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📋 Table of Contents
- Why MA Is a Top Solar State
- Key Takeaways
- Federal 30% Tax Credit (ITC)
- SMART Program — How MA Homeowners Get Paid
- Net Metering in Massachusetts
- Property Tax Exemption (100% for 20 Years)
- Sales Tax Exemption on Solar Equipment
- MASS CE & Mass Save Programs
- Utility Programs: Eversource, National Grid & Unitil
- Solar Costs & Payback in MA
- Frequently Asked Questions
Why Massachusetts Is a Top Solar State
Massachusetts might not be the first state you think of for solar. It gets more snow than Arizona. It has more cloudy days than Nevada. But here is the surprise: MA is consistently ranked as a top solar state, often in the top 10 nationally for total solar capacity.
Why? Because the incentives are that good. The combination of the SMART program, 1:1 net metering, a full property tax exemption, and the federal 30% tax credit means Massachusetts homeowners can save tens of thousands of dollars going solar.
Boston averages about 4.2 to 4.5 peak sun hours per day. That is solid. And when you pair that with the state's generous programs, solar becomes a very strong financial decision — even in New England.
Let us break down every MA solar incentive available in 2026.
🔑 Key Takeaways for Massachusetts
30% Federal Tax Credit
Claim 30% of your system cost back on federal taxes through 2032.
SMART Program
Get paid a fixed rate for your solar production for 10 years.
1:1 Net Metering
Every kWh you export earns full retail credit on your bill.
7–10 Year Payback
Strong incentives make payback fast, even with less sun.
30% Federal Tax Credit (ITC)
Every Massachusetts homeowner can use the federal solar tax credit. This is the single biggest savings you will find.
The credit lets you deduct 30% of the total cost of your solar system from your federal income taxes. It is not a deduction — it is a real credit. Every dollar of the credit reduces your tax bill by a dollar.
If your system costs $30,000, you get $9,000 back. The credit is active through 2032, so you still have time. But starting sooner means more savings sooner.
30% Federal Solar Investment Tax Credit
How it works: Install panels in 2026, claim the credit on your 2026 tax return (filed in 2027). The credit covers the full installed cost — panels, labor, permits, batteries, and inverters.
- ✅ Valid through 2032
- ✅ 30% of total system cost
- ✅ Applies to all Massachusetts homeowners
- ✅ Includes battery storage
(Example — your amount may vary)
SMART Program — How Massachusetts Homeowners Get Paid for Solar Generation
The Solar Massachusetts Renewable Target (SMART) program is the crown jewel of MA solar incentives. It is managed by the Massachusetts Department of Energy Resources (DOER). And it works like this:
Every kilowatt-hour (kWh) your solar panels produce earns you a payment. This payment comes from your utility company and lasts for 10 years. The rate is fixed when you sign up, so you know exactly what you will earn.
The SMART rate varies by utility territory and by when blocks fill up. Rates have gone down over time as more people join. But even the current rate is a serious source of income for solar homeowners.
Here is an example of how it works:
SMART Program Payment Example
| Detail | Amount |
|---|---|
| System size | 8 kW |
| Annual production (estimated) | ~10,000 kWh/year |
| SMART payment rate (example) | ~$0.15/kWh |
| Annual SMART income | ~$1,500/year |
| Total over 10 years | ~$15,000 |
Rates vary by utility zone and block. Check with your utility for your exact SMART rate. These payments are in addition to your net metering credits.
SMART payments appear on your utility bill as a credit. They stack with net metering, so you get credit twice — once for the power you produce (SMART), and once for the credits you earn when sending excess power to the grid (net metering).
Important note: SMART has blocks that fill up. Each block has a set rate, and once it fills, the rate goes down for the next block. That means earlier sign-ups get higher rates. If you are thinking about going solar, this is a real reason not to wait.
⚠️ SMART blocks fill continuously. The earlier you sign up, the higher your fixed rate. Once a block is full, you move to the next one at a lower rate.
Your installer can tell you which block is currently available. Always ask about this before signing a contract.
Net Metering in Massachusetts
Massachusetts has one of the best net metering policies in the country. It is a 1:1 retail rate net metering system for residential systems up to 10 MW. That means:
Here is how net metering works step by step:
- Your panels produce electricity during the day.
- If you make more than you use, the extra goes to the grid.
- Your utility credits your account at the full retail rate — the same rate you pay to buy power.
- At night or on cloudy days, those credits reduce your bill.
- Any leftover credits roll over to the next month at a 100% rate.
The only catch: any credits left over at the end of your annual billing period (usually March) are compensated at a lower "make-whole" rate called the avoided-cost rate. So it is best to size your system so you nearly use all your credits within the year.
Massachusetts Net Metering at a Glance
- ✅ 1:1 retail credit for every kWh you export to the grid.
- ✅ Credits roll over month to month at full value.
- ✅ Applies to all three investor-owned utilities: Eversource, National Grid, and Unitil.
- ✅ Available for residential systems up to 10 MW (far beyond what any home needs).
- ⚠️ End-of-year unused credits are paid at the avoided-cost rate (much lower than retail). Size your system so you use most credits during the year.
Property Tax Exemption (100% for 20 Years)
Massachusetts has a 100% property tax exemption for solar panel installations, valid for 20 years from the date of installation.
Here is why this matters: solar panels increase your home value. In most states, a more valuable home means higher property taxes. In Massachusetts, your town or city cannot increase your property taxes because of your solar installation. Not even a penny, for 20 full years.
This is a state-level law (M.G.L. c.59, §5). It applies everywhere in Massachusetts. All 351 cities and towns must follow it.
100% Property Tax Exemption for Solar
Under Massachusetts General Laws Chapter 59, Section 5, any increase in property value from a solar installation is fully exempt from local property taxes for 20 years.
This means you get the full benefit of a higher-value home without paying a dime extra in property tax because of solar.
For 20 years from installation
Sales Tax Exemption on Solar Equipment
Massachusetts charges a 6.25% sales tax on most purchases. But solar energy equipment is exempt from this tax. That includes:
- ✅ Solar panels — the panels themselves
- ✅ Inverters — the devices that convert DC to AC power
- ✅ Mounting hardware — racking, clips, and rails
- ✅ Battery storage systems — home batteries like Tesla Powerwall
- ✅ Other solar equipment — wiring, monitoring systems, and more
For a $30,000 system, the sales tax exemption saves you about $1,875 right off the top. This is an automatic benefit — you do not need to apply for it. Installers in Massachusetts already know the law and do not charge sales tax on solar equipment.
6.25% Sales Tax Exemption for Solar
All solar energy systems, components, and related equipment are exempt from the Massachusetts 6.25% sales tax. This is automatic and applies to all residential and commercial solar installations in the state.
MASS CE & Mass Save Solar Programs
The Massachusetts Clean Energy Center (MassCEC) is a state organization that runs various clean energy programs. While some older solar rebate programs have closed, MassCEC still offers valuable resources:
Massachusetts Clean Energy Center (MassCEC)
- 🔍 Solar Consumer Guide — MassCEC offers a free guide to help MA homeowners understand solar, choose an installer, and compare quotes.
- 💡 Mass Save Program — Run through Mass Save, this program provides free home energy assessments and rebates for energy efficiency upgrades. While not a solar program directly, it can help reduce your overall energy use before sizing your solar system.
- 🔋 Battery Incentives — Through the ConnectedSolutions program, MA homeowners with battery storage can earn payments for allowing their batteries to support the grid during peak demand periods.
Utility Programs: Eversource, National Grid & Unitil
Massachusetts has three main investor-owned utilities. All three offer net metering and participate in the SMART program. Let us look at each one.
Eversource Massachusetts Programs
Eversource is the largest electric utility in Massachusetts. It serves eastern MA including Boston, the North Shore, Cape Cod, and much of western MA.
- 📌 SMART program: Eversource administers SMART in its territory. Rates depend on which block is available when you apply.
- 📌 Net metering: 1:1 retail rate credits for residential systems.
- 📌 ConnectedSolutions: Battery storage customers can earn payments for allowing their batteries to discharge to the grid during peak demand events. Residential customers can earn $225–$300+ per kW per year.
- 📌 Analytical Solar Program: In some areas, Eversource offers additional incentives for solar production monitoring.
National Grid Massachusetts Programs
National Grid serves central MA including Worcester, Springfield, and surrounding areas.
- 📌 SMART program: Same structure as Eversource, but with its own block rates. Check which block is currently available in your area.
- 📌 Net metering: 1:1 retail rate credits, identical statewide policy.
- 📌 ConnectedSolutions: Battery storage earn-back program available to National Grid customers as well.
- 📌 Greenworks Solar: Some community solar options for customers who cannot install rooftop panels.
Unitil Massachusetts Programs
Unitil is a smaller utility that serves parts of the North Shore and greater Lowell area in northeastern Massachusetts.
- 📌 SMART program: Available with territory-specific block rates.
- 📌 Net metering: 1:1 retail rate credits, same statewide policy.
- 📌 ConnectedSolutions: Battery storage participation available.
Unitil's smaller customer base means SMART blocks may be less competitive than in Eversource and National Grid territory. It is worth checking if a favorable block is still open.
MA Utility Solar Programs Summary
| Utility | Net Metering | SMART | Battery Program |
|---|---|---|---|
| Eversource | 1:1 Retail Rate | Yes — block-based rates | ConnectedSolutions |
| National Grid | 1:1 Retail Rate | Yes — block-based rates | ConnectedSolutions |
| Unitil | 1:1 Retail Rate | Yes — block-based rates | ConnectedSolutions |
All three utilities offer the same statewide net metering policy. The main differences are in SMART block rates and local rate plans.
Solar Costs & Payback in Massachusetts
How much does solar cost in Massachusetts, and how long does it take to pay off?
For illustration, here is a breakdown of a typical 8 kW system on a Massachusetts home:
| Item | Amount |
|---|---|
| Average system cost | $28,000 |
| Federal tax credit (30%) | −$8,400 |
| Estimated SMART income (10 years) | −$14,000 |
| Sales tax exemption savings | −$1,750 |
| Net cost after all incentives | ~$3,850 |
| Estimated yearly electric bill savings | ~$1,200–$1,800 |
| Simple payback period | ~3–7 years |
These figures are illustrative. Your actual costs and savings depend on your roof, equipment, utility rate, and the SMART block available when you sign up. Get a custom quote for your home →
Frequently Asked Questions
Is solar worth it in Massachusetts?
Yes. Massachusetts has some of the strongest solar incentives in the country. Despite fewer sunny days compared to southern states, the combination of the SMART program (10 years of payments), 1:1 net metering, property tax exemption, sales tax exemption, and the 30% federal tax credit makes solar very profitable here. Most homeowners see a payback period of 7 to 10 years.
What is the SMART program in Massachusetts?
SMART stands for Solar Massachusetts Renewable Target. It pays homeowners a fixed rate for every kWh their solar panels generate. The payments last for 10 years and appear on your utility bill as a credit. The rate depends on your utility territory and which block is available when you sign up. Earlier sign-ups get higher rates because blocks fill over time.
Does Massachusetts have net metering?
Yes. Massachusetts requires all investor-owned utilities to offer 1:1 retail rate net metering for residential systems up to 10 MW. This means every kWh you send to the grid earns you a credit worth exactly what you would pay to buy that power. It is one of the most generous net metering policies in the country.
Are solar panels tax-free in Massachusetts?
Massachusetts has two major tax benefits for solar. First, the 100% property tax exemption means the added home value from solar cannot increase your property taxes for 20 years (M.G.L. c.59, §5). Second, the 6.25% sales tax exemption means you pay no sales tax on solar panels, inverters, and related equipment. Both are automatic — no application needed.
How much does solar cost in Massachusetts?
A typical residential system in MA costs $3.20 to $4.00 per watt. For an average 8 kW system, that is $26,000 to $32,000 before incentives. After the 30% federal tax credit ($7,800 to $9,600), the sales tax exemption, and SMART payments over 10 years, the effective cost can be very low. Most homeowners see payback within 7 to 10 years and save tens of thousands over the system's 25+ year lifespan.