Solar Financing & Incentives 

Federal Solar Tax Credit 

The solar tax credit is the most well-known and widely used solar incentive. It reduces your federal income tax liability by 30% of your solar installation costs for the year you install your system. There’s no cap on the tax credit and, if your credit is worth more than you owe, you can roll the remainder over to the following year. It’s a great incentive that significantly reduces your solar costs, but it won’t be around forever. The tax credit will be reduced annually starting in 2033 and phased out in 2025. 

Massachusetts Solar Tax Credit 

Massachusetts is one of the few states that offers a state income tax credit for solar panel installation. The Massachusetts solar tax credit reduces your state income tax liability by 15% of your solar installation costs, up to $1,000, for the year you install your system.

Net Metering 

Net metering is a billing agreement between you and your utility company. It allows you to export the excess electricity your solar panels generate to the electric grid. In return, you receive credit from your electricity provider. You can use your credit to offset the cost of electricity you buy from the grid when your solar panels are not producing enough—at night or on a cloudy day, for example. 

Massachusetts has one of the most favorable net metering policies in the country, with systems under 10 kW typically receiving full retail rate credits. My Generation Energy can help you determine what your net metering benefits will look like based on who your utility provider is. 

Solar Renewable Energy Credits (SRECs) 

Solar Renewable Energy Credits (SRECs) are a valuable incentive that lets solar panel owners earn money simply by producing electricity. For every megawatt-hour of energy your system generates, you receive one SREC, which can then be sold for cash. Utility companies purchase SRECs to meet their Renewable Portfolio Standard (RPS) obligations, as the credits represent the clean energy produced. In Massachusetts, residential solar systems under 25 kW are eligible to earn SRECs.

Massachusetts Solar Sales & Property Tax Exemptions 

You do not have to pay sales tax on a solar panel or battery storage system in Massachusetts, saving you an additional 6.25% on your installation costs. Your system will also be exempt from property tax assessments for 20 years. 

Solar Battery Tax Credits & Incentives 

Solar batteries are eligible for the federal solar tax credit, saving you 30% on battery backup. If you’re a National Grid or Eversource customer in Massachusetts, you may also qualify for payments under Mass Save’s ConnectedSolutions program. Through ConnectedSolutions, you can receive incentives for using your battery during peak demand periods—times when electricity demand is highest.