Residential & Small-Scale Solar Hot Water Program
Administered by: Massachusetts Clean Energy Center (MassCEC)
Quick Summary
Massachusetts offers multiple incentives for solar hot water systems: Alternative Energy Certificates (AECs) provide a one-time payment of approximately $400–$1,000 for a two-collector system, a state tax credit of 15% of system cost (up to $1,000), and financing through Mass Save® HEAT Loan at 0% interest for up to 7 years or the Energy Saver Home Loan Program at up to 2% interest for up to 20 years. After these incentives, a solar hot water system for a 2,000 sq ft home costs approximately $9,800 upfront, and the system can provide up to 80% of your home's hot water heating needs.
AI-generated summary • Updated 7/12/2026
Program Details
- Program ID
- 4557
- Last Updated
- 1/6/2026
Eligibility
Program Summary
The Massachusetts Clean Energy Center directs customers to apply for various state and federal incentives for solar water heating. Alternative Energy Certificates (AECs)This program offers a one-time payment to homeowners installing solar hot water. A two-collector system could receive approximately 100 AECs totaling $400-$1,000.Municipal Light Plant (MLP)If you live in a town served by a Municipal Light Plant (MLP) check your MLP’s website for incentives and rebates. Mass State Tax Credits15% of the system cost as a state tax credit, up to $1,000Financing OptionsMass Save® HEAT Loan: Up to $25,000 at 0% interest over terms of up to 7 years.
Contact & Resources
Please verify current program details with the administering agency before making any financial decisions.