Congratulations – you live in a state that has one of the most exciting (and lucrative!) solar electric financing programs in the country. In addition to the 30% federal tax credit, Massachusetts offers a $0.40/W incentive, a $1,000 state tax credit, and Solar Renewable Energy Credits (SRECs). When combined, you can install a photovoltaic (PV) array on your property that can pay for itself in less than 4 years! Plus, with an appropriately sized array, you won’t have to pay an electric bill ever again!
The HEAT Loan Program provides customers the opportunity to apply for a 0% loan from participating lenders to assist with the installation of qualified energy efficient improvements in their homes. The loans are available up to $25,000 (depending on utility) with terms up to 7 years. To qualify for the loan, the customer must own a one-to-four-family residence, obtain a Mass Save Home Energy Assessment, and install qualified energy efficiency measures recommended by a Mass Save representative. Start by contacting Mass Save at the link in this section heading to schedule your free energy audit!
SRECs are salable credits generated by the creation of solar electricity. You produce more than 1 SREC for every 1kW of PV that you install. The average New England home uses about 6,000 kWh of electricity every year, so you would need a 5 kW system to cover that (smaller systems are eligible!).
ReKnew has an exclusive relationship in the SREC market that could allow you to get an average of $400/SREC over 10 years. For a 5 kW system (about 6 SRECs) that’s $2,400 per year and $24,000 over a decade, cash in hand!
One more thing – your system is warranted for power for 25 years. If you’re under a standard residential electric rate, you pay about 15 cents/kWh for electricity right now. This 5 kW system will save you about $1,000 per year! With net metering, there’s no more electric bill! Over the 25 year warranted life of your array, that’s $35,000 you’ll save (includes inflation).
So, to summarize . . .
$24,000 = Sale of SRECs (estimate only for first 10 years worth of sales)
$35,000 = Value of saved electricity cost (-$18,625) = Net cost of 5 kW system.
$40,375 = Your total profit over 25 years!
More about SRECs
The Massachusetts SREC market was authorized by the State Department of Energy Resources (DOER) to begin operating January 2010. Massachusetts requires that its utilities meet Renewable Portfolio Standards (RPS) by either generating their own solar electricity or by purchasing SRECs. By law, SRECs are worth between $285 – $550. They are either traded or sold at auction by aggregators. DOER developed the SREC program to promote sustainable solar growth in MA, and they project the current SREC trading program to be active through about 2030. Our examples below will only show a 10 year projection to be conservative, but you may continue to produce and sell SRECs for the duration of the SREC program.
1 SREC = 1 MWhr of electric production = 1,000 kWhr of electric production
1 kW installed PV = about 1,200 kWhr of electric production per year = 1.2 SRECs per year
5 kW installed PV = 6 SRECs per year
The smallest possible trade is 1 SREC which must be generated within 1 year (no fractional SRECs can be sold), so the smallest eligible PV system size is about 1 kW. Small systems (1kW-3kW) are very affordable, are still be eligible for state and federal tax credits, and can be scaled up over time.
Tax credits are available at 30% of the cost of the solar energy system, with no upper limit through 2016 (for existing homes & new construction). If your tax liability is small you can take the credit every year until it is gone or until 2016.
A personal tax credit is available at 15% of the cost of the solar energy system (after federal tax credits and grants) up to $1,000. The credit can be carried forward for 3 years.
A new block of funding will open January 2012. Schedule your site visit now so your rebate application can enter the queue before it’s full!
The Massachusetts state rebate (up to $2,000 per residence) is available to electricity customers served by the following Massachusetts investor-owned electric utilities: Fitchburg Gas and Electric Light (Unitil), National Grid, NSTAR Electric and Western Massachusetts Electric. In addition, customers of certain municipal lighting plant (MLP) utilities are now eligible. PV systems can be sized up to 15 kW, but the rebate is capped at 5 kW. Massachusetts gives a 100% sales tax exemption for the purchase of a renewable energy system.
Base incentive: $0.40/watt
Adder for Massachusetts company components: $0.05/watt
Adder for moderate home value: $0.40/watt OR adder for moderate income: $0.40/watt
Adder for natural disaster relief: $1.00/watt
The DSIRE website will give you access to Massachusetts state solar energy incentives as well as the state’s rules, regulations, and policies related to renewable energy.
Solar Hot Water
The Massachusetts state rebate (up to $3,500 per residence or 25% of total project cost) is available to electricity customers served by the following Massachusetts investor-owned electric utilities: Fitchburg Gas and Electric Light (Unitil), National Grid, NSTAR Electric and Western Massachusetts Electric. In addition, customers of certain municipal lighting plant (MLP) utilities are now eligible. Only residents that live in territories that contribute to the MassCEC Renewable Energy Trust Fund are eligible for the rebate. The building must be occupied year-round. Any fuel may be used as a backup to the solar water heater. Pool heaters do not qualify for this rebate; however, space heating and combination systems do qualify.
$25*SRCC rating in kbtu/panel/day (Category C, Mildly Cloudy Day)
Residents can receive an additional $200 if the system includes parts that are manufactured in Massachusetts.
Ask how you can receive $1000 toward a monitoring system!
Massachusetts gives a 100% sales tax exemption for the purchase of a renewable energy system.
Residential only. Maximum allowable incentive of $5,000 per installation.
$2.50 per watt
Concord Municipal Light Solar Rebate Program
Residential or commercial. Maximum allowable incentive of $3,125 per installation.
$625 per kW (AC)
Ipswich Municipal Electric – MUNI HELPS Rebate
Residential or commercial. Maximum allowable incentive of $10,000
$3/watt Base
$0.50/watt MA Component Adder
Marblehead Municipal Light Solar Rebate Program
Marblehead Municipal Light Department is not required to contribute to the MA Renewable Energy Trust, and therefore its customers are not eligible to receive rebates through the state rebate program. Marblehead decided to offer the same incentive levels to its eligible customers (see PV State Rebate above).
South Hadley Electric Light Department
Residential only. Apparently no limit for PV, and $3,500 or 25% of system cost limit for SHW.
PV - $1.50/watt Base and $0.50 for US Made equipment
SHW – $25/collector * SRCCrating (kbtu/collector/day –Category C, Mildly Cloudy Day) and $200/system for US Made equipment
Taunton Municipal Light Solar Rebate Program
Residential only. Maximum allowable incentive of $5,000 per installation.
All agricultural producers, including farmers and ranchers, who gain 50% or more of their gross income from the agricultural operations are eligible for these grants and loans.
REAP Grants
These grants for renewable energy systems range from $2,500 up to $500,000 or 25% of the total project cost.
REAP Feasibility Grants
These grants cover energy audits and feasibility studies for renewable energy systems and can be as much as $50,000 or 25% of the total cost.
REAP Loans
Loans range from $5,000 up to $25 million or 75% of the total project cost.
This interactive Clean Energy Guide Book is provided by the Vermont Public Interest Group, but it is a good resource for understanding federal incentives regardless of where you live. This guide book also compiles other funding opportunities available throughout New England (see the “Foundations” section).
Please contact us for assistance with any of the above information. We are happy to help you understand which incentives are available to you and where to find more information. The information on this page is not tax advice; please seek professional advice from a qualified tax advisor before claiming any tax benefits or exemptions.
Incentives to Go Solar in Massachusetts
Congratulations – you live in a state that has one of the most exciting (and lucrative!) solar electric financing programs in the country. In addition to the 30% federal tax credit, Massachusetts offers a $0.40/W incentive, a $1,000 state tax credit, and Solar Renewable Energy Credits (SRECs). When combined, you can install a photovoltaic (PV) array on your property that can pay for itself in less than 4 years! Plus, with an appropriately sized array, you won’t have to pay an electric bill ever again!
Financing Your Project
Zero Interest Loan for Solar Hot Water
The HEAT Loan Program provides customers the opportunity to apply for a 0% loan from participating lenders to assist with the installation of qualified energy efficient improvements in their homes. The loans are available up to $25,000 (depending on utility) with terms up to 7 years. To qualify for the loan, the customer must own a one-to-four-family residence, obtain a Mass Save Home Energy Assessment, and install qualified energy efficiency measures recommended by a Mass Save representative. Start by contacting Mass Save at the link in this section heading to schedule your free energy audit!
Solar Renewable Energy Credits (SRECs)
SRECs are salable credits generated by the creation of solar electricity. You produce more than 1 SREC for every 1kW of PV that you install. The average New England home uses about 6,000 kWh of electricity every year, so you would need a 5 kW system to cover that (smaller systems are eligible!).
ReKnew has an exclusive relationship in the SREC market that could allow you to get an average of $400/SREC over 10 years. For a 5 kW system (about 6 SRECs) that’s $2,400 per year and $24,000 over a decade, cash in hand!
One more thing – your system is warranted for power for 25 years. If you’re under a standard residential electric rate, you pay about 15 cents/kWh for electricity right now. This 5 kW system will save you about $1,000 per year! With net metering, there’s no more electric bill! Over the 25 year warranted life of your array, that’s $35,000 you’ll save (includes inflation).
So, to summarize . . .
$24,000 = Sale of SRECs (estimate only for first 10 years worth of sales)
$35,000 = Value of saved electricity cost
(-$18,625) = Net cost of 5 kW system.
$40,375 = Your total profit over 25 years!
More about SRECs
The Massachusetts SREC market was authorized by the State Department of Energy Resources (DOER) to begin operating January 2010. Massachusetts requires that its utilities meet Renewable Portfolio Standards (RPS) by either generating their own solar electricity or by purchasing SRECs. By law, SRECs are worth between $285 – $550. They are either traded or sold at auction by aggregators. DOER developed the SREC program to promote sustainable solar growth in MA, and they project the current SREC trading program to be active through about 2030. Our examples below will only show a 10 year projection to be conservative, but you may continue to produce and sell SRECs for the duration of the SREC program.
1 SREC = 1 MWhr of electric production = 1,000 kWhr of electric production
1 kW installed PV = about 1,200 kWhr of electric production per year = 1.2 SRECs per year
5 kW installed PV = 6 SRECs per year
The smallest possible trade is 1 SREC which must be generated within 1 year (no fractional SRECs can be sold), so the smallest eligible PV system size is about 1 kW. Small systems (1kW-3kW) are very affordable, are still be eligible for state and federal tax credits, and can be scaled up over time.
Federal Renewable Energy Residential Tax Credit
Tax credits are available at 30% of the cost of the solar energy system, with no upper limit through 2016 (for existing homes & new construction). If your tax liability is small you can take the credit every year until it is gone or until 2016.
State Tax Credit
A personal tax credit is available at 15% of the cost of the solar energy system (after federal tax credits and grants) up to $1,000. The credit can be carried forward for 3 years.
State Rebates
PV Electric
A new block of funding will open January 2012. Schedule your site visit now so your rebate application can enter the queue before it’s full!
The Massachusetts state rebate (up to $2,000 per residence) is available to electricity customers served by the following Massachusetts investor-owned electric utilities: Fitchburg Gas and Electric Light (Unitil), National Grid, NSTAR Electric and Western Massachusetts Electric. In addition, customers of certain municipal lighting plant (MLP) utilities are now eligible. PV systems can be sized up to 15 kW, but the rebate is capped at 5 kW. Massachusetts gives a 100% sales tax exemption for the purchase of a renewable energy system.
The DSIRE website will give you access to Massachusetts state solar energy incentives as well as the state’s rules, regulations, and policies related to renewable energy.
Solar Hot Water
The Massachusetts state rebate (up to $3,500 per residence or 25% of total project cost) is available to electricity customers served by the following Massachusetts investor-owned electric utilities: Fitchburg Gas and Electric Light (Unitil), National Grid, NSTAR Electric and Western Massachusetts Electric. In addition, customers of certain municipal lighting plant (MLP) utilities are now eligible. Only residents that live in territories that contribute to the MassCEC Renewable Energy Trust Fund are eligible for the rebate. The building must be occupied year-round. Any fuel may be used as a backup to the solar water heater. Pool heaters do not qualify for this rebate; however, space heating and combination systems do qualify.
Massachusetts gives a 100% sales tax exemption for the purchase of a renewable energy system.
Utility Incentives
The following utilities offer solar incentives:
Chicopee Electric Light Solar Rebate Program
Residential only. Maximum allowable incentive of $5,000 per installation.
Concord Municipal Light Solar Rebate Program
Residential or commercial. Maximum allowable incentive of $3,125 per installation.
Ipswich Municipal Electric – MUNI HELPS Rebate
Residential or commercial. Maximum allowable incentive of $10,000
Marblehead Municipal Light Solar Rebate Program
Marblehead Municipal Light Department is not required to contribute to the MA Renewable Energy Trust, and therefore its customers are not eligible to receive rebates through the state rebate program. Marblehead decided to offer the same incentive levels to its eligible customers (see PV State Rebate above).
South Hadley Electric Light Department
Residential only. Apparently no limit for PV, and $3,500 or 25% of system cost limit for SHW.
Taunton Municipal Light Solar Rebate Program
Residential only. Maximum allowable incentive of $5,000 per installation.
Other Possibilities
USDA Grants and Loans
All agricultural producers, including farmers and ranchers, who gain 50% or more of their gross income from the agricultural operations are eligible for these grants and loans.
REAP Grants
These grants for renewable energy systems range from $2,500 up to $500,000 or 25% of the total project cost.
REAP Feasibility Grants
These grants cover energy audits and feasibility studies for renewable energy systems and can be as much as $50,000 or 25% of the total cost.
REAP Loans
Loans range from $5,000 up to $25 million or 75% of the total project cost.
Other Resources
Resources for residences in any state:
This interactive Clean Energy Guide Book is provided by the Vermont Public Interest Group, but it is a good resource for understanding federal incentives regardless of where you live. This guide book also compiles other funding opportunities available throughout New England (see the “Foundations” section).
Please contact us for assistance with any of the above information. We are happy to help you understand which incentives are available to you and where to find more information. The information on this page is not tax advice; please seek professional advice from a qualified tax advisor before claiming any tax benefits or exemptions.