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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.

Learn more


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. 

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Net-Metering

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.

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ConnectedSolutions

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.

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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.

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Home Solar Project Sales Tax Exemption

Massachusetts exempts purchasing all home solar system products from the 6.25% state sales tax.

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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.

Learn more


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.

Hypothetical Example

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*$40,000
Federal Solar Tax Credit-$12,000
Residential Renewable Energy Tax Credit-$1,000
Renewable Energy Certificate-$4,000
Net Cost$23,000
Total Savings$17,000

*The above example is purely hypothetical. Every solar system is custom-designed for each home, and costs will vary.

Our Conclusion

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