MA Incentives for Residential Solar Electric (Photovoltaic) Systems
Massachusetts is one of the strongest states for solar electricity. Not only do we pay a premium for conventional power, but we have some of the deepest incentives and consumer protection regulations for solar system owners. In addition to reducing or eliminating your electric utility bill, there are three types of incentives to motivate homeowners to install photovoltaics: rebates, tax credits, and solar production incentives.
The Solarize Newburyport Rebate program, run by the Massachusetts Clean Energy Center issues rebates based on system size.
Massachusetts residents who install solar are eligible for both a federal 30% tax credit and a Massachusetts state $1000 tax credit. These are tax credits – not write-offs – meaning that for a $33,000 system, the owner would owe $10,000 less in federal and $1000 less in state taxes.
(This information is currently being updated; check back soon)
During the day, when your solar electric system generates more power than you use, you actually send electricity back to the utility, spinning your meter backwards. At night, when you use more electricity than you produce, your meter spins forward again. At the end of the month, your electric bill becomes the net difference between your production and your consumption. You will receive a financial credit if you produce more energy then you use in a given month. Check back for updates on the rate the utility will pay for excess energy production.
Indirect Return on Investment: Home Value
A nation-wide study published by the Appraisal Institute estimates that property value will increase for energy improvements. Also, the U.S. Department of Energy recently found that even in soft housing markets, a home with solar will sell in half the time as one without.
Newburyport has 100%, twenty-year property tax exemption for renewable energy systems, meaning a homeowner’s property taxes cannot be raised because of a new solar system.
A Massachusetts renewable energy sales tax exemption means customers do not pay sales tax on a solar system.
This information draws on data published by federal, state and local agencies. Updates to the federal and state financial incentives may change and therefore the statements above should be confirmed prior to contract signing.