- Federal Investment Tax Credit (FITC)
Businesses can recover 30% of the cost of their solar system through this tax credit.
- Modified Accelerated Cost-Recovery System (MACRS)
Businesses can recover solar investments through 5 year tax depreciation deductions. Solar systems built before January 1, 2018 can qualify for 50% bonus depreciation.
- Renewable Energy Property Tax Exemption
Value added to a property by a solar power system, for the purpose of heat or electricity needs, is 100% property tax exempt for 20 years.
- Renewable Energy Equipment Sales Tax Exemption
All equipment involved in your solar system is exempt from sales tax.
- Solar Renewable Energy Certificates (SRECs)
Massachusetts Class I utilities are required to produce 15% of their electricity through renewable sources by the end of 2016, and that rate is due to increase 1% every year. To meet these standards, they buy SRECs or certificates for 1 MWh of renewable energy production, from solar energy producers. SRECs can currently be sold in the range of $250.
- Net Metering
Solar business owners will be paid at a rate slightly less than utility retail electricity for excess energy produced and put back on the grid. Caps are allocated for large systems. More info can be found here.