Ranked 3rd in the country with an average 18% return on investment.
The Federal Tax Credit for Solar
The ITC, or the federal income tax credit for solar, is calculated to cover 30% of your installation cost. This amount is uncapped, and is a pure credit. There are no requirements or restrictions in qualifying for this credit. It applies to all grid-tied solar electric systems. You fill out the appropriate form on your federal tax return, and you’ll get your money as a refund. If you do not owe enough taxes to cover the full tax refund amount, you can roll over your credit to the following year and for the next 5 years.
Commonwealth Solar Program
The current Massachusetts grant is $.40 per watt for the first 5 kW of installed capacity capped at $2,000. Solar installations greater than 15kW in size are not eligible.
Addiitonally, Massachusetts system owners with moderate income or home values are eligible for an additional $.40 per watt grant adder ($.80 per watt total grant). This is a need based grant. To qualify you must meet one of the following requirements:
Moderate Home Value — The most recent assessed home value of your primary residence must be less than or equal to the value established for your county.
Berkshire, Franklin, Hampden, and Hampshire: ≤ $300,000
Bristol, Suffolk, and Worcester: ≤ $350,000
Barnstable, Duke, Essex, Middlesex, Nantucket, Norfolk, and Plymouth: ≤ $400,000
Moderate Income — Your gross household income in your most recent IRS filing must be less than or equal to the values established.
Single-Person Households: ≤ $75,810 (120% of median household income)
Multiple Person Households: ≤ $95,420 (120% of median family income)
Residential State Income Tax Credit
A personal income tax credit equal to 15% of your total costs capped at $1,000.
Massechusetts Solar Renewable Energy Certificates (SRECs)
Massechusetts residents receive SRECs for their electrical production. SRECs are sold to utility companies annually. One credit is issued for each 1,000 kilowatt hours your solar panels generate. You can sell these SRECs yourself of have them sold through a broker.