Massachusetts Solar Incentives

Solar Tax Exemptions & Programs in Massachusetts

Massachusetts is one of the most solar-friendly states in America, and for that, we are proud to call it home. Booming for the last decade, non-residential solar installations have consistently dominated the installed PV capacity share in Massachusetts, backed by a few great incentives, exemptions, and programs.

Besides the federal tax credit (ITC) and qualified accelerated depreciation, here are a few local solar incentives unique to Massachusetts that help businesses, non-profits, and other organizations maximize the return on their investment in renewable energy.

Renewable Energy Property Tax Exemption

In the state of Massachusetts, any taxable property (i.e., residential and commercial) is exempt from paying additional property taxes on a renewable energy system if that system is installed behind-the-meter. Massachusetts is one of the first states to implement such a law, with 20 years of 100% property tax exemption on all solar energy system parts available since 1975.

Commercial solar systems are taxable as personal property tax (equipment), and PILOT agreements (Payment-in-lieu of Taxes) are typically signed between the municipality and the solar generation owner.

Solar Massachusetts Renewable Target (SMART) Program

Although it began as the Solar Renewable Energy Credit Program (SREC), Massachusetts has modified its most popular state incentive and re-released it as the Solar Massachusetts Renewable Target (SMART) Program.

Since 2018, the SMART program in Massachusetts has aimed to create long-term, cost-effective, and predictable solar development throughout the state. Applications for the program can be submitted directly through the program’s website.

Renewable Energy Equipment Sales Tax Exemption

All pieces of equipment directly related to the generation of renewable energy are completely exempt from sales tax in Massachusetts. Sales taxes may apply while using out-of-state vendors.

Pope Energy is a Boston-based solar energy company offering full-service solar solutions for Massachusetts customers and organizations throughout New England. We ensure engineering and financial excellence for all of our partners, creating high-efficiency solar solutions that qualify for federally and locally available incentives. Please contact us today if you are a Massachusetts building or property owner considering a commercial solar installation.