Solar Tax Incentives
Incentives have always played a role in supporting the installation of solar energy. By reducing the cost of this desirable technology, more residents and businesses choose to install solar systems, which will bring down the cost of solar systems. Thanks to these incentives, the cost of solar is a fraction of what it was 10 years ago.
state and federal tax credits and exemptions
Solar electricity projects qualify for state and federal income tax credits. The Massachusetts residential income tax credit is capped at $1,000. The Federal income tax credit (residential and commercial) is 30% (uncapped) of qualified expenditures. A residential solar project at a person’s primary residence is sales tax exempt and exempt from local property taxation for 20 years in many towns.
Businesses that would normally depreciate a solar project over a 20 or 30-year lifespan have the opportunity to accelerate that depreciation. One, two, and five-year accelerated depreciation schedules are available to businesses that invest in solar today!
Solar Renewable Energy Certificates (SRECs)
PV system owners in Massachusetts have title to Solar Renewable Energy Certificates (SRECs), which have cash value attributable to the non-energy attributes of the PV system. SRECs are a way to incentivize solar projects on the annual efficiency and productivity of these systems. SRECs offer significant cash value to the most efficient and productive projects, and PV Squared can help you maximize those returns.
A comprehensive summary of current state and federal solar tax incentives can be found at www.dsireusa.org.
Any extra power your system generates is fed back into the grid, and your utility company is required to give you credit on your electricity bill at near-market rates.