COMMERCIAL INCENTIVES
Understanding Massachusetts and Rhode Island Incentives for Commercial Solar Energy
Welcome to Mass Renewables, your premier partner in harnessing the power of solar energy for your commercial business. Massachusetts and Rhode Island offer many incentives to encourage businesses to embrace solar energy, making it a financially savvy and environmentally responsible choice. At Mass Renewables we stay up to date on the various incentives and assist you in understanding what’s available and how you can maximize your savings. Current incentives available include:
NET Metering: Turn Surplus Electricity into Credits
NET Metering allows commercial businesses with solar energy systems to receive credits on their electric bills for excess electricity generated by their systems. When your solar panels produce more electricity than your business consumes, the surplus is fed back into the grid, and you receive credits for the energy you contribute, helping to offset your electricity costs.
Renewable Energy Certificates (RECs): Earn Additional Revenue
Through the Massachusetts Renewable Energy Portfolio Standard (RPS), commercial businesses can earn Renewable Energy Certificates (RECs) for the clean electricity generated by their solar energy systems. These RECs represent the environmental attributes of renewable energy generation and can be sold to utilities or other entities, providing an additional source of revenue for your business.
Renewable Energy Fund (REF) Grants:
In Rhode Island, CommerceRI’s Renewable Energy Fund (REF) helps expand the role of renewable energy throughout Rhode Island. If you are a business, nonprofit, academic institution, municipal/state building or other large facility, you may be eligible for the REF grant program! The Rhode Island Commerce Corporation can help you drastically lower your electric bills with grants for renewable energy that could cover up to 30% of renewable energy installation costs. Combined with the Federal Investment Tax Credit (ITC) of 30%, a grant from REF can bring payback periods down to 5 to 8 years, depending on the project.
Federal Tax Credit: Save 30% on Your Solar Installation
The Federal Investment Tax Credit (ITC) offers commercial businesses a tax credit equal to 30% of the total cost of their solar energy system installation. This generous tax credit significantly reduces the upfront cost of going solar and offers substantial savings for businesses looking to invest in renewable energy.
Excise Tax Exemption for Solar Powered Systems
In both Massachusetts and Rhode Island, businesses investing in solar powered systems can benefit from an excise tax exemption. This corporate tax exemption is applicable to commercial and industrial entities utilizing eligible technologies such as Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Wind (All), and Wind (Small). The incentive covers 100% of the tangible property portion of the excise tax, providing significant financial relief for businesses embracing renewable energy solutions. This exemption is in effect for the length of the system’s depreciation period.
Roof Replacement Credit: Combine Solar with Roofing Upgrades
Businesses considering roof replacements can incorporate a portion of the solar installation costs into their roofing projects and take advantage of the federal tax credit. By combining solar with roofing upgrades, businesses can maximize their tax savings while improving the energy efficiency and aesthetics of their properties.
Depreciation: Enhance Your Tax Benefits
Commercial businesses can depreciate the cost of their solar energy systems over time, providing additional tax benefits and further reducing the overall cost of going solar. Depreciation allows businesses to recover the cost of their solar investments more quickly and improve their bottom line.
Take Advantage of Solar Incentives Today
Don’t miss out on the incredible incentives available for commercial solar energy in Massachusetts and Rhode Island. Contact Mass Renewables today to learn more these various incentives available for your business, and how they can impact your savings.
There are several commercial incentives that solar panels can provide. Business owners with solar that are involved in the
SMART program will get paid monthly for 20 years from their utility provider based on the owner's solar production meter.
Owners that have a battery ( Tesla Powerwall ) installed with their solar get an increased incentive value on their solar
production. Just like with residential, business owners that have a battery ( Tesla Powerwall) installed with their solar get an
increased incentive value on their solar production and also benefit from the depreciation of their new solar equipment. Now
having a battery not only gives the business owner a backup source during a blackout and daily battery cycling, they get paid
extra for having one!
Take Advantage of Solar Incentives Today
Don’t miss out on the incredible incentives available for commercial solar energy in Massachusetts and Rhode Island. Contact Mass Renewables today to learn more these various incentives available for your business, and how they can impact your savings.