Massachusetts has been the best state for solar for a long time. With the new SMART program, they’ll be there for a while longer. In 2018 the state government passed an omnibus bill that requires 25% of all electricity to come from renewables by 2030. To make it work, the state government has provided some incredible incentives.
Massachusetts has a long history of breaking from tradition. With renewable energy, there isn’t any sign that they won’t keep doing it!
There are several ways to get solar here. No matter which option you choose, you’ll be able to take advantage of the same incentives, they will just be applied in different ways. Our Solar Recommendation System is set up in order to be able to find the perfect option for your house. The best panels, the best location, the best savings program. Every bit is included.
For solar, the goal is to generate exactly enough power to cover your own electricity needs. If you produce less than your total usage with solar, you have to pay for extra power. If you overproduce, you save less.
Below is a breakdown of the reasons to go solar in Massachusetts.
Going solar means two things: Generating your power from a clean, renewable energy source AND saving money. This is done through a process called net-metering. Net-metering is the method where your home solar system is connected to your electric meter, which sends the excess energy from the solar panels to the grid when you aren’t using it.
Massachusetts is based off of an annual net-metering program. Your utility tracks the extra electricity you produce, and you get to use the same amount later. If you produce the same amount of power that you use over the whole year, your electric costs are covered.
Keeping it simple, you need a system that covers your average yearly electricity usage. If you don’t produce all of your electricity from solar, you have to buy the extra power from your utility. If you overproduce, your utility company will treat you like a tiny power plant and pay you at the wholesale rate of power. You pay the retail rate. Not economical.
Locational Marginal Price (LMP)
Locational Marginal Price (LMP) is the cost of supplying the required electricity at a specific location on the electric power grid, considering both supply and demand and the and the cost of delivery itself. This is the cost of power that your utility buys power for from large scale electricity producers.
Let our geeks figure it out for you.Dismiss
The Solar Investment Tax Credit (ITC) was created to help with the cost of getting into clean energy. Started by the federal government, in 2005, and renewed in 2015, this credit covers 30% of the total cost of a Solar energy project, after any available state incentives have been applied.
What does this mean for you? No matter how big or small your system, you can write off nearly a third of the cost through your federal tax return. If you can’t claim it all in one year, no worries! You can write it off over time. No taxes to pay? There are programs to cover the cost for you.
There are now 1.8 million homes with solar in the United States thanks in part to the ITC (In 2018, there has been a new system installed every 100 seconds!). After 2019, the ITC will be set at 26%, and after 2020 it will be 22%. It is unknown whether it will be renewed after 2020.
This year the state government, with consultation from the renewable energy sector, designed and implemented the new Solar Massachusetts Renewable Target (SMART) in order to provide a sustainable solution that rewards early adopters.
The program works by splitting incentives into “blocks” for Massachusetts. These blocks are divided into energy blocks and the rebate available will vary depending on the number of homes and businesses that chose to go solar in each block.
Massachusetts has waived all sales taxes for renewable energy projects. A solar system that priced at $25,000 costs $25,000. That’s a 6.25% cost that you can keep in your pocket when trying to get into clean energy.
Unlike other property renovations like a home extension or a basement remodeling, when you install solar it won’t impact the assessed value of your property. Since Massachusetts pays some of the highest property tax rates in all 50 states, this is a big deal.
The benefit to this is that if you decide to sell your home, you still include the value of solar into your sale price!
In addition to the Federal Tax credit, Massachusetts offers a state tax credit of 15% up to $1,000. Simply called the Massachusetts Solar Tax Credit, almost every system meets that cap, so expect that on your next state tax return!
Farming the sun for home grown clean energy is like growing your own vegetables in your garden, except solar don’t need to be watered! The results are guaranteed. Solar is a healthy life choice that saves you money.
All things considered, the cost of going solar in Massachusetts is the best it’s ever been. If you have the pocket change lying around, you can buy solar. If not, no problem. It’s possible to get into certain programs that have no out of pocket costs. Let us find out for you.
If we can get you solar right away, we’ll tell you. If anything else can be done, we’ll help you with that to. Let’s start with cleaning up your electricity.