Cost > Massachusetts

Many state governments offer incentives, like rebates and tax credits, to individuals and businesses who install solar energy systems. Massachusetts is no different in this regard. It offers a host of incentives, each of which can help lower the costs associated with installing a solar energy system.

For a complete listing of solar energy professionals in your area, visit our Massachusetts Solar Directory.

Massachusetts Solar Rebate Programs

True to form, Massachusetts offers an array of tax breaks for renewable energy projects in multiple sectors. For more information on a particular program, visit the Massachusetts Division of Energy Resources (DOER) website.


Small Renewables Initiative (SRI) Rebate

Eligible:
Photovoltaics (plus wind and small hydroelectric systems) for most sectors

Amount:
Rebates range from $2.00/W to $6.75/W, depending on system’s technology, size and applicable sector; maximum incentive of $50,000 per project  

Other info:
To be eligible, projects must meet size constraints and fulfill a set of performance and safety standards. Projects must also be pre-approved and require an energy audit. For more information on a particular program, visit the Mass Tech website on SRI.

KeySpan Energy Delivery Solar Thermal Rebate Program

Eligible:    
Solar water heat and solar pool heating for residential customers; solar space heat for commercial and industrial customers

Amount:
Rebates range from $1,500 for residential to a one-time $3/BTU rebate, based off first-year energy savings (up to $100,000 or 50% project costs) for commercial or multi-family applications

Other info:
To be eligible, projects must meet size constraints and fulfill a set of performance and safety standards. Projects must also be pre-approved and require an energy audit. For more information on a particular program, visit the KeySpan website.

Massachusetts Tax Incentives

True to form, Massachusetts offers an array of tax breaks for renewable energy projects in multiple sectors. For more information on a particular program, visit the Massachusetts Division of Energy Resources (DOER) website.

Alternative Energy and Energy Conservation Patent Exemption (Personal)

Eligible:    
Solar water heat, solar space heat, photovoltaics (plus a many other forms of renewable energy technologies)

Amount:
100% deduction 

Other info:
Massachusetts offers a personal income tax deduction for any income derived from the sale of a patent, or from the royalty, of a technology determined to be beneficial for energy conservation or the development of alternative sources of energy.

Residential Renewable Energy Income Tax Credit

Eligible:    
Solar water heat, solar space heat, photovoltaics (and wind) for the residential sector

Amount:
15%, up to $1,000 per year 

Other info:
Excess credit may be carried forward for three years. To be eligible, the system must meet a series of performance and safety standards. 

Renewable Energy Property Tax Exemption

Eligible:    
Solar water heat, solar space heat, photovoltaics (and wind) for the residential, commercial and industrial sectors

Amount:
100% exemption, with a 20-year term

Other info:
In sum, the value that eligible energy systems add to an owner’s property should not increase the owner’s tax liability.

Renewable Energy Equipment Sales Tax Exemption

Eligible:    
Solar water heat, solar space heat, photovoltaics (plus wind and geothermal heat) for the residential sector

Amount:
100% exemption

Other info:
The required form, Massachusetts Tax Form ST-12, can be downloaded from the web site listed below. As a customer, you must complete the form and present it to the vendor from whom the products will be purchased.


Corporate Tax Credit

Massachusetts currently offers four different corporate tax incentive programs:

Alternative Energy and Energy Conservation Patent Exemption (Corporate)
Corporate Tax Credit for Solar Water Heating Systems
Excise Tax Deduction for Solar or Wind-Powered Systems
Excise Tax Exemption for Solar or Wind Powered Systems  

The DSIRE website offers more information on the details of these programs

Massachusetts Grants for Renwable Energy

Through the Massachusetts Technology Collaborative (MTC), the state sponsors four renewable energy grant programs for use in the commercial and government sectors. For details on a particular program, please visit the MTC website.

MTC: Clean Energy Pre-Development Financing Initiative (Grants)

Eligible: Government (local, state and federal)

Other info: See Mass Tech website on MTC grants


MTC: Large Onsite Renewables Initiative (LORI) Grants 

Eligible: Most sectors

Other info: See Green Affordable Housing Program website


MTC: Massachusetts Green Communities Grant 


Eligible: PV and wind for low-income residential, builders/developers

Amount: up to $30K for feasibility, $50K for design, $500K for construction

Other info: See Mass Tech website on MTC grants

 
MTC: Matching Grants for Communities

Eligible: Photovoltaics and solar lighting (plus wind) for local government

Amount: $400 to $800 for residential, up to $5,000 for commercial

Other info: See Mass Tech website on matching grants

Massachusetts Loans for Renwable Energy

Boston Community Capital Energy Advantage Program (Loans)

Eligible:
Photovoltaics (and wind) for the low-income residential sector

Amount:
Varies

Other info:
Boston Community Capital has partnered with Massachusetts Housing Partnership to make these loans available. To be eligible, projects must be tied to the grid, must abide by national and state codes, and must also meet a set of criteria for performance and safety. For more information, see the Boston Community Capital website.

 
Clean Energy Pre-Development Financing Initiative (MTC)

Eligible:
Solar thermal electric, photovoltaics (plus wind, biomass, hydroelectric and others) for applications in the following sectors: commercial, industrial, government

Amount:
Varies, up to $250,000

Other info:
The Clean Energy Pre-Development Financing Initiative is funded by the Renewable Energy Trust Fund, and exists to provide loans to renewable-energy projects in all six New England states. For more information, see the MTC website.

MTC Massachusetts Green Communities Loan

Eligible:
Photovoltaics and wind for low-income residential, builders/developers

Amount:
Varies, up to $500,000

Other info:
To be eligible, projects must be tied to the grid, must abide by national and state codes, and must also meet a set of criteria for performance and safety.  

Massachusetts Prodoction Incentive

Mass Energy Renewable Energy Certificate Incentive

Eligible:

Photovoltaics for applications in most sectors

Amount:

Production incentive of $0.06 per kWh for a 3-year contract

Other info:

To be eligible, projects must be tied to the grid, must abide by national and state codes, and must also meet a set of criteria for performance and safety. For more information, see the Mass Energy website.

Massachusetts