Massachusetts residents may be interested in the many tax incentives available for installing solar power. The first is Section 1603 grant for installations completed before December 31, 2011. You can make money selling the solar energy produced by this program, also known as SREC. The system can be paid off within five to six months and you will still earn income over the lifetime of it.
Tax credits
Massachusetts residents can get tax credits to help make their solar investment more affordable. The state government offers a program called the Solar Massachusetts Renewable Target (SMART) that offers incentives for installing solar panels on residential buildings. Customers who have solar panels installed in their homes will receive monthly payments. The program is sponsored, among others by Eversource and Massachusetts Department of Energy Resources. The program aims to produce at most 3,200 megawatts solar energy in the state. 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 Pays, also known to be production incentives. These payments are small cash sums that are based on your actual renewable energy system's performance. This is more efficient than paying for the system's rated power. This means that you can get credit to generate electricity, which will make the solar PV system financially viable.
Exemptions from the property tax
Property tax exemptions in Massachusetts are a great way for homeowners to save money on their tax bills. You must have lived in your home at least 1 year. There are exemptions offered by some towns and cities, but they may not be available to all homeowners. The specific requirements for receiving an exemption vary by municipality and tax collection period.
If you possess taxable personal assets, you must file the Form of List with your local board of appraisers. This form must be submitted no later that March 1st, prior to the start or end of the fiscal calendar year. A Form of List must be filed if you have any furnishings or effects.
If you are a member of the Massachusetts National Guard or Reserve, you may qualify for a tax exemption on your real and personal property. Hingham, MA approved recently a program to decrease taxes for veterans and military members. For more information 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 solar incentive program (SMART), was recently extended to include customers from low-income areas. This program offers incentives based upon the amount of solar panel generation per kWh. Customers can expect to receive rebates on 20 to 35% of their total solar production, depending on their utility.
This program encourages Massachusetts' addition of 1.6GW of solar power. The state has created eight 200-MW sequential tariffs. These are given on a first-come basis. The reimbursement for solar energy systems is determined by when you sign the contract. Massachusetts averages $950 per annum in SMART payments to solar energy 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 also requires solar projects to have a net metering policy. Massachusetts law allows solar projects to generate less than 60kW. If the utility receives this amount, it will pay the homeowner a discount on their retail energy rates.