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Massachusetts Solar Incentives: Maximize Your Savings Today

Updated November 12, 2024 | 12 min read

Complete Guide to Massachusetts Solar Incentives

Looking for the best Massachusetts solar incentives to reduce your solar installation costs? With a range of state and federal programs available, homeowners can cut costs significantly. Massachusetts consistently ranks in the top 10 for solar-friendly states in the U.S., thanks to its many incentives designed to promote clean, renewable energy.

In this guide, we’ll break down the top solar incentives in Massachusetts and show you how they can make solar more affordable for your home or business.

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What are Massachusetts Solar Incentives

What are Massachusetts Solar Incentives?

So what is a solar incentive? In simplistic terms, it’s a motivational tool meant to encourage people to invest in solar energy. In today’s market, solar power installation is an increasingly popular investment for home and business owners.

The incentives are designed to make this kind of power more affordable than ever before. Here, we’ll be going over the main incentives that are available to the people of The Bay State!

The Federal Solar Tax Credit

Also known as the Clean Energy Tax Credit, this incentive is available to every Massachusetts taxpayer on a national level, here MA homeowners can claim up to 30% on a solar installation during tax season.

This is a dollar-for-dollar reduction in your overall tax burden by investing in solar energy this year. This tax credit is scheduled to be phased out and expire in 2035 unless it gets renewed by Congress.

The Residential Renewable Energy Tax Credit

This tax credit is specific to Massachusetts residents. This credit gives homeowners a 15% credit on their taxes, up to $1,000 for a renewable energy system.

To complete this you will utilize the Schedule EC (Solar and Wind Energy Credit) with your annual tax returns to receive the benefit. Massachusetts is one of the only states to offer this tax credit for its residents.

 

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The Solar Property Tax Exemption

This is a common favorite of all the solar incentives. This property tax exemption allows property owners to exclude the added value of a solar installation, which will reduce the overall tax payment.

So you can enjoy the benefits of a more valuable (and energy-efficient) home without the additional taxes. The Massachusetts property tax exemption lasts for a 20 year period after you install solar panels in Massachusetts.

The Solar Sales Tax Exemption

To further incentivize Mass home and business owners to invest in solar, solar energy equipment is exempted from a sales tax in Massachusetts. Current sales tax is 6.25% in Massachusetts and there have been talks about an increase in the new year.

This is a big deduction from the cost of solar in Massachusetts. As a quick example, you could save over $1,000 on a $16,000 complete home solar system and home solar battery.

The SMART Solar Massachusetts Renewable Target Program

This robust MA state program will compensate homeowners per kilowatt-hour of solar energy that’s produced by a system. If you qualify, you could be paid a flat rate for the excess energy your solar panels produce! Extra money for the times you are not utilizing the full potential of your residential solar system.

The Net Metering Program

Net Energy Metering program, sometimes referred to as NEM, will compensate homeowners for any extra electricity that flows back into a grid. If your system is able to generate more electricity than what the household uses, then that energy can be consumed elsewhere on the grid. This program saves you money through the electricity bill.

Massachusetts Solar Incentives

 

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How to Apply for Massachusetts Solar Incentives

Navigating the application process for Massachusetts solar incentives can feel overwhelming, but it’s simpler than it seems. Here's a step-by-step guide to help you maximize your savings:

  1. Assess Your Solar Needs: Determine the size of the system you need based on your home’s energy consumption.
  2. Research Available Programs: Explore incentives like the SMART Program, net metering, and tax credits specific to Massachusetts.
  3. Choose a Licensed Solar Installer: Select a state-licensed installer familiar with local and federal solar programs to ensure you don’t miss any opportunities.
  4. Submit Required Paperwork: Work with your installer to file the necessary paperwork for rebates, tax credits, and other incentives.
  5. Claim Your Tax Credits: Be sure to file both state and federal tax forms to claim available credits.

Working with a knowledgeable solar company can help ensure you take full advantage of all Massachusetts solar incentives.

Find out if you qualify for Massachusetts savings programs!

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How Solar Improves Home Value in Massachusetts

How Solar Improves Home Value in Massachusetts

Installing solar panels can significantly increase your home’s value in Massachusetts. Here’s how:

  • Higher Resale Value: Homes with solar panels generally sell for more than homes without them. In Massachusetts, where energy costs are high, solar panels are seen as a valuable long-term investment.
  • Energy Savings Appeal: Buyers are drawn to homes with reduced energy bills, making solar-equipped homes more attractive in a competitive market.
  • Green Building Appeal: As more buyers seek energy-efficient and eco-friendly homes, installing solar can help your property stand out as an environmentally conscious choice.

On average, homes with solar systems in Massachusetts can see an increase in property value by 3-4%. However, with the state’s property tax exemption, you won’t pay additional taxes on this increased home value for 20 years.

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Are Solar Incentives in Massachusetts Worth It?

Some homeowners might wonder, “Are Massachusetts solar incentives really worth it?” The answer is a resounding yes. Here’s why:

  • Shorter Payback Period: With the combination of federal and state tax credits, plus net metering and sales tax exemptions, the payback period for solar installations in Massachusetts is shorter than the national average—often under 7 years.
  • Increased Long-Term Savings: After the payback period, your energy is essentially free, and you continue to benefit from net metering and reduced utility costs.
  • Sustainability Benefits: Besides financial savings, going solar helps reduce your carbon footprint, supporting Massachusetts’ green energy goals.

With these incentives, solar energy in Massachusetts provides a win-win for both your wallet and the environment.

Find out if you qualify for Massachusetts savings programs!

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Going Solar in Massachusetts

Massachusetts is a prime location for harnessing solar energy due to its sunny climate and abundant sunlight. By transitioning to solar power, homeowners and businesses can experience the advantages of lower electricity bills while also making a positive impact on the environment.

There are numerous incentives, programs, and financing options available to support and facilitate the adoption of solar energy in Massachusetts, making it a more accessible and affordable option for all.

Take the first step towards solar today and explore all your solar options with a Solar Savings Quote from EcoGen America, Massachusetts' leading solar company.

Yes, With over 200+ sunny days per year and nation leading solar incentives. Local MA homeowners say yes, it is worth going solar in Massachusetts! See the pros & cons of solar in The Bay State!

How We Gather Our Cost Data

We take a data-driven approach to the collection and analysis of solar costs to provide our readers with the most accurate information. Our methodology incorporates data from a variety of trustworthy sources including:

  • Primary Sources: Every year we survey over 100 homeowners with solar panels to analyze pricing data based on direct consumer experience. 
  • Trusted Resources: We leverage verified datasets and industry reports from authoritative sources including:
    • U.S. Department of Energy (DOE)
    • National Renewable Energy Laboratory (NREL)
    • U.S. Energy Information Administration (EIA)
    • Solar Energy Industries Association (SEIA)
  • Expert Insights: We regularly consult with dozens of experienced solar professionals across the nation who are familiar with the latest trends, equipment and solar energy pricing in local markets.

 

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Why Trust EcoGen?

At EcoGen America, we take pride in the credibility of our information and ensure its accuracy by cross-referencing our data with esteemed institutions such as the U.S. Department of Energy (DOE), the Solar Energy Industries Association (SEIA), and the National Renewable Energy Laboratory (NREL). Our rigorous validation process underscores our commitment to delivering trustworthy and up-to-date solar content with editorial integrity. Our partners do not direct our editorial content. Learn more

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Author & Solar Energy Expert

James Kahle, a revered voice in the energy domain, enlightens homeowners about the benefits of solar. Catch James soaking up the sun while playing basketball or immersed in the pages of a book.