MA Incentives

Some other possible financial advantages for MA residents

1. 30% Federal Tax Credit:

In simple terms, if you buy and install a solar energy system for your home in 2025, you can reduce the federal income taxes you owe by 30% of the total cost. If you don't owe enough taxes to use the entire credit in one year, you can use the remaining credit in future years.

Eligibility:

• You must own the solar energy system (not lease it).
• The system must be new or being used for the first time.
• It must be installed at your primary or secondary residence located in the United States. This includes houses, houseboats, mobile homes, cooperative apartments, condominiums, and manufactured homes. You can even claim the credit for a vacation home, but only for the portion of the year you live there.
• The system must have been placed in service (installed and operational) during the tax year you're claiming the credit.

How to Claim: You need to file IRS Form 5695, Residential Energy Credits, with your federal tax return. Once your system is installed, please contact a financial professional for further guidance.

For more information check out the IRS page: https://www.irs.gov/credits-deductions/residential-clean-energy-credit and https://www.irs.gov/credits-deductions/home-energy-tax-credits

2. The Solar Massachusetts Renewable Target (SMART) Program:

The SMART Program is a 3,200 MW declining block incentive program. Eligible projects must be interconnected by one of three investor owned utility companies in Massachusetts: Eversource, National Grid, and Unitil.

The tariff-based incentive is paid directly by the utility company to the system owner, following the approval of the application by the Solar Program Administrator and DOER.

SMART application webinar video: https://www.youtube.com/watch?v=W2po4SKrxfg

More information: https://www.mass.gov/solar-massachusetts-renewable-target-smart

SMART application: https://masmartsolar.com/

3. Massachusetts solar rebates and incentives guide: 

Incentives from the state and federal governments can help you reduce the upfront cost. Between the federal tax credit and state-specific incentives, you can save thousands on solar panels, making them well worth the investment. Here's how you can lower the cost of solar if you live in Massachusetts.

Check out the guide: https://www.energysage.com/local-data/solar-rebates-incentives/ma/

4. Net Metering Option in MA:

If you connect your solar panel system to the grid, you can benefit from net metering, one of the best solar panel incentives available in Massachusetts. With net metering, you earn credits when you send excess electricity from your solar panels to the grid. When the sun isn't shining and you need to pull electricity from the grid, your utility will apply the credits to your bill. Net metering makes it so you will owe very little, or even nothing, on your electric bills with solar panels. 

5. Residential Energy Credit: 

An owner or tenant of a residential property located in the commonwealth who is not a dependent of another taxpayer and who occupies the residential property as his or her principal residence is allowed a solar and wind energy credit ("energy credit") against personal income tax equal to fifteen percent of the net expenditure for renewable energy source property, or $1000, whichever is less. See G.L. c. 62, § 6(d), as amended by St. 1987, c. 677. The $1000 credit limitation applies to all renewable energy source expenditures made by an owner or tenant ("taxpayer") with respect to his or her principal residence.

More information: https://www.mass.gov/regulations/830-CMR-6261-residential-energy-credit 

6. MLP Solar Rebate Program:

The Massachusetts Municipal Light Plant (“MLP”) Solar Rebate Program provides rebates through a noncompetitive application process for the installation of photovoltaic (“PV”) projects by professional, licensed
contractors at residential, commercial, industrial, institutional and public facilities in participating MLP service
territories. The System Owner (and project site) must be a customer of a Massachusetts participating MLP that
has received a grant award from DOER. The rebates are based on the size of the PV project, which may not
exceed 25 kW (25,000 watts DC @ STC). DOER has allocated $2.3 million to this program, which will be
matched by participating MLPs and will last until the funds are reserved or until the end of the second calendar
quarter of 2020, whichever is sooner.

More information: https://www.mass.gov/doc/mlp-solar-rebate-program-manual-v-12-0/download#:~:text=Rebates%20for%20System%20Owners%20are,Rebate%20Calculation%20for%20more%20details).

Here are more resources for solar incentives in Massachusetts: https://www.masssave.com/solar

Friendly Warning: The Massachusetts "Solar For All" Program is not yet available to Massachusetts residents. Consumers should be aware of bad actors using this high-profile program to spread scam offers. Additional information and resources are provided at Information for Residents page listed here: https://www.mass.gov/solar-for-all-information-for-residents 

For future reference, under the $7 billion federal Solar For All  program, Massachusetts has been awarded $156 million to expand access to solar energy in low-income and historically disadvantaged communities (LIDACs). Solar for All programs will lower energy costs for thousands of qualifying households by financing solar installations in a variety of housing types. Residents will receive a minimum of 20% savings (or equivalent benefits) on average electric bills.

This is a great time to consider solar panels for your home!