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With one of the highest residential solar adoption rates nationwide, Massachusetts continues to provide some of the strongest incentives for powering your home or business with clean energy. By combining state incentives with federal support like the Clean Energy Tax Credit, Massachusetts homeowners can still capitalize on some of the best savings in the country.
Solar, heat pump, battery storage, and EV charging technologies all come with their own benefits, but the rewards can grow when they’re installed together. Our experts are here to help you navigate and benefit from all the clean energy incentives outlined below.
The Renewable Clean Energy Tax Credit
Here are the key details of the Residential Clean Energy Credit :
- Solar & Batteries (IRC §25D): Deduct 30 % of qualified solar and residential battery costs, with unlimited carry‑forward if the full credit can’t be used in the first year.
- Heat Pumps & Heat Pump Water Heaters (IRC §25C): A separate 30 % credit, capped at $2,000 per tax year, which applies to qualifying air source and heat pump water heater installations.
- EV Charger Credit (IRC §30C): Receive 30 % of hardware and installation costs, up to $1,000, when your residence is in a low‑income or rural census tract.
- Clean Vehicle Credits (IRC §30D new / §25E used): Claim $7,500 on a new all‑electric vehicle (or up to $4,000 on a used EV) that meets North‑American assembly, battery‑content, MSRP, and household‑income requirements.
For more details, read our overview of federal tax credits and explore the visual roadmap for a fully electrified home below.
Massachusetts Solar Credits & Rebates
In addition to the federal credit, Massachusetts offers three tax advantages for going solar:
- Property‑tax exemption on the increase in home value generated by your solar system (for 20 years).
- Sales‑tax exemption (6.25%) on qualifying solar‑energy equipment and installation labor for systems installed on a primary residence.
- Personal‑income tax credit equal to 15 % of net system cost, capped at $1,000.
Municipal Light Plant Rebates
If your electricity comes from a Municipal Light Plant (MLP), you may qualify for a local, one‑time solar rebate, generally between $600 to $1200 per kW. Check your local MLP’s website, NextZero, or Abode Energy Management for current details.
Renewable Energy Certificates
Massachusetts has a strong REC Renewable Energy Certificates market. A REC represents the renewable attribute of a green megawatt‑hour of electricity. Solar system owners sell them to utilities who need them to meet a Renewable Portfolio Standard. And solar paired with battery storage may also generate Clean Peak Energy Certificates (CPECs), another revenue stream.
Mass Save Benefits
Customers served by Berkshire Gas, Cape Light Compact, Eversource, Liberty, National Grid, or Unitil can use Mass Save rebates, incentives, and financing:
- Whole‑home air source heat pumps: $3,000 per ton (the size of the heat pump), up to $10,000 (effective January 1st, 2025).
- Partial‑home heat pumps: $1,250 per ton, up to $10,000.
- Income‑qualified bonus: Up to $16,000 for households meeting Mass Save income guidelines.
- Connected Solutions battery incentive: Annual payments up to ~ $1,375 annually, earned for discharging battery power during grid‑peak events (paid at $275 per kW of average summer contribution).
- 0 % HEAT Loan: Interest‑free financing up to $25,000 for 7 years on heat pumps, batteries, weatherization, electrical‑panel upgrades, and more.
- EV‑charging programs:
- Eversource: Up to $1,400 toward wiring upgrades (higher for discount‑rate or EJ‑community customers) plus $25 per month for following off‑peak charging schedules.
- National Grid: Up to $700 for home wiring, and annual off‑peak charging rewards of about $100; larger incentives available in environmental‑justice areas.
- Unitil: Similar wiring rebates; check their current terms.
The Case for Total Electrification
With access to all these incentives and numerous financing options, homeowners in Massachusetts are well positioned to take control of their energy future and enjoy long-term savings. Electrifying everything at once often maximizes benefits, but a phased approach works just as well. Future-proofing your solar array for whole-house electrification is our specialty here at ReVision: we’ll project the additional electricity your heat pump, EV charger, or battery will require and size your solar system accordingly.
Whether you’re ready to begin your electrification journey or just looking to learn more, contact our Solar Advisor team to get started. We look forward to working with you!
