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Solar Sales Tax Exemption in Massachusetts

January 8, 2024 | Reading Time: 3 minutes

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

No, Massachusetts residents do not have to pay taxes on solar energy systems or installation costs.

Sales Tax

According to the Massachusetts Sales Tax Exemption General Laws, all solar energy equipment costs are not subject to sales tax.

Therefore, Massachusetts’s flat 6.25% state sales tax does not apply, saving you thousands of dollars.

Example: If you were to purchase a $40,000 solar system, you would save $2,500 in sales tax.

Why are 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 tax exemption?

No, your solar installer will not charge you sales tax on your solar system or their service.