Waltham, MA Solar Panels

The Massachusetts Residential Renewable Energy Tax Credit offers homeowners and tenants a state tax credit for installing 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 federal tax credits or government grants you receive.

To qualify, you must be a Massachusetts resident who owns or rents the property and uses it as your primary residence. You cannot be claimed as a dependent on someone else’s tax return. The renewable energy equipment must be new (original use begins with you), expected to last at least five years, and used primarily for residential purposes such as heating, cooling, hot water, or electricity generation. Qualifying systems include solar panels, solar water heaters, wind turbines, and related components like storage tanks and heat exchangers. However, structural elements that serve dual purposes—such as windows, roofs, and walls—don’t qualify, nor do energy efficiency items like insulation or programmable thermostats.

If your tax credit exceeds your tax liability in a given year, you can carry the unused portion forward for up to three additional years. The $1,000 maximum applies to all renewable energy improvements made to the same primary residence over time, so if you’ve already claimed part of this credit in previous years, your remaining available credit will be reduced accordingly. Joint owners can share the credit proportionally based on their ownership interest or expenditure amounts, and condo or co-op residents may claim their proportionate share of association-installed systems.

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 state program documentation or utility permission), 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 it can cover solar systems paired with battery storage. The 20-year exemption period can be extended if you reach a written agreement with your local municipality.

Important considerations: This exemption doesn’t apply to large commercial solar projects or systems owned by utility companies. The exemption is determined annually as of July 1st each year. If you receive this exemption, you cannot claim certain other property tax exemptions on the same property simultaneously. Your system capacity must be verified through official documentation from the Massachusetts Department of Energy Resources incentive programs or your electric utility company.

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 qualifying solar equipment in Massachusetts, you won’t pay the standard sales tax that applies to most retail purchases. This exemption applies to both the equipment itself and the materials used to install your solar energy system.

The financial benefit depends on your total system cost. For example, on a $25,000 solar installation, this exemption saves you $1,562.50 in sales tax. On a $35,000 system, you’d save $2,187.50. These savings are automatic at the point of purchase—you don’t need to file for a rebate or wait for reimbursement. Your solar installer should apply the exemption directly when processing your purchase.

This exemption is available to all Massachusetts residents and businesses purchasing qualifying solar energy equipment. There are no income limits, property requirements, or application processes. The exemption has no expiration date under current law, though it’s always wise to confirm availability with your installer before finalizing your purchase. This state tax exemption works alongside other Massachusetts solar incentives, helping reduce your upfront investment in clean energy.

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 between 3:00 p.m. and 8:00 p.m. from June through September. These events happen no more than 60 times per summer and last up to three hours each.

You’ll earn $275 per kilowatt (kW) based on your battery’s average contribution during these events. For example, a typical 5 kW battery system could earn up to $1,375 annually. The program accepts batteries installed with new solar systems, added to existing solar systems, or installed as standalone units. Your battery must use a qualifying inverter from manufacturers like Tesla, Enphase, SolarEdge, Generac PWRCell, or other approved brands, and the inverter size must be less than 50 kW.

To participate, you must be a residential customer of one of the three participating utilities. After purchasing and installing an eligible battery system, you’ll enroll directly through your battery manufacturer’s platform. Mass Save also offers 0% financing HEAT Loans up to $25,000 for battery installations, making this upgrade more affordable. By participating, you assign the environmental credits (Clean Peak Energy Credits) to your utility sponsor, but this doesn’t affect your incentive payments.

The Solar Massachusetts Renewable Target (SMART) Program is Massachusetts’ primary state incentive for solar energy systems. This program provides a fixed monthly payment for the electricity your solar panels generate, paid directly by your utility company (Eversource, National Grid, or Unitil) for 10 years. The payment rate depends on when you apply, your system size, location, and how your system is configured—rates decrease as more solar capacity is added statewide through a “declining block” structure.

Payment rates vary significantly based on your specific project details and which capacity block is available when you apply. The program uses a “Value of Energy” calculation for behind-the-meter systems (those connected to your home) that considers your utility territory and rate class. Some capacity blocks currently show $0.00 incentive rates due to higher electricity prices, so it’s important to check current availability in your utility’s service territory before proceeding. Additional payment adders are available for systems that include battery storage, are installed on agricultural land, or serve low-income properties.

To participate, your system must be connected to one of the three participating utility companies and reviewed by CLEAResult, the program administrator. Applications are processed on a first-come, first-served basis within each capacity block. There are specific land use and siting requirements that determine project eligibility, and some property types receive different treatment under the program rules. Because incentive rates decline as capacity fills up and some blocks may offer minimal financial benefit, you should verify current rates and block availability before making installation decisions.

Net metering in Massachusetts allows you to receive credit for the excess solar energy your system sends to the electric grid. When your solar panels produce more electricity than your home uses, that surplus power flows back to the grid, and your utility company credits your account. These credits work on a 1:1 basis for most utilities, meaning you receive the full retail rate for every kilowatt-hour (kWh) you export.

The financial benefit varies slightly depending on your utility provider. If you’re a customer of National Grid, Eversource, or Unitil, your excess credits are carried over month to month as a dollar value indefinitely—there’s no annual expiration, though you won’t receive a cash payout. For Taunton Municipal Light Department customers, the system works differently: 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 homeowners who install solar panels and connect to the grid through their utility company. There are no specific deadlines to enroll, as this is an ongoing program established by Massachusetts state law. The key consideration is understanding how your specific utility handles excess credits, as this affects the long-term value of your solar investment. This program works best when your system is sized appropriately to match your annual electricity usage.