If you are a resident or business owner living and operating in the abundantly sunny Massachusetts region (think about 200 sunny days), 2025 is the best time for you to tap into the power of solar energy! All thanks to a good variety of tax exemptions, rebates, credits, and federal and state incentives you can use and benefit from as you install your solar system.
Thinking about the investment? That’s not a biggie either. Whether you are living, developing property, or running your business in Cape Cod, Nantucket, or in the MA South Shore, the ROI you will get on your solar investment makes it super affordable. Add to that reduced bills, free electricity, and better property evaluation and you have the perfect win-win formula! No shocker that the solar energy market has grown at a staggering CAGR of 19.3% over the last half decade in America.
Want to know all about what’s in and what’s out about solar energy incentives Massachusetts, and federal incentives? Read along to get the inside scoop on the recent updates and the expiring ones in this detailed guide and see for yourself how these incentives can help you save big both as a commercial or residential property owner!
All the Solar Incentives You Can Avail in Massachusetts
Did you know Massachusetts is all set for a 100% clean and renewable energy future? With the highest electricity rates in the US now hovering around almost 0.43 dollars/kWh, MA state incentives and financial help are all showing active movement towards making solar panel installation Massachusetts a breeze for all residents. Here are all the ones you can benefit from in 2024:
1. Residential Renewable Energy Income Tax Credit
Want to get a 15% tax credit for how much you spend on your solar system’s installation? You have got the Renewable Energy Income Tax Credit in MA. For up to 1000 USD, you can claim it so say if you spend 900 dollars on your solar installation, you can get the tax credit of 135 dollars.
2. Solar Massachusetts Renewable Target (SMART) Program
Next up, you have a program that’s designed to give payments to homeowners based on how much electricity your system produces over a decade. Since there’s a high chance your system might produce more electricity than you need, you can sell the excess energy at a fixed rate for each kWh (kilowatt hour). That’s just how good the SMART program is! However, the rate you will get will depend on where exactly you reside and the utility company in your area.
3. Renewable Energy Credit (REC)
You thought the MA government would stop the tax credits? No! You have got more, think renewable energy credits! These will give your property different rights and every time you produce 1000 kWh of excess electricity, you can get a REC certificate. Then you can sell them and related benefits separately for profit.
4. Net Metering
Massachusetts also has a net metering program for you which means you can get credits on your utility bills for the excess power. So, if your system generates extra energy, you can get credit for it and reduce your future electricity bills.
5. Federal Solar Investment Tax Credit (ITC)
The federal solar investment tax credit also gives a flat 30% tax credit on your solar installation costs which means you can cut down your upfront costs substantially.
6. Municipal Light Plant (MLP) Rebate Program
If you avail services or participate with certain municipality utilities in MA as you go about getting your solar energy solution installed within MLP territories, the MLP rebate program will allow cover 50% of your system costs if it is up to 25 kWh.
7. Modified Accelerated Cost Recovery System (MACRS)
Want to recoup your solar installation costs by 30% to 50% in just half of a decade as a business owner in MA? The Federal Modified Cost Recovery System can help you. MACRS has established durations for various types of property for depreciation and talking about solar panel systems, it will let you recover 30 to 50 percent of your installation costs for tax purposes in just five years.
8. Inflation Reduction Act (IRA)
The Inflation Reduction Act (IRA) also impacts how you benefit from these incentives and rebates for it has solidified the federal ITC rate of 30% till 2032. Plus, it’ll give you additional funding if you’re in a low-income house or community.
What are Some Expiring Incentives?
- The federal ITC credit of 30% on your solar system will change or expire after 2032.
- Our local MA programs like SMART are running out of capacity (only around 1,023 MW left) and since your application along with others will be processed chronologically, time to act quickly before the capacity depletes.
All Set to Go Solar?
So many supporting incentives and benefits just excited you but worried what are the ones you qualify for and the ones you can’t benefit from? BD Electrical and Solar Services can help you understand these complex programs and the legal end of it all with a personalized approach. Our team will identify which incentives you qualify for and can handle applications and support.
Set for solar? Get rid of the waiting and searching game and ring the best MA clean energy solutions provider, BD Electrical & Solar Services, today, and reduce your carbon footprint in real-time. Our team, with more than ten years of experience in Southeast Massachusetts, can give you the best and most reasonable quotes and expert advice for your solar installation and related incentives.
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