Rebates and Incentives

Commercial customers can expect 45-80% of the system paid for by State and Federal rebates and tax incentives with payback periods designed to be 6 years.

The Commonwealth Solar Initiative provides commercial projects up to 500 KW with a graduated rebate schedule.  The rebate schedule is structured such that combined with the 30% Federal Business Energy Tax Credit and accelerated depreciation deductions using the Modified Accelerated Cost Recovery System (MACRS), payback periods of 6 years can be realized.

Most businesses will see 6-9 year paybacks.  This is based on the often cited 3% annual increase in electricity prices whereas the last two years have seen 9% annual increases  - so payback periods could be significantly less as increases in energy prices accelerate.

Please give us a call if you are considering a commercial solar electric system from 5 - 500 KWs. NorthEast Solar can support your accountant in determining income tax credits, accelerated depreciation, and other incentives available to your business.   A complete guide to Federal tax incentives for solar is produced by the Solar Energy Industries Association - the Guide To Federal Tax Incentives for Solar Energy.  Email us for a copy.  For the 2009 tax year see:  http://www.seia.org/cs/american_recovery_and_reinvestment_act )

Agricultural:

Residential:

The timing couldn’t be better for you to consider installing a solar electric system for your home.

Residential customers in Massachusetts can get from 30-82% of the system paid for by a combination of State Rebates and State and Federal Tax credits!

Six Ways You Save:

1) Massachusetts State rebates – see the rebate chart below or go to Commonwealth Solar Initiative website.

2) State Income Tax Credit - (15% or $1000 of post rebate cost whichever is less)

3) Federal Income Tax Credit -  (30% of post rebate, post state tax cost)

4) Net Metering - Every KWH your solar system generates reduces your bill by the full retail rate whether sold back to the utility or used on-site.

5) Selling back your “renewable energy credits” or "RECS"

Earn Solar Renewable Energy Certificates (“SRECs”) through participation in the newly launched RPS Solar Carve-Out, managed by the Department of Energy Resources (DOER).  DOER has developed a price support mechanism for SRECs, referred to as the Solar Credit Clearinghouse, to facilitate solar project development and financing in the SREC market. As with RPS Class I RECs, SRECs will be traded on the New England Generation Information System.

6) Also there is no sales tax on residential renewable energy equipment in MA and your system is exempt from local property taxes in MA.


For a complete Database of State Incentives for Renewables and Efficiency click here.


How to figure your Commonwealth Solar Rebate Level:

Start with the base and add the appropriate cumulative "adders". 

So if you qualify for all of them you would get $2.10/watt.

The maximum rebate is based on a 5,000-Watt solar array and, depending on your eligibility, is either $5,500 or $10,500. This rebate will cover 15% or 30% of the 5,000-Watt system cost. (and don't forget there is also a 30% Federal tax credit and a $1,000 Massachusetts tax credit.)

A 5,000-Watt system will generate 6,000 kilowatt-hours per year - roughly 50-75% of a typical home's electrical usage. Depending on your electrical rates, 6,000 kilowatt-hours will lower your electric bill by $900 to $1,200 per year.

You'll also be able to generate income by selling your Solar Renewable Energy Credits (SRECs). The SRECs for a 5,000-Watt system are worth AT LEAST $1,500 per year for the next 10 years.

With electricity savings and SREC sales, you can expect a 9-11% annual return on your investment in solar!

NorthEast Solar will help you get the most you can from the rebates and incentives available to you. We will take care of all the application and utility paperwork.