Solar Panels in Massachusetts
SMART Program + 15% State Tax Credit
$1,600/yr
Avg. Annual Savings
4.5 peak hrs/day
Peak Sun Hours
11–15 years
Payback Period
$15,000–$24,000
Avg. System Cost
Overview
Is Solar Worth It in Massachusetts?
Massachusetts has some of the strongest solar incentives in the entire country. The state's SMART (Solar Massachusetts Renewable Target) program pays homeowners a fixed rate for every kilowatt-hour their system produces for 10 years -- on top of the electricity savings. Add a 15% state income tax credit and one of the most favorable net metering policies in the nation, and Massachusetts becomes one of the best states to go solar regardless of its northern latitude.
Massachusetts electricity rates average $0.25+/kWh -- among the highest in the country -- which means every kWh your panels produce is worth significantly more here than in most other states. The financial case for solar in Massachusetts is exceptionally strong.
Benefits
Why Go Solar in Massachusetts
Reduce Your Electric Bill
Massachusetts homeowners save an average of $1,600/yr after going solar.
State & Local Incentives
Massachusetts offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Increase Home Value
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Energy Independence
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
Massachusetts Solar Incentives & Tax Credits
SMART Program (Solar Massachusetts Renewable Target)
State ProgramThe SMART program pays residential solar owners a fixed rate per kilowatt-hour produced for 10 years, regardless of what you use or send to the grid. This provides predictable, guaranteed income on top of your bill savings.
Massachusetts State Solar Tax Credit
Tax CreditMassachusetts offers a 15% state income tax credit on the net cost of your solar system, up to $1,000. Note: the federal 30% residential solar tax credit (Section 25D) expired December 31, 2025 and is no longer stackable with state credits for 2026 purchases. This state credit now stands on its own.
Net Metering
Net MeteringMassachusetts utilities offer net metering at the full retail rate for systems up to 10 kW. Eversource, National Grid, and Unitil all participate.
Property Tax Exemption
Tax ExemptionMassachusetts exempts the added value of solar installations from property tax assessments for 20 years after installation.
Sales Tax Exemption
Tax ExemptionMassachusetts exempts solar energy equipment from the state's 6.25% sales tax.
Federal Solar Tax Credit (Expired)
Tax CreditNote: The federal 30% residential solar tax credit (Section 25D) expired December 31, 2025 and is no longer available for new purchases in 2026. Massachusetts homeowners should focus on the state's 15% income tax credit (up to $1,000), the SMART program, and net metering.
What Changed in 2026 for Massachusetts Solar
The federal solar tax credit expired December 31, 2025 — here's what that means for Massachusetts homeowners and what options remain.
Federal ITC Gone — SMART Program and State Credit Remain
The 30% federal residential solar tax credit expired December 31, 2025. Massachusetts homeowners can still claim the state's 15% income tax credit (up to $1,000 per year) and the SMART (Solar Massachusetts Renewable Target) program, which pays a fixed rate per kilowatt-hour generated for 10 years. SMART is administered by Eversource, National Grid MA, and Unitil — and remains one of the strongest ongoing solar incentive programs in the Northeast.
SMART Program: 10-Year Guaranteed Income
Under SMART, eligible homeowners receive a fixed payment for every kWh their solar system produces — regardless of whether they use it or export it. Rates vary by utility and block (tranche), but typically range from $0.05–$0.12/kWh for new 2026 enrollments. Combined with net metering at the retail rate (~$0.24/kWh), Massachusetts solar owners effectively earn on both what they consume and what they produce.
Sales and Property Tax Exemptions Intact
Massachusetts continues to exempt solar equipment from the 6.25% state sales tax and from property tax assessment increases. The state also offers a solar loan program through MassSave for qualifying homeowners. Despite the loss of the federal ITC, Massachusetts remains one of the top-ranked states for solar ROI due to its high electricity rates ($0.24+/kWh), strong net metering, and the SMART program's guaranteed income stream.
Common Questions
Massachusetts Solar FAQ
Local Solar Companies
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