Massachusetts Solar Energy Incentives for Residential Systems
Thanks to recent federal legislation, anyone who installs solar photovoltaic (PV) panels or a solar water heating (solar thermal) system is permitted to take a 30-percent renewable energy tax credit. Beyond this, many state governments offer additional incentives -- like solar rebates and state tax credits -- to help further reduce solar installation costs. Massachusetts is no different in this regard. Read below for an overview of Massachusetts' main solar energy incentive programs available to individuals and households.
When you're ready to move forward with your project, you may wish to fill out our solar energy information form. It's free and requires just a few minutes to complete. After learning about your home energy needs, we'll work with our solar panel installation partners serving Massachusetts to get you a free site visit and competitive quotes. It's free and easy, so what are you waiting for? Be the next person to get solar in Massachusetts!
Are you a Massachusetts business owner? Check out our Massachusetts commercial solar energy incentives page.
MA Solar Energy Rebates
The state's main solar energy rebate is available through Commonwealth Solar. Homeowners recieve $1.00 - $2.10/W DC installed, and the exact rebate varies with home value and income level. 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:
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Systems must be at least 1 kW in size
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There is no max system size limit, but the maximum rebate amount is calculated on the basis of a 5 kW
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The per-watt rebate amount varies -- the maximum residential rebate amount is $4.40/watt
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Maximum residential solar rebate is $10,500
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, along with low-impact biomass generation, into renewable energy credits -- or RECs -- and sells the power on to consumers via National Grid's GreenUp program. The aim is to promote the adoption of renewable power while offering greener options for those customers who don't want to install a solar or wind system of their own.
Within Massachusetts, ECANE operates as the Mass Energy Consumers Alliance. MA residents (and businesses) can sign up for a three-year contract, during which the Alliance will pay $0.03 for each kWh generated by their solar PV panel system.
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 residents (and 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:
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A 15% personal tax credit, up to $1,000, is available to individuals who install solar PV panels or a solar thermal system. Any excess credit may be carried forward for up to three years.
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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.
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Residential solar energy systems equipment is exempted from all MA state sales tax.
For more information on these various tax-based incentives, see the Massachusetts Department of energy and Environmental Affairs website.
Utility-Sponsored Rebates: Solar Energy Systems
A couple of Massachusetts utilities sponsor modest solar energy rebate programs beyond the Commonwealth Solar program outlined above.
Utility-Sponsored Rebates: Energy Efficiency
In general, reducing electricity consumption is an effective way of boosting the performance of a solar PV panel array. In other words, by cutting your power consumption, you can effectively meet a greater portion of your total electricity needs with solar, and thus rely less on power provided by your utility via the grid. Details aside, an owner who improves his or her home's energy efficiency will see a shorter payback and stronger return on investment for their PV system. Accordingly, if you're considering solar panels, you may also wish to consider purchasing energy-efficient appliances, for example, or installing compact fluorescent light bulbs and/or LEDs.
A number of Massachusetts utilities sponsor energy efficiency rebate programs that can help offset the costs associated with energy efficiency measures. For details on these types of programs, visit the Database of State Incentives for Renewables and Efficiency (DSIRE).
[Last updated: 8/18/10] Massachusetts: Residential Solar Incentives |
