Federal, State, and local governments understand the importance of sustainable energy and the high costs associated with traditional methods. Utility companies can’t afford to maintain their infrastructure costs as homes use more and more power. That’s why, in most cases, utility and tax incentives can save customers well over 50% on the cost of energy.*
*Ask your representative about which incentives you're eligible to receive. Please consult a tax advisor on your ability to claim these nonrefundable tax credits.
The Solar Massachusetts Renewable Target (SMART) program is a new solar incentive for residential and commercial solar projects in MA. With the installation of a new solar system, you will receive a monthly incentive directly from utilities for 10 years. The monthly incentive amount varies based on the production of your system and the block the payments are in. Example: If your system produces 800kwH per month, your incentive payment would be 800kwh x $.09/kwh = $72 per month. Overall, your total 10-year incentive value would be between $3,000-$8,000.
The solar investment tax credit (ITC) is a reduction of the income taxes that a person or company claiming the credit would otherwise pay the federal government. The tax credit is 22% of the homeowner's cost to install solar on purchases and installations performed in 2021. On leased systems, SunPower collects this incentive and passes the savings on to the homeowner! Hurry and take advantage of the ITC while it lasts, as this credit is scheduled to completely phase out by 2022.
Massachusetts state offers a 5% tax credit off the net costs of your solar system, up to a maximum of $1,000.
Installing solar panels on your home increases value up to 20 times your annual energy bill savings. We think you shouldn’t be penalized for that and many state legislators agree!
In addition to the property tax exemption, you’ll pay no sales tax on your new solar system.
INCREASE HOME VALUE
Having a residential solar energy system on your property is known as a capital improvement which adds to your property’s value. This means that you can potentially sell your home faster and for more than homes without solar. Your investment in efficient, clean solar power also adds to the tax basis of your home. If you sell the home, this tax basis investment can be deducted from the sales price, reducing the amount of the price counted as profit. This reduces the taxes taken from the sale and may be able to help you avoid capital gains taxes on appreciation.