A Guide to New England Solar Incentives

31 Jul A Guide to New England Solar Incentives

Solar incentives and rebate programs vary vastly from state to state, and it can be overwhelming to research and take on the application process on your own. That’s why ACE Solar handles it all for you. We will find every incentive program you qualify for and make it as easy as possible for you to go solar and start saving money the second you do!

We’ve become very familiar with different programs around the Northeast, as our part of the country has some of the best incentive, rebate, and net metering programs available for residents and businesses. As your guides through the process of going solar, we wanted to give you a tour of the available programs throughout New England.

FEDERAL INCENTIVES

Solar Investment Tax Credit
There is an amazing Federal tax incentive that applies to every state, known as the Solar Investment Tax Credit (ITC). If you install solar panels on your home or business before December 31st, 2019, you will receive a tax credit of 30% of the cost to install the system. The following year will still be at an attractive 26%, and by 2022 goes to 22%. Currently, the plan is for the incentive to decrease to 10% in the years after, but there has been recent legislation introduced to extend that timeline.

MASSACHUSETTS

SMART Program
Massachusetts has implemented the SMART Program. This program allows new solar system owners to be compensated by their utility at a rate that includes an incentive amount in addition to the value of the energy they produced. These incentives are currently available to National Grid, Eversource, and Unitil service areas. The benefits are locked in for 10-20 years depending on system size. This program is a declining block program in which the incentive levels will decline each time a capacity block fills up. There are eight blocks per electric company territory, so this means the higher incentive amounts will be assigned on a first-come-first-serve basis.

This is a 10.44 kW system installed in Haverhill, MA using LG 360 watt panels and SolarEdge inverters.

Net Metering
Massachusetts also has a great net metering initiative. This policy allows home and business owners that produce their own solar electricity to sell it back to the grid and be compensated. Most states have a net metering policy, but a few still do not have one implemented.

Municipal Light Plant Solar Rebates
The Department of Energy Resources has partnered with the Massachusetts Municipal Electric Cooperative and Energy New England to provide financial incentives to those wanting to go solar that get their electricity through municipalities. MLP Solar Rebate Programs allow customers of municipalities across Massachusetts to receive rebates that can cover up to 50% of their solar system costs on installations of 25 kW or less.

Solar Loans
Massachusetts also offers special solar loans with low rates and $0 down financing options. There is the Mass Solar Loan and the UMassFive MySolar Loan, both specifically designed to save you money the second you go solar. The Mass Solar Loan also features three income-based incentives for qualified applicants based on the MassCEC’s list of thresholds by household size. These incentives include income-based loan support where low-income customers are eligible for a 30% loan reduction up to $10,500, and moderate-income customers are eligible for a 10% reduction up to $3,500.

Battery Incentives
National Grid customers in Massachusetts can also take advantage of incentives for home battery storage. This would give battery owners $225/kW in the summer and $50/kW in the winter to sell some of the energy they have stored to the utilities during peak times. Participating in one of these programs for a few years could cover the cost of the battery. The current program is running until August 1st but may be up for an extension.

NEW HAMPSHIRE

This 8.32 kW ACE Solar installation in Lincoln, New Hampshire features 320-watt LG panels and SolarEdge inverter.

Tax Exemptions
Certain cities and towns in New Hampshire offer an exemption from residential property taxes for the assessed value of a solar energy system used on the property.

Renewable Energy Generation Incentive Program
The state, through the Public Utilities Commission (PUC), has developed a rebate program for residential renewable electric generating systems with a generating capacity rated at 10kw or under. The application is available through the PUC Sustainable Energy Division. The PUC also has additional rebate programs for residential and commercial systems.

RHODE ISLAND

Tax Exemption
Certain renewable energy systems and equipment sold in Rhode Island are exempt from the state’s sales and use tax. Eligible products include solar electric systems, DC-to-AC inverters that interconnect with utility power lines, and mounting racks. There is also a provision exempting qualifying renewable energy systems and associated equipment from property taxes.

Small Scale Solar Grants
Commerce Rhode Island provides financial grants for small scale solar photovoltaic systems and domestic solar water heating systems to help reduce energy costs and increase renewable energy adoption. The program is funded by the Rhode Island Renewable Energy Fund and alternative compliance payments from the state’s renewable portfolios standard (RPS).

This 5.76 kW ACE Solar installation in Tiverton, Rhode Island features 320-watt Hanwha panels and a SolarEdge inverter.

Solar Easements
Rhode Island allows property owners to establish solar easements with the same effect as a conveyance of an interest in real property. A solar easement allows a home or business owner to protect the efficiency and shading of their system in relation to others. For example, a solar easement means a huge building cannot be built next to your home if it interferes with a certain amount of shading on your system.

Battery Incentives
Rhode Island is currently offering incentives for home battery storage. This would give battery owners $400/kW to sell some of the energy they have stored to the utilities during peak times of the summer months. Participating in one of these programs could cover the cost of the battery in a few years time. The current program is running until August 1st, 2019 but may be up for an extension.

PACE
Rhode Island offers both commercial and residential Property Assessed Clean Energy, which is a financing program that allows property owners to repay the costs of energy efficiency or renewable energy projects in conjunction with their property tax payments.

CONNECTICUT

Residential Solar Investment Program
Connecticut offers the Residential Solar Investment Program, which provides a rebate of $0.463 per watt of solar installed (up to 10kW).

Expected Performance-Based Buydown
The Expected Performance-Based Buydown (EPBB) incentive provides an upfront cost reduction based on major design characteristics of the system, such as panel type, tilt, shading, and orientation. The incentive is paid directly to your Eligible Contractor when the system is complete to decrease the cost to you.

Performance-Based Incentive
The Performance-Based Incentive (PBI) is designed to allow homeowners to lease solar PV systems for little to no upfront cost. Under this model, an Eligible Third-Party PV System Owner owns the system and enters into a contract with the homeowner. The PBI is paid to the System Owner based on actual performance over the course of 6 years and is used to reduce the homeowner’s monthly cost. Incentives are available for systems up to 20 kilowatts PTC.

Sales and Use Tax Exemption
Connecticut has a sales and use tax exemption for solar installations. This program has no current expiration date and covers both the equipment and labor services related to the installation of eligible systems.

MAINE

Solar Easement
The state of Maine allows for the creation of solar easements to ensure solar panels have access to direct sunlight. More details on the statute can be found by clicking here.

PACE Loans
Maine offers the Property Assessed Clean Energy (PACE) loan, which is a financing program that allows residential property owners in approved towns to repay the costs of energy efficiency or renewable energy projects in conjunction with their property tax payments. Home and property owners can borrow up to $15,000 over 10 years with no fees, and interest rates as low as 4.99% APR while funds are available.

Future Plans
Maine has goals of reducing the state’s greenhouse-gas emissions 45% by 2030 and 80% by 2050. This changes Maine’s renewable portfolio standard from 40% to 80% by 2030 and a goal of 100% renewable energy by 2050. This involves the state providing more renewable energy incentives to achieve these goals; which makes renewable energy, such as solar, more affordable for Maine residents and businesses.

VERMONT

Sales Tax Exemption
The state’s tax exemption applies to system sizes of up to 500 kW that generate electricity using renewable energy. Vermont’s sales tax is 6%, and this exemption applies to both grid-tied and off-grid systems.

Net Metering
Green Mountain Power in Vermont offers a net metering program that credits customers who generate solar energy and send their excess generated energy back to the grid. This allows customers to generate and use power simultaneously, and also receive $0.06 per kWh production incentive. An additional meter must be installed to facilitate net-metering, but GMP will reimburse customers for up to $300 of relative expenses.