Guide to Massachusetts Solar & Clean Energy Incentives

CLEAN ENERGY INCENTIVE PROGRAMS

Massachusetts is leading the nation’s clean energy efforts. The Bay State has ranked #1 in energy efficiency year after year and has a history of having strong solar incentives for property owners looking to own a solar panel system.

Shared Success: Embracing Collaboration for Greater Achievements

The Massachusetts Department of Energy Resources (DOER), in conjunction with the participating utilities set their sights even higher for the most energy-efficient state by launching the Solar Massachusetts Renewable Target (SMART) program. SMART will encourage the development of solar photovoltaic (PV) technology by supporting 3,200 MW of new solar generating capacity.

Top Reasons to Go Solar in Massachusetts

Protect The Environment

– The U.S. Green Building Council reports that buildings contribute 39 percent of all carbon emissions in the United States

– The electricity that solar panels produce are completely emissions free

Reduce / Eliminate Electric Bills

– MA Residents pay some of the highest electricity rates in the country leading to short pay-back period

– Net Metering

– Avoid Utility Inflation

Business Benefits

– Increased profits because of operating lower costs

– Increased revenue / client base due to socially responsible reputation

– Goodwill Value

Increased Property Value

On average, solar panels raise a home’s value by 4.1% across the U.S., according to a new Zillow analysis of homes across the country— that’s a boost of $9,274 on a $226,300 home, according to the study

U.S. Energy Independence

The sun is a near-infinite source of energy and one of the world’s greatest resources. One recent study found that 25,000 square miles of solar panels (an area roughly the size of West Virginia) would generate enough electricity to power the entire world. By investing in solar power, you can help take advantage of the sun’s abundant resources and bring the United States one step closer to energy independence.

Global energy markets are notoriously unstable, and price fluctuations can have a serious impact on the U.S. economy. When we expand our capacity to generate solar electricity within the U.S., we also insulate ourselves from those price fluctuations and ensure a sustainable source of energy for the future.

Inflation Reduction Act Incentives

– The Energy Efficient Home Credit covers up to $2,500 for wiring replacements and renovations in older homes.
– The Clean Vehicle Credit covers 30% of the cost to install a home EV charger, up to $1,000. It also provides up to $7,500 off the price of a new electric vehicle and up to $4,000 off a used electric vehicle.

– 30% of the cost for various energy efficiency improvements, including up to $2,000 for heat pumps.

Financial Incentives

– Federal Investment Tax Credit

– SMART Incentive Payment

– Renewable Energy Credit (RECs) – Up to 2.75 cents per kilowatt-hour

– Modified Accelerated Cost-Recovery System (MACRS), a five-year depreciation formula which currently includes a 100% bonus tax deduction in year one

Massachusetts State Incentives

Our state has a wide range of tax incentives and rebates available to help cover part of the cost of installing solar panels. Check the list of programs below to discover what is available:

Residential Renewable Energy Income Tax Credit

This program offers a credit for part of the cost to install a new solar energy system. Owners of a renewable energy system can receive a credit equal to 15% of the cost to add any renewable system to their property, set against their state income tax, with a limit of $1,000 in total.

Solar Massachusetts Renewable Target (SMART)

The SMART program offers incentives to customers of Eversource, National Grid, and Unitil. Massachusetts customers can receive a fixed rate per kilowatt-hour (kWh) of energy produced over the course of a decade. Rates range from nine to thirty-one cents per kWh depending on location and utility. Low-income residents and those who add a battery storage unit to their solar power system can receive additional incentives.

Net metering in Massachusetts

Net metering measures the amount of electricity sent back to the local grid. Electric companies pay consumers for excess solar energy produced by their systems. Rates vary by company, providing a way to earn extra income from a robust solar panel system.

Massachusetts solar tax exemptions

Residential Clean Energy Credit

Also known as the Investment Tax Credit (ITC), the Residential Clean Energy Credit can lower the cost of your Massachusetts solar power system by 30%. This credit is available to anyone who buys their PV solar energy system outright and has sufficient income for the credit to be meaningful.

Municipal Light Plant Solar Rebate Program

Certain municipalities throughout Massachusetts offer a rebate program that provides money to residents who go solar. These municipalities offer a one-time lump sum payment for installing a solar panel system at their homes. Residents should check with their local Massachusetts municipality to see if the rebate is offered and the amount that can be paid out.

Inflation Reduction Act (IRA) Incentives

Electrical Panel Upgrades

For those who qualify (income no more than 150% of the community’s median), the IRA covers up to $4,000 to install a new electrical panel.
A separate electrical panel upgrade tax credit is available for non-qualifying homeowners: 30% of the project cost or a maximum of $600.

EV Charger Installations

The Clean Vehicle Credit covers 30% of the cost to install a home EV charger, up to $1,000. This credit also provides up to $7,500 off the price of a new electric vehicle and up to $4,000 off the price of a used electric vehicle.

Wiring Upgrades

The Energy Efficient Home Credit covers up to $2,500 for wiring replacements and renovations in older homes.

Heat Pump Adoption

The Energy Efficiency Home Improvement Credit offers 30% of the cost for various energy efficiency improvements, including up to $2,000 for heat pumps. Other improvements have varying limits, such as $600 for energy-efficient heating and cooling equipment and $1,200 for overall qualified energy efficiency improvements.