A new year is already underway, and if you’re like many of us, you’re probably fine-tuning your list of New Year’s resolutions for 2019. You may not realize it, but this year is an especially important one for one resolution you may be considering: saving money by investing in renewable energy with solar panels.
2019 is the Final Year to get the max Federal Tax Credit
Since the Federal Investment Tax Credit was extended back in 2015, homeowners and commercial property owners who purchase and install solar have been able to deduct 30% of the cost of their system from what they owe on their federal taxes. However, the sun will begin to set on the level of savings for this solar tax incentive after this year.
Starting in 2020, home and property owners who go solar will be able to deduct only 26% of the cost of their system. In 2021, that number will go down to 22%. Then in 2022, the incentive will drop to 10% for residential and commercial systems for one year — after which the 10% incentive will only apply to commercial systems.
If you want to qualify for the full 30% federal tax incentive for your residential or commercial system, you must have your system installed by December 31, 2019!
SMART Incentives are in Full Swing
SMART (Solar Massachusetts Renewable Target) is a statewide program here in Massachusetts that offers monthly financial incentives to home and business owners who purchase and install a solar electric (PV) system. Participants in the program can receive thousands of dollars in incentives for their solar energy systems, paid out over time in monthly increments.
The SMART program is built on declining “capacity blocks,” and the incentives decline as each block is used. How much you receive in incentives depends on which capacity block you are placed in and how much electricity your system produces. If, for example, you install a 9 kW solar panel system and are placed in the first capacity block, you could receive $15,000 in incentives over the next decade!
Last November, SMART began accepting applications (which solar installers submit on behalf of customers.) Applications submitted after December 1, 2018 are being reviewed and placed into capacity blocks on a first come, first served basis. In short, if you want to maximize the incentives you could receive through the SMART program, you should consider installing your new solar panels as soon as possible!
Don’t Wait - Take Advantage of Current State and Federal Solar Incentives
Going solar comes with valuable benefits like impressive tax incentives, protection from rising energy costs, lower electricity bills, and greater energy independence. If you’ve been considering investing in solar for your home or business, you don’t want to miss taking advantage of the full range of incentives that are available here in Massachusetts. Schedule a free quote with Boston Solar today to get answers to your solar questions and start enjoying the benefits of renewable solar energy as soon as possible!
Maximize the benefits you can receive from your solar PV system by going solar in 2019. Call 617-858-1645 or contact us to get started with a free quote!