar in Massachusetts. It’s no secret that it’s not cheap to go solar, but the benefits are greater than the price, so it’s well worth it. However, that’s also what makes taking advantage of these solar incentives for MA residents even more important. Saving all of the money you can on the initial investment will make the transition a little bit easier. Ultimately going solar in MA can cost between $14,000 and $20,000 depending on the size of your system and energy output. You’re expected to save about $30,000 over the course of 20 years on your energy bill.
The Bottom Line
Ultimately there are great solar incentives in MA to take advantage of and we always encourage homeowners to look into them and see what they qualify for. Going solar is a money saving and environmentally friendly choice, but the initial investment is usually what worries homeowners. Incentives are great to help homeowners with the initial cost and make the push to go solar. Taking advantage of these incentives can save you thousands on your installation, so if you’re looking into going solar, be sure to use solar incentives for MA residents.
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