Today businesses going solar in Massachusetts can get a 30% Investment Tax Credit (ITC) to defray solar installation costs. Unfortunately, at the end of 2016 this federal tax credit may be reduced to 10% unless voted on otherwise. Should you wait to go solar, you will not be able to finance your project in the same way and you may not save as much money. In order to take advantage of the 30% ITC, you need to act now.
In addition to the ITC, there are two other options for businesses going solar in Massachusetts that are subject to change in the coming months:
1. Net Metering Net metering refers to solar installed at the same location where the energy is used. If more energy is produced by the solar array than what is used on site then the excess is fed into the utility grid.
Current legislation permits utilities to allow up to 4% of the utility total load to be net metered, meaning that only so many net-metered projects are allowed. Once the cap is reached, no more net metered projects are allowed. If you are a business going solar in Massachusetts, know that this cap is almost full. In order to be able to net meter solar energy you much act now and reserve your space with your local utility.
2. Remote/Virtual Net Metering Remote net metering allows solar to be installed at a site apart from where the energy is used. The solar array is connected to the utility grid and the electricity generated is credited at the site of usage.
Remote net metering is currently allowed for all businesses looking to go solar in Massachusetts. However, later this year that policy may change to allow only those businesses that own both the property where the solar panels are to be located AND the property where the energy is to be expended to use remote net metering. If you are a business going solar in Massachusetts and are considering using remote net metering, acting NOW will provide you with enough time to not only be able to use remote net metering, but also to capitalize on the 30% ITC.
Clean Footprint is here and ready to help! We offer financing through a Power Purchase Agreement (PPA) with no money down. We use the ITC to reduce the costs of your project by selling it to a tax equity investor. Clean Footprint can also offer a Net Metering Credit Purchase Agreement (NMA) for clients who do not have a suitable roof for solar but want to buy solar energy through Massachusetts’ remote net metering policy.
Remember, if you are a business going solar in Massachusetts, Clean Footprint is here to provide you the best solar experience for the lowest cost!
Eliza is the Chief Learning Officer for Clean Footprint. As the Chief Learning Officer, she is responsible for writing and editing blogs, e-books, videos and white papers as well as other learning content created for Clean Footprint’s developer partners and clients. Eliza attended New York University in Paris, France and studied Global Liberal Studies before moving to Florida and joining the Clean Footprint team. She also studied Business and Entrepreneurship at the University of Central Florida.