Upgrading to solar electricity offers one of the best ways for your company to cut back on operating expenses. After all, you’ll be using the same amount of electricity as you were before-the difference is that once you’ve got solar installed, any electricity generated from your panels will be free!
Commercial solar panel installation is a long-term, cost-saving investment strategy-you pay upfront for the solar panels, which will then pay for themselves (and more) over the years. Not every business is able to take on that additional expense so easily, but there are a number of lucrative solar incentives for Massachusetts commercial solar installation projects that can shorten your payback period and provide lasting savings and value to your company.
Commercial Solar Tax Credits and Incentives
The Federal Investment Tax Credit (ITC)
Recently extended at the end of 2020, the Investment Tax Credit, or solar tax credit, is equal to 26% of your total solar installation costs. For a large commercial solar project, this could equate to thousands of dollars in tax credit savings to the benefit of your bottom line.
With the recent extension, the tax credit remains at 26% for 2021 and 2022 before it decreases to 22% in 2023, and then drops to a permanent 10% for commercial projects in 2024. With current legislation in Washington, a further and longer extension may be possible and include proposals for stand-alone energy storage tax credits.
With the Investment Tax Credit for commercial solar projects, businesses need to commence construction or meet the 5% safe harbor rule to claim the tax credit in the year they start. Why not get started today and lock-in 26% tax credit savings on going solar for your business.
Solar Massachusetts Renewable Target (SMART) Program
Under the state’s SMART program, your business is paid a fixed monthly rate from your utility company based on how much electricity your panels produce! For commercial projects over 25kW, you could earn monthly incentive income for up to 20 years! Places are limited and are first come, first served so it pays to go solar to secure your SMART payments for the next two decades.
Net metering is another utility incentive where businesses receive a credit on their bill for excess solar electricity generated that is exported back to the grid. Net metering credits can be used to offset any grid-supplied electricity costs – greatly reducing or eliminating your electricity bill.
Mass Save’s ConnectedSolutions Solar Battery Storage Program
If you are considering connecting solar battery storage to your solar panels, the ConnectedSolutions program helps you get paid for using stored electricity during particular times of “peak” electrical grid usage. Like SMART, this program offers another way to earn money back from your solar battery storage system.
Federal MACRS Depreciation for Commercial Solar
Tax law offers a 100% first-year “bonus” depreciation for qualified commercial solar energy systems that makes it easier for your business to quickly recover the costs of your solar installation investment, greatly reducing your payback period.
Commercial Solar Leasing
While owning your commercial solar system offers the best financial rewards, purchasing a system outright may not always be in the company plans. For some Massachusetts businesses, commercial solar leasing may be a good option, especially if your company has expansive unused roof space. The benefit of commercial solar leasing is that you could generate income from leasing your rooftop and help the environment in the long run. With a solar lease, you won’t see the tax incentives but you could benefit from a discounted rate on electricity or a straight cash payment for the next 20 years.
Get Started with Eastern Massachusetts and Cape Cod’s Go-To Commercial Solar Company
For over a decade, My Generation Energy, a commercial solar company, has been helping local businesses on Cape Cod, the Greater Boston Area, the South Shore, and the South Coast save money with solar panel installation. We handle all sizes of solar installation, from a 17 kW array for a non-profit children’s education center in Eastham to a 588 LG solar panel installation project for this Plymouth-based commercial property.
Our mission from day 1 has been to put the same level of care and expertise into solar installations for our customers that we would into our own homes. We only install industry-leading solar panels, inverters, hardware, and electrical components, so that your panels will function perfectly for years and years to come.
From site assessment to installation and ongoing energy monitoring, you’re in good hands with our team of local Massachusetts commercial solar experts. We can help calculate your net present value and payback period for your solar installation so you can see the future of your 25+ year solar energy investment, or talk to us today about commercial solar leasing opportunities.