MASSACHUSETTS SOLAR INCENTIVES

These incentives make it easy to go solar in Massachusetts

Massachusetts offers a number of attractive solar incentives for commercial property owners who want to go solar. The state’s Solar Massachusetts Renewable Target (SMART) program provides long-term fixed-price contracts for new solar installations, making it easier for businesses to budget for their energy costs. In addition, the Massachusetts Commercial Solar Property Tax Exemption offers a 100% exemption on the increased value of a property from a solar installation, making it an appealing option for businesses looking to lower their taxes. Finally, the Massachusetts Solar Business Development Incentive Program provides grants of up to $250,000 for businesses that install new solar PV systems. With these programs in place, Massachusetts is an appealing state for commercial property owners who are considering going solar.

Solar Massachusetts Renewable Target (SMART) Program

The Solar Massachusetts Renewable Target (SMART) Program provides per-kWh incentives to solar PV projects up to 5 MW. The program is capped at an aggregate of 1,600 MW, and incentives are available in Eversource, National Grid, and Unitil territories.

The value of the incentive payment is equal to the following for standalone solar projects:

(Base compensation rate + compensation rate adders – greenfield subtractor) * total kWh generated – value of energy generated

The value of the incentive payment is equal to the following for behind-the-meter solar projects:

(Base compensation rate + compensation rate adders – greenfield subtractor) – (distribution kWh charge + transmission kWh charge + transition kWh charge + three-year average of basic service kWh charge)

Base compensation rates vary by system size. The base compensation rate is multiplied by the following factors for projects 1 MW or less:

  • Low-Income projects less than or equal to 25 kW AC: 230%
  • Projects less than or equal to 25 kW AC: 200%
  • Greater than 25 kW to 250 kW AC: 150%
  • Greater than 250 kW to 500 kW AC: 125%
  • Greater than 500 kW to 1 MW AC: 110%

The following compensation rate adders are available, with the adder value decreasing by 4% with each capacity block.

  • Community shared solar project: $0.05/kWh (initial adder value)
  • Low-income property project: $0.03/kWh (initial adder value)
  • Low-income community shared solar project: $0.06/kWh (initial adder value)
  • Public entity project: $0.02/kWh (initial adder value)
  • Project co-located with energy storage: Varies based on formula in 225 CMR 20.00
  • Project including solar tracking: $0.01/kWh (initial adder value)

https://programs.dsireusa.org/system/program/detail/22111/solar-massachusetts-renewable-target-smart-program

PACE Massachusetts Financing

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years.

Participation is open to commercial buildings. Improvements eligible for financing include energy efficiency upgrades and renewable energy systems. Payback period for investments under this program is equal to the useful life of the longest-lived improvement financed, up to 20 years.

https://programs.dsireusa.org/system/program/detail/22037/pace-massachusetts-financing

Renewable Energy Property Tax Exemption

Massachusetts law provides that solar energy systems and wind energy systems used as a primary or auxiliary power system for the purpose of heating or otherwise supplying the energy needs of taxable property are exempt from local property tax for a 20-year period. 100% exemption for 20 years

https://programs.dsireusa.org/system/program/detail/146/renewable-energy-property-tax-exemption

Excise Tax Exemption for Solar or Wind Powered System

Massachusetts law exempts any “solar or wind powered climatic control unit and any solar or wind powered water heating unit or any other type unit or system powered thereby,” that qualifies for the state’s excise tax deduction for these systems from the tangible property measure of the state’s corporate excise tax. The exemption is in effect for the length of the system’s depreciation period.

https://programs.dsireusa.org/system/program/detail/147/excise-tax-exemption-for-solar-or-wind-powered-systems

Excise Tax Deduction for Solar or Wind Powered Systems

Businesses may deduct from net income, for state excise tax purposes, expenditures paid or incurred from the installation of any “solar or wind powered climatic control unit and any solar or wind powered water heating unit or any other type unit or system powered thereby,” including labor expenditures.

https://programs.dsireusa.org/system/program/detail/148/excise-tax-deduction-for-solar-or-wind-powered-systems

Alternative Energy and Energy Conservation Patent Income Tax Deduction (Corporate)

Massachusetts offers a corporate income tax deduction for (1) any income — including royalty income — received from the sale or lease of a U.S. (2) Any income received from the sale or lease of personal or real property or materials manufactured in Massachusetts and subject to the approved patent.

https://programs.dsireusa.org/system/program/detail/149/alternative-energy-and-energy-conservation-patent-income-tax-deduction-corporate

Holyoke Gas & Electric – Commercial Energy Conservation Loan Program

Holyoke Gas & Electric’s Commercial Energy Conservation Program offers zero interest loans to its commercial customers who are making energy efficiency improvements to facilities.

Multi-Family Investment Properties: $20,000 ($2,500 maximum per unit)

Solar: $10,000

https://programs.dsireusa.org/system/program/detail/1338/holyoke-gas-electric-commercial-energy-conservation-loan-program

Concord Municipal Light Plant

Solar Photovoltaic Rebate Program-Concord Municipal Light Plant (CMLP) offers rebates to customers who install solar photovoltaic (PV) systems that are designed to offset the customer’s electrical needs. The incentive is 625.00 $/kW, The incentive has a maximum of $3125.00

https://programs.dsireusa.org/system/program/detail/3728/concord-municipal-light-plant-solar-photovoltaic-rebate-program

Green Communities Grant Program

The Green Communities Grant Program offers funding for communities investing in energy efficiency upgrades and policies, renewable energy technologies, and energy management systems and services.

The basic steps required for this designation include:

  • Stipulate “as-of-right” siting for renewable energy (or alternative energy) generation, manufacturing, or research and development (via ordinance)
  • Provide for expedited application and permitting processes for those facilities sited in “as-of-right” designated locations
  • Establish an energy baseline and adopt a five-year Energy Reduction Plan (ERP) to reduce energy use by 20%
  • Adopt a policy and procure only fuel-efficient vehicles
  • Establish requirements to minimize life-cycle energy costs for new construction

https://programs.dsireusa.org/system/program/detail/4067/green-communities-grant-program

Local Option – Energy Revolving Loan Fund

Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years.

https://programs.dsireusa.org/system/program/detail/4283/local-option-energy-revolving-loan-fund

Reading Municipal Light Department – Business Energy Efficiency Rebate Program

Reading Municipal Light Department (RMLD) offers energy efficiency incentives to eligible commercial and industrial customers. Rebates of up to $50,000 are available to customers who wish to reduce energy consumption in their facilities through the Commercial Energy Initiative Rebate Program.

Commercial Renewable Energy Rebate Program: $1.00/watt

Commercial Renewable Energy Rebate Program: $50,000 per year or 50% of cost, whichever is less

https://programs.dsireusa.org/system/program/detail/4595/reading-municipal-light-department-business-energy-efficiency-rebate-program

Hudson Light & Power – Photovoltaic Incentive Program

Hudson Light & Power Department, the municipal utility for the Town of Hudson, offers a limited number of solar photovoltaic (PV) rebates for residential, commercial, industrial, and municipal customers.

The system size has a maximum of 100.00 kW-DC, The incentive is 1.00 $/W, The incentive has a maximum of $10000.00

https://programs.dsireusa.org/system/program/detail/5189/hudson-light-power-photovoltaic-incentive-program

Genie Energy Ltd., (NYSE: GNE, GNEPRA) is a global energy solutions company. We supply customers in the US and Europe with electricity, including electricity generated from renewable resources and with natural gas. Through Genie Solar Energy and Prism Solar, we design, construct and install commercial solar energy solutions. We provide commercial and industrial clients with energy brokerage and consultative services through our Diversegy brand.

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Convinced to go solar by the New Jersey incentives, PCS Wireless looked at several solar companies to provide the best overall value. Genie Solar was able to design a unique system to offset the largest portion of their electricity usage. Additionally, we combine it with an exclusive financial product which minimized the cash out of pocket and maximized the return on investment. The 494 kW system was constructed in minimal time, with no impact on the businesses operations.
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A provider of engine-generator systems, Kraft Power was a pioneer of “Total Energy” (Combined Heat and Power). After seeing the financial and green benefits of solar at their headquarters in Massachusetts, Kraft wanted to capitalize on the lucrative state incentives in New Jersey at a distribution center. By installing a 57.5 kW system on the roof they were able to offset 100% of their electricity usage, take advantage of the Investment Tax Credit, accelerated depreciation, and collect revenue from the New Jersey SREC program. Genie Solar made it a smooth process and limited the need for internal resources to manage the project.
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A premier provider of water treatment in the New York and New Jersey area, Tower wanted to go solar to save money and generate clean energy. Upon reviewing the financial benefits available in New Jersey with the SREC program and the federal Investment Tax Credit, they wanted to safe harbor the project in 2019 and construct in 2020. Buying American Made panels was an important component of the project, and by utilizing their white roof, Genie Solar was able to leverage Prism Solar’s bifacial panels to minimize the square footage needed and maximize the electricity generated. Genie Solar helped them achieve all of their goals in an efficient manner with a 44.6 kW system.
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Cardoza had both a showroom and a distribution center with exorbitant electricity costs in New Hampshire. As a legacy business, it was important to reduce costs and protect the business from increasing expenses prior to passing it on to the owner’s children. The show room’s roof and location made it a less than ideal location for solar; but the vast roof and direct sunlight on the distribution center could generate enough solar to power both facilities, plus the owner’s house. Leveraging New Hampshire’s group host program, Genie Solar built one 99.7 kW solar array to power all three locations. The owner is now considering converting more equipment to solar and building a second array.
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A destination nursery in rural New Hampshire, HBTSR was a long standing customer of Genie Solar’s sister company, Diversegy. After helping the business reduce electricity expenses for the past number of years, HBTSR turned to Genie Solar to reduce their rising electricity expenses over the long run. “Between the federal and NH state incentives, I was paid $8,000 to install my solar array. On top of getting money back, I am going to realize over $300,000 in savings during the 25 year warranty period of the solar array.”
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