Eligible Renewable/Other Technologies:

• Solar Water Heat
• Solar Space Heat
• Solar Photovoltaics
• Wind (All)
• Geothermal Heat Pumps
• Wind (Small)

Varies by project

100 percent sales tax exempt

Application period

1/1/2022 - 12/31/2022

1. Application period is open

2. Preferred Vendor/Contractor required: No preferred vendor/contractor

3. Pre-Approval Required: Yes

4. Pre-Inspection Required: No

5. Post-Audit Required: No

6. Average time from Application to Approval: Work with your lender or your tax/legal/financial professional to understand the process timeline.

7. After approval, funds typically received: Work with you lender or your tax/legal/financial professional to understand the process timeline.

1. It is recommend to always work through a certified professional.

2. Since tax law is complex, the guidelines listed below may not apply to every transaction. To avoid any interest or penalty charges on tax that was not collected properly, contact the Department of Revenue.

• The Solar Massachusetts Renewable Target (SMART) Program is the Massachusetts Department ff Energy Resources’ (DOER) incentive program established to support the development of solar in Massachusetts.

• The DOER regulation in 225 CMR 20.00 sets the regulatory framework for the program. The tariff-based incentive is paid directly by the utility company to the system owner, following the approval of the application by the Solar Program Administrator and DOER.

• The SMART Program is a 3,200 MW declining block incentive program.

• Eligible projects must be interconnected by one of three investor-owned utility companies in Massachusetts: Eversource, National Grid and Unitil.

• Each utility has established blocks that decline in incentive rates between each block.

Select the corresponding link for the Electric Distribution Company (EDC) to view the latest estimated total megawatt availability.

• Eversource Application Portal
• National Grid Application Portal
• Unitil Application Portal

Varies by Project.

Varies by Project.

Application period

1/1/2024 - 12/31/2024

1. Application period is open

2. Preferred Vendor/Contractor required: No preferred vendor/contractor

3. Pre-Approval Required: Yes

4. Pre-Inspection Required: No

5. Post-Audit Required: No

6. Average time from Application to Approval: Varies by utility company

7. After approval, funds typically received: Varies by utility company

1. Agreement
   Gather the required documentation, including a signed contract for Small projects and a fully executed EDC Interconnection Agreement for Large projects.

2. Apply
   Visit our online portals to submit your application.
   SMART Application Resources

3. Qualify
   Receive your Preliminary Statement of Qualification.

4. Install
   Build and interconnect your system.

5. Submit
   Submit your claim validating your application and confirming interconnection approval from the EDC.

6. Payment
   Final Statement of Qualification is awarded and incentive payments begin.

Eligibility

• The law provides an exemption from local property taxes for any solar or wind-powered system or device which is being utilized as a primary or auxiliary power system for the purpose of heating or otherwise supplying the energy needs of property taxable under Chapter 59. The exemption is allowed for 20 years from the date of installation.

• Any components that serve a dual purpose (both structural and energy-related, for example) are-n;t eligible for this exemption. Greenhouses are not eligible; they serve more than one purpose. Windows, thermal drapes and floors are among other features which are considered to have a dual purpose and, therefore, will not be exempt under Clause 45.

• Examples of items which are eligible for the exemption are the thermal storage rods. storage box, fan system, and duct work that are constructed to function exclusively as part of the solar or wind-powered energy or heat-supplying system.

Varies by Project.

100% exempt from any value added to their property taxes by installing solar equipment

Application period

1/1/2024 - 12/31/2024

1. Application period is open

2. Preferred Vendor/Contractor required: No preferred vendor/contractor

3. Pre-Approval Required: Yes

4. Pre-Inspection Required: No

5. Post-Audit Required: No

6. Average time from Application to Approval: Work with your lender or your tax/legal/financial professional to understand the process timeline.

7. After approval, funds typically received: Work with you lender or your tax/legal/financial professional to understand the process timeline.

1. It is recommend to always work through a certified professional.

2. Since tax law is complex, the guidelines listed below may not apply to every transaction. To avoid any interest or penalty charges on tax that was not collected properly, contact the Department of Revenue.

If you are a customer of a regulated electric company (Eversource, National Grid, or Unitil), you may net meter. Net metering allows you to generate your own electricity to offset your electricity usage. Common examples of net metering facilities include solar panels on a home or a wind turbine at a school. These facilities are connected to a meter, which measure the net quantity of electricity that you use. When you use electricity from the electric company, your meter spins forward. When you generate excess electricity and “export” electricity to the electric grid, your meter spins backward.

Massachusetts does not differentiate between behind-the-meter net metering (electricity generation consumed on the same site it is generated) versus virtual net metering (electricity generation consumed at a site other than where the electricity is generated). For most purposes, including credit calculation, there is no difference between net metering and virtual net metering.

To net meter, you must be a customer of a regulated electric company (Eversource, National Grid or Unitil). In addition, your generating facility:

• must be interconnected by your electric company
• must meet all of your electric company’s requirements before you interconnect your generating facility
• must meet all of the rules and regulations
• you may need to apply for a cap allocation with the MassACA

Your net metering facility may be any type of generating resource if it smaller than 60 kilowatts (kW). G.L. c. 164, § 138; 220 C.M.R. § 18.00. If your net metering facility uses wind, solar, or anaerobic digestion, it must be:

• 2 megawatts (MW) or less for a private facility
• 10 MW or less for a public facility. G.L. c. 164, § 138

Entities that cannot net meter

• An electric utility
• A generation company
• An aggregator (as defined in G.L. c. 164, § 1)
• A supplier
• An energy marketer
• An energy broker G.L. c. 164, § 139(2)(e).
• A customer of a municipal electric company.

As of April 11, 2016, the caps are:
Distribution Company || Private Cap (7%) || Public Cap (8%)
Eversource || 408.24 MW || 466.56 MW
National Grid Massachusetts Electric Company || 359.191 MW || 410.54 MW
National Grid Nantucket Electric Company || 3.542 MW || 4.048 MW
Unitil d/b/a Fitchburg Gas and Electric Light Company || 7.14 MW || 8.16 MW

Net metering credit calculation and billing

Net metering credits can offset the delivery and supply portions of your electric bill, as well as customer charges. You may use net metering credits to decrease your electricity bill to zero dollars and zero kilowatt hour (kWh) usage. G.L. c. 164, §§ 138, 139. 220 CMR 18.04.

Customers who net meter are billed for their net consumption of electricity.

Net monthly consumption = (total electricity consumed in a month) - (total electricity generated in a month).

• If your net consumption is positive, you must pay an electricity bill to your electric company for the excess consumption at the end of the billing period. 220 CMR 18.03(4).
• If your net consumption is negative, you will receive a net metering credit on your electricity bill. Therefore, you will not owe the electric company money during that billing period. 220 CMR 18.03(3). The net metering credits appear as a dollar amount (not as kilowatt hours) on your bill. The credits never expire and will rollover to the next billing period.

Credit calculation

To determine your credit value:

• View the mathematical formula in 220 CMR 18.04 to determine which inputs you should include in the net metering credit calculation. Appendix A of your electric company’s net metering tariff provides the information in a visual format. Some formula inputs vary between the electric companies and the type of customers.
• Consult your electric company’s current schedule of rates. Your rate schedule will be determined by the host customer’s rate class (e.g., residential, commercial, etc.).
• Plug the values into the credit formula and determine the value of a credit for each unit of excess electricity (in kilowatt hours) produced by your net metering facility. Be aware, that the electric companies’ schedule of rates changes often. For example, basic service rates for residential customers change every six months. Also, each electric company’s schedule of rates is different.

Helpful information to keep in mind when calculating net metering credits

The type and capacity of the facility determine your net metering class. To determine the capacity of a solar net metering facility, use 80% of the facility’s kW DC capacity. If the solar net metering facility is cap exempt, use the nameplate rating (kW AC). To determine the capacity of a wind net metering facility, anaerobic digestion net metering facility, or small hydroelectric net metering facility, use the nameplate rating. G.L. c. 164 §§ 139(f) and 139A(a); 220 CMR 18.07(4).

General Program
Class Number || Size of Private Facility || Size of Public Facility
Class I net metering facility || 60 kW or less || 60kW or less
Class II net metering facility || more than 60 kW but less than or equal to 1 MW || more than 60 kW but less than or equal to 1 MW
Class III net metering facility || more than 1 MW but less than or equal to 2 MW || more than 1 MW but less than or equal to 10 MW Small Hydroelectric Program
Type || Size of Facility
Small hydroelectric net metering facility 2 MW or less

• The following rates are never included in the calculation of net metering credits:
  > Fixed customer charges
  > System benefit charges, including both the energy efficiency (also known as demand side management charges) and renewable energy charges
  > Demand charges (e.g., $/kW or $/kVa charges)
  > The energy efficiency reconciliation factor (EERF) G.L. c. 164, § 138.
• If your net metering facility is a Class III net metering facility (has a capacity of more than 1 MW) or is in the SHP, your electric company may pay the host customer for the value of some or all of its net metering credits from excess generation, instead of applying the credits to the electric account(s). This decision is left entirely to the electric company. The electric company must notify the host customer whether it will purchase the value of the credits (cash out) or allocate net metering credits to future bills before the facility is operational. G.L. c. 164, § 139(b)(1); G.L. c. 164, § 139A(b), 220 CMR 18.05(4).

Varies by Project.

Varies by Project.

Application period

1/1/2024 - 12/31/2024

1. Application period is open

2. Preferred Vendor/Contractor required: No preferred vendor/contractor

3. Pre-Approval Required: Yes

4. Pre-Inspection Required: No

5. Post-Audit Required: No

6. Average time from Application to Approval: Varies by project. Please work with a program team member to ensure a streamlined process.

7. After approval, funds typically received: Varies depending on your project's (building's) performance after improvements / upgrades are completed and measured. Funds will reflect your project's (building's) performance.

1. If you are a customer of a regulated electric company (Eversource, National Grid, or Unitil), you may net meter.

2. If you are installing distributed generation (e.g., solar panels), or already have a generator, you may be eligible for net metering, a method of measuring the energy consumed and produced by a customer’s generating facility.

3. Work through your utility company to fill out your Net Metering Application.

An owner or tenant of a residential property located in the state (not a dependent of another taxpayer) and who occupies the residential property as his or her principal residence is allowed a solar and wind energy credit ("energy credit") against personal income tax. The credit limitation applies to all renewable energy source expenditures made by an owner or tenant ("taxpayer") with respect to his or her principal residence.

Qualifying Expenditures.
Only net expenditures paid with respect to renewable energy source property used in connection with the taxpayer's principal residence may be used to compute the amount of the credit. The term "in connection with" includes, but is not limited to, renewable energy source property in or on a principal residence or residential property.

(a) Principal residence.

• A taxpayer must be a resident of Massachusetts for his or her principal residence to be in Massachusetts. If a taxpayer is resident in Massachusetts and has only one place of residence, that place of residence is the taxpayer’s principal residence. If a taxpayer is resident in Massachusetts and has more than one place of residence, the determination of which place of residence is the taxpayer’s principal residence depends upon all the facts and circumstances in the case, including the number of days spent at each place of residence and the good faith representations of the taxpayer.
• If an owner or tenant changes his or her principal place of residence within a taxable year an energy credit may be claimed for each principal residence of the taxpayer, subject to the maximum credit amount of $1000. Subject to the requirements of this regulation, joint owners of residential property may share any energy credit claimed for renewable energy source property expenditures in the same proportion as their ownership interest in the residential property. Joint owners are subject to the maximum credit amount of $1000. Joint ownership includes joint tenancy, tenancy in common and tenancy by the entirety. An individual who is a stockholder in a cooperative housing corporation, or who is a member of a condominium association with respect to a condominium which he or she owns, may claim a proportionate share of the renewable energy source expenditure of such condominium association or cooperative housing corporation. A cooperative housing or condominium unit may be treated as a "principal residence" for purposes of the $1000 credit limitation.

(b) Renewable energy source property.

• Only renewable energy source property used for residential purposes qualifies for the energy credit. When at least eighty percent of the use of such property is for residential purposes, the entire amount of the renewable energy source expenditure may be used to compute the credit. However, if less than eighty percent of such property is used for residential purposes, the percent of the amount of the expenditure that must be used to compute the credit is the percent of the property's residential use.
• Subject to the requirements of this regulation, joint owners of renewable energy source property may share any energy credit claimed for renewable energy source property expenditures in the same proportion as their expenditures for that property. Joint owners are subject to the maximum credit amount of $1000 per principal residence.
• A renewable energy source expenditure does not include any expenditure for any energy storage medium if the primary function of that medium is not the storage of energy. For this reason expenditures for insulation, storm or thermal windows or doors, caulking or weather-stripping, furnace replacement burners, devices for modifying flue openings, furnace ignition systems, automatic setback thermostats, energy use meters and similar devices and items are not renewable energy source expenditures. In addition, the costs of maintenance and repair of installed renewable energy source property, or of leasing renewable energy source property, are not renewable energy source expenditures.

Varies by project.

The credit against personal income tax can equal up to fifteen percent of the net expenditure for renewable energy source property, or $1000, whichever is less.

Application period

1/1/2024 - 12/31/2024

1. Application period is open

2. Preferred Vendor/Contractor required: No preferred vendor/contractor

3. Pre-Approval Required: Yes

4. Pre-Inspection Required: No

5. Post-Audit Required: No

6. Average time from Application to Approval: Work with your lender or your tax/legal/financial professional to understand the process timeline.

7. After approval, funds typically received: Work with you lender or your tax/legal/financial professional to understand the process timeline.

1. It is recommend to always work through a certified professional.

2. For purposes of determining the taxable year in which an energy credit may be claimed, a renewable energy source expenditure is treated as made on the date on which the expenditure qualifies as timely, or the date on which the expenditure is paid or incurred by the taxpayer, whichever is later.

3. The amount of the energy credit claimed by the taxpayer in a taxable year may not exceed the taxpayer's personal income tax liability for that year. To determine the amount allowable in a given taxable year, a taxpayer must reduce the $1000 maximum credit amount by the amount of any energy credit allowed to the taxpayer in any prior taxable years with respect to the same principal residence. A taxpayer may carry-over any excess credit amount, as reduced from year to year, and apply it to his or her personal income tax liability for any one or more of the next succeeding three taxable years.