Solar-energy incentives and regulations new in 2011 have made Massachusetts a leading solar development market in the United States.
FEDERAL SOLAR INVESTMENT TAX CREDIT (ITC)
Through the solar investment tax credit, owners of solar property are eligible for a tax credit equal to 30% of the cost of the solar property, reducing tax liability for businesses that purchase solar-panel systems.
SOLAR RENEWABLE ENERGY CREDITS (SRECs)
The Department of Energy Resources implemented an SREC market as a means for utility companies to comply with states’ Renewable Energy Standards. This program offers a production incentive for businesses to install commercial solar panel systems.
For every megawatt hour (1,000 kilowatt hours) of electricity produced by alternative energy sources, participants earn one SREC which is then sold to utility companies who need them to meet RES mandates. For Compliance Year 2013, the Massachusetts SREC market has mechanisms in place that allow for a minimum SREC price of $285 (available for 7 more years) and a maximum of $550. This is the equivalent of earning back between 28.5 and 55 cents per kilowatt hour of renewable energy generated.