The Complete Guide to Massachusetts Solar Incentives in 2026

Getting Started

Massachusetts has long been one of the best states for going solar, thanks to generous state-level incentives layered on top of the now-expiring federal solar tax credit.

As of January 1, 2026, the 30% federal residential solar tax credit will no longer be available for homeowner-owned systems. This means Massachusetts homeowners will need to rely on state, utility, and local incentives to maximize solar savings moving forward.

The good news? Massachusetts still offers one of the most attractive incentive stacks in the country — if you know where to look.

This guide covers what’s still active in 2025, how each program works, and how you can combine them for the best return on investment.

1. Massachusetts State Solar Tax Credit

Status: ✅ Still available statewide

The state offers a personal income tax credit worth 15% of your total solar installation cost, up to $1,000.

• Eligibility: Must be your primary residence in Massachusetts.
• Applies to: Purchased solar systems only.
• How to Claim: File Schedule EC with your MA state tax return.

Tip: This credit stacks with all other Massachusetts incentives.

2. Net Metering in Massachusetts

Status: ✅ Fully active with most utilities

Net metering is one of the most powerful tools for lowering your electricity bills after going solar.

• How it Works: You earn 1:1 credits for extra electricity your panels send to the grid.
• Rollover: Most utilities allow unused credits to roll over month-to-month.
• Covered Utilities: Eversource, National Grid, and most municipal light plants.

See also: How Net Metering Works in MA

3. SMART Program (Solar Massachusetts Renewable Target)

Status: ⚠️ Active but filling quickly in some utility territories

The SMART Program pays you monthly incentives for the power your system produces — for 10 years.

• Base Rates: Determined by your utility and enrollment “block.” Earlier blocks pay more.
• Bonus Adders: Extra payments for battery storage, low-income participation, or community solar.
• Why It Matters: SMART payments are on top of your bill savings from net metering.

4. Sales and Property Tax Exemptions

Massachusetts offers two tax breaks that can save you thousands over the life of your system:

• Sales Tax Exemption: You won’t pay the 6.25% state sales tax on solar equipment.
• Property Tax Exemption: Your home’s assessed value may go up after installing solar, but the added value from your system is exempt from property taxes for 20 years.

5. Local & Utility-Specific Incentives

Many municipal light plants (MLPs) and smaller utilities offer their own programs.

Examples:

• Sterling Municipal Light Department — per-kilowatt cash rebates.
• Belmont Light — bonus incentives for battery storage.

Check your local provider for the latest offers — these can change year to year.

Why Acting Now Still Matters

Even without the federal residential credit after 2025, Massachusetts homeowners can still stack state, utility, and local benefits for strong savings.

However:

• SMART rates decline as capacity fills.
• Local rebates often have limited annual budgets.
• Net metering policy could change in the future.

Bottom line: The sooner you install, the more you lock in — especially before SMART payments drop further.

Next Steps

Next Steps:

1. Get a free, personalized solar savings estimate for your home.
2. Check your utility’s specific net metering and SMART details.
3. Ask about stacking state, local, and storage incentives for maximum ROI.