Massachusetts Solar Incentives: 2024 Guide
While the upfront cost of installing a solar energy system can be substantial, Massachusetts provides a range of solar incentives to help lower the cost. Below is a list of all the solar incentives offered in Massachusetts.
Massachusetts Tax Credits and Rebates
Massachusetts offers several solar tax credits and exemptions to keep initial costs low.
Tax Credit: A tax credit directly reduces your income tax liability.
Tax Exemption: A tax exemption relieves you from paying taxes on a particular product or service.
Rebate: A rebate is a partial refund in the cost of a product or service after the purchase has been made. Many solar rebates are paid out through multiple years.
Here are the available solar incentives in Massachusetts.
Federal Tax Credit
The current federal solar tax credit is set at 30% of your system costs and associated expenses. This percentage will decrease to 26% in 2033 and further to 22% in 2034.
Residential Renewable Energy Income Tax Credit
The Massachusetts Residential Renewable Energy Income Tax Credit offers homeowners a generous state tax credit of up to 15% of their solar system expenses, with a maximum credit limit of $1,000.
It’s important to note that this incentive can only be applied to your primary residence.
The majority of solar energy systems generate an excess of electricity beyond the requirements of individual homes. With net-metering, owners of solar systems can sell the surplus energy back to their utility companies and earn credits on their utility bills.
In Massachusetts, Eversource, National Grid, and Unitil participate in net-metering programs.
ConnectedSolutions incentivizes homeowners to share energy from their batteries with the electrical grid. The program offers $1,000 per battery per year for five years. As a homeowners, you can expect to earn around $5,000 per battery. There is no limit the amount of batteries you can have.
Solar Installation Property Tax Exemption
Despite property value increasing after installing solar panels, the Solar Installation Property Tax Exemption releives property owners of paying additional property tax for 20 years after installation.
Home Solar Project Sales Tax Exemption
Massachusetts exempts purchasing all home solar system products from the 6.25% state sales tax.
Renewable Energy Certificate (RECS) Program
The Renewable Energy Certificate program offers indefinite quarterly payments to homeowners willing to sell their renewable energy on an open market.
Companies purchase the renewable energy for a demand-based cost.
Solar Massachusetts Renewable Target (SMART) Program
Massachusetts’ SMART program is similar to SRECs. It enables homeowners to receive compensation from their utility company for each kilowatt-hour of solar power generated over a 10-year period.
Mass Solar Loan Program
This incentive allows eligible homeowners with low income to secure a low-interest loan for the installation of solar panels on their residences.
Estimated Savings Overview
Average Savings After Incentives
On average, the tax credits, rebates, and incentives cover 45% of the total cost of the system.
All these solar incentives may seem complicated so, we’ve put together a hypothetical example to help you better understand your potential savings.
|Hypothetical System Cost*
|Federal Solar Tax Credit
|Residential Renewable Energy Tax Credit
|Renewable Energy Certificate
*The above example is purely hypothetical. Every solar system is custom-designed for each home, and costs will vary.
Homeowners can see a big reduction in electricity costs by going solar. Massachusetts is one of the top 10 states pushing to increase solar energy use and reduce greenhouse gas emissions. They’re providing residents with these solar incentives to support renewable energy initiatives and make the transition more affordable for residents.
We are here to answer any of your questions. Call us today, (508) 717-3820