Solar for Business
Rebates, Incentives, Financing
Solar power is more affordable than ever for Massachusetts businesses
The State and Federal governments offer a variety of financial incentives for renewable energy projects. Some of these tax benefits and other incentives are time-sensitive. We have put together information resources including a set of links to the most up-to-date information regarding state and federal tax benefits , and production based incentives here in Massachusetts.
Call us directly at 508-293-4293 and we can assist you in determining what financial options are available for your businesses solar system. Solarflair can help you determine all available tax benefits incentives and financing you qualify for, and we can do the paperwork for you. We take the guesswork out of commercial solar power.
Database of State Incentives for Renewables and Efficiency
The U.S. Department of Energy maintains a comprehensive resource for State and Federal rebates and incentives for renewable energy.
State and Federal Tax Incentives
The Federal Government offers an Investment Tax Credit that will significantly decrease the cost of installing solar. The credit is equal to 30% of expenditures, with no maximum. Businesses can also depreciate the system utilizing the 5 year Accelerated (MACRS) Schedule.
Solar Renewable Energy Credit (SREC) market
The SREC program is an innovative, production-based incentive for Massachusetts solar owners. We understand the complexity of the SREC market and we will provide a transparent, accurate explanation to all of our customers.
Here’s a description of how it works:
Electricity produced by qualified solar PV systems is broken into two products:
1) The electricity production that is used on-site or delivered to the grid.
2) The positive environmental attributes associated with this clean energy production.
SRECs represent the second product. One SREC is created each time a solar PV system generates 1 MWh (or 1000 kWh). The SREC is minted electronically and deposited quarterly in the generator's (or its brokers) account that is set up with the State. The broker is able to sell the SREC’s quarterly on behalf of the system owner. The proceeds from this sale are sent to the customer in the form of a check.
SREC program made Simple:
1 SREC= 1,000kWh’s (1 mWh)
1SREC= $285 to $550*
For an average solar system in MA this results in between $1,000 and $2,500 in annual SREC revenue dramatically reducing payback periods and skyrocketing return on investment for solar system owners.
*Actual price is based on supply and demand and will fluctuate over the life of the program. The value’s listed are the net proceeds including a commission paid to SREC broker.
For more information on the SREC market pricing please see the attached link. Reach out to SolarFlair for more information!
As of December 2009, all photovoltaic system owners served by the major utilities receive full retail value when they generate more power than they need.
Under the Green Communities Act, utility companies must now compensate customers for excess electricity at the retail rate rather than the lower wholesale rate. Additionally, customers may allocate their credits to other customers, allowing those without facilities to take advantage of net metering benefits as well. With this provision in place, Massachusetts now has one of the strongest "net metering" laws in the country.
Net Metering Made Simple:
- Your solar system WILL be connected to the electric utility grid.
- When your solar system produces more electricity than you use, your electric meter will spin backwards. When you are using more electricity than your solar system is producing (e.g. at night) your meter will spin forwards.
- You will still receive an electric bill from your utility provider each month. For months in which you produce energy in excess of what you use, your bill will show a negative figure under the “Total Usage” header. Take a look like the bill below.
MORE IN COMMERCIAL SOLAR
Contact us for a SITE ASSESSMENT.
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