Does Massachusetts Have Community Solar Laws?

Massachusetts has one of the most advanced legal and regulatory frameworks for community solar in the United States. The state has supported shared solar development for over a decade through a series of renewable-energy statutes, incentive programs, and net-metering regulations that encourage widespread participation.

Green Communities Act (2008)

The foundation for Massachusetts community solar began with the Green Communities Act of 2008, which established renewable portfolio standards and expanded net metering for distributed energy resources. The Act allowed multiple electric customers to share credits from a single renewable-energy system, the essential legal basis for modern community solar projects. This change opened the door for virtual net metering and paved the way for later state programs that directly supported shared solar generation.

Virtual Net Metering and SMART Program

Massachusetts formally enabled virtual net metering (VNM) in 2010. This policy allows electricity produced by a community solar project to be credited to multiple off-site subscribers’ bills at the retail rate, ensuring fair compensation for shared generation. Utilities such as National Grid, Eversource, and Unitil must apply these credits to participating customers, reducing their energy costs in proportion to their subscription share.

In 2018, Massachusetts introduced the Solar Massachusetts Renewable Target (SMART) program, which replaced the state’s earlier Solar Renewable Energy Credit (SREC) initiative. SMART established long-term tariffs that compensate solar projects for the electricity they generate, with additional incentives for low-income inclusion, battery storage, and siting on brownfields or rooftops. Many community solar farms in Massachusetts are financed and developed under SMART, which guarantees predictable revenue for developers and cost savings for subscribers.

Equity and Low-Income Participation

Massachusetts law requires equitable participation in community solar energy. The SMART program includes “low-income community shared solar adders”, which offer higher incentive payments for projects that dedicate a portion of their capacity, typically 20% to 50%, to low-income customers. These adders encourage developers to design projects that reduce energy burdens in historically underserved areas.

In addition, the Massachusetts Clean Energy Center (MassCEC) and the Department of Energy Resources (DOER) sponsor programs that assist low-income subscribers in accessing community solar projects without credit checks or upfront costs. Together, these policies ensure that all residents, regardless of income or property ownership, can benefit from renewable energy participation.

What Is Community Solar?

Community solar is a model that allows multiple electricity customers to share the output of a single solar installation. Participants subscribe to a community solar project and receive credits on their utility bills corresponding to their share of electricity produced.

Instead of installing residential solar panels on their rooftops, subscribers purchase or lease capacity from a centralized array, a community solar farm, located elsewhere in the state. The energy produced flows into the electric grid, and the utility applies bill credits to each participant’s account through virtual net metering.

This shared model of community solar energy eliminates many of the physical and financial barriers to going solar, allowing anyone within a utility’s service area to participate. It is especially advantageous in Massachusetts, where older housing stock, tree cover, and dense urban areas limit rooftop solar feasibility.

When Community Solar Is a Good Option

Community solar is particularly suitable for:

• Renters and condominium owners who lack control over roof space
• Homeowners with shaded, damaged, or poorly oriented roofs
• Individuals who prefer to avoid long-term maintenance and repair costs
• Residents seeking portable solar benefits that can move with them within the same utility territory

For many households and small businesses, community solar farms represent the simplest and most flexible path to renewable-energy savings.

Advantages Over Residential Solar

While residential solar offers full ownership benefits, community solar projects provide a set of unique advantages:

• No Upfront Cost: Subscribers avoid installation and equipment expenses
• Ease of Access: Participation does not depend on roof conditions, property ownership, or credit score
• Maintenance-Free: The project developer handles maintenance, monitoring, and insurance
• Scalable Savings: Customers can choose how much of their electricity usage they want to offset
• Environmental Impact: Every subscription supports clean energy generation and helps Massachusetts meet its decarbonization goals

The result is a highly inclusive model that extends the benefits of community solar across all demographics and regions of the state.

Why Community Solar?

Massachusetts has made community solar energy a centerpiece of its renewable-energy strategy, combining environmental leadership with social equity. With high retail electricity prices and strong policy incentives, the state offers some of the most favorable conditions in the country for community solar participation.

Benefits of Community Solar for Homeowners, Renters, and Businesses

Below are key benefits of joining a community solar project:

• Significant Savings on Energy Bills: Subscribers typically see savings of 10% to 25% compared to their standard utility costs, depending on their subscription model. These savings accrue automatically through virtual net metering, making the process seamless for consumers
• Inclusivity and Accessibility: Massachusetts has designed its community solar framework to benefit those historically excluded from renewable-energy programs. Renters, apartment dwellers, and low-income families can access solar power without home ownership or credit requirements
• Local Economic Growth: Each community solar project generates local employment opportunities in engineering, construction, and maintenance. Developers often lease underused or contaminated land, converting idle spaces into clean-energy assets that boost local tax revenues
• Environmental Benefits and Grid Resilience: By displacing fossil-fuel generation, community solar energy reduces greenhouse-gas emissions and air pollution. Distributed generation also enhances grid stability, especially when paired with battery storage technologies that are increasingly common in Massachusetts
• Flexibility and Portability: Participants can usually transfer subscriptions if they move within the same utility territory or cancel with minimal notice, giving them greater control than long-term rooftop solar ownership provides

These wide-ranging benefits of community solar explain why Massachusetts continues to lead the nation in scaling equitable and sustainable energy access.

Are There Community Solar Projects in Massachusetts?

Yes. Massachusetts maintains one of the largest and most dynamic markets for community solar projects in the United States. Since the introduction of virtual net metering and the SMART program, hundreds of new installations have been commissioned statewide.

Market Overview

As of 2025, Massachusetts hosts more than 500 operational community solar projects totaling over 800 megawatts (MW) of installed capacity. This figure includes both utility-sponsored and third-party developed community solar farms, serving tens of thousands of households and small businesses across the state.

The Massachusetts Department of Energy Resources and participating utilities periodically issue solicitations for new projects, encouraging competitive bids to maintain affordability and geographic diversity.

Notable Community Solar Projects

Some of the state’s most recognized community solar farms include:

• Hingham Municipal Light Plant Solar Project – Serving hundreds of municipal and residential customers in southeastern Massachusetts
• Adams Community Solar Garden – Developed on a brownfield site, showcasing the reuse of previously underutilized land
• Wareham Solar Park – Among the largest solar gardens in New England, with capacity exceeding 6 MW
• Belchertown State School Redevelopment Project – A former institutional site repurposed for renewable generation
• Bristol County Clean Energy Project – Features dual land use, combining agricultural production with solar generation

Collectively, these community solar projects highlight Massachusetts’s innovative use of land and policy to achieve broad clean-energy participation.

How Residents Can Join

Joining a Massachusetts community solar program is straightforward:

1. Confirm Eligibility – The customer must reside within the same utility service area as the community solar project
2. Choose a Developer or Program – Options include utility-managed programs or third-party developers such as Nexamp, Ampion, and CleanChoice Energy
3. Select a Subscription Share – Participants can subscribe for a portion of the project’s capacity that matches their average annual electricity consumption
4. Sign an Agreement – Contract terms outline rates, savings percentages, and transfer or cancellation policies
5. Receive Bill Credits – Monthly credits appear automatically on the customer’s utility bill, reducing total charges

For many residents, this process provides a fast, maintenance-free alternative to residential solar installation.

How Does Community Solar Work in Massachusetts?

The mechanics of community solar in Massachusetts are based on the principle of virtual net metering, which credits electricity customers for their share of power generated by a shared solar array.

A community solar project typically consists of hundreds or thousands of solar panels installed on open land, parking canopies, or commercial rooftops. These panels convert sunlight into direct-current (DC) electricity, which inverters then transform into alternating current (AC) for use on the local utility grid.

Each subscriber owns or leases a portion of the project’s generating capacity. The utility measures the total energy produced and allocates credits proportionally to each participant’s electricity account. These credits directly offset the cost of grid-supplied electricity on monthly bills.

Example: SMART-Program Projects

Most community solar farms in Massachusetts are developed under the SMART tariff system. Developers receive fixed per-kilowatt-hour payments for electricity produced, and subscribers benefit through discounted billing rates. Because SMART guarantees long-term price stability, these projects can maintain predictable subscription costs and deliver steady savings to participants.

Example: Low-Income Shared Solar Projects

Several utilities and community organizations collaborate to deploy low-income community solar installations funded by the SMART “adder” incentives. For instance, in western Massachusetts, Co-op Power and Solar Design Associates operate solar gardens specifically reserved for low-income customers, offering up to 50% guaranteed bill reductions.

Incentives and Federal Support

Community solar projects in Massachusetts are eligible for the federal Investment Tax Credit (ITC), allowing developers to deduct 30% of installation costs through 2025. At the state level, additional incentives are provided for projects with energy storage, pollinator-friendly siting, or low-income participation.

These layers of policy support ensure that community solar energy remains financially viable while keeping prices accessible to consumers. Subscribers benefit indirectly through reduced community solar cost structures that pass along developer savings.

How Much Does Community Solar Cost in Massachusetts?

The community solar cost in Massachusetts varies depending on the subscription model, project developer, and utility service area. Most programs are structured to guarantee savings compared to standard retail electricity rates and do not require any upfront investment or equipment installation.

For most participants, these rates equate to 10% to 25% annual savings on total electricity expenses.

The cost covers project development, financing, maintenance, grid interconnection, administrative services, and insurance. Subscribers never incur additional charges for repairs or performance monitoring. Contract durations generally range from 15 to 20 years, though many developers offer flexible or short-term options to attract broader participation.

Low-income households enrolled under SMART “adder” projects or non-profit-led programs may receive deeper discounts, in some cases up to 50% savings relative to utility supply costs.