Massachusetts Energy Incentives
Federal and state programs for solar, battery, EV, and efficiency upgrades.
Key Programs
Some offerings reward peak demand reduction; verify measurement method and payout schedule.
Federal Incentives
Deduct 30% of the total cost of your solar energy system from your federal income taxes. Includes panels, inverters, racking, wiring, installation labor, and permitting.
Standalone battery storage systems of 3 kWh or larger qualify for the 30% federal tax credit, even without solar. Added by the Inflation Reduction Act.
Tax credit for purchasing a new qualifying electric vehicle. Amount depends on battery sourcing and manufacturing requirements.
30% credit on qualified heat pump costs, up to $2,000 per year. Can be claimed annually (not a one-time credit).
30% credit on insulation, windows, doors, and energy audits. Annual limit of $1,200 (separate from the $2,000 heat pump limit).
State Programs
Massachusetts Solar Massachusetts Renewable Target program provides per-kWh payments for solar production over 20 years. Rate depends on system size and adders (battery, low-income, etc).
Massachusetts state income tax credit for solar energy systems. 15% of cost up to $1,000.