A Guide to New England Solar Incentives

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 produce. These incentives are available to National Grid, Eversource, and Unitil service areas, on a first-come-first-serve basis, as this 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 first, and later installations will not necessarily be eligible for benefits. If accepted into the program, the benefits are locked in for 10-20 years depending on system size. For more on the SMART program, click here.

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.

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.

Commercial & Industrial Solar Incentive Program
Commercial and Utility-Scale solar projects may be eligible for the C&I Program depending on a variety of factors. If you’re interested in a project of this scale in New Hampshire, visit the Energy.gov page dedicated to this program.

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.

Low-Income Energy Assistance Program (LIHEAP)
The Granite State’s Low-Income Energy Assistance Program has many opportunities for homeowners who are struggling to afford energy costs. Finding a Solar Loan with financing support can be an efficient way to go solar and better manage your home energy costs. Visit their website for details on how to qualify.

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).

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.

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.

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.

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.