Income tax credit for installing solar power in Massachusetts
Also known as ITC, the Federal income tax credit is available to Massachusetts residents and is equivalent to 30% of the total cost of your solar panel system. This clean energy credit can be claimed on your Federal Income Tax return. Tax credits help reduce the amount you owe in taxes. It is not a tax deduction, but a reduction in the taxable income on which the taxes are calculated. In Massachusetts, the ITC is typically around a $5,733 credit.
Solar Massachusetts Renewable Target (SMART) Program
The SMART Program provides a rebate for every kilowatt-hour you produce with your solar power system. This rebate program is an ongoing benefit that can help pay off your solar equipment and maximize your return on investment (ROI).
There is a mandate in Massachusetts called net metering that ensures that you will get a credit for every kilowatt-hour of energy you send to the grid at the retail rate for every kilowatt-hour you pull from the grid. This is a huge benefit for any solar customer. In Massachusetts it is especially crucial because the electricity rates are nearly double the national average. The Massachusetts net metering policy helps you to minimize your electric bills and maximize your savings.
Installing Solar Power in Massachusetts: A tax exemption
Massachusetts exempts you from having to pay MA state sales tax on solar power photovoltaic (PV) equipment and installation. This is a significant savings in real dollars.
Increase your home resale value by installing solar power
An important benefit to consider when thinking about going solar is the increase in your home’s resale value. According to research conducted by Zillow, the average home in the US becomes about 4.1% more valuable with the addition of a solar power system.
Home values vary widely across the United States, as do the increase in home values with the addition of solar power. Some locations show a higher value increase (5.4% for New York City), and some lower (2.7% for Riverside, CA), but the nationwide average, according to the Zillow study is 4.1%. The percentage of increase in home value depends, as well, on the size of the solar system installed. The larger the system, the higher the increase. People agree that installing solar panels will lead to the value of your home seeing an increase however.
How much can you save by installing solar power?
The EcoWatch Solar Calculator can help you ascertain how much you are likely to save if you install a PV Solar System. This easy-to-use tool not only estimates how much money you can save in your lifetime. If you go solar but it also lays out a recommended size and gives financing options and a timeline for your estimated return on investment.
Another benefit to consider
Not all benefits of going solar involve saving money. Solar power has a significant impact on the environment, reducing your dependence on fossil fuels and the utility company. When you install solar power, you will be helping to reduce pollution, emissions, global warming, and your carbon footprint.