Massachusetts is one of the top ten states in the U.S. for solar.1
Massachusetts solar panel price drop over the last five years.1
The Massachusetts Global Warming Solutions Act’s (GWSA) call for a cut in greenhouse gas (GHG) emissions below 1990 levels by 2050.2
Electricity rates in Massachusetts are more than 25% higher than the national average.3 But this isn’t the only reason why Bay Staters are choosing to team up with solar companies in Massachusetts like Sunrun to create and store their own solar power at home. Massachusetts also offers some of the most attractive solar incentive programs in the country.
Sunrun is the leading residential solar and energy storage company in the U.S.4 You can gain energy independence and lower your carbon footprint while ensuring you can receive Massachusetts’ full solar benefits.
|Federal Solar Investment Tax Credit (ITC)**||The 26% federal solar tax credit is available for purchased home solar systems installed by December 31, 2020.5|
|Residential Renewable Energy Income Tax Credit||The 15% state solar tax credit is available for purchased home solar systems in Massachusetts. (Max. $1,000 state tax reduction.)6|
|Solar Massachusetts Renewable Target (SMART) Program||Compensation per kilowatt-hour (kWh) produced by the system.7|
|Solar Installation Property Tax Exemption||Property tax exemption on the added home value from a home solar system.8|
|Home Solar Project Sales Tax Exemption||6.25% home solar system state sales tax exemption.9,10|
|Mass Solar Loan Program||Qualified low-income homeowners can get access to a low-interest loan to install home solar panels.11|
Buy and install new solar panels in Massachusetts in 2020, with or without battery storage, and qualify for the 26% federal tax credit. The residential ITC drops to 22% in 2021 and ends in 2022.5
Average-sized 5-kilowatt (kW) system cost in MA: $15,040 Approximate system cost after the 26% ITC in 2020 in MA: $11,13012
Purchase a new home solar system in Massachusetts and get a 15% credit of the final cost of your solar installation against your personal income taxes. This is limited to a $1,000 state tax reduction.6
Any excess credit amount can be carried over to your personal income taxes for up to three years.6
Eligible homeowners can receive payments from their utility company in Massachusetts for every kilowatt-hour (kWh) of solar power they create for ten years.7
In other states, these credits are known as Solar Renewable Energy Credits (SRECs).
When you purchase a new solar system in Massachusetts, you won’t pay any sales tax.9
The exemption is for 100% of the sales tax of your new home solar project. This can save you 6.25% right off the bat.10
Eligible low-income homeowners can have access to a low-interest loan to finance a PV system.11
This program is administered in partnership between the Massachusetts Department of Energy Resources (DOER) and the Massachusetts Clean Energy Center (MassCEC).11
Installing solar is an investment for today, next year and the long term. If you’re considering buying a home solar system, act today for a big tax incentive.
*Customer’s ability to monetize rebates, incentives and tax credits depends on several factors, including, without limitation, continued state subsidization of these policies, the applicable Sunrun product type and whether a customer purchases or leases a home solar system from Sunrun.
**We recommend contacting a tax professional to most accurately determine the impact of the solar Investment Tax Credit (ITC) on your federal taxes.