Massachusetts Solar Incentives, Tax Credits & Rebates 2024
Last updated: 2026-01Incentive Score
Total Savings Estimate
A typical 8kW system in Massachusetts costs $121,111. After the 30% federal tax credit: $84,778. Estimated annual savings: $1,500.
Federal Investment Tax Credit (ITC)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of total system cost
The federal ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies to both residential and commercial systems with no cap on value.
Eligibility
Available to homeowners who own their solar system (purchased, not leased). Must have sufficient tax liability.
Expiration / Phase-Down
30% through 2032, steps down to 26% in 2033 and 22% in 2034
Massachusetts State Incentives
SMART Program
Performance$0.04-$0.12/kWh for 10-20 years
Solar Massachusetts Renewable Target (SMART) provides performance-based incentives for solar generation, varying by system size, location, and adders.
State Income Tax Credit
Tax Credit15% of cost up to $1,000
Massachusetts offers a personal income tax credit of 15% of the cost of a solar system, capped at $1,000.
Net Metering
Net MeteringFull retail rate for residential
Full retail net metering for residential systems. Virtual net metering available for community solar.
Tax Exemptions
property tax Exemption
20-year property tax exemption for solar energy installations.
sales tax Exemption
Solar equipment is exempt from the 6.25% Massachusetts sales tax.
Utility Programs
National Grid
- Net metering
- SMART program
- ConnectedSolutions demand response
Eversource
- Net metering
- SMART program
- Battery storage incentives
Unitil
- Net metering
- SMART program
Highlights & Drawbacks
Highlights
- ✓SMART program adds significant long-term value
- ✓Very high electricity rates make solar extremely profitable
- ✓Full retail net metering
- ✓Property and sales tax exemptions
Drawbacks
- !Lower sun hours than national average
- !Higher installation costs
- !State tax credit capped at only $1,000
Source: DSIRE (Database of State Incentives for Renewables & Efficiency), U.S. Department of Energy, state energy offices. Data reflects programs available as of 2026-01.