You probably think owning a solar power system for your home is out of your budget, right? Think again! On August 7, 2015 Massachusetts Governor Charlie Baker along with his Lt Governor Karyn Polito filed legislation to expand upon the success and continued growth of Massachusetts solar industry by making sure the Commonwealth leads the nation in solar development while also making sure solar power continues to be a more affordable alternative energy source for business and residential projects.
To help the residential solar market grow, the Massachusetts Department of Energy Resources in partnership with the Massachusetts Clean Energy Center has created a special solar loan program to help more Massachusetts residents become more energy efficient through owning a solar power rather than leasing one.
According to a 2013 study performed by the DOER, homeowners recognized more economic benefits by owning their solar panels than by leasing them. In fact the study concluded that the lifetime net benefits to homeowners who buy a solar system is 10 times greater than those that lease a system or have a FREE solar system installed on their home.
Did you know that you may qualify for the Massachusetts Solar Loan Program? Yes, you! Here’s what you, and every homeowner, need to know about Massachusetts’s Solar Loan Program.
Earlier this year Massachusetts dedicated $30 million to the residential loan program with the goal of increasing solar ownership to 6,000 residential home owners over the next three years. One on the most exciting parts of the program is that the new solar loan program is that it eases the restrictions for home owners with lower credit scores and incomes.
Now more homeowners that are interested in owning a solar powered system for their home can not only save money immediately on their electric bills but also take advantage of all the tax savings, benefits and other incentives that owning a solar system offers.
Solar loans are only available for people who are interested in purchasing a solar system. Solar leasers are not eligible for the Massachusetts Solar Loan Program. This opportunity is not just for families who live in a single-family house. A multi-family home with three or fewer units and individual condos (with homeowner association’s written approval) also qualify. Qualifying projects can either be brand new systems or adding additional kilowatts to your existing system.
Benefits of the Mass Solar Loan program
Although exact loan terms vary by lender, approved homeowners can expect:
- Interest rate of 3% or lower
- Loan for between $3,000 to $35,000
- Loan term of 10 years (other terms are offered)
- No penalties for early payments or payoffs
- Transferability of the loan at discretion of lender
- Loan fee doesn’t exceed $500 per loan
- The ability to readjust the terms of their solar loan in the event of any changes in state and federal tax credits
Now that Massachusetts has made owning a solar powered system more affordable for more residents than ever before, what are the next steps?
I’m glad you asked!
Energy Monster will help you throughout the entire process solar installation process from applying through installation. To learn more request your FREE solar energy assessment today!
Residential Income Tax Credit
To encourage more homeowners to go solar, Massachusetts is providing a 15% tax credit against the state income tax for the entire cost of your solar panel system. The maximum credit is $1,000 and can be carried over for up to three years. In order to qualify for this tax benefit, your system must be new, in compliance with performance standards, and operating for at least five years.
With the new Massachusetts Solar Loan Program and the fact that the price of residential solar has been dropping steadily over the past few years, combined with all the federal and state tax incentives available to homeowners that choose to buy a solar power system there has never been a better time to own a solar power system than right now.