There are many different types of solar incentives, ranging from small grants for solar projects to major financing for utility scale solar projects. Let’s look at an example of a solar energy incentive program:
Massachusetts’ SMART Program is a tariff-based system where participating utility companies pay the incentive directly to solar systems owners. When you apply for this program, your project is put into one of two possible capacity blocks: less than equal to 25 kW AC or greater than 25 kW AC. If you receive this incentive, you can then use it to offset your solar costs.
This example shows how a solar incentive can involve your local utility company as well as how your solar system is considered when you apply for the incentive.