Your Cape Cod Solar Energy Investment
Saving Today for a Better Tomorrow
Solar Tax Credits, Incentives, & Funding
Currently offered loans include:
This financial incentive is helping owners of PV systems increase their savings far beyond the value of the electricity offset. This is on top of the savings realized by reduced electricity bills.
Currently, there are great incentives available for installing solar energy systems on Cape Cod. We have provided a simple breakdown of some of the incentives that you might be able to make use of below. If you have questions or would like to know more about how much you can save, call SunPower by E2 Solar at (508) 694-7889
Solar Tax Credits
In the state of Massachusetts, there is a Residential Renewable Energy Income Tax Credit that is applicable to solar (photovoltaics and solar thermal), and wind installations. Homeowners will receive a credit of 15% of the installed system cost, capped at $1,000. The state tax credit is available only for installed systems on an individual’s primary residence.
Federal Tax Credit
- Remains at 26% for installations mechanically complete (installed but not necessarily connected to the grid) through the end of 2022.
- Steps down to 22% for installations January 1, 2023 through December 31, 2023.
- 10% for commercial installations January 1, 2024 through December 31, 2024.
It is unclear whether the federal tax credit will remain after the end of 2023 or if it will be removed completely. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward until at least 2023, but it is unclear whether the unused tax credit can be carried forward after then.
We are not tax professionals. It is your responsibility to consult with your accountant on these matters.
Solar Massachusetts Renewable Target (SMART) program:
Solar tariffs are generated for every kilowatt-hour (kWh) of electricity produced by solar generators. A 5kW system generates about 5,000-6,000 kWhs a year. Monetary compensation will be disbursed directly to the system owner, based solely on total solar production and independent of electricity usage.
How is my production reported in order to receive the tariff?
You will have a utility-owned MA SMART production meter on the outside of your house, visible for the utility to read. The utility will record your production each month and submit it for compensation.
For how long am I able to collect solar tariff compensation?
Once you are signed up, you will be locked into the program. If your system is less than or equal to 25kW (AC), you will be eligible for production compensation for 10 years. For systems greater than 25kW (AC), 20 years. Payments will be on a monthly basis.
SMART tariff compensation: The per-kWh compensation is based on a formula using the following variables:
- Capacity-Based Rate
- Transmission kWh charge
- Compensation Rate Adders
- Transition kWh charge
- Distribution kWh charge
- 3-year average of basic service kWh charge
How do I collect the compensation?
You can opt to receive a paper check each month, or to connect your bank account for the money to be directly deposited.
SMART income is taxable.
System owners will be required to submit a W-9 (received from your utility) and report earnings on your annual tax filing for the 10-year duration of the SMART program.