Quincy, MA

The Massachusetts Residential Renewable Energy Tax Credit offers homeowners a valuable financial incentive when they invest in solar or wind energy systems for their primary residence. This state tax credit allows you to claim 15% of your net expenditure on qualifying renewable energy equipment, up to a maximum of $1,000. The credit directly reduces your Massachusetts personal income tax liability, potentially saving you hundreds of dollars.

To qualify, you must be a Massachusetts resident who owns or rents your primary home and is not claimed as a dependent on another person’s tax return. The renewable energy system must be newly purchased (not leased), expected to last at least five years, and primarily used for residential purposes (at least 80% residential use). Any unused portion of your credit can be carried forward for up to three years. Remember that this credit applies specifically to equipment that directly uses solar or wind energy—items like insulation, thermal windows, or furnace upgrades don’t qualify under this program.

Massachusetts offers a Property Tax Exemption for residential solar systems that provides significant financial benefits to homeowners. This incentive exempts qualifying solar power systems from property taxes for 20 years, meaning the added value of your solar installation won’t increase your property tax bill. This exemption applies to both owned and leased solar systems, as well as solar systems co-located with energy storage (like batteries).

To qualify for this exemption, your solar system must meet one of these requirements: 1) produce no more than 125% of your property’s annual electricity needs, 2) have a capacity of 25 kilowatts or less (verified by state documentation), or 3) have a payment in lieu of taxes agreement with your municipality. The exemption automatically lasts for 20 years, though longer periods may be negotiated with your municipality. This incentive does not apply to utility-owned systems or those developed under certain utility programs. To benefit from this exemption, you should contact your local tax assessor after your solar installation is complete.

The Massachusetts Solar Equipment Sales Tax Exemption is a valuable state incentive that eliminates the 6.25% state sales tax on solar energy equipment purchases. This exemption applies to all solar system components including panels, inverters, mounting hardware, and other equipment necessary for a complete solar installation. For the average homeowner, this can translate to savings of $1,000-$1,500 on a typical residential solar system.

To qualify for this exemption, you must purchase solar equipment that will be used for residential or commercial purposes in Massachusetts. There is no application process – the exemption is automatically applied at the point of sale when purchasing from a registered vendor. This incentive has no expiration date and is available year-round with no caps or limits. When combined with other incentives like the federal tax credit, this sales tax exemption helps make solar more affordable for Massachusetts homeowners.

The ConnectedSolutions Battery Incentive program in Massachusetts rewards homeowners for allowing their battery storage systems to support the electrical grid during peak demand periods. Through this state program, eligible residents receive $275 per kilowatt (kW) for their battery’s average contribution during summer peak events. For a typical 5-kW battery system, this could mean earning up to $1,375 annually while helping reduce strain on the grid.

To qualify, you must be a customer of Cape Light Compact, Eversource, or National Grid with a battery system using an approved inverter from manufacturers like Tesla, Enphase, SolarEdge, and others. Your battery can be installed with new solar panels, added to an existing solar system, or set up as a standalone system. The program runs events between June 1 and September 30, from 3:00 p.m. to 8:00 p.m., with a maximum of 60 events per summer (each lasting up to three hours). Additionally, Massachusetts offers 0% financing through HEAT Loans of up to $25,000 for battery installations, making this clean energy upgrade more affordable.

The Solar Massachusetts Renewable Target (SMART) Program is a state incentive designed to encourage solar development across Massachusetts. This program works differently from typical rebates – it provides ongoing payments directly from your utility company (Eversource, National Grid, or Unitil) to you as the solar system owner. These payments are based on the electricity your system produces and continue for 10 years for residential systems under 25 kW.

The financial benefit comes through a fixed rate per kilowatt-hour (kWh) your system generates. The exact rate depends on your utility, system size, and when you apply, as rates decrease across the program’s 3,200 MW capacity blocks. Additional incentives or “adders” are available for systems with energy storage (batteries), those serving low-income households, or installations on brownfields. Some recent blocks may offer reduced incentive rates due to higher electricity prices, so it’s important to check current rates before proceeding.

To qualify, your solar installation must be connected to one of the three investor-owned utilities in Massachusetts. The application process is managed by CLEAResult (the Solar Program Administrator) and requires approval from the Department of Energy Resources (DOER). Homeowners should note that the program has specific metering requirements and may have different payment effective dates depending on your utility company.

The SMART Program is currently undergoing revisions, with updated frameworks for land use and siting policies announced in 2024. For the most accurate information on current block availability and incentive rates, homeowners should visit the official SMART Program Application Website or consult with a qualified solar installer familiar with Massachusetts incentives.

Net Metering in Massachusetts allows homeowners with solar panels to receive full credit for the excess electricity they generate and send back to the grid. This program operates on a 1:1 basis, meaning for every kilowatt-hour (kWh) of electricity your solar system exports to the grid, you receive a credit for one kWh on your utility bill. This effectively lets your electric meter run backward when your system produces more power than you’re using, helping maximize your solar investment.

The financial benefit varies based on your utility provider. National Grid, Eversource, and Unitil all offer 1:1 net metering with indefinite credit carryover, allowing unused credits to accumulate as dollar values on your bill month after month with no expiration. Taunton Municipal Light Department handles excess generation differently, providing full credit for within-month usage, but crediting excess monthly production at only the Generation Rate plus Power Cost Adjustment (approximately 6.5-9.5 cents/kWh).

There are no specific eligibility requirements beyond having a grid-connected solar system installed by a licensed professional and approval from your utility company. The program has no scheduled end date, making it a long-term benefit for Massachusetts homeowners considering solar.

Important considerations: Unlike some states, Massachusetts utilities do not issue checks for accumulated credits – they simply continue to carry forward on your bill indefinitely. This makes sizing your system appropriately important, as significantly overproducing beyond your annual needs won’t result in additional financial benefit. Before installing solar, check with your specific utility provider to understand their exact net metering policies and application process.