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With the fourth-highest residential solar adoption rate nationwide, Massachusetts has long offered some of the most supportive incentives for transitioning your home and business to clean energy. By combining state incentives with federal support like the Renewable Clean Energy Tax Credit, Massachusetts homeowners are learning that this year is one of the best yet for investing in solar and related technologies.
Solar, heat pump, battery storage, and EV charging technologies all come with their own excellent benefits, but the rewards can grow greatly when these are combined. Our team of experts are here to help you understand and benefit from all the clean energy incentives available to 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 detailed overview of federal tax credits 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:
If your city or town is serviced by a Municipal Light Plant (MLP), you may be eligible for a one-time, per-kilowatt rebate on solar installation costs, based on the production capacity of your system. This rebate amount varies by MLP but can be as substantial as $1200 per kW. For more information on a potential solar rebate, we recommend visiting your MLP’s website or starting with our guide to solar in your community. Abode Energy Management and Next Zero are additional resources on other possible clean energy rebates and incentives in your MLP.
Massachusetts also boasts one of the best markets in the U.S. for Renewable Energy Certificates (RECs): most residential solar projects are eligible to receive one REC per MWh generated. Many homeowners sell their RECs to utility companies, who purchase these certificates to meet Massachusetts’ Renewable Portfolio Standard (the baseline for how much of a company’s electricity should come from renewable sources).
Customers of Massachusetts’ investor-owned utility companies are eligible for clean energy rebates, incentives, and financing support from Mass Save. An energy efficiency collaborative (sponsored by Berkshire Gas, Cape Light Compact, Eversource, Liberty, National Grid, Unitil), Mass Save currently benefits homeowners for investing in heat pump and battery storage technologies.
Through Mass Save, if you choose to heat and cool your entire home with an air-source heat pump system, you’ll be eligible for a $10,000 rebate. A partial-home rebate is also available based on system capacity, at $1250 per ton (or up to $10,000). To income-qualifying homeowners, an enhanced rebate of $16,000 is available for both whole- and partial-home systems.
If you are Mass Save-eligible and purchase a backup battery when going solar (or separately), you can elect to participate in ConnectedSolutions. This program allows you to earn payback on supplying the grid with your battery-stored energy in times of peak demand, at an average of $1375 per year.
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).
Stretching these impressive advantages even farther, Eversource and National Grid offer EV charging benefits to their customers, as detailed here by Mass Save.
With access to all these incentives and numerous financing options, homeowners in Massachusetts are well positioned to take control of their energy futures and enjoy long-term savings. Electrifying everything at once can be ideal, but a step-by-step approach is just as viable. 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.
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!