Massachusetts has long offered some of the most supportive incentives for buying into clean energy, with an increasing focus on solar. By combining state incentives with federal support like the Renewable Clean Energy Tax Credit, Massachusetts residents are learning that this year is one of the best yet for investing in solar and related technologies.
If you’ve thought about solarizing your home, greening your heat source, or driving electric, you may quickly find yourself considering a full switch to all things renewable. Our team of experts can help you navigate the details of all the clean energy incentives available for you, detailed below.
With the passing of the Inflation Reduction Act Bill in August 2022, the Solar Tax Credit became the Renewable Clean Energy Tax Credit and received a 10-year extension. This credit allows a household to deduct 30% of solar installation costs from federal taxes, and it can be carried forward to future tax years if you cannot take the full credit within one year. The 30% rate of credit is available through 2032, and can be applied to other clean energy products.
Residents can apply an uncapped 30% credit rate to the cost of installing battery storage. Both air-source and hot-water heat pumps also carry a 30% credit rate, capped at $2000. Electric vehicle charger installation costs are credited at $1000, and by purchasing either a used or new EV, you’ll receive a credit ranging from $4000 to $7500.
For more details, read our blog post IRA Incentives for a Bright 2023 and use our visual guide of a total electrified household below.
Supplementing the Residential Clean Energy tax credit, Massachusetts offers three essential state tax benefits to solar users:
Additionally, if your city or town is serviced by a Municipal Light Plant (MLP), you may be eligible for a one-time, per-kilowatt rebate based on the production capacity of your solar array. In collaboration with the MA Department of Energy Resources, many MLPs are offering rebates of $600 to $1200 per kW (or up to 50% of system installation costs) for solar projects sized up to 25 kW DC.
Massachusetts also boasts one of the best markets in the U.S. for Renewable Energy Certificates (RECs): every solar project in the state is eligible to receive these at a rate of one REC per MWh generated, and where MA utility providers must derive a set minimum of their total electricity supply from renewable sources, they look to purchase RECs. Residential solar projects can generally earn back hundreds of dollars on an annual basis through REC sales.
MA customers of Eversource can alternatively benefit from the Solar Massachusetts Renewable Target (SMART) Program, in which participants receive a 10-year monthly payment of approximately 4 cents per kilowatt of energy produced by their solar.
If you purchase a backup battery when going solar (or for add-on to an existing solar system, or even as a standalone device), you’ll be eligible to participate in Mass Save’s ConnectedSolutions. This program allows you to earn payback on supplying the grid with your battery-stored energy in times of peak demand, at a rate of $225 per average kW of contribution.
Another benefit offered by Mass Save is the HEAT Loan: an accessible, interest-free financing option for batteries, heat pumps, and other energy-efficient upgrades (not yet including solar).
MOR-EV is Massachusetts’ rebate program for the purchase or lease of a new electric vehicle, offering up to $3500 (up from $2500, thanks to the new Mass. Climate Law) on any battery electric or fuel cell electric vehicle valued at $55,000 or less. This rebate expands on a $7500 federal tax credit available to buyers of new EVs.
The High-Efficiency Electric Home Rebates Act (HEEHRA) is another component of the Inflation Reduction Act, extending additional support to low- and moderate-income households (as defined by earning less than 80% or between 80 and 150% of your geographic area’s median family income, respectively).
Most notably, the total air-source heat pump benefit increases to $10,000 for qualifying households. HEEHRA rebates can also offset hot-water heat pump installation (adding a $1750 rebate to the $2000 tax credit), electrical (re)wiring costs, and weatherization expenses. The maximum total rebate available through HEEHRA to any participating household is $14,000.
Rebates are delivered by state agencies — with Massachusetts’ being Mass Save — and in MA, the rebate ceiling gets even higher depending on your income for certain upgrades like heat pumps.
For more information on HEEHRA, visit Rewiring America's guide.
With all these incentives available, and plenty of loan offerings for those who are looking to finance, homeowners in Massachusetts can take control of their energy futures and enjoy long-term savings. Future proofing your solar array for whole-house electrification is an area of expertise for us here at ReVision: we can accurately estimate what additional electricity you’ll require for an air-source heat pump or an electric vehicle charger, then size your solar system accordingly.
We know from experience that it’s much easier to make your home energy-efficient once, comprehensively, than to repeatedly expand the system. With the right conditions for a solar installation and with an average amount of household energy usage, you could eliminate your electricity and heat bills while seeing rapid return on investment (potentially even earning passive income) by leveraging all incentives available to you.
Whether you're ready to embark on your electrification journey or just looking to learn more, contact our Solar Advisor team to get started. We look forward to working with you!