Newton, MA Solar Panels

The Massachusetts Residential Renewable Energy Tax Credit is a state tax credit that rewards homeowners and tenants who install solar or wind energy systems at their primary residence. This credit equals 15% of your net expenditure for qualifying renewable energy equipment, up to a maximum of $1,000. The net expenditure includes the purchase price and installation costs, minus any grants or rebates you receive from the U.S. Department of Housing and Urban Development.

To qualify, you must be a Massachusetts resident who occupies the property as your principal residence and is not claimed as a dependent on someone else’s tax return. The renewable energy equipment must be new (original use begins with you), expected to operate for at least five years, and used primarily for residential purposes such as heating, cooling, hot water, or electricity generation. Qualifying solar equipment includes items like solar collectors, storage tanks, heat exchangers, and related components, while structural elements like windows, walls, and roofs do not qualify. If you cannot use the full credit in one year due to insufficient tax liability, you can carry over the unused portion for up to three additional years. Joint owners can share the credit proportionally based on their ownership interest, and the $1,000 maximum applies per principal residence regardless of the number of owners.

Massachusetts offers a property tax exemption for homeowners who install solar energy systems on their property. This exemption means that adding solar panels to your home won’t increase your property taxes, even though the system adds value to your property. The exemption protects you from paying additional property taxes on the solar equipment for 20 years from the date of installation.

To qualify, your solar system must meet one of these conditions: it produces no more than 125% of your property’s annual electricity needs, it’s 25 kilowatts or smaller in capacity (verified by Department of Energy Resources documentation or utility permission to operate), or you’ve entered into a payment-in-lieu-of-taxes agreement with your municipality. The exemption applies to both owned and leased systems, and can include solar systems paired with battery storage. The 20-year exemption period can be extended if you reach a written agreement with your municipality.

It’s important to note that this exemption doesn’t apply to large-scale solar farms or systems owned by utility companies. The exemption is determined annually as of July 1st each year, and you cannot combine this exemption with certain other property tax exemptions on the same property. If you lease your solar system, the exemption still applies, making this benefit accessible regardless of how you choose to go solar.

The Massachusetts Solar Equipment Sales Tax Exemption eliminates the state’s 6.25% sales tax on solar energy equipment purchases. When you buy solar panels, inverters, batteries, and other solar system components in Massachusetts, you won’t pay the sales tax that normally applies to retail purchases. This exemption is part of the state’s broader commitment to making clean energy more accessible and affordable for homeowners.

The financial benefit depends on your total system cost. For example, on a $25,000 solar installation, you would save approximately $1,563 in sales tax. On a $35,000 system, the savings would be around $2,188. These savings apply automatically at the time of purchase when you work with a qualified solar installer—there’s no need to file for a rebate or wait for reimbursement.

This exemption is available to all Massachusetts homeowners purchasing qualifying solar energy equipment. There are no income requirements, property restrictions, or application processes. The exemption applies to both the equipment itself and installation materials that become a permanent part of your solar energy system. Your solar installer will handle the tax exemption documentation during the purchase process, ensuring you receive the benefit without additional paperwork on your end.

Currently, there are no expiration dates or deadlines for this exemption—it remains in effect under Massachusetts General Law Chapter 64H, Section 6. However, state tax laws can change, so it’s worth considering your solar investment sooner rather than later to ensure you benefit from this valuable savings opportunity.

The ConnectedSolutions Battery Incentive is a Massachusetts state program that pays homeowners for allowing their battery storage system to help reduce strain on the electrical grid during peak demand periods. When you enroll, your utility company (Cape Light Compact, Eversource, or National Grid) will automatically draw power from your battery during summer events—typically on hot afternoons when electricity demand is highest. These events occur between June 1 and September 30, from 3:00 p.m. to 8:00 p.m., and happen no more than 60 times per summer, with each event lasting up to three hours.

You’ll earn $275 per kilowatt (kW) based on your battery’s average contribution during these summer events. For example, a typical 5-kW battery system could earn up to $1,375 annually. Your battery can be installed alongside a new solar panel system, added to an existing solar setup, or installed as a standalone system. To participate, you must be a residential customer of one of the three participating utilities, use a qualifying battery inverter from manufacturers like Tesla, Enphase, SolarEdge, Generac, or others listed in the program, and have a system smaller than 50 kW. The program also offers 0% financing through HEAT Loans for up to $25,000 to help make battery storage more affordable. When you participate, the environmental credits (Clean Peak Energy Credits) generated by your battery are assigned to the utility sponsors, but this doesn’t affect your incentive payments.

The Solar Massachusetts Renewable Target (SMART) Program is Massachusetts’ primary incentive program for solar energy systems. This state-run program provides monthly payments directly from your utility company (Eversource, National Grid, or Unitil) for the electricity your solar system produces. The program uses a declining block structure, meaning incentive rates decrease as more solar capacity is installed across the state. Your specific payment rate depends on factors like your system size, location, utility territory, and which capacity block your project falls into when approved.

The financial benefit varies based on several factors, but the program offers a fixed monthly payment per kilowatt-hour of electricity your system generates over a 10-year period for systems under 25 kW, and 20 years for larger systems. Behind-the-meter residential systems receive both the SMART incentive payment and savings on your electricity bill. The program also offers additional payment “adders” for qualifying projects, such as systems paired with battery storage or those serving low-income properties. You can use the program’s Value of Energy Calculator to estimate your potential payments based on your specific situation.

To be eligible, your solar system must be installed in the service territory of one of the three participating utilities and interconnected to their grid. The program has a total capacity limit of 3,200 MW statewide, and some capacity blocks are currently offering $0.00 incentive rates due to higher electricity prices and the declining block structure. Applications are reviewed by CLEAResult, the Solar Program Administrator, before final approval by the Massachusetts Department of Energy Resources. There are specific siting requirements based on your property’s land use, and systems must meet certain technical and metering standards. It’s important to work with your installer early in the process to determine current block availability and expected incentive rates, as these change as capacity fills up.

Net metering in Massachusetts allows you to receive credit for the excess solar energy your system sends to the grid. When your solar panels produce more electricity than your home uses, that surplus power flows back to the utility grid, and you receive credits on your electric bill. These credits offset the cost of electricity you draw from the grid when your panels aren’t producing enough power, like at night or on cloudy days.

The financial benefit varies by utility company. If you’re a customer of National Grid, Eversource, or Unitil, you’ll receive 1:1 net metering credits, meaning every kilowatt-hour (kWh) you send to the grid earns you a credit equal to the full retail rate you’d normally pay for electricity. These credits carry over month to month indefinitely as a dollar value, though they won’t be paid out as cash. If you’re served by Taunton Municipal Light Department, your system operates on monthly net metering—excess production each month is credited at a lower generation rate (approximately 6.5-9.5 cents per kWh) rather than the full retail rate, and credits are settled monthly rather than carried forward.

Net metering is available to residential solar customers across Massachusetts, though the specific terms depend on your utility provider. There are no application deadlines for this program, as it’s an ongoing benefit tied to your solar installation. The key consideration is understanding which utility serves your home, as this determines whether you’ll receive full retail rate credits that roll over indefinitely or lower-rate credits that settle monthly.