Solar incentive expertise you can trust
Federal and state incentive programs make investing in solar energy and energy storage a sound financial decision, yet the complex and ever-shifting policy landscape requires in-depth attention. By working with Solect, you gain access to our comprehensive knowledge of existing and upcoming policies, programs, and regulations. We’ll help your organization combine all eligible incentives, savings, and tax credits – so you can significantly reduce costs or create a new revenue stream.
Federal solar incentives
With expertise and policy involvement at the national level, Solect knows how to take full advantage of the solar incentives offered by the U.S. government. The landmark Inflation Reduction Act (IRA) of 2022 created significant federal support for solar and energy storage, including:
- Increasing the solar Investment Tax Credit (ITC) to 30%, which translates to a $300,000 one-time tax credit for eligible costs based on a $1,000,000 solar or energy storage project
- Offering bonus tax incentives and generous “adders” for using US-made products, developing your project in a low-income community
- Expanding eligible technologies: Standalone energy storage systems are now eligible for the 30% ITC with the potential to go up to 70%
- Expanding the cost coverage: Making power grid connection costs eligible for tax credit
- Introducing Direct Pay: Enabling a Direct Pay option for nonprofits and public entities
Modified Accelerated Cost Recovery System (MACRS)
Your project may also qualify for the MACRS accelerated depreciation schedule. Qualifying solar energy equipment is eligible for a cost recovery period of five years. For equipment on which an ITC grant is claimed, you must reduce the project’s depreciable basis by one-half the value of the tax credit received.
Ready to get started with federal solar incentives?
Many of our clients have received as much as 50% of their system cost back through federal incentives
Massachusetts solar incentives
Solar Massachusetts Renewable Target (SMART) Program
The SMART Program encourages businesses and public entities to install solar and energy storage projects by offering a fixed monthly cash payment for 20 years. SMART is a 3200 megawatt (MW) declining block incentive program featuring generous incentive “adders” for rooftop systems, solar canopies, storage systems, and public entity offtakers. With the declining block format, better solar incentives are available in the earlier blocks of the program.
SMART program benefits
- Receive a fixed tariff incentive payment every month for 20 years
- Access easy financing with investment-grade credit quality
- Avoid expensive energy spend for 25+ years (system lifetime)
- Control peak demand charges with energy storage
- Help Massachusetts reach its climate goals
Ready to get started with Massachusetts solar incentives?
Connecticut solar incentives
Non-Residential Renewable Energy Solutions (NRES) Program
The NRES Program offers generous solar incentives for Connecticut’s organizations and property owners to transition to low-cost, renewable energy – a proven way to save money on electric bills, stabilize electricity rates, or add a new source of revenue. There are two annual NRES application periods: February and August. Project capacity can fill fast, so act quickly.
NRES program benefits
- Own your solar installation, or have a third party like Solect own it
- Take advantage of stable energy rates for 20 years, or a lease payment from Solect
- Achieve simple payback in 4-7 years if you’re owning the installation
- Choose from two incentive options: buy-all or netting
- State, Agricultural, and Municipal (SAM) customers can share compensation from energy generation with peer SAM customers
NRES net metering
Projects that generate up to 100% of a facility’s annual kWh consumption can benefit from the full retail kWh rate value–“net metering”–on all monthly overproduction for the 20-year NRES incentive term.
Participate in Connecticut’s Energy Storage Solutions program
Energy Storage Solutions is designed to help businesses as well as public and nonprofit organizations install battery storage systems, lower peak demand at their facilities, and reduce energy costs. The program changes the economics of battery storage in Connecticut while aiming to modernize and stabilize the state’s electric grid.
- Reduce system cost with upfront and performance-based incentives
- Keep facility running with resilient batteries providing backup power
- Use energy that’s cleaner, quieter, and better for the environment
Ready to get started with Connecticut solar incentives?
Rhode Island solar incentives
Renewable Energy Growth (REG) Program
The REG Program enables commercial, public, and nonprofit groups to sell the energy generation output under long-term tariffs at fixed prices. REG incentives are revised annually with new ceiling prices and megawatt allocation.
Renewable Energy Fund (REF)
REF provides grants for renewable energy projects that have the potential to produce electricity in a cleaner, more sustainable manner, while stimulating job growth in the green technology and energy sectors.
Clean Energy Grant Incentive Program
The Rhode Island Office of Energy Resources (OER) offers $1,500,000 in financial incentives to support the adoption of clean, renewable solar energy projects by state agencies and public colleges and universities.
Net metering allows businesses and organizations with eligible renewable energy systems (up to 10 MW) generating up to 125% of the on-site electric demand to receive bill credits. Public entities are allowed to leverage virtual net metering with renewable energy developers for up to 10 MW per project site.