Massachusetts Solar Power in Massachusetts
Not sure if solar is right for you? Incentives for solar power in Massachusetts have never been better — it’s hard to find a better investment. Contact an All Energy Solar consultant to see what incentives are available in your area. Our team of dedicated professionals is waiting to assist you with every aspect of your solar energy project, from initial site visit and permitting to incentive paperwork and complete installation.
All Energy Solar Solutions in Massachusetts
All Energy Solar offers a range of financing solutions, allowing you to pick the one that fits your situation. You also don’t have to worry about dealing with any of the hassle of financing because we do all of the legwork for you.
Whether you want to buy your system outright or pay nothing upfront and pay a monthly bill that’s less than your current electric bill (or something in between), we will explain your options and help you find the one that meets your needs.
Regardless of how you buy your system, you can be confident of two things:
1. You are going to make money off of your solar system.
2. You are helping to make MA, the U.S., and the world a more sustainable place to live.
Every home and business in Massachusetts should have solar panels installed. With the federal tax credit, SRECs, and electric savings, the average payback on solar panel installation is about 5-7 years. Given the 30+ year life of the system, this investment is one of the safest ones you can make.
In addition to the financial benefits, solar is one piece of the larger puzzle of restoring air quality and fighting climate change. With the installation of solar panels for your home or business, you also get monitoring software that allows you to monitor your current usage and production, and tells us immediately if there are any problems with your system. The software also shows you how much coal you’ve offset and how many trees you’ve saved by using solar instead of fossil fuels.
Want to see the install process? Check out this time lapse:
Massachusetts Solar Incentives
Solar Renewable Energy Credit (SREC) Program
- Average system size SREC (Solar Renewable Energy Credit) value per year:
Massachusetts Income Tax Credit
15% Tax Credit | Maximum incentive of $1,000
Federal Solar Incentives
Federal Income Tax Credit
Available to any property owner in the United States.
Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property applies to solar-electric systems and several other renewable energy technologies. The Consolidated Appropriations Act, signed in December 2015, extended the expiration date for PV technologies, and introduced a gradual step down in the credit value for these technologies.
Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home.
The maximum allowable credit, equipment requirements and other details vary by placed in service date, as outlined below.
Solar-electric property tax credit step down schedule
- 30% for all systems placed in service by 12/31/2019
- 26% for systems placed in service after 12/31/2019 and before 01/01/2021
- 22% for systems placed in service after 12/31/2020 and before 01/01/2022
- There is no maximum credit for systems placed in service after 2008.
- Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2021.
- The home served by the system does not have to be the taxpayer’s principal residence.
If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The form that you will need to complete in order to file for the federal tax credit is Form 5695. It is to be filed in conjunction with your Federal Income Tax Return. This form can be found at www.irs.gov.
Additional Solar Incentives for Business Owners
Available to any business in the United States.
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in PV through depreciation deductions. A solar PV system is classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A) to define eligible property.
USDA Rural Energy for America Program (REAP) Grants
Available for rural customers, as defined by the USDA.
The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to install solar PV systems. The maximum funding available is 25% of system cost, and each businesses total incentive will be determined based on a business level feasibility study.
Ready to talk about your solar energy system possibilities? Contact us to get a free solar quote.