While electricity rates are already high and increasing annually, New England is going to get hit especially hard by price hikes this summer. The Energy Information Administration predicts a 15% increase in rates compared to 4% nationally, and utilities like Eversource have warned their customers in New Hampshire, Massachusetts, and Connecticut that they may see increases upwards of 23-25%.
The bottom line is that your electricity bill is going to increase, but it doesn’t need to. Going solar has helped thousands avoid rising and volatile utility rates, achieve significant savings, and not to mention protect the planet. Let us help you understand exactly how your home or business can capitalize on going solar.
1. Cash in on Solar Incentives
All of the areas we service in New England– New Hampshire, Maine, Massachusetts, Rhode Island, and Connecticut– have tax incentives, programs, and rules in place to financially assist your solar project. And, any one in these states can qualify for the 30% Federal Solar Tax Credit as well as benefit from Net Metering.
We’ll go through these and the state specific incentives below. But keep in mind, many of these incentives have caps or expiration dates so take advantage of them while they last!
30% Solar Tax Credit
If you install a solar energy system in 2022 that you own on a home you own, you qualify to receive the 30% Federal Solar Tax Credit. This means you’ll save the equivalent of 30% of the total cost of your system.
Yet to take full advantage of this offer, the system must be completed by the end of the year before the credit is reduced to 22% in 2023. By 2024, the credit will be gone for residential customers and reduced to 10% for commercial solar. Reach out now and let Summit Energy help you realize these savings.
Net Metering
This means any excess energy produced by your solar panels that you do not use can be sold to the electric grid. For this energy, you will receive credits that can be used when you need more electricity than what your system is producing.
In New England, this generally means generating credits over the spring and summer when your solar panels are getting the most sunlight and utilizing the credits in the winter when your panels don’t generate as much power. For more information on state specific net metering, click here.
Incentives by State
Depending on where you reside, you have access to different incentives. Read below to see which ones apply to your state.
NEW HAMPSHIRE SOLAR
- Residential Renewable Electrical Generation Rebate Program
- New Hampshire residents who qualify can receive either $200 for every kW of solar power installed in their home up to $1,000 or 30% of the total cost of the system, whichever is less.
- Local Renewable Energy Property Tax Exemption
- Residents can avoid increased property taxes from the installation of a solar system if their city or town has adopted the Renewable Energy Property Tax Exemption.
MAINE SOLAR
- Home Energy Loan Program
- Maine homeowners may be able to borrow as much as $15,000 for up to 15 years with interest rates as low as 4.99%.
MASSACHUSETTS SOLAR
- Residential Renewable Energy Income Tax Credit
- Purchased household solar systems receive a 15% state solar tax credit up to $1,000.
- Solar Massachusetts Renewable Target (SMART) Program
- Massachusetts is one of the only states where you can get paid by power companies for producing clean energy. Compensation is determined by per kilowatt-hour of your solar system’s energy production. However, this program is closing fast!
- Solar Installation Property Tax Exemption
- Residents are exempt from the property tax on the added home value of their solar system.
- Home Solar Project Sales Tax Exemption
- Residents do not need to pay the 6.25% sales tax on their solar system.
RHODE ISLAND SOLAR
- Rhode Island Renewable Energy Fund (REF)
- Small-scale solar arrays may be eligible to receive up to $7,000.
- Solar Investment Property Tax Exemption
- Like in Massachusetts and parts of New Hampshire, Rhode Island residents with solar are exempt from paying the property tax associated with the added home value of their solar panels.
- Renewable Energy Sales Tax Exemption
- Residents do not need to pay the 7% sales tax on their solar system.
- National Grid’s Renewable Energy Growth (REG) Program.
- This program provides compensation for every kilowatt-hour generated by home solar systems. It applies to National Grid members not eligible to participate in the REF program.
CONNECTICUT SOLAR
- Property Tax Exemption for Renewable Energy Systems
- Like in Massachusetts, Rhode Island, and parts of New Hampshire, Connecticut residents with solar are exempt from paying the property tax associated with the added home value of their solar panels.
- Sales and Use Tax Exemption for Solar and Geothermal Systems
- Residents do not need to pay the 6.35% sales tax on their solar system.
2. Avoid Sudden Spikes in Electricity Rates and Save Money
There is no better example of the volatility of utility rates than what is projected for the coming summer months. Between the invasion in Ukraine causing disruptions in production, inflation at a nearly 40 year high, and rising temperatures increasing demand for electricity, it is no wonder rates are projected to increase by as much as 45% across the country.
The good news is solar combats this by allowing you to create your own electricity while paying a fixed monthly rate for the system. Summit customers save an average of 30-50% in the first year of their solar being installed.
3. Increase Your Property Value
While it’s hard to pin down the exact value solar panels add to a home, a study in the Appraisal Journal found that for every $1 reduction in annual utility bills home value increases by $20. That means if the average Summit customer saves $1,000 per year, the added value of their home would be $20,000.
Having residential solar panels already installed is also an extremely attractive feature for those looking for homes and spaces for their business. This means you may be able to sell faster once your property is on the market and for more money.
4. Bonus: Reduce Your Emissions and Help the Planet!
Since energy generation by fossil fuels releases greenhouse gas emissions, installing a source of renewable energy like solar avoids the production of these harmful pollutants. The enormous amount of these emissions, many of which are produced by households, are why our planet is heating up at an unprecedented rate. However, by choosing solar, you are choosing to power your home or business in a way that protects the planet.
But, we have to come clean. Here at Summit, we don’t actually see this as a bonus. We see this as one of the best and most important reasons why you should go solar. That’s because emissions are increasing the prevalence of warmer temperatures, severe weather events, and flooding. But, solar offers a clear way for households to reduce their carbon footprint in a meaningful way.
And while solar helps the environment, it helps people as well. We want to help not only our customers but people across the country and the world experiencing the impacts of a changing climate. It is an honor for us that we can help our customers make such a big impact on people and the planet.
Go Solar with Summit
At the end of the day, we’re a people company. We want to help you benefit from your state’s solar incentives, save money, and make the world a more healthy and sustainable place. With more than 3,000 installations, you can trust us to provide the best technology, service, and support in going solar. Fill out the quick survey below to get your no obligation quote, and we’ll help you figure out how solar can benefit you, your family, and the world.
State Incentive Sources:
- New Hampshire Residential Renewable Electrical Generation Rebate Program
- New Hampshire Local Renewable Energy Property Tax Exemption
- Maine Home Energy Loan Program
- Massachusetts Residential Renewable Energy Income Tax Credit
- Solar Massachusetts Renewable Target (SMART) Program
- Massachusetts Solar Installation Property Tax Exemption
- Massachusetts Home Solar Project Sales Tax Exemption
- Rhode Island Renewable Energy Fund (REF)
- Rhode Island Solar Investment Property Tax Exemption
- Rhode Island Renewable Energy Sales Tax Exemption
- Rhode Island National Grid’s Renewable Energy Growth (REG) Program
- Connecticut Property Tax Exemption for Renewable Energy Systems
- Connecticut Sales and Use Tax Exemption for Solar and Geothermal Systems