New Solar Programs to Provide $300 Million a Year in Savings and Benefits for Massachusetts

Solar energy

In 2025, Massachusetts homeowners can take advantage of a federal solar tax credit (expiring at the end of 2025) and a Massachusetts Residential Energy Credit, which provides a state tax credit up to $1,000 for installing a system on a primary residence. To qualify for the full federal credit, your solar system must be installed and commissioned by December 31, 2025.  

Federal Residential Clean Energy Credit 

• What it is: A federal tax credit worth up to 30% of the total cost of a new solar panel system. 

• How it works: You claim this credit on your federal income taxes. 

• Status for 2025: The credit is set to expire at the end of 2025. 

• Action needed: You must have your solar system fully installed and commissioned by December 31, 2025, to qualify for the full credit. 

Massachusetts Residential Energy Credit:

• What it is: A state income tax credit.

• How it works: It provides a credit of 15% of the system's net expenditure (cost minus grants, rebates, and federal credits), up to $1,000, for systems installed at your primary residence.

• Eligibility: For residential systems only, installed on your primary home.

Important Notes

• Owner of the System: Tax credits go to the owner of the solar energy system. 

• Expiration: The federal solar tax credit is ending. To benefit, ensure your system is installed before the end of 2025.