Springfield, MA

The Massachusetts Residential Renewable Energy Tax Credit offers homeowners a valuable financial incentive when they install qualifying solar or wind energy systems in their primary residence. This state tax credit allows you to claim 15% of your net expenditure (after federal credits and rebates) on renewable energy equipment, up to a maximum of $1,000. This 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 residence and is not claimed as a dependent on another person’s tax return. The renewable energy system must be new, expected to operate for at least five years, and primarily used for residential purposes (at least 80% residential use). If you can’t use the full credit amount in one year, you can carry over any remaining credit for up to three additional tax years. Remember that only certain equipment qualifies – while solar panels, collectors, and wind turbines are eligible, dual-purpose items like insulated windows or regular roofing materials don’t qualify, even if they provide some energy benefits.

Massachusetts offers a Property Tax Exemption for residential solar systems that provides significant financial benefits to homeowners. This state tax exemption allows you to avoid paying property taxes on the added value that a solar, wind, or energy storage system brings to your home for at least 20 years. Without this exemption, your property taxes would increase after installing solar panels because they increase your home’s assessed value.

To qualify for this exemption, your 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 are possible through written agreements with your municipality. This incentive does not apply to utility-owned systems or those developed under certain utility programs, so be sure to confirm eligibility with your solar installer or local tax assessor before installation.

The Massachusetts Solar Equipment Sales Tax Exemption is a valuable state incentive that eliminates the 6.25% sales tax on solar energy system purchases. This exemption applies to all solar equipment including panels, inverters, mounting hardware, and other components needed 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 required – 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 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 under 50kW from approved manufacturers including Tesla, Enphase, SolarEdge, and others. Your battery can be installed with new solar panels, added to existing solar, or as a standalone system. The program runs events between June 1 and September 30, occurring no more than 60 times per summer between 3:00 p.m. and 8:00 p.m., with each event lasting up to three hours. Additionally, homeowners can access 0% financing through Mass Save HEAT Loans of up to $25,000 for battery installations.

The Solar Massachusetts Renewable Target (SMART) Program is a state-run incentive program designed to encourage solar development across Massachusetts. This program works differently than traditional rebates – instead, it provides a fixed payment rate directly to solar system owners for the electricity their systems produce over a 10-year period (for systems under 25kW) or a 20-year period (for larger systems). These payments come directly from your utility company after your solar application is approved.

The SMART Program uses a declining block structure, meaning the incentive rates decrease as more solar capacity is installed in your utility’s service area. Current base compensation rates vary by utility, system size, and which block is active, but typically range from $0.13 to $0.39 per kilowatt-hour produced. Additional adders are available for systems with energy storage (batteries), those built on brownfields, low-income properties, or that incorporate agricultural uses. Some blocks may now offer $0.00 incentive rates due to higher electricity prices and the program’s declining structure.

To qualify for SMART, your home must be served by one of Massachusetts’ investor-owned utilities: Eversource, National Grid, or Unitil. Your solar installer will handle the application process through the program administrator, CLEAResult. The system must meet specific technical requirements and may be subject to siting restrictions depending on land use considerations.

While there is no specific end date for the SMART Program, it is limited to 3,200 MW of total solar capacity across the state. As blocks fill up, incentive rates decrease, so earlier participation generally means better financial benefits. If you’re considering solar for your home, it’s advisable to check current block availability in your utility’s service territory on the SMART Program website, as some blocks may already be fully subscribed.

Net Metering in Massachusetts is a valuable program that allows solar homeowners to receive credit for excess electricity their system produces and sends back to the grid. When your solar panels generate more electricity than your home is using, your utility meter actually runs backward, and you build up credits on your electric bill. Massachusetts offers a full retail rate (1:1) net metering program, meaning you receive credit at the same rate you would pay for electricity from your utility.

For customers of National Grid, Eversource, and Unitil, excess credits are carried over from month to month as a dollar value with no expiration date. Unlike some states, Massachusetts does not have an annual true-up period, allowing your credits to accumulate indefinitely. However, it’s important to note that utilities will not issue cash payments for accumulated credits. For Taunton Municipal Light Department customers, the program works differently – excess monthly production is credited only at the Generation Rate plus Power Cost Adjustment (approximately 6.5-9.5 cents/kWh) and is settled monthly.

To be eligible for net metering in Massachusetts, you must be a customer of a participating utility with a properly installed and inspected solar PV system that meets all local electrical codes. There are no current deadlines for enrolling in the program, but system size limitations may apply depending on your utility and rate class. Before installing solar, it’s recommended to contact your specific utility to confirm their current net metering policies and any system size limitations that might affect your installation.