Unlocking the Sun: Mass Solar Incentives & Tax Credits in 2025
(New budget bill threatens to end tax credits this year. If this bill passes the current incentives will end on Dec 31st 2025.)
If you own a home in Massachusetts, 2025 may be the most lucrative year yet to install solar. Between a generous 30 % federal tax credit and some of the nation’s strongest state‑level incentives, Bay Staters can dramatically cut installation costs and lock in long‑term savings on one of the country’s highest electric rates.
Why 2025 Is a Great Year to Go Solar
Rising electricity prices: Massachusetts consistently ranks near the top for residential electricity costs—rates that have outpaced inflation for years. See the latest trend in the EIA monthly electric‑price data.
Robust incentive stack: Homeowners can layer federal, state, and utility programs—plus marketable Renewable Energy Certificates (RECs)—to shorten payback to 6 – 12 years on many rooftops (even those with partial shade or east–west orientation).
Policy certainty—today: Incentives can (and do) change. States such as CA, NV, and NM recently slashed net‑metering benefits; early adopters were grandfathered in, late adopters weren’t. Massachusetts still offers full retail net‑metering—so acting now protects your cash‑flow assumptions.
30 % Federal Residential Clean Energy Credit (ITC)
What it is: A dollar‑for‑dollar federal tax credit equal to 30 % of all solar project costs—equipment, labor, permitting, and even battery storage—placed in service 2022 ‑ 2032.
Phase‑down schedule: 26 % in 2033 and 22 % in 2034.
Ownership matters: The credit flows to the system owner. If you sign a lease or PPA, the third‑party owner claims it; cash or loan buyers keep it (subject to tax liability).
Learn more: IRS — Residential Clean Energy Credit
Heads‑up: A pending budget bill could end these incentives on December 31, 2025. If the measure passes, systems will need to be installed and commissioned before that date to remain eligible.
Massachusetts Residential Energy Credit (State Income‑Tax Credit)
Value: 15 % of net installation cost, capped at $1,000.
Eligibility: Owner or tenant, primary residence, not claimed as a dependent.
Net Energy Metering (NEM) — Retail‑Rate Bill Credits
Massachusetts’ NEM rules require major utilities (National Grid, Eversource, Unitil) to credit exported solar generation at the full retail rate. Excess credits:
Offset all volumetric kWh charges (and often the fixed customer charge).
Roll over month‑to‑month for future use.
With retail rates among the nation’s highest, these credits translate to fast paybacks and long‑term protection against future increases.
Renewable Energy Certificates (RECs)
What is a REC? One REC represents the non‑power environmental attributes of 1 MWh (1,000 kWh) of renewable generation.
Why they exist: Massachusetts’ Renewable Portfolio Standard (RPS) requires utilities to source an increasing share of power from renewables (1 % annual step‑up since 2003; 13 % in 2018 and climbing).
Homeowner value: Current spot values hover around ≈ $25 per REC for residential solar sold through licensed REC aggregators/brokers.
More info: EPA — Renewable Energy Certificates
Additional Massachusetts Benefits
Additional Massachusetts Benefits
Property‑Tax Exemption: Added value from a solar installation is exempt from property taxes for 20 years (M.G.L. ch. 59 § 5 cl. 45).
Sales‑Tax Exemption: The 6.25 % state sales tax is waived on qualifying solar equipment for primary residences (see the Massachusetts Tax Expenditure Budget).
Home‑Value Premium: National studies show solar‑powered homes sell for roughly 3 – 4 % more than comparable properties (Zillow; UC Berkeley LBNL).
Why Act Now?
Beat utility‑rate inflation: Massachusetts’ average residential ¢/kWh has risen faster than the national average for a decade (see the SolarReviews cost‑increase map).
Lock in grandfathered NEM terms before potential policy tightening.
Capture the full 30 % federal credit—it begins phasing down in 2033.
Heads‑up: A pending budget bill could end these incentives on December 31, 2025. If the measure passes, systems will need to be installed and commissioned before that date to remain eligible.
Next Steps
Fill out our form and let Adam help you on your way.
Questions?
Drop us a Message or schedule a free solar assessment. We’re here to help you unlock the sun and shrink your electric bill!