Massachusetts Solar Incentives at a Glance
Avg Cost per Watt
$3.20
6 kW System Cost
$19,200
Avg Electricity Rate
$0.29/kWh
Payback Period
5-7 years
25-Year Savings
$55,000-$80,000
Total Installations
230,000+
| State Tax Credit | Yes - MA Residential Solar Tax Credit |
| Net Metering | Full retail rate (with caps by utility) |
| Property Tax Exemption | Yes |
| Sales Tax Exemption | Yes |
If you are considering going solar in Massachusetts, understanding the full range of available incentives is essential to maximizing your return on investment. This guide covers every Massachusetts solar incentive available in 2026 -- from state tax credits and utility rebates to net metering policies and tax exemptions -- so you can make an informed decision before signing a contract.
Federal Tax Credit No Longer Available
The federal residential solar tax credit (ITC) under Section 25D expired on December 31, 2025. It is no longer available for new residential solar installations in 2026. This guide focuses exclusively on Massachusetts state and local incentives that are still available to help reduce your solar costs.
Massachusetts State Tax Credits and Rebates
Massachusetts offers a state income tax credit of 15% of the cost of a solar energy system, capped at $1,000. While the cap is modest, it adds to the state's comprehensive incentive package. The credit applies to the year the system becomes operational.
Net Metering in Massachusetts
Massachusetts Net Metering Policy: Full retail rate (with caps by utility)
Massachusetts offers net metering for residential solar systems, with credits at the full retail rate for systems under 10 kW. For larger systems, credit rates may be slightly reduced. Each utility has aggregate net metering caps, and some utilities in high-solar areas have reached or are approaching their caps. Check with your utility for current capacity availability.
Net metering is one of the most important factors in your solar ROI. It determines how much you are credited for excess energy your panels send back to the grid. In Massachusetts, the net metering landscape directly affects your payback period and 25-year savings projections.
Property and Sales Tax Exemptions
Property Tax Exemption
Yes
Massachusetts General Laws Chapter 59, Section 5, Clause 45 provides a property tax exemption for solar energy systems for 20 years from the date of installation. The exemption covers the increase in assessed value attributable to the solar system.
Sales Tax Exemption
Yes
Massachusetts exempts solar energy equipment from the state's 6.25% sales tax. This applies to the purchase of solar panels, inverters, mounting hardware, and associated installation components. On a $19,200 system, this saves approximately $1,200.
Tax exemptions reduce the total cost of going solar and provide ongoing savings. A property tax exemption means you add home value without increasing your tax bill. A sales tax exemption reduces the upfront purchase price. Together, these exemptions can save Massachusetts homeowners hundreds to thousands of dollars.
Utility Rebate Programs in Massachusetts
Beyond state-level incentives, many Massachusetts utilities offer their own solar rebate and incentive programs. These can significantly reduce your out-of-pocket costs or provide ongoing production-based income.
SMART Program (Solar Massachusetts Renewable Target)
The SMART program is Massachusetts' primary solar incentive. It provides a fixed $/kWh payment for solar production over 10 years (residential) or 20 years (commercial). Current SMART rates vary by capacity block and utility territory but typically range from $0.06-$0.12/kWh. Adders are available for battery storage, low-income customers, and community solar.
Mass Save Residential Solar Programs
Mass Save, the state's energy efficiency program, provides complementary services for solar customers, including home energy assessments and insulation incentives that can improve your home's energy efficiency before going solar.
ConnectedSolutions (Battery Incentive)
Massachusetts utilities offer the ConnectedSolutions program, which pays battery storage customers $225-$275 per kW of capacity per summer season for allowing the utility to dispatch their battery during peak demand events. This can generate $1,500-$2,500 annually from a typical home battery.
Massachusetts' Clean Energy and Climate Plan targets 100% clean electricity by 2030, with aggressive solar targets. The SMART program is one of the most comprehensive state solar incentive programs in the country. Community shared solar is widely available. The state also offers additional incentives for environmental justice communities and low-income households through SMART adders.
Solar Cost and Savings in Massachusetts
| Metric | Massachusetts Average |
|---|---|
| Cost per watt (before incentives) | $3.20 |
| 6 kW system cost (before incentives) | $19,200 |
| Average electricity rate | $0.29/kWh |
| Estimated payback period | 5-7 years |
| Estimated 25-year savings | $55,000-$80,000 |
| Total installations statewide | 230,000+ |
These figures represent statewide averages. Your actual costs and savings will depend on your specific location, roof characteristics, electricity usage, utility rate plan, and which incentives you qualify for. We strongly recommend getting at least three quotes from licensed installers to compare pricing for your specific situation.
For a detailed breakdown of solar costs across all 50 states, see: Solar Panel Cost by State (2026).
Is Solar Worth It in Massachusetts?
Massachusetts has some of the highest electricity rates in the nation ($0.29/kWh average), which makes solar exceptionally valuable despite higher installation costs and moderate sunlight. The combination of SMART payments, net metering, state tax credit, property and sales tax exemptions, and ConnectedSolutions battery incentives creates one of the fastest payback periods in the country at 5-7 years.
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Get Your Free Massachusetts Solar Quote →Frequently Asked Questions
What is the Massachusetts SMART program?
SMART (Solar Massachusetts Renewable Target) is the state's primary solar incentive program. It pays residential solar customers a fixed rate per kWh of production for 10 years, currently ranging from $0.06-$0.12/kWh depending on capacity block and utility. For a 6 kW system producing 7,500 kWh/year, SMART payments add $450-$900 annually for 10 years.
What is ConnectedSolutions in Massachusetts?
ConnectedSolutions is a battery storage incentive program offered by Massachusetts utilities. If you have a home battery, you can earn $225-$275 per kW of discharge capacity per summer season by allowing your utility to dispatch your battery during peak demand events. A typical 10 kW battery system can earn $1,500-$2,500 annually.
Does Massachusetts have a state solar tax credit?
Yes. Massachusetts offers a state income tax credit of 15% of the cost of a solar system, capped at $1,000. While the cap is modest, it combines with SMART payments, net metering, property tax exemption (20 years), and sales tax exemption to create a comprehensive incentive package.
How much does solar cost in Massachusetts in 2026?
The average cost of a 6 kW solar system in Massachusetts is approximately $19,200 ($3.20 per watt) before incentives. After the state tax credit ($1,000), SMART payments, and net metering savings, the effective payback period is just 5-7 years thanks to the state's very high electricity rates.
Is solar worth it in Massachusetts with less sun?
Absolutely. Despite receiving less sunshine than southern states, Massachusetts' extremely high electricity rates ($0.29/kWh) and generous incentive stack make it one of the best states for solar ROI. A 6 kW system still produces 7,000-8,000 kWh annually, and the combination of SMART payments, net metering, and tax exemptions drives rapid payback.
Learn More About Solar Incentives and Costs
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