Massachusetts’ Key Solar Incentives: A Breakdown

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In Massachusetts, the push towards renewable energy adoption has been bolstered by a robust framework of solar incentives. These incentives not only aim to accelerate the state’s transition towards cleaner energy sources but also empower residents and businesses to embrace solar power by making it financially accessible and attractive. From tax credits to performance-based incentives, Massachusetts offers a range of programs designed to encourage the installation and use of solar energy systems. Understanding these incentives is crucial for anyone considering solar power, as they can significantly offset upfront costs and provide long-term financial benefits. This article explores the various solar incentives available in Massachusetts, highlighting how they support the state’s renewable energy goals and benefit individuals and communities alike.

Residential Renewable Energy Income Tax Credit

Massachusetts offers a generous incentive for residents to adopt renewable energy systems in their primary homes. The state allows a tax credit of up to $1,000, which is 15% of the net expenditure incurred for installing eligible renewable energy systems, including solar water and space heating, photovoltaics (PV), and wind energy systems.

This credit is applicable to any owner or tenant of a residential property and is available to the original owner/occupant of a newly constructed home. Joint owners can share the credit proportionally based on their ownership interest.

The credit can be carried forward for up to three successive years if the amount exceeds the resident’s income tax liability for the current year. However, to qualify, the renewable energy system must be newly installed, with the original use beginning with the taxpayer, and it should reasonably be expected to remain operational for at least five years.

Solar for All

• The Massachusetts SFA Program aims to extend its benefits to all low-income and disadvantaged communities across the state, aiming to maximize participation and impact in historically underserved areas. A significant portion of the program’s budget will be dedicated to funding solar photovoltaic projects to achieve the greatest possible reduction in greenhouse gas emissions. The program encompasses various initiatives, including a residential zero-interest loan initiative, a residential lease initiative, a public affordable housing procurement initiative, a private affordable housing financing initiative, and a low-income community shared solar initiative. 
• Teaming up with lead applicant GRID Alternatives, a coalition of ten mission-driven nonprofit solar and affordable housing providers and allies has collaborated to develop the Solar Access for Nationwide Affordable Housing Program (SANAH). SANAH is meticulously crafted to maximize benefits for households and communities while advancing equity, reducing harmful pollution, and combating climate change. 

The program offers a multitude of advantages, including expanded access to solar and storage for income-qualified households, significant energy savings and relief from burdensome costs, as well as additional benefits like efficiency improvements and electrification.

• The Community Power Coalition (CPC)’s SFA program, “Powering America Together,” will collaborate with and enhance the impact of the US Department of Energy’s National Community Solar Partnership and Community Power Accelerator program. Led by Inclusive Prosperity Capital, Inc., CPC comprises seasoned community solar experts who have contributed to the Community Power Accelerator as developers, lenders, trainers, and technical assistance providers. The program aims to support the development of low-income community solar projects, reduce carbon emissions, lower energy costs, and promote quality jobs, community wealth-building, energy resilience, and equitable workforce development.

Solar Property Tax Exemption

Massachusetts’s average property tax rate is 1.14% of the property’s value. Typically, any improvement or addition that increases the value of a home would lead to higher property taxes. However, the state has implemented a solar property tax exemption to incentivize the adoption of solar energy systems.

This exemption allows homeowners to install solar panels without worrying about an increase in their property taxes, regardless of the added value these installations bring to their homes. By exempting solar panel systems from property tax assessments, Massachusetts aims to make solar energy more affordable and accessible to residents.

The solar property tax exemption is one of the many initiatives undertaken by the state to promote the use of clean, renewable energy sources and reduce its carbon footprint. This exemption and other solar incentives encourage homeowners to embrace sustainable energy solutions while enjoying long-term cost savings.

Renewable Energy Equipment Sales Tax Exemption

Complementing the solar property tax exemption, Massachusetts also provides a sales tax exemption for solar panel installations. The state’s current sales tax rate stands at 6.25%, which can add a significant cost to solar energy projects.

By exempting solar panel systems from sales tax, the state aims to make these installations more affordable for homeowners. This exemption not only reduces the upfront costs associated with going solar but also serves as an additional incentive for residents to embrace clean energy solutions.

Net Metering 

Massachusetts has implemented a comprehensive net metering policy to encourage the adoption of renewable energy sources. The state’s investor-owned utilities are mandated to offer net metering, which allows customers to receive credits for the excess electricity their renewable energy systems generate and feed back into the grid.

While municipal utilities in Massachusetts are not obligated to provide net metering, they have the option to do so voluntarily. It’s important to note that there are no electric cooperatives operating in the state.

The net metering policy in Massachusetts categorizes renewable energy facilities into three classes based on their capacity:

1. Class I Facilities: These include any type of generating system with a capacity of up to 60 kilowatts (kW).

2. Class II Facilities: This category encompasses systems with a capacity greater than 60 kW and up to 1 megawatt (MW), generating electricity from agricultural products, solar energy, or wind energy.

3. Class III Facilities: These are systems with a capacity greater than 1 MW and up to 2 MW, generating electricity from agricultural products, solar energy, or wind energy.

Solar Massachusetts Renewable Target (SMART) Program

The Solar Massachusetts Renewable Target (SMART) program stands as one of the state’s most comprehensive solar incentive initiatives. Under this program, homeowners have the opportunity to earn ongoing payments for the solar energy systems installed on their properties.

The SMART program is available to customers of Eversource, National Grid, and Unitil, which are investor-owned utilities operating in Massachusetts. These providers compensate customers with a fixed rate for every kilowatt-hour of electricity produced by their solar systems. The rate varies for each household, depending on a wide range of factors specific to their situation.

One of the key features of the SMART program is that the incentives are designed to decrease over time, reflecting the growing adoption and cost-effectiveness of solar energy technology. Currently, the payments under this program are guaranteed for a period of 10 years from the date of enrollment.

Solar Rebate from Ipswich Municipal Light Department

Customers of the Ipswich Municipal Light Department have access to an attractive rebate program for installing solar panels on their properties. Under this program, homeowners can receive a rebate of up to $3,000, calculated at a rate of $0.30 per watt, when they meet all the program requirements.

This rebate serves as a financial incentive to encourage the adoption of solar energy systems among the residents served by the Ipswich Municipal Light Department. By offering a substantial rebate per watt of installed solar capacity, the program aims to offset a portion of the upfront costs associated with solar panel installations.

Shrewsbury Electric & Cable Operations Solar Rebate Program

The Shrewsbury Electric & Cable Operations (SELCO) offers several solar incentives for residential customers. These include a 0% loan for solar panel installations and a net metering program, where surplus energy produced by solar panels can be sold back to the grid for bill credits. The net metering policy applies only to panels owned by the customer and excludes leased panels or third-party agreements. There is no stated system capacity limit, but installations undergo an engineering review.

WMGLD’s Solar Rebate Program

The Wakefield Municipal Gas & Light Department (WMGLD) has implemented a solar rebate program to incentivize the adoption of solar energy systems within its service area. Under this program, WMGLD offers a rebate of $0.80 per watt for eligible solar installations.

To qualify for the rebate, solar installations must meet the following criteria:

1. System size: The solar installation must have a capacity of 10 kilowatts (kW) DC or less.

2. Shading: The installation should experience less than 20% shading throughout the year.

3. Orientation: The solar panels must be oriented facing between 90 and 270 degrees, ensuring optimal exposure to the east and west.

The maximum rebate amount is capped at 50 percent of the total installed costs, providing a substantial financial incentive for homeowners to invest in solar energy systems.

RMLD’s Residential and Small Commercial Solar Rebate Program

To reduce net carbon emissions and fulfill compliance obligations, the RMLD (Reading Municipal Light Department) offers rebates to qualifying customers who install grid-connected solar systems at their homes or small businesses. This program is applicable to solar systems with a capacity of less than 20 kilowatts (kW).

Incentive Amount:

• $600 per kilowatt

Maximum Incentive:

Not to exceed 50% of the total installed costs (labor and materials, excluding tax) up to $12,000.

Rebate Limitations:

• Rebates are limited to a maximum system size of 20 kW per account (meter).
• Systems can be installed in phases, and each phase will be eligible for a rebate.

Hudson Light’s Photovoltaic (PV) Incentive Program

Hudson Light is committed to promoting the adoption of solar energy by offering an attractive incentive program for new photovoltaic (PV) installations. This program is available to Hudson Light customers in good standing who meet the specified technical requirements.

Under this incentive program, Hudson Light provides a rebate based on the installed capacity of the solar PV system, up to a maximum of 25 kilowatts (kW). The rebate amount is calculated on a per-watt basis, making it easier for customers to offset a portion of the upfront costs associated with installing a solar energy system.

In addition to the rebate incentive, Hudson Light also purchases excess generation from customers with Distributed Generation (DG) systems, such as solar panels or wind turbines. The compensation for this excess generation is based on a tariff determined by the monthly Power Adjustment Charge.

CMLP’s Solar Photovoltaic (PV) Rebate Program

The Concord Municipal Light Plant (CMLP) offers an attractive solar rebate program to encourage the adoption of solar photovoltaic (PV) systems among its residential and commercial customers. This program provides a one-time rebate to offset a portion of the upfront costs associated with installing solar PV systems.

Rebate Details:

• CMLP offers a rebate of $625 per kilowatt (kW) of installed solar PV generation capacity.
• The rebate is capped at $3,125 per service address.
• Residential installations up to 167 kilowatts (kW) AC and commercial installations of any size are eligible for the rebate.

Eligibility Criteria:

• The rebate is available to CMLP customers who install solar PV systems on their properties.
• The installations must meet the technical requirements and guidelines set forth by CMLP.

Program Duration:

• There is currently no expiration date anticipated for this solar rebate program.

HMLP Solar Rebate Program for System Installations

The Hingham Municipal Lighting Plant (HMLP) offers a solar rebate for customers installing photovoltaic systems at their homes. The rebate is $0.60 per watt of the system’s rated output (AC), up to 10kW, with a maximum rebate of $6,000 per account lifetime. HMLP also partners with EnergySage, providing access to solar information and quotes from installers. Additionally, specific labeling requirements are mandated for solar meters. 

LELWD’s Residential Solar Rebate Program

The Littleton Electric Light and Water Departments (LELWD) is offering an attractive residential rebate program to promote the adoption of solar energy and encourage the transition to renewable energy sources among its customers. This rebate is available for approved net metering projects on a first-come, first-served basis until all allocated funds have been exhausted.

Rebate Details:

• The rebate amount is $1.00 per watt (AC) of installed solar capacity.
• The maximum rebate is capped at 50% of the total system costs.

Eligibility Criteria:

• The rebate is available for residential solar projects that meet specific requirements set forth by LELWD.
• Rebates will be reserved for the term of the applicant’s interconnection application.

Program Objectives:

• The primary objective of this rebate program is to make solar technology more affordable for LELWD customers, thereby facilitating their transition to renewable energy sources.

Here’s a rewritten version of the information about the Energy Saver Home Loan Program (ESHLP) in Massachusetts:

Massachusetts Energy Saver Home Loan Program (ESHLP)

The Energy Saver Home Loan Program (ESHLP) is designed to assist eligible Massachusetts homeowners in reducing their energy consumption and transitioning away from reliance on fossil fuels. Through this program, homeowners can benefit from the following advantages:

1. Low-Interest Second Mortgage Loans: The ESHLP provides access to low-interest second mortgage loans that can be used to finance a variety of energy-related home improvements.

2. Immediate Financing: Homeowners can access financing at the start of their projects, eliminating the need for upfront cash payments or waiting for rebates or incentive payments.

3. Comprehensive Support: The program offers free end-to-end support, guiding homeowners through all aspects of the home improvement process, including loan closing and post-construction assistance.

4. Incentive Coordination: The ESHLP identifies and coordinates all available incentives, rebates, and credits, ensuring that homeowners maximize their savings and benefits.

HG&E’s 0% Interest Assistance for Commercial & Industrial Energy Efficiency and Electrification Projects

Holyoke Gas & Electric (HG&E) offers a Commercial Energy Conservation Program designed to provide businesses with the necessary capital to implement energy-saving improvements. Through this program, HG&E provides 0% interest assistance for approved energy efficiency, electrification, and renewable energy projects.

Multi-family Assistance

• Multi-family assistance is capped at $20,000, with a limit of $5,000 per unit.
• For non-owner-occupied multi-family properties, applicants must be Holyoke residents.

Commercial Assistance

• Commercial assistance is evaluated on a case-by-case basis.
• Requests exceeding $10,000 require approval from HG&E’s Board of Commissioners.

Repayment Terms

• The assistance is repayable over 36 months for projects up to $2,000.
• For projects $2,001 or more, the repayment period is 60 months.
• Monthly payments are conveniently included in the utility bill.

Disclaimer

The information provided herein is for informational purposes only and is accurate as of the time of publication. Please be aware that the solar energy landscape, including technology, regulations, incentives, and market conditions, changes frequently. Therefore, it is essential to consult with qualified experts and professionals before making any decisions regarding solar energy installations or investments. This will ensure that you receive the most current and applicable advice tailored to your specific circumstances.