Massachusetts Solar Incentives, Tax Credits & Rebates 2026
State-program snapshot: 2026-01 · Federal status reviewed: 2026-08-06Cost Context
An illustrative 28.1 kW system using the historical observed average cost in Massachusetts is $121,111. New federal residential credit for a 2026 installation: $0. Modeled annual savings before financing: $9,838.
Federal Residential Credit Status
Residential Clean Energy Credit
Ended for new 2026 systems0% for property placed in service in 2026
IRS guidance states that the 30% credit applied to qualified residential clean-energy property installed from 2022 through December 31, 2025. It is not available for property placed in service after that date.
Eligibility
No new residential credit for a system first placed in service in 2026. A previously earned unused credit may be eligible for carryforward under IRS rules.
Primary source
IRS Residential Clean Energy Credit guidance ↗Massachusetts State Program Snapshot
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.
State and utility programs can change between reviews. Confirm eligibility, funding and deadlines with the administering agency or utility before relying on this snapshot.
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
State-program sources: DSIRE, state energy offices and utilities; snapshot dated 2026-01. Programs, funding and eligibility can change without notice. Federal residential status reviewed against IRS guidance on August 6, 2026.