Massachusetts Solar Incentives & Rebates (2026)
Massachusetts offers the SMART Program ($0.13-$0.20 per kWh solar tariff), a 15% state tax credit (up to $1,000), SRECs worth $250-$300 annually, plus property and sales tax exemptions—creating some of the nation’s strongest solar economics.
Massachusetts ranks among the top solar states nationally due to aggressive renewable energy policies and competitive incentive stacking. The Solar Massachusetts Renewable Target (SMART) program guarantees 20-year payments for exported solar energy, eliminating net metering uncertainty. Combined with solar renewable energy certificates (SRECs), state tax credits, and property tax exemptions, Massachusetts creates compelling long-term economics despite lower solar resources (4.2 peak sun hours daily) than southern states.
Federal Solar Investment Tax Credit (30% ITC)
The federal solar investment tax credit covers 30% of total installation costs for systems installed through December 31, 2032. For a typical $30,000 residential system, this represents a $9,000 tax credit. The credit is non-refundable but can be carried forward to subsequent tax years.
To claim the ITC, file Form 5695 with your federal tax return in the year your system achieves operational status. Systems installed in 2026 can claim the full 30% credit.
Massachusetts State-Specific Solar Programs
SMART Program: Guaranteed Solar Tariff ($0.13-$0.20/kWh)
The Solar Massachusetts Renewable Target program provides 20-year fixed payments for all exported solar electricity regardless of time-of-use or import/export monthly balances. Residential participants receive tariffs of $0.13-$0.20/kWh, typically $1,560-$2,400 annually on 6 kW systems. This certainty eliminates rate design risk and provides superior economics compared to net metering in high-rate states.
State Solar Tax Credit (15%, up to $1,000)
Massachusetts allows a 15% state tax credit on solar installation costs, capped at $1,000. A $20,000 system generates a $1,000 credit. Commercial systems can claim larger credits up to $6,000.
Solar Renewable Energy Certificates (SRECs)
Massachusetts solar systems generate one SREC per 1 MWh of generation. SRECs trade on secondary markets at $250-$300 each (as of 2026). A typical 6 kW system produces 7-8 MWh annually, generating $1,750-$2,400 in SREC revenue.
Property Tax Exemption
Massachusetts exempts solar installations from property tax assessments under Massachusetts General Law c. 59, § 5. A $28,000 system avoids approximately $280-$420 annually in property taxes (25-year value of $7,000-$10,500).
Sales Tax Exemption
Solar equipment and installation labor are exempt from Massachusetts 6.25% sales tax, with potential local surtaxes adding up to 0.75%. The exemption saves $1,400-$1,800 on typical installations.
Utility-Specific Rebate Programs in Massachusetts
Eversource Energy Massachusetts Solar Rebate
Residential customers receive $1,000-$1,500 for systems under 10 kW. Applications processed monthly with typical approval timelines of 4-6 weeks.
National Grid Massachusetts Solar Incentive
Residential rebates of $1,200-$1,800 for systems under 10 kW. National Grid actively promotes solar adoption and maintains steady funding availability.
Unitil Energy SMART Plus Program
Smaller utility serving northern Massachusetts and New Hampshire. Rebates of $800-$1,000 with rapid processing (2-3 weeks).
Solar Incentive Summary Table for Massachusetts
| Incentive Type | Details | Typical Value (6 kW System) |
|---|---|---|
| Federal ITC (30%) | Non-refundable tax credit through 2032 | $5,400-$7,200 |
| SMART Program | 20-year fixed tariff | $1,560-$2,400/year |
| State Tax Credit (15%) | Capped at $1,000 | $1,000 |
| SRECs | $250-$300 per MWh | $1,750-$2,400/year |
| Property Tax Exemption | 25-year exemption | $7,000-$10,500 |
| Sales Tax Exemption | 6.25% state tax exempt | $1,400-$1,800 |
Frequently Asked Questions About Massachusetts Solar Incentives
What makes the SMART program better than net metering?
SMART guarantees a fixed price ($0.13-$0.20/kWh) for all exported solar electricity for 20 years. Traditional net metering ties your export value to utility rates, which can decrease over time. SMART participants received $1,560-$2,400 annually in 2024-2025, while net metering customers in similar utilities averaged $1,200-$1,600.
Can I really make $250-$300 per SREC?
SREC prices fluctuate based on supply/demand dynamics. In 2024-2025, Massachusetts SRECs traded at $250-$350 each. A 6 kW system producing 7.5 MWh annually generates 7.5 SRECs worth $1,875-$2,625. Prices have ranged from $150-$450/SREC over the past 5 years.
How much do the 15% state tax credit and property tax exemption actually help?
The 15% credit ($1,000 max) combines with a $280-$420 annual property tax exemption. Over 25 years, this represents approximately $8,000-$11,500 in combined tax savings. Added to SMART payments and SRECs, total incentives reach $35,000-$50,000 over a system’s lifetime.
Should I prioritize SMART enrollment or SREC ownership?
These are not mutually exclusive. SMART participants receive tariff payments in addition to SREC ownership. Combined annual incentives of $3,000-$3,750 are achievable.
Start Your Massachusetts Solar Journey
Solar incentives are substantial in 2026, but they evolve regularly. Federal tax credits decrease by 2 percentage points annually after 2032, making 2026-2032 the optimal window.
Connect with qualified solar installers in Massachusetts through EnergyRanked’s solar installer directory. Our network includes pre-vetted, licensed professionals familiar with state incentives.
For detailed information about the federal tax credit, consult our comprehensive solar tax credit guide. Return to our parent solar incentives hub to compare Massachusetts programs with other states.