Massachusetts Solar Incentives
Massachusetts & Cape Cod Solar Energy Incentives are some of the best in the country!
Current solar incentives have helped our state become a national leader in promoting and facilitating renewable energy and energy efficiency! These include; net metering, Solar Massachusetts Renewable Target (SMART) incentive program, along with other generous state energy efficiency programs in addition to federal incentives.
We will help you understand which incentives you qualify for and how you can take advantage of them!
For over 20 years, Clean Energy Design has been an industry leader in the design and installation of commercial and residential photovoltaic and solar thermal systems in southern New England, particularly Massachusetts. Massachusetts Solar Energy Incentives are some of the most progressive in the country! We are very proud that Massachusetts leads the way in allocating resources to ensure the adoption of clean, renewable energy sources and that we have been able to play a role in that progress. We’ve happily participated in helping to expand the Massachusetts solar energy incentive programs and initiatives over the years.
Our experience includes dozens of successful applications for institutions, residences and businesses under the Commonwealth Solar Hot Water Program (below), Commonwealth Wind Program, and now expired Commonwealth Solar II Program, MTC Small Renewables Initiative, PV Cluster Program, and Large On-Site Renewables Program, SREC & SMART programs.
SMART Incentive Program
The SMART Program is a long-term sustainable solar incentive program sponsored by Eversource, National Grid and Unitil. SMART will encourage the development of solar photovoltaic (PV) technology by supporting 1,600 MW of new solar generating capacity. It is a declining block program in which the incentive levels will decline by prescribed amounts over up to eight blocks per Electric Distribution Company (EDC) territory.
There are set-aside amounts for small projects (≤ 25 kW AC) in each block to enable projects of all sizes to participate. SMART also has Adders available that increase the amount of the incentive if features such as Energy Storage, Community Solar, or various location-based installations are proposed.
Although it is a performance-based incentive, the SMART program is structured quite differently than its predecessor. Your utility will monitor and track the production of your solar system monthly through a SMART meter that is installed on the outside of your home or business. Payments will be issued monthly or credited to your account based on the kWh of solar power produced and independent of electricity usage. In most cases this income is taxable and it is required to submit a W-9 to your utility when applying for this program.
Under the final tariff design there are different rates for projects of different scales up to 5 MW per site. Incentives will be provided for 10 or 20 years, with varied values depending on ownership, system size and location. The tariff will consist of 8 blocks, with tariff values decreasing 4-5% in each subsequent block. For systems 25 kW and less the term is 10 years and for systems over 25 kW the term is 20 years.
For more information on the Solar Massachusetts Renewable Target (SMART) Program please visit MA Smart Solar
Federal Tax Credits
- 26% for residential installations which must be placed in service during 2020, 2021, & 2022
- 26% for commercial installations that have begun construction (see Seia.org for more specific info)
- Steps down to 26% for installations January 1, 2020 through December 31, 2020
- 22% for installations January 1, 2023 through December 31, 2023
- 10% for commercial installations only January 1, 2024 through December 31, 2024
It is unclear whether the federal tax credit will remain at 10% after the end of 2024 or if it will be reinstated by the new administration. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The excess credit may be carried forward for three years, but it is unclear whether it can be carried forward beyond that point.
We are not tax professionals and urge you to consult with your tax professional for the best advice.
In addition to the ITC, businesses may take advantage of 5 year accelerated depreciation and 100% federal bonus depreciation.
Residential Renewable Energy Tax Credit
In the state of Massachusetts, there is a Residential Renewable Energy Income Tax Credit that is applicable to solar and wind installations. Homeowners will receive a credit of 15% of the installed system cost, capped at $1,000. The state tax credit is only available for installed systems on an individual’s primary residence.
MA Property Tax Exemption
Massachusetts provides 100% property tax exemption for a duration of 20 years on photovoltaic energy systems used to generate electricity for a residence.
MA Sales Tax Exemption
Massachusetts offers sales tax exemption for equipment related to a solar electricity generation for a primary residence.
MA State Incentive Programs
Pleased visit the Massachusetts Clean Energy Center website for information on all state clean energy programs.
Details for some of the Commonwealth of Massachusetts Solar Rebates & Energy Efficiency programs are found on the links below.
For the most current information on the available federal & state tax credits for Solar and other Renewable Energy technologies, please visit the Database of State Incentives for Renewable Energy.