Massachusetts Solar Incentives & Programs (2026)
This is a reference guide to Massachusetts solar incentives, including state, utility, and local incentive programs that apply to residential solar.
Valley Solar reference guides are designed to provide clear, up-to-date overviews of solar programs, policies, and core concepts for homeowners in Massachusetts.
How to Use This Guide
This guide is designed to answer one question only:
What solar incentive programs and tax treatments exist in Massachusetts?
It provides a high-level overview of available programs, without evaluating how they apply to a specific home.
Savings, eligibility, and decisions about whether or when to move forward with solar are outside the scope of this guide.
Overview of Massachusetts Solar Incentive Types
Residential solar incentives in Massachusetts generally fall into four categories:
- State income tax credits
- Utility-administered programs
- Tax exemptions
- Local or municipal incentives
Each category is governed by different authorities and rules.
1. Massachusetts Residential Solar Income Tax Credit
Massachusetts offers a state personal income tax credit for qualifying residential solar installations.
Program structure (high level):
- Calculated as a percentage of the installation cost
- Subject to a maximum credit cap
- Claimed through a Massachusetts state income tax filing
- Applies to homeowner-owned systems only
The Massachusetts residential solar income tax credit is established by state regulation and administered through the Massachusetts Department of Revenue.
It does not determine system sizing, utility interaction, financing structure, or long-term savings outcomes.
2. Utility-Administered Programs
2.1 Net Metering (Program Overview Only)
Massachusetts utilities administer net metering, a billing credit mechanism that governs how excess solar production is credited on an electric bill.
Net metering is:
- Defined by state policy
- Administered by individual utilities
- Subject to utility tariffs and interconnection rules
This reference guide does not explain how net metering credits are calculated, applied, limited, or valued.
This guide does not explain how net metering credits work or how utilities apply them. For those rules and constraints, see our Massachusetts Net Metering & Utility Rules guide.
2.2 SMART Program (Solar Massachusetts Renewable Target)
The SMART Program is a production-based solar incentive program administered through Massachusetts electric utilities under rules established by the state.
Program characteristics:
- Incentives are tied to electricity produced by a solar system
- Payments are issued over a fixed program term
- Enrollment is governed by utility-specific capacity blocks
- Certain system attributes may qualify for adders under program rules
The SMART Program describes how incentives are structured, not how much value they provide to a specific homeowner.
Evaluation of how production-based incentives affect financial expectations is handled outside this reference guide.
3. Sales and Property Tax Treatment
Massachusetts provides specific tax treatments for residential solar installations.
Sales Tax Treatment
- Solar equipment is exempt from Massachusetts state sales tax
- This exemption applies at the point of sale
Property Tax Treatment
- Residential solar systems are eligible for a property tax exemption
- The added assessed value attributable to the solar system is excluded from property taxes for a defined period under state law
These tax treatments affect how solar is taxed, not whether a system is appropriately sized or financially beneficial.
4. Local and Municipal Incentives
Some municipal light plants (MLPs) and local utilities offer additional solar incentive programs.
These may include:
- One-time rebates
- Capacity-based incentives
- Battery-specific programs
- Time-limited local offerings
Local incentives:
- Vary by utility and municipality
- Are governed independently from state programs
- May change without statewide notice
This guide acknowledges their existence but does not catalog or evaluate them exhaustively.
Questions About Incentives?
Incentive programs can be complex, and how they apply can vary based on utility rules, system configuration, and local policies.
If you’d like help understanding how Massachusetts solar incentives are structured — or how they interact with the broader solar process — our team is available to answer questions and provide clarification.
Contact Valley Solar to speak with a knowledgeable team member.