Massachusetts residents may be interested in the many tax incentives available for installing solar power. Section 1603 grants are available for installations made before December 31, 2011. This program is also called SREC and lets you earn money from selling the solar energy 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 residents can get tax credits to help make their solar investment more affordable. The Solar Massachusetts Renewable Target (SMART), a state program that provides incentives to homeowners who install solar panels in their homes, is offered by the government. This program offers monthly payments to customers who install solar panels in their homes. The program is sponsored among other utilities by Eversource, the Massachusetts Department of Energy Resources and DOER. The program's goal is to produce at least 3200 megawatts of solar power in Massachusetts. In order to be eligible, you must connect your system to one of the state's three investor-owned utilities. Every utility has its own requirements and rebate amounts.
Massachusetts also offers Solar Power Performance Payments, which are also known as production incentives. These payments offer small cash amounts that are dependent on the actual performance and efficiency of your renewable energy system. This is more efficient than paying for the system's rated power. This means that you can get credit to generate electricity, which will make the solar PV system financially viable.
Property tax exemptions
Massachusetts property tax exemptions can be a great way homeowners to save money and reduce their tax bills. To qualify, you must own your home for at most one 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.
If you own taxable personal property, you must file a Form of List with the local board of assessors. This form must filed by March 1 prior the beginning of the fiscal years. You must also file a Form of List if you own furnishings and effects and if you are a charitable organization.
The Massachusetts National Guard or Reserve might be eligible for tax exemptions on real and personal property. Hingham (MA) recently approved a program for reducing taxes for veterans, military personnel, and their families. Contact your local assessor for more information. Veteran Veterans may also be eligible for a $1,500 abatement in real and personal property taxes.
State solar incentive program
The Massachusetts state-sponsored solar incentive program (SMART), recently was expanded to include additional customers in low-income communities. Incentives are offered based on solar panel production per kWh. Customers can expect rebates of 20-35% depending on their utility's solar production.
This program supports the creation of 1.6 GW more solar power capacity in Massachusetts. Eight 200-MW sequential tariffs have been set up by the state. They are available on a first come, first served basis. Accordingly, the sooner you sign your solar energy system contract the greater the reimbursement. Massachusetts's average SMART payment for solar energy systems is $950 annually.
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. The program offers a spreadsheet tool to calculate incentives. It also requires that solar projects have a net-metering policy. In Massachusetts, if a solar project generates less than 60 kW, the utility will compensate the homeowner for that amount by offering a discount on the retail rate of energy.