Waltham, 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) for renewable energy equipment, up to a maximum of $1,000. This credit directly reduces your Massachusetts personal income tax liability, potentially putting money back in your pocket while you enjoy the benefits of clean energy.

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 last 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 certain components like insulation, thermal windows, or maintenance costs don’t qualify as renewable energy expenditures 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 energy systems from property taxes for 20 years, meaning the added value of your solar installation won’t increase your property tax bill. This can result in substantial savings over the life of your system, as solar installations typically increase property values but won’t trigger higher tax assessments under this program.

To qualify, your solar system must meet one of these requirements: produce no more than 125% of your property’s annual electricity needs, have a capacity of 25 kilowatts or less, or have a payment in lieu of taxes agreement with your municipality. The exemption applies to both owned and leased systems, as well as systems co-located with energy storage. The exemption period begins on July 1st following installation and continues for 20 years, though longer exemption periods may be negotiated 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 installer.

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 Massachusetts homeowner installing a solar system costing $20,000, this exemption can save approximately $1,250 in sales tax.

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 solar equipment vendor. This incentive has no expiration date and is available year-round with no caps or limits. When purchasing solar equipment, simply ensure your vendor is aware that you’re buying a solar energy system to ensure the sales tax exemption is properly applied.

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 program, you can earn $275 per kilowatt (kW) for your battery’s average contribution during summer events. For a typical 5-kW battery system, this could mean up to $1,375 in annual incentives while helping reduce strain on the grid during high-demand periods.

To qualify, you must be a customer of Cape Light Compact, Eversource, or National Grid, and have an eligible battery system with an inverter size under 50kW. 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, occurring no more than 60 times per summer between 3:00 p.m. and 8:00 p.m., with each event lasting a maximum of three hours. Additionally, Massachusetts offers 0% financing HEAT Loans of up to $25,000 for battery installations, making this upgrade more affordable for homeowners interested in energy resilience and supporting clean energy.

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 fixed monthly payments directly to solar system owners over a 10-year period. These payments come from your utility company (Eversource, National Grid, or Unitil) and are separate from your electricity savings.

The SMART Program uses a declining block structure, meaning incentive rates decrease as more solar capacity is installed. The program has a total capacity of 3,200 MW divided into blocks. Financial benefits vary based on your system size, location, utility company, and when you apply. For residential systems, payments typically range from 15-30 cents per kilowatt-hour produced. Additional incentives (called “adders”) are available if your system includes energy storage (batteries), is built on a brownfield, serves low-income households, or incorporates agricultural uses.

To qualify, your solar system must be connected to one of the three investor-owned utilities in Massachusetts. The program is currently active, but incentive rates continue to decline as more blocks fill up. In some cases, later blocks may offer $0.00 incentive rates due to higher electricity prices and the program’s declining structure.

Important considerations: The application process requires working with a solar installer who will submit paperwork through the program administrator (CLEAResult). Your incentive rate is locked in when your application is approved, so timing matters. Some blocks may already be full in certain utility territories, affecting available rates. For the most current information on block availability and rates, homeowners should consult the SMART Program Application Website or speak with a qualified solar installer.

Net Metering in Massachusetts allows homeowners with solar panels to receive full credit for the electricity they generate but don’t use immediately. When your solar system produces more electricity than you’re using, the excess is sent back to the grid, and you receive a 1:1 credit on your utility bill. This means for every kilowatt-hour (kWh) you export to the grid, you get a credit for one kWh to use when your system isn’t producing enough electricity (like at night or on cloudy days).

The financial benefit varies based on your utility provider. National Grid, Eversource, and Unitil all offer 1:1 net metering with indefinite credit carryover. This means excess credits are carried over from month to month as a dollar value without expiration. Taunton Municipal Light Department operates differently, offering monthly settlement where excess production is credited only at the Generation Rate plus Power Cost Adjustment (approximately 6.5-9.5 cents/kWh).

To be eligible for net metering in Massachusetts, you must be a customer of one of the participating utilities and have a properly installed and inspected solar PV system connected to the grid. There are no specific deadlines for enrolling in net metering, as it’s an ongoing program available to qualifying solar system owners.

Important considerations: Unlike some states, Massachusetts does not have an annual true-up period for most utilities, and excess credits can be carried forward indefinitely. However, it’s worth noting that utilities will not pay out checks for accumulated credits, so sizing your system appropriately for your consumption is important. For Taunton Municipal Light Department customers, the monthly settlement structure means you’ll receive less value for excess generation compared to the other utilities’ full retail rate credits.