Massachusetts residents will be pleased to know that they have many tax incentives for solar power installations. The first is Section 1603 grant for installations completed before December 31, 2011. You can make money selling the solar energy produced by this program, also known as SREC. Your system can be fully funded in approximately five to 6 years. You will also continue to receive income through it over its life.
Tax credits
Massachusetts homeowners can receive tax credits for installing solar panels, making the investment more affordable. Solar panel installations on residential properties are encouraged by the State of Massachusetts through a program called SMART (Solar Massachusetts Renewable Target). Customers who install solar panel systems in their homes are eligible for monthly payments. The program is sponsored by Eversource and the Massachusetts Department of Energy Resources (DOER), among other utility companies. The goal of the program to generate at least 3,200 Megawatts of solar electricity in the state is the ultimate goal. Your system must be connected with one of three investor-owned utilities to be eligible. 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 a more cost-effective way to pay than if you are paying for your system's capacity. This will allow you to get credit for the electricity that you produce. This will make your solar PV system more affordable.
Exemptions on property taxes
Property tax exemptions in Massachusetts are a great way for homeowners to save money on their tax bills. You must have lived in your home at least 1 year. 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.
A Form of List must be filed with your local board of assessors if you own any taxable personal property. This form must be submitted no later that March 1st, prior to the start or end of the fiscal calendar year. A Form of List is required if your furnishings and personal effects are included, and if your organization is charitable.
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 that reduces taxes for veterans and military personnel. For more information contact 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. The incentives are calculated per-kWh generated by solar panels. Customers may receive rebates on up to 35% of their total production, depending upon their utility.
This program promotes the addition of 1.6 GW of solar power capacity in Massachusetts. The state has eight 200-MW sequential tariff rates that are first-come-first-served. 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 system of incentives that is designed to steer the profile of solar projects towards energy equity, distributed generation, and reliability. 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.