If you live in Massachusetts, then you should know that you can take advantage of many tax incentives to install solar power. Section 1603 grants are available for installations made before December 31, 2011. This program is also called SREC and lets you earn money from selling the solar energy you produce. Your system can be fully funded in approximately five to 6 years. You will also continue to receive income through it over its life.
Tax credits
Massachusetts tax credits can make it more affordable to invest in solar energy. The Solar Massachusetts Renewable Target (SMART), a state program that provides incentives to homeowners who install solar panels in their homes, is offered by the government. Customers who install solar panel systems in their homes are eligible for monthly payments. The program is sponsored, among others by Eversource and Massachusetts Department of Energy Resources. The goal of the program to generate at least 3,200 Megawatts of solar electricity in the state is the ultimate goal. Your system must be connected with one of three investor-owned utilities to be eligible. Every utility has its own requirements and rebate amounts.
Massachusetts also offers Solar Power Performance Payments, which are also known as production incentives. These payments provide small cash amounts based on the actual performance of your renewable energy system. This is a better option than paying according to the system's rated capacity. You can also get credit for electricity produced, which will help make your solar PV system profitable.
Property tax exemptions
Massachusetts property tax exemptions are a great way to save money on your taxes. To qualify, you must have owned your home for at least one year. Some towns and cities offer exemptions. Not all homeowners are eligible. Specific requirements for exemptions vary depending on which municipality you are in and what tax collection period you are.
If you own taxable personal property, you must file a Form of List with the local board of assessors. This form must not be filed after March 1, the first day of each fiscal year. A Form of List must also be filed if there are any personal furnishings or effects you possess, as well as if it is for a charitable organization.
You may be eligible for a tax exemption on both your personal and real property if you are a member or reserve of the Massachusetts National Guard or Reserve. Hingham, MA, recently approved a program to reduce taxes for military members and veterans. For more information, please contact your local assessor. Veteran Veterans may also be eligible for a $1,500 abatement in real and personal property taxes.
State solar incentive program
The Massachusetts state-sponsored solar incentive program (SMART), recently was expanded to include additional customers in low-income communities. The program provides incentives based on per-kWh generation from solar panels. Customers will receive rebates up to 35% on their total solar production depending on the utility.
This program promotes Massachusetts' 1.6 GW increase in solar power. Eight 200-MW sequential tariffs have been set up by the state. They are available on a first come, first served basis. Therefore, the sooner you sign a contract for a solar energy system, the more reimbursement you will receive. Massachusetts has an average of $950 per year in SMART payments for solar power systems.
The SMART program, a complex set of incentives, is designed to help solar projects achieve energy equity, distributed generation, reliability, and other goals. You can use the spreadsheet tool provided by the program to calculate incentives. The program requires solar projects to follow a net metering strategy. In Massachusetts, if a solar project generates less than 60 kW, the utility will compensate the homeowner for that amount by offering a discount on the retail rate of energy.