Incentives

Available incentives for solar PV systems vary by state. Massachusetts has experienced phenomenal growth of installed PV systems since 2010, fueled by favorable state incentives. The following incentives are available in Massachusetts, but are subject to change:

Net metering allows customers to receive value during periods when their PV system generates more electricity than they use. The electric meter “runs backwards” whenever a customer’s net metered facility is producing more power than is being consumed and their account gets net metering $ credits for net excess generation at the end of the customer's monthly billing period.

Small PV systems receive credits at close to a retail electricity rate. Single-phase systems over 10 kW AC and three-phase PV systems over 25 kW AC must apply to receive a “cap allocation” and the monthly credit for excess electricity is at 60% of the “retail rate”. Net metering is currently not available in certain areas of the state, but state legislation passed in 2021 and 2022 should soon improve net metering availability.

The Solar Massachusetts Renewable Target (SMART) program is a declining block program in which the incentive levels will decline by prescribed amounts over up to 16 blocks per each investor-owned utility (Eversource, National Grid or Unitil) territory. There are set-aside amounts for small projects (≤ 25 kW AC) and medium commercial projects (25 to 500 kW) in each block to enable projects of all sizes to participate. SMART also has Adders available that increase the amount of the incentive if features such as Energy Storage, Community Solar, or various location-based installations such as roof-mount or carports are proposed.

There is availability in all utility territories for small PV projects with a 10-year monthly payout of incentives. There is also availability for systems >25 kW AC, with a 20-year monthly payment.

An approved utility interconnection application must be in place to apply for the larger system SMART program. The SMART program creates a strong incentive to apply for an interconnection agreement as soon as possible.