How To Get Free Solar Panels Installed in Massachusetts

Power Purchase Agreement (PPA)

The most common path to "free" solar is a Power Purchase Agreement directly between you and a state-licensed solar energy company. Under a "PPA", the solar company absorbs the full cost of the solar panel equipment and installation for you.

The solar company is technically the owner of the equipment, however, they are responsible for providing you with electricity produced from your home for a guaranteed fixed rate (unlike the unpredictable rising costs of traditional utilities). They are also responsible for any continued maintenance or repairs the solar system may require.

This can be a great option if you don’t want to buy or simply can’t afford to buy the solar panels outright. Even though the homeowner isn’t purchasing the actual solar system, they still enjoy the benefits of solar energy and save money on their electricity bills.

Massachusetts State Solar Programs

Massachusetts does not have a statewide rebate program, however, they do offer some of the best solar incentives in the US including a state tax credit. Many local governments and utility companies also offer generous solar incentives and programs, each with unique eligibility requirements. For example, Bristol County & Taunton Municipal Light Plant offer a $4,500 rebate to residents with solar. There are also statewide tax exemptions for residential and commercial renewable energy systems. When combined, these incentives will significantly offset the cost of going solar and can even provide a financial return.

Considering how specific each program is to the details of your home, we strongly suggest you speak with a local solar expert to review all of your best options.

Additional Financial Benefits

In addition to these programs, there are many financial benefits for homeowners in Massachusetts who switch to solar energy. Some of the biggest incentives and benefits are:

Federal Tax Credit: Formerly known as the Solar Investment Tax Credit (ITC), this program was extended in 2022 and renamed the Residential Clean Energy Credit. Homeowners who install solar can claim a massive federal tax credit worth 30% of the gross system cost (including panels, related equipment, wiring, installation, permits, and fees). That means that if the gross system cost is $20,000, your federal tax credit would be a whopping $6,000!

State Tax Credit: The Massachusetts Residential Renewable Energy Income Tax Credit offers homeowners a state income tax credit totaling 15% of their solar system costs, up to $1,000. This tax credit is in addition to the federal solar tax credit and can be claimed for up to three years against the property owner’s state income tax liability.

Net Metering: Net metering is a buyback program that pays you credits for any excess energy your solar panels produce and send back to the grid. You can then apply those credits toward future energy bills. In Massachusetts, the major utility companies (Eversource, National Grid, and Until) provide 1-to-1 net metering terms. This means that you’re compensated for the power your solar system produces at the same retail rates that grid energy is purchased so that any grid energy used at night (or in cloudy conditions) can be offset by excess solar production during the day.

Multiple Tax Exemptions: Homeowners with solar can receive a property tax exemption for the value of their system. This allows homeowners to increase their property values without increasing their taxes. The state also applies a Sales Tax Exemption to the purchase of the system, so residents won't have to pay the 6.25% MA state sales tax. So if your solar energy system costs $20,000 total, you’ll save an additional $1,250 off taxes!