Massachusetts is a leader in US solar energy with enough electricity to power nearly a half-million homes. With over 13% of the state’s electricity coming from solar and over 1,400 MW expected to be installed over the next 5 years, there’s never been a better time to join your neighbors and transition to a cleaner energy source.
Incentives, Rebates, & Tax Credits Available in Massachusetts
The ITC is a driving force behind increased solar adoption in the United States. Since its implementation in 2006, solar installation has grown by over 1600% with an average annual growth rate of 76%.
The tax credit is available for purchased solar systems is worth 26% of the cost of the system, which is paid back to the homeowner and determined by the amount of the individual’s taxable income that year. There is no value cap on the credit and it can be rolled over for 10 years, but time is of the essence ─ the legislation is set to expire for residential solar systems by 2021.
Net metering is a utility billing system that will credit homeowners for any excess electricity that their solar system produces. The excess power is sent back into the grid for community use through a bidirectional meter. The credits provided are meant to supplement the homeowner’s energy use at night or when it’s cloudy when the system isn’t producing as much.
This program offers low-interest loan payments for system purchases. MA legislators wanted to incentivize homeowners to purchase in order to get the best value out of the installation, and is a driving factor behind solar’s popularity in the state.
Under the SMART program, customers of Eversource, National Grid, and Unitil will be paid a fixed rate per kilowatt-hour of energy produced, over 10 years. Systems under 25 kilowatts (kW) receive between $0.29 – $0.31 cents per kWh, depending on the utility.
Customers of National Grid and Eversource created a “bring your own battery” program that provides yearly incentive payments for customers that install a storage system along with their solar installation. Rebate amounts range and are based on how much storage energy you provide access to, and the service territory you reside in.
*Apply to lease and PPA customers only.
Massachusetts Solar Stats*
As one of the leaders in solar, the state is projected to add another 1,451 MW to its portfolio over the next 5 years. With over 100,000 solar installations completed, here are some additional stats regarding Massachusetts’ solar landscape: