Massachusetts Solar Incentives — Complete Guide
Massachusetts State Income Tax Credit — Schedule EC
Massachusetts offers a state income tax credit worth 15% of the total net cost of your solar energy system, up to a maximum of $1,000.
How It Works
- Credit directly reduces your Massachusetts state income tax liability
- If you cannot use the full credit in the year of installation, the unused portion can be carried forward to future tax years
How to Claim
File Schedule EC with your Massachusetts state income tax return (Form 1 or 1-NR/PY) for the year your system is placed in service.
Form: mass.gov — Schedule EC
Class 1 NEPOOL-GIS Renewable Energy Credits (RECs)
Customer-owned systems in Massachusetts earn Class 1 RECs through NEPOOL-GIS (the regional grid's tracking system).
How It Works
- Venture Home handles registration on your behalf
- RECs are generated monthly based on your system's actual electricity production
- 1 REC per 1 MWh produced
For Participate Energy Customers
If financing through Participate Energy (our managed credit program):
- RECs are sold on your behalf
- Proceeds offset your system cost
For Cash/Loan Customers
- Venture Home enrolls your system
- You retain the RECs or can elect to sell them
Property Tax Exemption
Massachusetts provides a 20-year property tax exemption for the value added to your home by a solar energy system.
What This Means
Even though solar panels can increase your property's market value, that additional value is fully excluded from your property tax assessment for 20 years after installation.
How to Apply
No separate application required in most municipalities — the exemption is applied automatically at assessment.
Confirm with your local assessor's office.
Statutory reference: M.G.L. ch. 59 § 5 (45, 45A)
Sales Tax Exemption
All solar energy equipment and installation labor in Massachusetts is exempt from the 6.25% state sales tax.
How It Works
- Exemption is applied at the point of sale
- No action required on your part
- Instant savings — on a $20,000 system, this represents approximately $1,250
SMART Program Note
Massachusetts customers may also be enrolled in the SMART program (Solar Massachusetts Renewable Target), which pays a fixed rate per kWh your system produces for 10 years, paid directly by your utility on your monthly bill.
SMART enrollment is handled at the time of interconnection.
See [[state-incentives-overview|State Incentives Overview]] for details.
Quick Summary
| Incentive | Value | How to Claim |
|---|---|---|
| Income Tax Credit | 15% up to $1,000 | File Schedule EC |
| Class 1 RECs | Market-based | VH handles registration |
| Property Tax Exemption | 20 years | Automatic |
| Sales Tax Exemption | 6.25% | At purchase |
| SMART Program | Fixed $/kWh | At interconnection |
Related Articles
- [[state-incentives-overview|State Incentives Overview]] — All states
- [[srecs-and-incentives|SRECs and Solar Incentive Programs]] — How RECs work
- [[net-metering|Understanding Net Metering]] — Utility bill credits
Questions? Contact Customer Success at 800-203-4158.