Massachusetts residents have more than one financial incentive to go solar. You stand to benefit from a federal tax credit covering nearly a third of system costs, a state income tax credit, and property and sales tax exemptions. And don’t forget no‑cost financing options and generous payments for battery storage!
1) Solar installation savings in Massachusetts
While solar panels themselves aren’t eligible for Mass Save rebates, Massachusetts residents can enjoy a variety of financial incentives that offset solar installation costs significantly. Let’s take a look at what’s available and how much you could save.
a) Investment tax credit
The federal solar Investment Tax Credit (ITC) allows homeowners to subtract 30% of their system’s installation cost directly from federal income taxes. Taking nearly a third off the cost makes solar far more accessible for Massachusetts residents! For example, a $10,000 solar energy system would qualify for a $3,000 federal tax credit.
b) Residential renewable energy income tax credit
On top of the federal tax credit, Massachusetts offers a state-level credit of 15% off your solar energy system cost, capped at $1,000. So, for instance, a $6,500 system would qualify for a full $1,000 state income tax credit.
c) Solar installation property tax exemption
Installing solar panels will add value to your home, but your local property taxes won’t reflect this for 20 years. This leads to considerable savings over time. If your local property tax rate is 1.5%, you’d save $3,000 over 20 years on a $10,000 system.
d) Solar sales tax exemption
Solar equipment and materials in Massachusetts are also exempt from the 6.25% state sales tax. This cuts the initial outlay and makes solar more affordable.
e) Mass Save® HEAT Loan & ConnectedSolutions program
Many homeowners opt for solar panels without energy storage—a simple yet effective way to reduce utility bills. If you want to enjoy big savings, though, spring for battery storage too. Combining the Mass Save® HEAT Loan* and ConnectedSolutions program is a smart way to cover the cost.
The Mass Save® HEAT Loan offers 0% financing up to $25,000 for home energy improvements, including solar battery systems enrolled in the ConnectedSolutions program. In turn, the ConnectedSolutions program offers payments to users who switch to stored power during periods of high demand. In this way, you could earn an annual average return of $1,375!
By combining these two initiatives, Massachusetts residents can finance a battery system with zero interest, while generating income toward their loan repayments. Plus, your utility bills will be lower. We call that a win-win.
As experienced Massachusetts solar installers, the Wattson Home Solutions team understands the federal and state incentives, programs, and financing options that can make your transition to solar easier and more affordable. If you’d like a more energy-efficient home and lower utility bills in 2025, contact us today!
* Some restrictions apply and offers are subject to change or cancellation. Visit MassSave.com/HEA for full details.
Welcome to Wattson Home Solutions. We help you save money by improving the energy efficiency of homes in Massachusetts and Rhode Island.
We’re expert solar installers, and we can help you with mini-split or heat pump installation. We’re also expert home insulation and spray foam insulation installers.
- If you liked this article, you might also like ‘Maximizing Your Energy Savings with Mass Save’.
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