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The Financial Benefits Of Going Solar

The Financial Benefits Of Going Solar

Many states are looking at green initiatives during these modern times. Massachusetts is no different and have done quite well in taking the going green leap. Going solar is one of the many steps being actively pursued. Many residents in Massachusetts realize the benefits they gain by going green. Perhaps the biggest enticement is the financial benefits. There are several programs both statewide and locally offering financial benefits. Some come in the form of rebates and others come from federal and state tax credits. We will discuss some of these financial benefits in this article.

Switching to solar is becoming a big business and industry. Many residents are getting involved, but more importantly, so are federal and local governments. This results in more credits and tax rebates for the residents and companies. One popular example is net metering. Net metering is where your local utility company decides how much energy your home consumes. With the installation of solar panels, your home is considered an energy producer. Whatever energy your home has not consumed during a period is credited back to your account. This results in no cost power for you when energy is not being produced due to limited sun. When having your solar panels installed, it is best to do a little research to find out what the local utility ratio is.

Going solar produces other financial benefits besides those mentioned above. Some of these come in the form of personal tax credits. A homeowner can use these credits to offset some of the installation expenses. There are also sales tax exemptions. This means that residents in Massachusetts pay no sales tax on solar equipment, installation services, or on the solar panels. Another financial perk for residents and property managers to consider is the fact that installing solar panels increases a property's value. For the homeowner, this can be a financial benefit if they ever want to sell their home. For property owners and managers, the added value to the home can not only increase the property value but can allow you to rent a property for more than you would without the solar panels. Renters will find an energy efficient property more attractive and your properties may rent faster in many cases.

There are also property tax exemptions for going solar in MA. Homes that go solar in Massachusetts are exempt from property tax assessments for 20 years. This is financially rewarding because even though solar installation raises the property value, you are not taxed on the raised value. Best of all, after the 20 year period is over, the value of the solar panels will have gone though depreciation. So, even when your property is once again being assessed at a value, the depreciation is taken into consideration making your property tax liability less than it would be if there was not any depreciation on the solar panels.