To the Editor:

In his April 9 letter to the editor, Ted North indicated that “solar energy credits are to be included in adjusted Gross income for tax purposes”.

Not so according to MassSolarInfo.com. “This program is administered by the Massachusetts Department of Energy Resources (DOER) and they have stated that for each megawatt hour (1,000 kWh) that a system generates, one Solar Renewable Energy Certificates (SREC) will be created. It is estimated that a 5 kW solar system will generate a little less than 6 SRECs per year. (SREC value varies but is currently about $215 per megawatt hour with a $15 transaction fee).”

So at present, in addition to the significant savings you’ll receive by reducing your electrical bill, a 5kW solar system should net you another $1,200 annually in SREC income.

“According to one SREC aggregator’s contact with the IRS, the proceeds of SRECs should be considered an offset to the purchase of the solar energy system, and are therefore, not taxable. The IRS also stated that the sale of SRECs does not fit within the transaction types that would initiate the generation of a 1099. If you are uncertain, please contact a tax professional.”

Bill Saltonstall

Marion