Massachusetts

The Massachusetts Residential Renewable Energy Tax Credit is a state tax incentive that helps homeowners save money when they install solar panels, wind turbines, or other renewable energy systems at their primary residence. This credit allows you to reduce your Massachusetts state income tax by 15% of what you spend on qualifying renewable energy equipment and installation, up to a maximum of $1,000.

To be eligible, you must be a Massachusetts resident who owns or rents your primary home and is not claimed as a dependent on someone else’s tax return. The credit applies to the net cost of your renewable energy system after subtracting any federal tax credits and government rebates you receive. Your renewable energy equipment must be new, expected to operate for at least five years, and used primarily for residential purposes like heating, cooling, hot water, or electricity generation.

If your credit amount exceeds your tax liability in a given year, you can carry the unused portion forward for up to three additional years. Joint property owners can share the credit based on their ownership percentage, but the $1,000 maximum applies per residence. Keep in mind that structural components like roofs, windows, and walls don’t qualify, even if they help with energy collection – only dedicated renewable energy equipment and installation costs are eligible for this credit.

Massachusetts offers a property tax exemption for homeowners who install solar energy systems on their property. This state-level incentive exempts the added value of your solar installation from your annual property tax assessment, meaning you won’t pay additional property taxes on the increased home value that comes from adding solar panels.

The exemption applies to solar systems that meet specific size requirements: either systems that produce no more than 125% of your property’s annual electricity needs, or systems with a capacity of 25 kilowatts or less (verified by state documentation). The tax exemption lasts for 20 years from installation, though municipalities can agree to extend this period. To qualify, your system must be owned or leased and located on residential property within Massachusetts. The exemption also covers wind-powered systems and energy storage systems that are paired with solar or wind installations.

The Solar Equipment Sales Tax Exemption in Massachusetts eliminates the state’s 6.25% sales tax on solar energy equipment purchases. This means homeowners don’t pay sales tax when buying solar panels, inverters, batteries, and other qualifying solar equipment for their home solar installation.

The exemption applies automatically at the point of sale – there’s no need to apply for the benefit or file additional paperwork. The savings amount depends on your total equipment cost, but for a typical residential solar system costing $20,000-$30,000, homeowners can save $1,250-$1,875 in sales tax. This exemption covers all solar equipment components needed for your system, including mounting hardware and electrical components.

All Massachusetts residents purchasing qualifying solar equipment are eligible for this exemption. The benefit applies to both homeowner-purchased equipment and equipment purchased by solar installers on behalf of homeowners. There are no income limits, system size restrictions, or application deadlines since this is an ongoing state tax policy that remains in effect indefinitely.

The ConnectedSolutions Battery Incentive is a Massachusetts state program that pays homeowners for allowing their battery storage systems to help reduce strain on the electrical grid during peak demand periods. When you enroll your home battery system, Mass Save utility sponsors can automatically draw stored energy from your battery during high-demand summer events, typically on hot afternoons between 3:00 p.m. and 8:00 p.m.

Participants earn $275 per kilowatt (kW) based on their battery’s average contribution during summer events. For example, a typical 5-kW battery system could generate up to $1,375 per year. Events occur no more than 60 times per summer (June 1 – September 30) on non-holidays, with each event lasting a maximum of three hours. Your battery will automatically respond to signals from your utility sponsor without any action required from you.

To be eligible, you must be a customer of Cape Light Compact, Eversource, or National Grid with a qualifying battery system under 50kW. Your battery can be installed with a new solar system, added to an existing solar installation, or installed as a standalone system. The program accepts batteries from major manufacturers including Tesla, Enphase, Generac PWRCell, SolarEdge, and others. Mass Save also offers 0% financing up to $25,000 for battery installations through their HEAT Loan program, making this incentive even more accessible for Massachusetts homeowners looking to add energy storage to their homes.

The Solar Massachusetts Renewable Target (SMART) Program is Massachusetts’ main state incentive program that pays solar system owners monthly cash payments for the electricity their solar panels produce. This tariff-based incentive is paid directly by your utility company (Eversource, National Grid, or Unitil) and runs for 10-20 years depending on your system size. The program uses a declining block structure, meaning incentive rates decrease as more solar capacity is installed across the state.

The financial benefit varies based on several factors including your utility company, system size, location type, and which capacity block your project falls into when you apply. Base compensation rates were set through competitive procurement, but specific dollar amounts depend on your individual project details. You can use DOER’s Value of Energy Calculator to estimate your potential payments. The program offers additional payment adders for qualifying projects, such as energy storage systems, agricultural installations, brownfield sites, and low-income properties.

To be eligible, your solar system must be interconnected with one of the three participating utilities and receive approval from both the Solar Program Administrator (CLEAResult) and DOER. Projects are categorized based on land use and installation type, with specific siting rules that must be followed. Important considerations include that some recent applications may receive $0.00 incentive rates due to higher electricity costs and the program’s declining structure, and there’s a total program cap of 3,200 MW across all utilities.

Net Metering in Massachusetts allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses, that extra power flows to the grid and you receive credits on your electric bill at the same rate you pay for electricity (1:1 credit ratio).

The financial benefit varies by utility company. For National Grid, Eversource, and Unitil customers, excess credits carry over month to month as dollar values indefinitely with no annual payout – meaning you keep building credits during sunny months to use during less productive periods. Taunton Municipal Light Department customers receive monthly settlement, where excess production above monthly consumption is credited at a lower generation rate of approximately 6.5-9.5 cents per kWh rather than the full retail rate.

This program is available to solar customers of participating Massachusetts utilities, with no specific deadlines mentioned for enrollment. Homeowners should understand that while most utilities allow indefinite credit rollover, no cash payments are made for excess credits – they remain as bill credits only. The value of your net metering credits depends on your specific utility company’s policies and rate structure.