Solar Ownership Economics for MA & NH Businesses
Solar Tax Credits, SREC’s, State Rebates – Multiple returns on solar investment
Owning your solar panels is similar to setting an investment account. However investing in solar is more certain and solid returns ranging from 11% to 24%.
With net metering credits, federal tax credits (ITC), SRECs and state rebates, your solar energy costs are much less than your energy from your local utility.
Most businesses pay $0.16 to $0.28 per kWh to utility . The cost of your owned solar kWh can be as low as $0.02 to $0.05 depending on size, roof orientation and exposure to sun.
Request your free solar quote…Federal Solar Incentives
- Investment Tax Credit (ITC): 30% uncapped federal tax credit on total system installed cost for solar photovoltaic (PV) systems through 2019, after which it will fall to 26% in 2020, 22% in 2021 and 10% in 2022
Massachusetts State Solar Incentives
- Commercial PV: State income tax credit of $1,000.
- SRECs (Solar Renewable Energy Certificates): are available as an income stream. However the Massachusetts Department of Energy Resources (DOER) is developing a successor program to SREC II incentives early 2017. We will update this section once we have clarity.
A roof-mounted 100 kW solar system on a roof in Boston, MA can offset a monthly energy bill average of $2,500.
| Net Cost after Tax Credits | $139,000 |
|---|---|
| Gross Cost | $200,000 |
| Federal Investment Tax Credit (ITC) 30% | $60,000 |
| Massachusetts Tax Credit 15% up to $1,000 | $1,000 |
| Annual Cash Flow* | |
| Solar Renewable Energy Certificates (1st year SRECs) | $27,200 |
| Energy Offset (Eversource territory) | $30,000 |
| Accelerated Depreciation for Solar MACRS | 50% depreciation bonus |
| Simple break even Year (Net Cost/Annual Cash flow) | 2-3 years |
| 25 Years Cash Flow | $$$ |
Updated info can be found on DSIRE (Database of State Incentives for Renewables & Efficiency) which has in-depth information and IRS documents for each of the incentive programs.
Federal Solar Incentives
- Investment Tax Credit (ITC): 30% uncapped federal tax credit on total system installed cost for solar photovoltaic (PV) systems through 2019, after which it will fall to 26% in 2020, 22% in 2021 and 10% in 2022
New Hampshire State Solar Rebates
- Commercial and Industrial solar PV install: $0.65/Watt or 25% of cost of install.
- RECs (Renewable Energy Certificates) available as an income stream. Currently, you can get $0.05 for each solar kWh your system produces. This incentive accelerates your payback.
A roof-mounted 100 kW solar system on a roof in Concord, NH can offset a monthly energy bill average of $2,166.
| Net Cost after Incentives | $90,000 |
|---|---|
| Gross Cost | $200,000 |
| Federal Investment Tax Credit (ITC) 30% | $60,000 |
| New Hampshire Rebate $0.65/W or 25% of cost | $50,000 |
| Annual Cash Flow* | |
| Renewable Energy Certificates (1st year RECs) | $6,500 |
| Accelerated Depreciation for Solar MACRS | 50% depreciation bonus |
| Energy Offset (Eversource territory) | $26,000 |
| Simple Break even Year (Net Cost/Annual Cash flow) | 3-4 years |
| 25 Years Cash Flow | $$$$$$ |
Updated info can be found on DSIRE (Database of State Incentives for Renewables & Efficiency) which has in-depth information and IRS documents for each of the incentive programs.
