LI Solar Inc

Solar Investment Tax Credit

LI Solar !

   LI Solar is a local company based in Cape Cod. Our goal to bring renewable energy on each house and conserving natural resources.

   Installing Solar Panels even Battery Storage is a good investment, like get payback in 3-8 years and not only. The federal and state incentives are one of the biggest advantage.

Federal Tax Credit

The solar Investment Tax Credit (ITC) is one of the most important federal policy mechanisms to support the growth of solar energy in the United States. The Investment Tax Credit (ITC) is currently a 30 percent federal tax credit claimed against the tax liability of residential (under Section 25D) and commercial and utility (under Section 48) investors in solar energy property.

How does it work?

A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company would otherwise pay the federal government. The ITC is based on the amount of investment in solar property. Both the residential and commercial ITC are equal to 30 percent of the basis that is invested in eligible solar property. The ITC then steps down according to the following schedule:

Solar Price Match Program

Solar Massachusetts Renewable Target (SMART) Program​

If you purchased your solar system outright, you may qualify to earn monthly incentive payments through the SMART Program. Utility customers for National Grid, Eversource, and Unitil are eligible for monthly payments for the energy their systems generate for up to 10-20 years. The SMART Program was created by Department of Energy Resources (DOER) to create a long-term sustainable solar incentive program that promotes cost-effective solar development.

Battery Storage Incentives

Installing “Battery Storage” you may qualify for the federal solar investment tax credit and the SMART Incentives. The main requirement for solar tax credit eligibility is that you own your solar energy system. Your solar battery’s eligibility for the ITC is slightly more complicated. The battery itself isn’t considered renewable energy, because it can also be charged by grid electricity. In order to get the tax credit benefits, your battery needs to be charged by renewable energy. The other incentives you can get trough ConnectedSolutions Program.

Connected Solutions Program

ConnectedSolutions is a program that reduces overall electric use during periods of high energy demand using connected devices like battery storage. By enrolling in the ConnectedSolutions Demand Response Program, you will be rewarded for allowing utility company to use the energy stored in your battery at times of high demand.

Net Metering

Net metering allows customers to offset their energy use and transfer energy back to their electric companies in exchange for a credit. You may use net metering credits to decrease your electricity bill to zero dollars and zero kilowatt hour (kWh) usage.


If a homeowner buys a newly built home with solar and owns the system outright, the homeowner is eligible for the ITC the year that they move into the house. If the homeowners leases the solar system or purchases electricity from the system through a power purchase agreement (PPA), then the ITC is claimed by the company that leases the system or offers the PPA.