Worcester, MA

The Massachusetts Residential Renewable Energy Tax Credit offers homeowners a valuable financial incentive for installing solar panels or wind energy systems. Massachusetts residents who install qualifying renewable energy equipment on their principal residence can receive a state income tax credit equal to 15% of their net expenditure (after federal credits and rebates) or $1,000, whichever is less. This credit directly reduces your state income tax liability, potentially saving you up to $1,000.

To qualify, you must own or rent your principal residence in Massachusetts and not be claimed as a dependent on another person’s tax return. The renewable energy equipment must be new (with original use beginning with you), 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 regular roofs, windows, and walls don’t qualify as renewable energy property, even if they support your solar or wind system.

Massachusetts offers a Property Tax Exemption for residential solar systems that provides a 100% exemption from property taxes on qualifying solar installations for 20 years. This means your property taxes won’t increase due to the added value of your solar system, helping you save money while transitioning to clean energy.

To qualify, your solar system must either: 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 applies to both owned and leased systems, and can even be extended beyond 20 years with written agreement from your municipality. This exemption doesn’t apply to community solar projects or systems owned by utility companies.

Massachusetts offers a Solar Equipment Sales Tax Exemption that allows homeowners to purchase solar energy systems without paying the state’s 6.25% sales tax. This incentive applies to all equipment directly related to your solar installation, including solar panels, inverters, mounting hardware, and other components necessary for a functioning solar energy system.

To qualify for this exemption, you simply need to purchase solar equipment for a residential installation in Massachusetts. There is no application process required – the exemption is applied automatically at the point of sale when you purchase from a registered vendor. There are no deadlines or expiration dates for this program, as it’s an ongoing state tax exemption. For a typical residential solar system costing $20,000, this exemption could save you approximately $1,250 in sales tax.

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 with a battery system smaller than 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, with a maximum of 60 events per summer occurring between 3:00 p.m. and 8:00 p.m. Each event lasts no more than three hours. Additionally, eligible homeowners can access 0% financing for battery systems up to $25,000 through the Mass Save HEAT Loan program.

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 rate payment directly to solar system owners for the energy 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 operates on a declining block structure with 3,200 MW of total capacity. Each utility territory (Eversource, National Grid, and Unitil) has its own blocks, and as blocks fill up, the incentive rates decrease. The exact payment rate depends on your system size, location, utility company, and when you apply. Additional financial adders are available for systems that include energy storage (batteries), are built on brownfields, serve low-income customers, or incorporate agricultural uses. Some current blocks may offer minimal or zero incentive rates due to higher electricity prices and the program’s declining structure.

To qualify, your solar system must be connected to one of the three investor-owned utilities in Massachusetts (Eversource, National Grid, or Unitil). The application process is managed by CLEAResult, the Solar Program Administrator, who reviews applications and recommends approval to the Department of Energy Resources (DOER). Homeowners should be aware that the program is continuously evolving, with recent updates to land use policies and potential changes following the 2024 SMART Straw Proposal. For the most current incentive rates and block availability, it’s best to check the official SMART Program Application Website.

Net Metering in Massachusetts is a program that allows solar homeowners to receive credit for excess electricity their system generates and sends back to the grid. When your solar panels produce more electricity than your home is using, your utility meter runs backward, effectively banking this energy for later use. Massachusetts offers a favorable 1:1 net metering rate, meaning you receive credit at the same retail rate you would pay for electricity from the grid.

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 policy differs slightly – excess monthly production is credited only at the Generation Rate plus Power Cost Adjustment (approximately 6.5-9.5 cents/kWh) rather than the full retail rate.

To qualify for net metering in Massachusetts, you simply need to have a grid-connected solar system installed by a licensed professional. There are no specific deadlines to enroll, as this is an ongoing program. When planning your solar system, consider sizing it appropriately to match your annual electricity usage to maximize the financial benefits of net metering without generating excessive unused credits that cannot be cashed out.