Solar News & Information
Four Keys to Massachusetts Solar Incentives and Savings for 2024
January 4 , 2024
Installing solar power is a way to counteract skyrocketing electricity costs across the U.S. And it is chosen by more Massachusetts homeowners, year after year, to save money. Like 2023, there are key incentives in 2024 that give local buyers more options for quicker returns on their solar investments.
First – why do incentives matter? The answer is simple. The more affordable solar energy becomes for the average homeowner, the more easily they can choose it as a solution. In states where rates are highest, the urgency to get relief is great. Massachusetts perennially ranks in the top 5 of the 50 states for the most expensive electricity.
Massachusetts Utilities Pricing Increases
In New England, there is no longer reliance on coal to supply electricity to the grid. Natural gas fired plants supply the most electricity in the region. So, while some may argue there is reduced environmental impact owing to fewer emissions from natural gas versus coal, fuel pricing volatility continues to drive costs. Utilities are forced to request rate adjustments periodically to address fuel costs.
In early October, National Grid announced that its electricity basic service rates in Massachusetts for residential and commercial customers are increasing about 30% beginning November 1, 2023.
Eversource Massachusetts announced an approved basic service rate increase to take effect on January 1, 2024. Those rates will continue until August 1, 2024, and then follow the new 6-month supply rate change every February 1 and August 1.
While the Massachusetts Department of Public Utilities has allowed a series of seasonal rate increases and decreases to track demand and fuel prices, the net result is that local ratepayers pay more each year.
Homeowners considering a rooftop solar energy system on their primary residence in Massachusetts have 3 valuable incentives available. In some cases, the total incentive package can reduce the time to return the solar investment by multiple years. Once the investment pays for itself, the homeowner has years of paid for, essentially free solar power generating savings.
Enhancing Savings with The Federal Income Tax Credit Incentive
Enhancing Savings with the SMART Program Incentive
The Solar MAssachusetts Renewable Target (SMART) Program is regulated by the Massachusetts Department of Energy Resources (DOER). The DOER set up the incentive program to support the development of solar in Massachusetts. It is a tariff-based incentive which is paid directly by the utility company to the system owner. The owner receives continuous payments based on units of electricity produced by the owner’s installed solar power system.
The SMART Program is a 3,200 MW declining block incentive program. The DOER defines a block as a specific statewide installed solar capacity and a rate of payment for the generated power. Eligible projects must be interconnected by one of three investor owned utility companies in Massachusetts: Eversource, National Grid, and Unitil. Each utility has set up blocks that decline in incentive rates between each block.
More on the Massachusetts SMART Program.
Enhancing Savings with Massachusetts Tax Credits
An owner of a residential property located in Massachusetts who is not a dependent of another taxpayer has access to a state solar energy credit. Those filing for credit must occupy the residential property as his or her principal residence. The credit amounts to 15% of the net expenditure or $1000, whichever is less.
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