State Banner

Discover the Power of Solar Energy in Massachusetts!

Welcome to Massachusetts, a state celebrated for its rich historical roots, innovative spirit, and a forward-thinking approach to renewable energy. With its varied climate offering a substantial number of sunny days, especially during the spring and summer months, Massachusetts presents an excellent opportunity for solar power generation. This potential invites homeowners and businesses to embrace clean, renewable energy, dovetailing with the state?s ambitious goals to combat climate change and promote energy independence. Enhanced by attractive incentives aimed at reducing the upfront costs of solar installations and driven by a community deeply invested in environmental sustainability, Massachusetts is at the forefront of a solar revolution. Learn how leveraging Massachusetts?s abundant solar resources can light up your home, reduce energy bills, and support a cleaner, greener environment in the Bay State. Join us in capturing the sun?s limitless energy and moving towards a brighter, more sustainable future in Massachusetts.

Solar State Incentives

Massachusetts State Solar Incentives

Clean Energy Standard
The Clean Energy Standard in Massachusetts mandates minimum percentages of electrical energy sales from clean energy sources, reaching 80% by 2050.
Clean Peak Energy Standard
Massachusetts' Clean Peak Energy Standard (CPS) mandates a minimum percentage of sales from clean peak resources. The standard began at 1.5% in 2020, increasing by 1.5% annually until 2050.
Town of Ipswich Electric Light Department Solar PV Rebate Program
Ipswich Electric Light Department launches a solar PV rebate program for residential and commercial customers, promoting renewable energy adoption.
Shrewsbury Electric & Cable Operations Solar Rebate Program
SELCO launches solar rebate program, providing financial incentives to residential customers for solar PV installations, aiming for more sustainable energy solutions.
Wakefield Municipal Gas & Light Department Solar Rebate Program
WMGLD extends solar rebate offer to promote solar energy adoption, providing up to 50% of installation cost, with specific criteria for eligibility.
Residential and Small Commercial Solar Rebate Program
RMLD offers financial incentives for residential and small commercial customers to adopt solar energy systems, with rebates up to $24,000.
Massachusetts Community Renewable Energy - Neighborhood Net Metering
Massachusetts' renewable energy program introduces neighborhood net metering projects and the SMART program, aiming to expand solar energy by 3200 MW.
Solar Massachusetts Renewable Target (SMART) Program
The Solar Massachusetts Renewable Target (SMART) Program offers incentives for solar PV projects, encouraging renewable energy. Payments are calculated based on project size, with bonus adders available.
PACE Massachusetts Financing
In 2016, Massachusetts authorized Property-Assessed Clean Energy (PACE) financing, allowing property owners to borrow money for energy improvements. As of 2024, 72 communities have opted into the program.
Cape Light Compact- Residential Energy Efficiency Rebate Program
Cape Light Compact offers financial incentives for purchasing energy efficient residential equipment and increased incentives for certain income requirements.
Hudson Light & Power - Photovoltaic Incentive Program
Hudson Light is offering incentives for new solar installations, including rebates and purchasing excess generation, to customers meeting technical requirements.
Alternative Energy Portfolio Standard
In 2008, Massachusetts Governor Patrick signed the Green Communities Act, creating the Alternative Energy Portfolio Standard. This requires the state to meet 5% of its electricity needs with alternative energy by 2020.
Reading Municipal Light Department - Residential and Small Commercial Solar Rebate Program
RMLD's Residential Renewable Energy Rebate Program offers rebates up to $24,000 for solar installations, promoting sustainability and cost savings.
Reading Municipal Light Department - Business Energy Efficiency Rebate Program
RMLD launches energy efficiency incentive program for commercial and industrial customers, promoting renewable energy adoption and environmental sustainability.
Residential & Small-Scale Solar Hot Water Program
Massachusetts Clean Energy Center provides multiple incentives for solar water heating, including AECs, MLP rebates, state and federal tax credits, and low-interest loans.
Local Option - Energy Revolving Loan Fund
Massachusetts implemented a statewide Property-Assessed Clean Energy (PACE) financing program in 2016, which allows property owners to borrow money for energy improvements.
Taunton Municipal Lighting Plant - Residential PV Rebate Program
TMLP launches solar incentive program, offering rebates to homeowners for solar PV installations, promoting sustainable energy and reducing carbon emissions.
Green Communities Grant Program
The Green Communities Act (2008) in Massachusetts promotes sustainable energy usage by offering financial incentives and support to communities investing in energy efficiency.
Model As-of Right Zoning Ordinance or Bylaw: Allowing Use of Large-Scale Solar Energy Facilities
Model ordinance provides guidance for local governments on siting rules for large-scale solar installations, including site selection, permitting, and compliance requirements.
Concord Municipal Light Plant - Solar Photovoltaic Rebate Program
CMLP's solar rebate program incentivizes customers to adopt solar PV systems, reducing reliance on conventional electricity and promoting renewable energy.
Massachusetts Green Power Purchasing Commitment
Massachusetts' Clean Energy Standard mandates increasing use of clean energy, with a goal of 80% by 2050. The state also supports solar development and sets renewable energy targets.
Massachusetts LEED Plus 2.0 Standard for New Construction
Gov. Charlie Baker's Executive Order 594 aims to reduce Massachusetts' environmental impact by setting energy targets and mandates for state institutions.
Mass Save - HEAT Loan Program
Massachusetts residents can access zero-interest financing for home energy efficiency improvements through the Mass Save HEAT Loan Program.
Concord Municipal Light Plant - Commercial Energy Efficiency Rebate Program
Concord Municipal Light Plant (CMLP) is encouraging energy efficiency among businesses via a rebate program, covering energy audit costs and offering incentives for upgrades.
Holyoke Gas & Electric - Commercial Energy Conservation Loan Program
Holyoke Gas & Electric offers zero-interest loans for commercial energy efficiency improvements. Eligible upgrades include lighting, heating, and solar installations.
Holyoke Gas & Electric - Residential Energy Conservation Loan Program
HG&E offers 0% interest financial aid for energy efficiency projects, repayable over 5 years via monthly bills, with a $100 processing fee.
Interconnection Standards
Massachusetts requires investor-owned utilities to abide by interconnection standards for all distributed generation forms, including renewables. There are simplified, expedited, and standard interconnection processes.
Renewable Energy Trust Fund
Massachusetts's 1997 legislation created two public benefit funds for renewable energy and energy efficiency. The Renewable Energy Trust Fund, administered by the Massachusetts Clean Energy Center, provides grants, loans, equity investments, and more to support various renewable projects.
Renewable Portfolio Standard
Massachusetts' Renewable Portfolio Standard (RPS) requires retail electricity suppliers to source a minimum percentage of their power from renewable resources, with the goal of 40% by 2030.
Massachusetts Solar Easements & Rights Laws
Massachusetts laws encourage the use of solar energy by regulating building and vegetation placement, offering solar access protection, and allowing voluntary solar easements. Restrictions on solar devices are also prohibited.
Net Metering
Massachusetts has updated net metering rules to allow new solar facilities to transfer credits across the state, and introduced a mechanism for credit transfer between different utility service territories.
Excise Tax Deduction for Solar or Wind Powered Systems
Massachusetts businesses can deduct costs of installing solar or wind powered units from net income for state excise tax purposes. Certain criteria must be met.
Excise Tax Exemption for Solar or Wind Powered Systems
Massachusetts offers significant tax exemptions for companies investing in solar or wind-powered systems, encouraging renewable energy adoption and reducing the state's carbon footprint.
Renewable Energy Property Tax Exemption
Massachusetts law offers a 20-year property tax exemption for qualifying solar, wind, hydropower, and fuel cell-powered systems. The exemption applies to value added by eligible systems.
Renewable Energy Equipment Sales Tax Exemption
Massachusetts promotes adoption of renewable energy technologies with a sales tax exemption for homeowners on related equipment purchases, aiming to reduce carbon emissions.
Residential Renewable Energy Income Tax Credit
Massachusetts offers 15% tax credit up to $1,000 for renewable energy system installation on primary residences, with carryover for excess credits.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.