Economics of a Commercial Solar System in MA
1. Federal Government Tax Credit:
- 30% of entire system cost, uncapped
- Credit can be used the next time you complete a federal tax return after the system has been commissioned
- It is a dollar for dollar tax credit
- The credit does not expire and can be carried forward into future years
2. States Rebates
- $0.40 per watt up to 5 Kw (5,000 watts)
3. Solar Renewable Energy Credits (SRECs):
- SRECs can be compared to shares of stock, and are the income portion of your solar power system
- 1 Credit is issued to your account each time your system produces 1,000 kwhrs of electricity
- SRECs are sold on an open market. In 2012, SRECs can be sold for approximately $540 each
- Your system is guaranteed to receive SRECs for ten years (as of 2012)
4. Clean, Renewable Energy From the Sun:
- Eliminate or reduce your monthly electric bill
- Net metering, where you can sell surplus electricity back to the utility company
- Decrease your carbon footprint on the environment
- Hedge against future utility rate increases
5. Increased Property Value:
- Renewable energy systems increase the resale value of property by $20,000 for every $1,000 in annual electricity savings
- Solar Photovoltaic systems are 100% exempt from an increase in property taxes
- Sales tax does not apply to the purchase of renewable energy systems
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