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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.

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Massachusetts Solar Incentives

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.

New Hampshire Solar Incentives

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.

Save Big with Solar for your Business

Installing solar system for your business can yield 3-4 times returns on your initial investment!

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