Massachusetts

Please contact us for assistance with any of the following information. We are happy to help you understand which incentives are available to you and where to find more information. The information on this page is not tax advice; please seek professional advice from a qualified tax advisor before claiming any tax benefits or exemptions.

Sample Calculations

Here are some estimated costs including equipment and labor along with some potential credits and rebates. A 5 kW system is about the size that an average New England home would need to replace 100% of their electricity with solar. The smaller systems can be scaled up at any time if you would like to start with a 2.5 kW or 1.2 kW system.

Estimating costs 5Kw:

5 kW system installed cost: $27,900
Federal Tax Credit: -$ 8,370
State Incentive Rebate: - $5,000
Total out of pocket cost: $14,530

Estimating costs 2.5Kw:

2.5 kW system installed cost: $15,400
Federal Tax Credit: -$4,620
State Incentive Rebate: -$2,500
Total out of pocket cost: $8,280

Estimating costs 1.2Kw:

1.2 kW system installed cost: $7,700
Federal Tax Credit: -$2,310
State Incentive Rebate: -$1,200
Total out of pocket cost: $4,190

Estimating costs for solar hot water:

56 kBTU Solar Hot Water installed cost: $8,800
Federal Tax Credit: -$2,640
Total out of pocket cost: $6,160

Financing Your Project

Federal Investment Tax Credit (ITC)

Tax credits are available at 30% of the cost of the solar energy system, with no upper limit through 2016 (for existing homes & new construction).
Energy Star explains Residential Federal Tax Credits.

State Rebates

The Massachusetts state rebate (up to $20,000 per project) is available to electricity customers served by the following Massachusetts investor-owned electric utilities: Fitchburg Gas and Electric Light (Unitil), National Grid, NSTAR Electric and Western Massachusetts Electric. In addition, customers of certain municipal lighting plant (MLP) utilities are now eligible. PV systems must be between 1kW-5kW. The rebate will cover larger systems but only up to the 5kW rebate amount. Massachusetts gives a 100% sales tax exemption for the purchase of a renewable energy system.

  • Base incentive: $1.00/watt
  • Adder for Massachusetts company components: $0.15/watt
  • Adder for moderate home value: $2.00/watt
  • Adder for moderate income: $1.25/watt

The DSIRE website will give you access to Massachusetts state solar energy incentives as well as the state’s rules, regulations, and policies related to renewable energy.

Utility Incentives

These incentives vary by utility company.

Other Possibilities

USDA Grants and Loans

All agricultural producers, including farmers and ranchers, who gain 50% or more of their gross income from the agricultural operations are eligible for these grants and loans.

REAP Grants

These grants for renewable energy systems range from $2,500 up to $500,000 or 25% of the total project cost.

REAP Feasibility Grants

These grants cover energy audits and feasibility studies for renewable energy systems and can be as much as $50,000 or 25% of the total cost.

REAP Loans

Loans range from $5,000 up to $25 million or 75% of the total project cost.

Other Resources