Massachusetts has a robust solar program. In addition to traditional net-metering, which is a one for one credit for every kilowatt-hour (kWh) of electricity your solar system produces, Massachusetts established the Solar Massachusetts Renewable Target (SMART) program. The SMART program adds value on top the retail rate of electricity for every kWh your solar system produces. Massachusetts also has state and federal tax incentives for solar.
The Federal Solar Investment Tax Credit (ITC)
This is a dollar for dollar credit worth 26% of the cost a solar system. This credit can be used, for residential, commercial, and utility scale solar projects. The credit is applied for the year that construction of a project begins and phases out over time.
- For all projects started in 2021 and 2022 this is worth 26% of project costs
- For all projects started in 2023 this is worth 22% of project costs
- For Commercial projects started in 2024 this incitive is worth 10% of project costs and goes away for residential projects.
Residential Renewable Energy Income Tax Credit
For residential Solar Installations on your primary residence in the state of Massachusetts you are eligible for a state tax credit worth 15% of the cost of your solar system with a cap of $1,000.
The SMART Program
In 2018 Massachusetts established the Solar Massachusetts Renewable Target (SMART) program. The SMART program pays customers in participating electric utilities a fixed incentive per kWh of solar energy for the first 10 years of the solar systems production life. The incentive is dependent on the size of your system and what electric utility you are in. You can receive additional incentives though this program if you pair solar with battery storage, are a low-income utility customer, or have a community solar project. SMART incentives decrease over time as more solar is installed. You can see more information about the SMART program at https://masmartsolar.com/
Massachusetts Energy Storage Benefits & Incentives
To help encourage the adoption of solar-plus-storage, the Massachusetts DOER is moving ahead with the SMART program offering a fixed compensation rate for solar PV capacity that also incorporates energy storage.
Storage systems can generate Clean Peak Energy Credits (CPEC) by delivering clean power to the grid during periods of high demand. Utilities must obtain CPECs or pay a penalty.
Demand response programs administered by New England’s electric grid operator and Massachusetts’ utilities offer compensation to ESS assets that provide power on demand to prevent outages in the event of grid emergencies. An ESS can earn additional annual revenue through these programs depending on its location, size, and other existing ESS obligations.