Massachusetts holds significant solar potential within its environmental justice neighborhoods, enough to power nearly three million homes in the state. Leveraging this potential is crucial to achieving the state’s goals for decarbonization and affordability.
This is especially important as energy costs have become a daily concern for families, businesses, and policymakers in Massachusetts. During one of the coldest winters in recent years, high energy costs forced many families to keep their homes at unsafe temperatures. A severe snowstorm left hundreds of thousands of Massachusetts homes without power for several days. Currently, gas and oil prices are soaring due to the conflict involving the United States, Israel, and Iran. These events highlight a persistent issue: our energy system requires urgent attention to ensure decisions made today have a meaningful impact on the affordability, resilience, and reliability of our electric grid both now and in the future.
It is not surprising that the energy affordability bill introduced in the Massachusetts House of Representatives and the recent executive order by Governor Maura Healey regarding energy supply include solar energy as a key solution to meet the state’s growing energy needs and make electricity more affordable. As these discussions progress, it is crucial to acknowledge not only the value distributed energy resources like rooftop solar and battery storage bring to the electric system but also the importance of ensuring these benefits reach all state residents, especially the most vulnerable communities where such investments have a greater impact on both affordability and energy resilience.
A new report from the Applied Economics Clinic (AEC), commissioned by the Union of Concerned Scientists (UCS), Clean Energy Group, and Vote Solar, provides key insights to guide state efforts in harnessing the significant solar and energy storage potential in environmental justice neighborhoods, where racially and ethnically diverse, low-income, and limited English proficiency populations reside. The report, Electrification Equity II, estimates the technical potential of distributed solar energy (also known as behind-the-meter, or BTM) and distributed solar with energy storage in these neighborhoods. It also examines housing characteristics to better design programs that facilitate the installation of these systems by end-users and maps connections with data on extreme heat and energy burdens. The report further provides insights on barriers and solutions to unlock the implementation of these systems in environmental justice communities. This report complements another recent AEC report that broadly analyzes the challenges and opportunities of distributed solar energy and energy storage systems in Massachusetts (these terms are simplified as “distributed solar energy and energy storage” in this blog). This report was developed in collaboration with an advisory committee that included perspectives from various sectors, including Indigenous and environmental justice organizations, affordable housing, and clean energy companies, to reflect the experiences and priorities of environmental justice neighborhoods.
Below are key findings on the technical potential of distributed solar energy with energy storage, as well as the main obstacles and recommendations to successfully leverage these valuable resources.
Solar Energy and Storage Potential in Environmental Justice Neighborhoods
Environmental justice neighborhoods in Massachusetts have significant potential to implement distributed solar energy systems. AEC estimates that the technical potential for distributed solar energy in these neighborhoods is 31 gigawatts (GW), enough to power nearly 3 million homes in the state. The potential for energy storage systems associated with distributed solar energy is estimated at 13 GW.
Activating this resource is key to meeting state decarbonization and affordability goals. It is projected that peak electricity demand in Massachusetts will reach 24 GW by 2050, doubling the 12 GW peak demand recorded in 2020. This means the technical potential of distributed solar energy with storage in environmental justice neighborhoods exceeds the forecasted peak demand increase. This potential contrasts with current installations in these communities. Despite the overall success of the SMART program in facilitating the growth of solar energy and storage systems in Massachusetts, data shows only 1% of the solar capacity allocated by the program is located on low-income properties.
Massachusetts relies heavily on fossil gas (also known as natural gas), which provides over 65% of the state’s net electricity generation. It is crucial to meet the peak demand increase with clean generation, as over 80% of polluting power plants, with accompanying health risks, are located in or within a mile of environmental justice neighborhoods.
Moreover, users of distributed solar energy systems with storage not only benefit by saving directly on their electricity bills, but these systems also benefit all electric grid users by contributing to the reduction of peak demand. This reduction decreases the need for costly investments in transmission and distribution systems, resulting in lower wholesale electricity prices. In fact, during an event with peak temperatures of 100°F in June 2025, a study by the Acadia Center revealed that the use of distributed solar energy systems saved New England consumers at least $8.2 million on one of the most expensive days of the year for the electric grid. These savings are especially impressive given the limited implementation of distributed solar energy systems throughout Massachusetts, making it even more appealing to harness their full potential.
Access to distributed solar energy can lower electricity bills and reduce household energy burdens.
The average energy cost burden (the percentage of household income spent on energy) in Massachusetts is about 3%. This figure can be as high as 10% for low-income populations and reaches up to 31% in certain neighborhoods. By analyzing environmental justice neighborhoods facing an energy cost burden above the state average, the study’s authors determined a technical potential of 11.4 GW of solar energy combined with 4.9 GW of storage in these areas. Additionally, a study conducted by the Lawrence Berkeley National Laboratory in 2024 found that rooftop solar energy reduced the average energy cost burden in 2021 from 7.7% to 6.2% for low-income users, demonstrating the value distributed solar energy can provide in reducing energy costs for those who need it most.
Distributed solar energy systems with storage can enhance energy security and support community resilience. Environmental justice communities often reside in high-density urban areas and neighborhoods lacking green spaces, exposing them to the urban heat island effect. These communities are also more likely to live in places with inefficient heating and air conditioning systems, resulting in higher energy expenses for these households. In this study, AEC concluded that over 90% of the total potential for distributed solar energy and energy storage in environmental justice neighborhoods is within the hottest zones, highlighting the value solar energy systems can provide in these areas.
A study conducted in 2025 by the Berkeley Laboratory found that low- to moderate-income households covering between 80% and 100% of their electricity needs with rooftop solar systems achieve significant reductions in energy bills. This enables residents to maintain comfortable home temperatures, especially when facing extreme heat waves. Access to distributed solar energy and energy storage can also provide backup power during grid outages, including for resilience hubs at community centers and shelters, allowing air conditioning systems and other essential services to function during power cuts.
Barriers to Leveraging This Solar Potential
Despite the state offering a range of energy, climate, and housing programs, the potential for distributed solar energy and storage in environmental justice neighborhoods remains largely untapped.
The study identified key barriers to implementing these systems, including financial difficulties, technical issues, workforce challenges, market conditions, and program coordination gaps. The lack of incentives for tenants and condominium owners requires special attention, as only one-third of the technical potential for distributed solar energy in environmental justice neighborhoods is in single-family homes.
The state has clear energy goals and supply requirements for specific technologies like offshore wind, but there are no specific requisitions for distributed energy resources, including solar energy and storage systems. Similarly, most clean energy programs lack equitable incentives and participation targets, which hinders benefits from reaching those who need them most.
| Barriers to Installing Distributed Energy Systems |
|---|
| Insufficient specific financial incentives |
| Electrical system or building condition upgrades |
| Workforce limitations |
| Lack of incentives for tenants and/or condominium owners |
| Complexity and lack of program coordination |
| Lack of trust |
| Interconnection and permitting issues |
| Recycling and disposal of solar panels and batteries |
| Lack of access to broadband Internet |
Solutions to Harness This Solar Potential
The state is mandated to ensure equitable distribution of energy and environmental benefits. However, to date, most state policies and programs on solar energy and storage do not have explicit and enforceable equity provisions.
This analysis identifies a set of recommendations to address these challenges, including incorporating financing options, incentives, goals, and equity-focused budget funds to address the lack of investment in environmental justice neighborhoods and ensure these communities have direct access to the benefits that on-site solar energy and storage systems can offer. To help environmental justice communities better understand the value solar energy and storage systems offer, greater attention needs to be given to communication and information dissemination, adapting them to the local context. It is also crucial that clean energy advocates emphasize transparency to build trust and protect environmental justice communities. Additionally, ensuring employment opportunities for apprentices can help strengthen the state’s clean energy economy.
The complete study outlines existing program deficiencies and offers recommendations to effectively drive an equitable transition to clean energy.
Action Needed from Massachusetts Legislators
Distributed solar energy and energy storage systems are proven technologies that have much to offer the state and, in particular, its most vulnerable populations. It is vital to promote these resources in environmental justice communities to address the energy affordability crisis, improve public health, and make communities more resilient to extreme weather.
The recommendations included in the new report Electrification with Equity II are common-sense solutions based on existing programs and grounded in proven experience in Massachusetts and elsewhere.
The latest version of the energy affordability, clean energy, and economic competitiveness bill (House Bill 5175) contains provisions supporting the use of distributed solar energy and storage systems, including portable solar energy and solar permitting. As Massachusetts legislators consider options to strengthen this bill, our recommendations focus on providing incentives that ensure equitable participation and preparing the electrical system to facilitate the installation of distributed energy resources.
This involves setting equitable participation targets and including implementation goals for distributed energy resources. The Clean Energy Equity Act (House Bill 3540, Senate Bill 2303) establishes a framework for the fair distribution of clean energy benefits. Meanwhile, the Maximization and Optimization of Small-Scale Community Assets Act (House Bill 3521, Senate Bill 2270) sets goals for implementing distributed energy resources in the state, including solar energy and storage.
Additionally, we need legislators to support MassSave as an effective mechanism to promote solar energy and storage readiness. Proposed cuts to MassSave at a time when this program benefits a greater number of low- and moderate-income households contradict efforts to make energy more affordable and hinder the use of the program’s limited resources to support electrical upgrades. With over 50 percent of our region’s electricity generated from gas, families are already exposed to the volatility of fossil fuel prices. Budget cuts to the MassSave program will only make them more vulnerable to cost increases resulting from energy demand spikes triggered by extreme heat and very cold winters.
Massachusetts legislators: We rely on you to ensure that our neighbors living in the state’s environmental justice communities can finally enjoy the benefits of a clean energy economy.
