State, federal and local governments offer a variety of incentives for energy generation, including from renewable energy sources. Some utilities and other public and private entities offer grants, loans and other assistance for individuals and organizations interested in using clean, renewable, local energy sources. Below, please find information regarding some of the major incentives available to Massachusetts residents and businesses. For a comprehensive listing of available incentives, please visit the Database of State Incentives for Renewables and Efficiency (DSIRE).
Important Note: MassCEC strongly encourages individuals and organizations considering renewable energy technologies to consult a tax professional to determine eligibility for tax incentives and what, if any, tax liability which may arise from due to receipt of rebates or other incentives. Individual circumstances may vary, and MassCEC cannot provide specific tax advice.
- Federal Investment Tax Credit (ITC) or Residential Renewable Energy Tax Credit. Qualified commercial and residential projects across a variety of technologies are eligible for the ITC, which ranges from 10 percent to 30 percent of project cost, depending on technology. For more information, visit DSIRE's business energy investment tax credit page or residential renewable energy tax credit page.
- Massachusetts Personal Income Tax Credit. Individuals installing qualified solar and wind projects in Massachusetts may be eligible for a personal income tax credit worth the lesser of 15 percent of project costs or $1,000. For more information, visit the Department of Revenue's Residential Property Credits page.
- Renewable Portfolio Standard (RPS) and Alternative Portfolio Standard (APS). Most retail electricity suppliers are required to obtain a certain percentage electricity from qualified renewable sources. Suppliers meet their annual RPS obligations by acquiring a sufficient quantity of renewable energy certificates (RECs) or solar renewable energy certificates (SRECs), which are issued to owners of renewable generation assets based on the amount of electricity they produce. Suppliers meet their annual APS obligations by acquiring alternative energy certificates (AECs), which are issued to owners of systems that produce thermal energy. For more information, visit the Massachusetts Department of Energy Resources (DOER) webpages for the RPS and the APS.
- MassCEC. MassCEC's Renewable Energy Generation division offers a number of grants and incentive programs for individuals interested in developing commercial and community scale wind; solar electricity; commercial and residential solar hot water; hydropower; and organics-to-energy.
- Net Metering. Net metering is a state regulation that allows customers generating their own electricity to be credited at nearly the retail rate for the energy they generate but do not use. A customer’s electric meter will run backward when producing more electricity than is being consumed, and the customer's utility account gets net metering credits for net excess generation at the end of the monthly billing period. For more information on net metering and interconnection, please visit DOER's Massachusetts Distributed Generation and Interconnection web site or the DPU Net Metering page.
- MassSave. MassSave is an initiative sponsored by Massachusetts gas and electric utilities and energy efficiency service providers which provides services, incentives, trainings and information promoting energy efficiency that help residents and businesses manage energy use and related costs.