MASSACHUSETTS SOLAR INCENTIVES
CLEAN ENERGY INCENTIVE PROGRAMS
Massachusetts offers several programs that can improve the economics of solar and energy storage, including SMART 3.0, net metering, state tax incentives, utility programs, and certain local incentives. Available programs vary based on system size, utility territory, property type, and project configuration.
SMART 3.0 Solar Incentives
Massachusetts’ SMART 3.0 program provides performance-based incentives for qualifying solar projects interconnected with Eversource, National Grid, and Unitil.
Incentive structures vary based on system size and project type. Residential and small solar systems may qualify for a fixed payment based on the electricity the system produces, while larger commercial projects use a different compensation structure and may qualify for additional incentives based on project characteristics.
BD Electrical & Solar evaluates SMART eligibility and available incentives as part of the project development process.
Why Go Solar?
Lower & Stabilize Electricity Costs
Solar allows you to generate electricity on-site and reduce the amount of energy purchased from the utility. A properly designed system can lower long-term electricity costs and reduce exposure to future utility rate increases.
Net Metering
Eligible solar systems can receive utility bill credits for excess electricity exported to the grid. Net metering can increase the value of solar production by allowing energy generated during high-production periods to offset electricity used at other times.
SMART 3.0 Incentives
Qualifying Massachusetts solar projects may be eligible for additional compensation through the SMART 3.0 program. Incentives vary based on utility territory, system size, project type, and other project characteristics.
Residential Solar Benefits
Homeowners can use solar to reduce electricity costs, offset increased consumption from heat pumps or EV charging, and create a foundation for battery storage and whole-home energy management.
Commercial Solar Benefits
Businesses and property owners can use solar to reduce operating expenses and improve long-term energy cost predictability. Commercial projects may also qualify for tax incentives, depreciation benefits, SMART incentives, and other programs.
Battery Storage & Energy Management
Solar can be paired with battery storage to provide backup power, increase energy independence, and give property owners greater control over when and how electricity is used. Batteries can also participate in certain utility programs where available.
Municipal Light Plant Programs
Massachusetts municipal utilities operate their own solar and energy programs. Depending on the community, customers may have access to local rebates, net metering, battery incentives, or other programs that differ from those offered by Eversource, National Grid, and Unitil.
Residential Solar Incentives
Massachusetts homeowners may have access to several programs that can improve the economics of a solar project. Available incentives depend on your utility, system size, property, and current program requirements. BD Electrical & Solar evaluates applicable incentives as part of the system design and proposal process.
Massachusetts Residential Renewable Energy Income Tax Credit
Massachusetts homeowners may qualify for a state income tax credit equal to 15% of the net cost of a qualifying renewable energy system, up to a maximum credit of $1,000. Eligibility and individual tax treatment should be confirmed with a qualified tax professional.
SMART 3.0
Qualifying residential solar projects in Eversource, National Grid, and Unitil territories may receive additional compensation through Massachusetts’ SMART 3.0 program. Incentives depend on system size, utility territory, program year, and other project characteristics.
Net Metering
Net metering allows eligible homeowners to receive electric bill credits for excess solar electricity exported to the grid. The value and structure of these credits depend on the utility, system size, and applicable rate class.
Municipal Light Plant Programs
Municipal utilities operate their own solar programs outside of the Eversource, National Grid, and Unitil programs. Depending on the community, homeowners may have access to local rebates, net metering, or other solar and battery incentives.
Municipal Light Plant Programs
Municipal utilities operate their own solar programs outside of the Eversource, National Grid, and Unitil programs. Depending on the community, homeowners may have access to local rebates, net metering, or other solar and battery incentives.
Propel Solar Program
BD Electrical & Solar offers the Propel program for qualifying homeowners looking for another way to finance solar. Propel can reduce the upfront cost of going solar while providing a path to system ownership. We can compare Propel with traditional financing or cash ownership to determine which option best fits the homeowner’s energy and financial goals.
Commercial Solar Incentives
Massachusetts businesses, property owners, nonprofits, and public entities may have access to multiple programs that improve the economics of commercial solar. Incentives vary based on system size, utility territory, ownership structure, project location, and tax eligibility. BD Electrical & Solar evaluates these programs during project development to help determine the most effective system design and financial structure.
SMART 3.0
Commercial solar projects interconnected with Eversource, National Grid, or Unitil may qualify for performance-based incentives through Massachusetts’ SMART 3.0 program. Compensation varies based on system size and project characteristics, with additional incentives available for certain project types including rooftop, canopy, public-entity, energy storage, and other qualifying installations.
Net Metering & Energy Credits
Eligible commercial solar systems may receive utility bill credits for electricity exported to the grid. The value and structure of these credits depend on system size, utility territory, rate class, and project configuration. For larger projects, the interconnection and compensation strategy should be evaluated early in development.
Federal Tax Incentives
Qualifying commercial solar and energy storage projects may be eligible for federal investment tax incentives. Additional incentives may also be available based on domestic content, project location, and other requirements. Tax eligibility and benefit values should be reviewed with the project owner’s tax professional.
Depreciation Benefits
Businesses that own qualifying solar equipment may be able to depreciate eligible project costs, creating additional tax benefits beyond available energy incentives. The timing and value of depreciation depend on current tax law and the owner’s individual tax situation.
Solar + Battery Storage
Adding battery storage can expand the financial and operational value of a commercial solar project. Storage can be used for demand management, peak shaving, backup power, utility programs, and other energy-management strategies. Massachusetts also provides incentives for qualifying storage through programs including SMART and the Clean Peak Energy Standard.
Public & Nonprofit Projects
Municipalities, schools, nonprofits, and other tax-exempt organizations can also benefit from solar and energy storage. Available project structures and incentives differ from traditional commercial ownership, so each project should be evaluated based on the organization, site, utility, and available funding programs.
Find the Right Solar Solution
Solar incentives are only one part of determining whether a project makes financial sense. Utility rates, energy usage, available roof or ground space, system size, net metering, electrical infrastructure, and future energy needs all affect the economics.
BD Electrical & Solar evaluates the complete energy picture to design solar and energy storage systems around the property, available incentives, and long-term energy goals.