Massachusetts is facing record high electricity costs, leading many homeowners to opt for free solar options. Ngrid and Eversource rates have reached record highs in 2022, making the cost of power here in the Bay State unaffordable for many families.

 

High Electricity Costs in 2022

Have you been following the news lately? You likely noticed how high electricity prices have been. The conflict in Ukraine and broader global inflationary pressures have sent fossil fuel costs into a wild ride.

Due to a shortage of both supply and natural gas, utility rates in New England have been driven up. This issue will become even more acute this winter as major utilities prepare for an uptick in their power costs.

Though these increases will come as a shock to many households, there are still ways to lower your electric bills. The most obvious way is by conserving energy – which you can do by turning down the thermostat, using less lighting in areas you don’t use often and making your home more energy-efficient through weatherization measures like insulation, air sealing and window replacement.

 

No Cost Solar Options

Solar is an attractive investment for many Massachusetts homeowners, as it generates clean energy that lowers their electricity bills and reduces their carbon footprint. Thanks to incentives such as the SMART program and federal tax credits, more consumers in the state are now able to afford solar systems.

The most popular way to go solar is with rooftop solar panels, which can be installed on the roof of a home or business. These systems are made to last at least 20 years and come with warranties from their manufacturers.

Alternatives such as community solar are available; this involves subscribing to a large farm of solar panels in your vicinity and receiving credit on your electric bill for the energy they produce. With these credits, you could save anywhere from 10%-20% annually on energy costs.

To find the ideal system for you, it’s essential to shop around and do your due diligence. Look for installers with references and a proven track record.

 

SMART Program

Massachusetts homeowners are becoming more cost-conscious by taking advantage of state grants and cost saving incentives like tax credits and exemptions. Thanks to these initiatives, going solar has never been more accessible.

One of the most attractive incentives for going solar in Massachusetts is net metering. This program allows you to send excess power back into the grid and receive bill credit from your utility company.

To take this further, you can also pair your system with energy storage to further reduce electricity costs.

In 2018, the Solar Massachusetts Renewable Target (SMART Program) was launched. Under this initiative, state funds are provided for solar owners to provide them with a fixed incentive per kilowatt-hour produced.

The program was originally intended to support a statewide target of 1600 MW in incentivized solar projects, but that number has since been doubled.

 

Tax Credits

 

More Massachusetts Homeowners Are Switching to Solar in 2023

Due to federal tax credits and rebates, more homeowners are opting for solar systems at their residences. Not only does this save them money on energy bills, but it also helps save the environment by reducing greenhouse gas emissions.

In addition to the federal tax credit, Massachusetts offers several incentives for residents who opt to switch from traditional energy sources. These include SMART (Solar Massachusetts Renewable Target) and net metering.

SMART is a declining block incentive program that rewards homeowners for each kilowatt-hour of electricity they generate. Your rate depends on your block, with higher blocks receiving larger rewards.

The SMART program can be combined with battery storage to maximize your incentives. In addition to receiving a rebate from the utility, homeowners may also qualify for exemptions on sales and property taxes related to solar system value added over a 20-year period.