MASSACHUSETTS COMMERCIAL SOLAR PANELS
Commercial Solar panels for large Massachusetts businesses are a no brainer, as these businesses consume large amounts of electricity for lighting, temperature control, and operations. With the high amounts of energy these facilities consume electricity usage is a significant contributor to higher operating expenses. Corporate environmental, social, and governance (ESG) is also driving solar for Massachusetts companies. There is an abundance of Federal and state incentives for both commercial solar panels and commercial battery storage, making it the perfect fit for commercial solar projects. After factoring in all Federal and local incentives, some businesses are paying .20 on the dollar for their commercial solar projects!
Incentives
Federal Incentives: Under the Inflation Reduction Act, Massachusetts corporations can now choose in between the Investment Tax Credit (ITC) and Production Tax Credit (PTC). Direct pay options may be available for certain tax-exempt entities, and new transferability possibilities can provide increased flexibility around financing. Adders are also available if the project meets certain criteria. For more details, you may refer to the Inflation Reduction Act: Solar Energy and Energy Storage Provisions Summary provided by the Solar Energy Industries Association (SEIA).
- Investment Tax Credit (ITC): Base ITC of 30% through 2033
- Production Tax Credit (PTC): PTC currently set at $0.026/kWh, adjusted each year for inflation by the IRS
Modified Accelerated Cost Recovery System (MACRS) Business owners can depreciate solar electric systems over a five-year schedule. There is currently a bonus of 40% in year one for systems placed in service in 2025.
Solar Massachusetts Renewable Target (SMART) Program: A production-based incentive that is paid directly by investor-owned utilities in Massachusetts to solar electric system owners. SMART was launched by the Department of Energy Resources (DOER) in conjunction with investor-owned utilities. The selected Solar Program Administrator, CLEAResult, accepts and processes applications. Please see the DOER SMART website and the program administrator’s SMART website for more information and a downloadable calculator to estimate SMART project incentives. To view the SMART Solar Block Status Update, see the Solar Program Administrator log-in page.
Cost and Performance
The cost of buying a commercial solar electric system in Massachusetts can vary based on system size, location, equipment used and other factors. BCSC LLC can help your organization run a competitive RFP for a fee or provide an RFQ on a brokerage basis. If your company needs to re-roof it’s facilities prior to the solar installations, we have preferred commercial roofers to provide you a quote. Wrapping these projects into one solar EPC contract may provide additional tax savings. Be sure to discuss all tax incentives with your licensed CPA as we are not tax advisers.
Commercial Solar + Commercial Battery Storage
Commercial energy storage, or batteries, can be a great complementary technology to install with commercial solar PV. The pairing of solar PV system with energy storage is often referred to as solar + storage. With recent updates to state policies and incentive programs, combined with the potential electric bill savings and resilience benefits, solar + storage has become an increasingly attractive option for commercial property owners in Massachusetts. For more on commercial energy storage costs: https://www.beachcitiessolarconsulting.com/commercial-energy-storage-costs/
Contact Us!
Interested in transitioning to solar and battery storage at your Massachusetts business? Reach out through the CONTACT US button below!
