Solar System Rebates and Incentives


free_financing_quote

Sign Up For Solar Updates

In some states, upfront rebates based on the size of the system or production incentives based on the amount of electricity generated are available to reduce the cost of owning a residential PV system. The rebates are usually expressed in dollar-per-watt terms and the production incentives on a per- kWh basis. 

Massachusetts Residential Solar Incentives

In Massachusetts, there are two kinds of financial incentives that can dramatically lower the price of your solar energy installation:

 1. There are “Solar Purchase Incentives” that reduce the upfront cost through the use of State and Federal Tax Credits and Rebates and Property and Sales Tax Exemptions.

2. There are also “Solar Production Incentives” that kick in once you turn your system on and actually create cash flow for up to 10 years from the sales of the SRECS (Solar Renewable Energy Credits).  Under the Massachusetts SREC Program, the homeowner will automatically own the SRECs associated with a PV system, and can receive compensation by selling the SRECs to an SREC aggregator.

Solar Purchase Incentives:

Federal Renewable Energy Tax Credit:

  • A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer.

  • Amount: 30% of gross cost at Installation, no cap

  • The home served by the system does not have to be the taxpayer’s principal residence.

  • Systems must be placed in service before December 31, 2016.

  • Homeowners may use the credit to offset their Federal tax liability.  If the tax credit exceeds the tax liability, the excess can be carried forward through 2016.

Massachusetts Renewable Energy Tax Credit:

  • Residential Renewable Energy Income Tax Credit

  • If a homeowner purchases a PV system, they can take a federal tax credit equivalent to 30% of the qualified installed costs of a residential PV system

  • Amount: 15% of net expenditure, $1,000 max

 Massachusetts Solar Rebate Program:

  • MassCEC – Commonwealth Solar II Rebates

  • Amount: $0.40 - $0.85 per watt DC, $4,250 max based upon 1st 5kW

  • Eligible System Size: 1kW to 15kW (DC), although the rebates will be based upon the first 5kW only.

Solar Production Incentives:

Solar Renewable Energy Certificates (SRECs) 

  • Massachusetts Department of Energy Resources (DOER)

  • As of January 2010 additional revenue can be made from PV systems by electing to sell SRECs.

  • 1000 kWh = 1 MWh = 1 SREC

  • SREC value =  $300/MWh to $550/MWh

  • An SREC is a certificate that represents all the positive environmental attributes of producing clean electricity generated from a solar electric system and is priced on a megawatt-hour (MWh) basis. Each time a solar system generates 1,000 kW hours (1 megawatt hour) of electricity, an SREC is issued which can then be sold or traded separately. 

  • In order to qualify for SRECs, projects must be in Massachusetts and must be grid-tied systems under 2 megawatts (DC).

  • Under the Massachusetts SREC Program, the homeowner will automatically own the SRECs associated with a PV system, and can receive compensation by selling the SRECs to an SREC aggregator.

  • The sale of SRECS on the SREC market is strictly regulated by the State of Massachusetts’ Division of Energy Resources through the Renewable Portfolio Standard

  • Solar generators will participate in this program via an “opt-in” agreement, which guarantees participation for a set number of years.  In 2012, the “opt-in” arrangement is for 40 quarters. 

  • There is not a definitive ruling if SREC income is taxable. Blue Selenium Solar strongly recommends that you speak to your tax accountant or lawyer for more information on tax implications.

 Massachusetts Net Metering

  • Net metering is open to customers of investor-owned utilities in Massachusetts. 

  • Municipal utilities are not mandated to offer net metering, but can do so voluntarily. 

  • Net metering allows customers to get credit for the full retail value of the electricity their solar electric system generates. 

  • Under this agreement, the customer’s electric meter tracks the surplus electricity generated by the solar electric system and the electricity that the customer consumes.  The customer is only billed for the net amount of electricity they use.

Other Tax Incentives and Exemptions: 

  • Massachusetts provides 100% property tax exemption for 20 years for solar energy systems that are used to generate electricity for a residence.

 Massachusetts State Sales Tax Exemption

  • Renewable Energy Property Tax Exemption

  • Massachusetts’ State law provides for a 100% sales tax exemption for a 20 year period for any equipment related to a solar electricity generation installed at a homeowner’s principal residence. 

Financing:

  • Blue Selenium Solar has partnered with a variety of financial lending institutions, and as a result can provide you a financing option that will best meet your needs.

  • Loans, Leases, and PPA’s (Power Purchase Agreements)

  • Energy-Efficiency Mortgages: Homeowners can use special FHA energy-efficiency mortgages to finance renewable energy systems in a new or existing home.

  • Please speak with a Blue Selenium Solar representative to learn more 

Federal and State-specific Solar Rebate information is available at http://dsireusa.org/

Please note: We at Blue Selenium Solar are experts on solar energy systems, not taxes, and we do not provide tax advice; you may want to consult a tax professional.

Blue Selenium Solar - Go GREEN with BLUE