“Making energy a primary factor of investment decisions in Swampscott, by residents, businesses, and the Town.”
Over 270 homes and businesses in Swampscott now have solar photovoltaic (PV) systems, with the number continuing to grow steadily. These systems function as private power plants, collectively generating renewable energy. In addition to these residential and commercial solar installations, the Town of Swampscott has invested in solar arrays at Swampscott High School and Middle School. These schools use 100% of the energy produced by the solar installation, which accounts for 19% of the total energy consumption of the School District.
State and Federal Incentives
The Inflation Reduction Act reinstated a 30% federal tax credit for homeowners and condo owners installing solar (both equipment and installation costs qualify). This is retroactive back to Jan. 1, 2022 and will remain in effect until Dec. 31, 2032. The solar 30% tax credit can be paired with a 30% tax credit for battery storage and/or a 30% tax credit for an electric panel upgrade (capped at $600). See how much you would qualify for using this savings calculator from Rewiring America. If you can’t take all of the tax credit in the first year, you can carry it over to the next year.
And, lucky you! You live in Massachusetts where you also could receive a Massachusetts tax credit for the lesser of $1,000 or 15% of qualifying costs. In addition to the income tax credit, MA also ensures 100% tax exemption from both sales and property tax payments.
BONUS: if you own your own panels (even those with financing), you can register for monthly incentives from the Solar Massachusetts Renewable Target Program (SMART). Credits over your own usage may be donated to low-income households.
Helpful financing tip: Get your solar loan from a bank or other lending institution. If you finance through some solar companies, there are dealer fees, adding as much as 25% to the cost of the system. The company may also require you to surrender your tax credit to offset the cost of the system or take a larger loan covering the system cost before the tax credit.
Due to falling prices and generous incentives, you can often install a system that will pay for itself in 5-7 years if you have a suitable site. After that, it’s all positive cash flow as the panels generate power for 25 years or more. Retirees or single-earner families with lower incomes may qualify for Mass Solar Loan incentives and see even quicker payback. On top of that, solar panels increase the value of your home but due to current tax laws, the increased value in your home does not increase your property taxes.
Solar PV produces home-grown, safely-generated, clean electricity that contributes clean energy to the electric grid and reduces your CO2 emissions as well as pollutants such as fine particulates, nitrogen oxides, sulfur dioxide and ozone. Every solar kWh means one less fossil fuel kWh. The electricity produced can be used to help charge electric cars and transition away from burning oil and natural gas by powering high-efficiency heat pumps for home heating and cooling.
Need a new roof? If you install a new roof in conjunction with a solar PV array, the cost of the roof too is eligible for the State tax rebate!