Solar Installation Incentives for Massachusetts and New Hampshire Businesses

In some states, upfront rebates based on the size of the system or production incentives based on the amount of electricity generated are available to reduce the cost of investing in a business solar energy system. The rebates are usually expressed in dollar-per-watt terms and the production incentives on a per- kWh basis. (State-specific information is available at

Massachusetts Commercial Solar Incentives

In Massachusetts, there are two kinds of financial incentives that can dramatically lower the price of your solar energy installation:

 1. There are “Solar Purchase Incentives” that reduce the upfront cost through the use of State and Federal Tax Credits and Property and Sales Tax Exemptions.

2. There are also “Solar Production Incentives” that kick in once you turn your system on and actually create cash flow for up to 10 years from the sales of the SRECS (Solar Renewable Energy Credits).  Under the Massachusetts SREC Program, the business owner will automatically own the SRECs associated with a PV system, and can receive compensation by selling the SRECs to an SREC aggregator.

Solar Purchase Incentives:

Federal Business Energy Investment Tax Credit:

  • A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a business located in the United States that is owned and used as a residence by the taxpayer.

  • Amount: 30% of gross cost at Installation, no cap

  • Systems must be placed in service before December 31, 2016.

  • Business owners may use the credit to offset their Federal tax liability.  If the tax credit exceeds the tax liability, the excess can be carried forward through 2016.

 Solar Production Incentives:

Solar Renewable Energy Certificates (SRECs) 

  • Massachusetts Department of Energy Resources (DOER)

  • As of January 2010 additional revenue can be made from PV systems by electing to sell SRECs.

  • 1000 kWh = 1 MWh = 1 SREC

  • SREC value =  $300/MWh to $550/MWh

  • An SREC is a certificate that represents all the positive environmental attributes of producing clean electricity generated from a solar electric system and is priced on a megawatt-hour (MWh) basis. Each time a solar system generates 1,000 kW hours (1 megawatt hour) of electricity, an SREC is issued which can then be sold or traded separately. 

  • In order to qualify for SRECs, projects must be in Massachusetts and must be grid-tied systems under 2 megawatts (DC).

  • Under the Massachusetts SREC Program, the business owner will automatically own the SRECs associated with a PV system, and can receive compensation by selling the SRECs to an SREC aggregator.

  • The sale of SRECS on the SREC market is strictly regulated by the State of Massachusetts’ Division of Energy Resources through the Renewable Portfolio Standard

  • Solar generators will participate in this program via an “opt-in” agreement, which guarantees participation for a set number of years.  In 2012, the “opt-in” arrangement is for 40 quarters. 

  • There is not a definitive ruling if SREC income is taxable. Blue Selenium Solar strongly recommends that you speak to your tax accountant or lawyer for more information on tax implications.

 Massachusetts Net Metering

  • Net metering is open to customers of investor-owned utilities in Massachusetts. 

  • Municipal utilities are not mandated to offer net metering, but can do so voluntarily. 

  • Net metering allows customers to get credit for the full retail value of the electricity their solar electric system generates. 

  • Under this agreement, the customer’s electric meter tracks the surplus electricity generated by the solar electric system and the electricity that the customer consumes.  The customer is only billed for the net amount of electricity they use.

  • Credits may be carried forward to the next month indefinitely.

  • Credits from net metering facilities may be transferred to another customer of the same utility as long as they are within the same service territory and ISO-NE load zone.

  • Net Excess Generation:  Varies by system type and customer class:

   Size of Facility                                        

Class I  < 60 kW                                        

Class II   > 60kW;  <  1 MW*                                        

Class III > 1 MW:  <  2 MW*

* For municipalities and government entities, size applies on a per-unit basis, rather than per facility.

Other Tax Incentives and Exemptions: 

Federal and State Tax Write-offs: Corporate Accelerated Depreciation- Modified Accelerated Cost-Recovery System (MACRS) Depreciation:

  • Renewable Energy Systems are also eligible for Accelerated MACRS (Modified Accelerated Cost-Recovery System) Depreciation of the remainder of the qualified costs over five years under Federal Law. This is very advantageous to businesses since this asset will keep producing electricity for 25-30 years and it's depreciation will be allowable in a very short 5 year period.

  • 5 year tax depreciation schedule (consult with tax advisor)

  • Federal Corporate Tax Exemption:

  • Gross income shall not include the value of any subsidy provided (directly or indirectly) by a public utility to a customer for the purchase or installation of any energy conservation measure.  Caution IRS has not ruled definitively if this applies to solar systems.

  • Amount: 100% of the subsidy

Property Tax Incentive (MA):

  • Renewable Energy Property Tax Exemption

  • Solar systems used as a primary or auxiliary power system for the energy needs of a taxable property are exempt from local property tax for a 20-year period.

MA Sales Tax (no exemption for commercial, unless the site is a manufacturing facility)

  • Sales tax will have to be paid on project material costs


  • BlueSel Commercial Solar has partnered with a variety of financial lending institutions, and as a result can provide you a financing option that will best meet your needs.

  • Loans, Leases, and PPA’s (Power Purchase Agreements)

  • Please speak with a Blue Selenium Solar representative to learn more

Massachusetts Incentives for Businesses

Financial Incentives

Local Rebate Program

Personal Tax Credit

Production Incentive

Property Tax Incentive

Sales Tax Incentive

State Rebate Program

Utility Loan Program

Utility Rebate Program

Accelerated Depreciation

Solar electric systems are eligible for the 5 year Modified Accelerated Cost Recovery System (MACRS). Accelerated depreciation on a system with a 25+ year engineered life greatly increases the after-tax financial return of the project.

Solar Renewable Energy Credits

A Renewable Energy Credit (REC) is a tradeable certificate that represents the clean energy benefits of electricity generated from a solar electric system. It can be sold or traded separately from the generated power. It greatly enhances the financial value of the project.

State Excise Tax Deduction

Businesses may deduct from net income, for state excise tax purposes, costs incurred from the installation of a solar energy system. A system that qualifies for this deduction will not be taxed under the tangible measure of the state's corporate excise tax.

Please note: We at Blue Selenium Solar are experts on solar energy systems, not taxes, and we do not provide tax advice; you may want to consult a tax professional.

New Hampshire Incentives for Businesses

The N.H. State Rebate Program for solar and wind systems, managed by the NH Public Utilities Commission provides rebates of $ 3/Watt DC up to a maximum of $6,000 or 50% of system costs, whichever is less for systems up to 5 kW in size. For more information click here:

Local Loan Program

Property Tax Incentive

State Loan Program

State Rebate Program

Utility Grant Program

Utility Loan Program

Utility Rebate Program

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