Massachusetts residents will be pleased to know that they have many tax incentives for solar power installations. Section 1603 grants are available for installations made before December 31, 2011. This program, also known SREC, allows you to make money by selling the solar power you produce. You can pay off your system in about five to six years and earn income from it for the life of the system.
Tax credits
Massachusetts tax credits can make it more affordable to invest in solar energy. The Solar Massachusetts Renewable Target program (SMART), offered incentives for residential solar panel installation. Customers who install solar panel systems in their homes are eligible for monthly payments. The program is sponsored, among others by Eversource and Massachusetts Department of Energy Resources. The program aims to produce at most 3,200 megawatts solar energy in the state. To be eligible for the program, you will need to connect your system to one or more of the three state investor-owned utilities. There are different requirements for each utility and rebate amounts can vary.
Massachusetts also offers Solar Power Performance payments, also known as production incentives. These payments provide small cash amounts based on the actual performance of your renewable energy system. This is more efficient than paying for the system's rated power. This allows you to receive credit for the electricity you generate, which will make your solar system more profitable.
Property tax exemptions
Massachusetts homeowners have the opportunity to save money by getting property tax exemptions. You must be a homeowner for at least one calendar year to be eligible. There are exemptions offered by some towns and cities, but they may not be available to all homeowners. The specific requirements for receiving an exemption vary by municipality and tax collection period.
You must file a Form of List if you have taxable personal property. This form must filed by March 1 prior the beginning of the fiscal years. If you have your own furniture and effects, or if the charity you work for requires you to file a Form of List.
A tax exemption may be available for your personal and real assets if you are a Massachusetts National Guard or Reserve member. Hingham, MA, recently approved a program to reduce taxes for military members and veterans. Get more information from your local assessor. You may also qualify for an abatement of up to $1,500 in real or personal property taxes if you are a veteran.
State solar incentive program
The Massachusetts state's solar incentive program (SMART), has recently been extended to include lower-income customers. Incentives are based on the generation of solar panels per kWh. Customers can expect to receive rebates on 20 to 35% of their total solar production, depending on their utility.
The program encourages Massachusetts to add 1.6 GW solar power capacity. Eight 200-MW sequential tariffs have been set up by the state. They are available on a first come, first served basis. The reimbursement for solar energy systems is determined by when you sign the contract. Massachusetts averages about $950 in SMART payments per year for solar energy system.
The SMART Program is a complex program of incentives designed to guide solar projects towards energy equity and distributed generation. You can use the spreadsheet tool provided by the program to calculate incentives. The program requires solar projects to follow a net metering strategy. Massachusetts law provides that homeowners who have solar projects with less than 60 kW will be compensated by the utility by receiving a discount off their retail rate of energy.