MA incentive guide
Massachusetts solar incentives in 2026
Last updated · every MA program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in Massachusetts right now is 15% state tax credit plus the SMART performance incentive. Overall, the state's incentive stack rates as strong compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in Massachusetts this year, there is no federal credit. That is a roughly $8,640 swing on an $28,800 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What Massachusetts offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | Yes | 15% of system cost, capped at $1,000 |
| Rebate or performance payment | Yes | SMART performance incentive in eligible utility territories |
| SREC market | No | — |
| Sales tax exemption | Yes | Qualifying solar equipment is exempt from state sales tax. |
| Property tax exemption | Yes | The value solar adds to the home is excluded from property tax assessment. |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
Massachusetts solar tax credit
Massachusetts offers a residential solar income tax credit: 15% of system cost, capped at $1,000. On a typical 8 kW install at about $25,600, that is worth roughly $1,000. A credit only helps to the extent you owe MA income tax, so check your liability and any carry-forward rules before treating it as a discount.
Massachusetts solar rebates and grants
SMART performance incentive in eligible utility territories. Rebate and grant programs are funding-limited and have opened and closed mid-year before, so confirm the current round is open before counting on it.
Massachusetts offers a 15% state income tax credit up to $1,000, the SMART performance incentive in eligible utility territories, and sales/property tax exemptions.
Net metering and export rates in Massachusetts
Massachusetts offers retail-rate net metering for typical residential systems, with credits that carry forward month to month.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a Massachusetts home at an assumed $0.30/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in Massachusetts costs roughly $22,400–$28,800 installed before incentives, producing about 9,280 kWh a year and saving around $2,294 in year one — a simple payback near 10–13 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are Massachusetts solar tax credits worth in 2026?
Massachusetts's solar income tax credit is 15% of system cost, capped at $1,000. On a typical 8 kW system costing about $25,600, that works out to roughly $1,000 — the cap is what binds, not the headline percentage. It is a credit against MA income tax, so you need enough state tax liability to use it.
Does Massachusetts have solar rebates?
Yes. SMART performance incentive in eligible utility territories. Rebate programs in MA are funding-limited and have historically opened and closed mid-year, so confirm the current round is still accepting applications before you count the money.
Is there a Massachusetts solar property tax exemption?
Yes. Massachusetts excludes the value solar adds to a home from property tax assessment, so a system that raises your home's value does not raise your annual tax bill. Massachusetts also exempts qualifying solar equipment from state sales tax, which comes straight off the installed price.
What solar incentives are available in Massachusetts in 2026?
Massachusetts offers a 15% state income tax credit up to $1,000, the SMART performance incentive in eligible utility territories, and sales/property tax exemptions. Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in Massachusetts?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does Massachusetts have net metering?
Massachusetts offers retail-rate net metering for typical residential systems, with credits that carry forward month to month. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in Massachusetts?
Before incentives, a typical 8 kW system in Massachusetts runs roughly $22,400–$28,800. A state credit of 15% of system cost, capped at $1,000 comes off that, subject to the cap and your tax liability. See our full Massachusetts cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: