Solar Hot Water: Rebates, Incentives & Tax Credits Breakdown
Massachusetts is one of the best places for installing solar hot water right now. With rebates, energy credits and tax credits it’s a perfect opportunity to help Massachusetts reach it’s targeted goal of 80% renewable by 2050. Below is a detail outline how solar hot water incentives work for residential and commercial projects. If you have any questions, please contact us anytime.
Solar Hot Water systems for single family homes has never been better. The MassCEC, Massachusetts Department of Energy Resources, Federal and State tax credits reduces the price of the system approximately 80% of it’s gross cost.
With energy cost savings from $400-$800 a year, you recoop that cost within approx. 3-5 years.
Your system will last 25-30 years or longer, saving you thousands over the life of the system.
The other financial benefit to a solar hot water or pool system is it also lessens the burden on your existing home boiler, increasing the life of the boiler
With MassSave 0% loan: No up front cost. Low monthly payment.
Learn more at MassSave.com
Commercial Projects (Municipal, Non-Profit and For-Profit)
Business/property owners and facility managers understand heating a building can be costly. With energy prices rising 3-5% annually on average, a solar hot water commercial system for domestic hot water can help substantially reduce cost. Our energy modeling & financial analysis tools detail the best system for your needs and outlines all the benefits & incentives of a solar hot water system.
Project cost can be reduced with the below incentives and tax credits from 75% – 85% of the total project cost*.
Alternative Portfolio Standard (APS):
Project owners receive Alternative Energy Credits (AEC) for the energy they produce from their system. Metering allows us to track and log the energy produced and with a formula created by the DOER and monitored by MassCEC we translate those therms into AECs. Those credits are multiplied by the current market value of an AEC and a net metering aggregator facilitates turning those AECs into real dollars on the open market. We can help with that process to make it easy for you.
Each solar hot water system receives a MassCEC rebate based on the size and specifications of the system, including adders for metering and adding PV at the same time. Rebates come as cash incentives to help move the project forward and are confirmed by the MassCEC to make sure the system was set-up and running properly.
Federal and State Tax Credits:
Federal tax credits and depreciation benefits for commercial projects are applicable and should be discussed with your tax advisor to take full advantage. Federal information can be found here.
*Municipal projects do not receive tax credits. Project cost savings can range from 60% to 70% with the above incentives.
With MassSave Business Loan business can receive interest free loans. Learn more at MassSave.