MA Solar Energy Incentives for Commercial Systems

At the federal incentive level, businesses that install solar energy systems can take advantage of accelerated depreciation rules and a 30-percent renewable energy tax credit. Beyond this, a number of additional commercial solar incentive programs are available in Massachusetts, including a production-based incentive and an excise tax deduction (see below). Together, federal and state renewable energy incentives can substantially reduce the installed costs of commercial solar photovoltaic (PV) panels or a solar water heating system. 

When you're ready to move forward with your project, simply fill out our solar energy information form. It's free and requires just a few minutes to complete. After learning about your company's energy needs, we'll work with our solar panel installation partners serving Massachusetts to get you a free site visit and competitive quotes. 

**For solar commercial systems installed in 2009 and 2010, businesses can receive a solar energy grant equal to 30 percent of installed system costs -- instead of taking the federal tax credit. The grant option has been made possible by the federal stimulus package that was passed in February 2009. 

Are you a Massachusetts homeowner? See our MA residential solar energy incentive page.

MA Solar Energy Rebates

The state's main solar energy rebate is available through Commonwealth Solar. Customers of MA's four investor-owned utilities -- National Grid, NSTAR, Western Mass Electric and Fitchburg Gas & Electric -- may be eligible to receive a cash rebate when they install a solar PV system. Here's a brief rundown of the incentive structure:

• Systems must be at least 1 kW in size

• There is no max system size limit, but the maximum rebate amount is calculated on the basis of a 5 kW

• The per-watt rebate amount varies from $1.00-$2.10/watt

• Maximum commercial solar rebate is $5,500 per host customer and up to $250,000 per parent company.

See Commonwealth website for full details and instructions on how to apply.

Solar REC incentive for solar PV systems

The Energy Consumers Alliance of New England (ECANE) is a non-profit organization that buys the electricity generated by solar PV systems and small wind energy systems. The group bundles this electricity into renewable energy credits -- or RECs -- and sells the power on to consumers via National Grid's GreenUp program. Businesses (and residents) may sign up to receive an REC payment of $0.03 for each kWh generated by their solar PV panel system. The standard REC purchase contract term is three years. Because the REC contract takes the form of a per-kWh payment, it may sometimes be referred to as a "production-based incentive." 

Within Massachusetts, ECANE operates as the Mass Energy Consumers Alliance -- see their website for full program details. 

MA Tax-Based Incentives for Solar Energy

Over the years, Massachusetts lawmakers have passed a number of laws that provide a bit of tax relief for businesses who install solar PV panels or a solar water heat (solar thermal) system. As is always true with filing taxes, the devil is in the details -- but here's a concise overview of what's available: 

• Businesses may deduct 100% of expenditures for solar water heaters (solar thermal systems) from net income for state excise tax purposes.

• Mass law provides a 100 percent, 20-year property tax exemption for renewable energy equipment, including solar PV and solar thermal systems. In plain English, this means that the value added to your property by a solar energy system is not taxed.

For more information on these various tax-based incentives, see the Massachusetts Department of Energy and Environmental Affairs website.

National Grid: Commercial Solar Thermal Rebate

Commercial customers of National Grid can receive a rebate when they install a solar water heating (solar thermal) system. Worth 50% of installed system costs -- up to $100,000 per retrofit project, or $250,000 per project for new construction -- the rebate is available to Massachusetts businesses that pass a pre-approval application process. See National Grid's Think Smart Think Green website for more details. 

Utility-Sponsored Rebates: Energy Efficiency 

In general, the more energy efficient your building(s) and equipment, the better the performance of your solar PV system. So if your company is considering solar panels, you may also want to consider taking steps to improve energy efficiency. A number of Massachusetts utilities sponsor energy efficiency rebate programs that can help with this process. For details on these types of programs, visit the Database of State Incentives for Renewables and Efficiency (DSIRE).

[Last updated: 8/18/10] 

Massachusetts: Commercial Solar Incentives