New 2011 incentives and regulations have made Massachusetts a top solar market. The incentives that apply to Massachusetts businesses can be found below.

Federal Solar Investment Tax Credit

30% of the cost of the solar property as a tax credit.

Solar Renewable Energy Credits (SRECs)

The Department of Energy Resources has implemented an SREC market as a means for utility companies to comply with the states Renewable Energy Standard. This program offers a production incentive for homeowners and businesses to install solar systems.  For every megawatt hour (or 1,000 kwh’s) of electricity produced, participants earn one SREC which is then sold to utility companies that need them for RES mandates.  The Massachusetts SREC market has mechanisms in place that allow for a minimum SREC price of $285 (available for 10 years) and a maximum of $600. This is the equivalent of getting between 28.5 cents and 60 cents per kwh of electricity generated!

Accelerated and Bonus Depreciation

Under the federal Modified Accelerated Cost-Recovery System (MACRS), solar property can be depreciated over 5 years and if placed in service by 12/31/12, the allowable first-year deduction is 50% of the adjusted basis.  In the case of a 50% first year deduction, the remaining 50% of the adjusted basis of the property is depreciated over the ordinary MACRS depreciation schedule. Bonus depreciation can create a net operating loss that may be carried back to the two prior tax years and provide an immediate tax refund.  A net operating loss may also be carried forward 20 years.

Click here to see the other incentives available in Massachusetts.

New 2011 incentives and regulations have made Massachusetts a top solar market. The incentives that apply to Massachusetts homeowners can be found below.

Federal Solar Investment Tax Credit

30% of the cost of the solar property as a tax credit.

SREC’s (Solar Renewable Energy Credits)

The Department of Energy Resources has implemented an SREC market as a means for utility companies to comply with the states Renewable Energy Standard. This program offers a production incentive for homeowners and businesses to install solar systems.  For every megawatt hour (or 1,000 kwh’s) of electricity produced, participants earn one SREC which is then sold to utility companies that need them for RES mandates.  The Massachusetts SREC market has mechanisms in place that allow for a minimum SREC price of $285 and a maximum of $600. This is the equivalent of getting between 28.5 cents and 60 cents per kwh of electricity generated!

State Tax Credit

Massachusetts allows a 15% credit, up to $1,000, against the state income tax for the net expenditure of a renewable-energy system (including installation costs) installed on an individual’s primary residence.

Sales Tax Exemption

Massachusetts law exempts from the state’s sales tax “equipment directly relating to any solar, windpowered; or heat pump system, which is being utilized as a primary or auxiliary power system for the purpose of heating or otherwise supplying the energy needs of an individual’s principal residence in the commonwealth.”

Click here to see the other incentives available in Massachusetts.