The state of Massachusetts has committed to advancing clean energy with various incentives aimed at encouraging solar adoption for both homeowners and businesses. One result of the state’s push for solar energy is helping make clean, renewable power more accessible and affordable for residents. These incentives help individuals and businesses reduce energy costs while also supporting Massachusetts’s broader sustainability objectives. Here’s a quick overview of the different incentives that will be available to Massachusetts residents and businesses in 2024.
Massachusetts state sales tax credit and sales tax exemption
Massachusetts’ Residential Renewable Energy Income Tax Credit is available to residential property owners in the state. This incentive gives applicants up to 15 percent of the cost of their solar panel system, up to a maximum of $1,000 in state income tax credit. This incentive encourages residents to go solar to help with the state’s goals for clean energy by eliminating carbon emissions. Solar panel systems also do not have a sales tax within the commonwealth.
Massachusetts property tax exemption
Massachusetts allows property tax exemptions for new solar installations. Unlike other home improvements that increase the value of your property, like solar, Massachusetts has a statute in place that prohibits photovoltaic devices (such as solar panels) from being included in property tax assessments.
Net metering
Many utilities in Massachusetts have net metering policies that enable solar system owners to earn credits for any excess energy they produce and send back to the grid. So, if your solar panels generate more energy than you need at any given time, the surplus can be fed into the grid. In return, you’ll receive credits that can be used to offset future energy bills.
Federal solar tax credit
Beyond the state programs, property owners in Massachusetts who install a solar PV system can also benefit from a federal tax credit. This credit, called the Investment Tax Credit (ITC), allows eligible property owners to claim a 30% tax credit on the total cost of installing solar panels if they do so between now and the end of 2032. In 2033, this federal credit will decrease to 26%, and in 2034, it will drop to 22%. After 2034, the ITC is scheduled to be completely phased out for residential installations.If you’re curious about how much you could save by installing a solar system, speak with a qualified solar installer. They can walk you through the steps and let you know about any other upcoming solar incentives or programs that you or your property might be eligible for and help you navigate the process.
