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Solar Property Tax Exemption in Massachusetts

January 5, 2024 | Reading Time: 6 minutes

Do you pay taxes on a solar energy system in Massachusetts?

No, Massachusetts residents do not have to pay property taxes on solar energy systems despite increased property value.

Property Tax

According to the Massachusetts Property Tax Exemption General Laws, residential and commercial properties are not subject to additional property tax after installing solar panels despite consequently increasing their property’s value. This exemption occurs annually when property value is assessed.

Example: Without this exemption, if your home is worth $400,000 and you added a $40,000 solar system, your town would now appraise your house at $440,000. The average  property tax rate in Massachusetts is 1.12% which would increase your annual property tax by $493 a year for the life of the solar system.

Estimated Value of Property Tax Exemption: Over of the first 25 years of the solar systems life, you’ll save an average of $12,325 in property taxes.

Why are property taxes waived when installing solar in Massachusetts?

Massachusetts has implemented tax exemptions to encourage renewable energy adoption throughout the state and work toward net-zero greenhouse gas emissions.

There are many renewable energy incentives currently available in Massachusetts. You may even qualify for more than one.

Do I need to apply for the solar property tax exemption?

No, you do not need to apply for the solar property tax exemption. Your town will not acknowledge your system when assessing your home’s value.