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Section 25D is dead — homeowners get $0in federal tax credits for solar in 2026. But with a lease or PPA, a third-party owner claims the 30% ITC under Section 48/48E and passes savings to you. At MA's high rates ($0.36/kWh on Eversource), plus SMART 3.0 production payments and 1:1 net metering, Massachusetts has among the richest solar TPO economics in the country.
$0.36/kWh
Eversource Rate
$110–175/mo
Lease Range
$0.12–0.18/kWh
PPA Range
Jul 4, 2026
48/48E Lock-in
What MA homeowners need to know in 60 seconds
Section 25D is dead. If you buy solar with cash or a loan in 2026, you receive $0 from the IRS. The residential solar tax credit expired December 31, 2025 and is not coming back.
But Section 48/48E is alive.When a third-party financing company owns the solar system on your roof via a lease or PPA, that company claims the 30% Investment Tax Credit. The savings flow to you as lower monthly payments — typically $110–175/mo for a lease or $0.12–0.18/kWh for a PPA.
MA has the richest incentive stacking in New England. At retail rates of $0.36–$0.45/kWh, plus SMART 3.0 production payments ($0.03/kWh for 20 years), 1:1 retail net metering, ConnectedSolutions battery revenue ($225–$275/kW), 6.25% sales tax exemption, and a 20-year property tax exemption — Massachusetts delivers the most comprehensive TPO value proposition. The trade-off: higher install costs ($3.25/W) and the SMART 3.0 cap (600 MW) could fill up.
The financing company claims the credit — not you, not the installer. Here is exactly how the 30% ITC flows from the tax code to your lower monthly payment.
A financing company (the "third-party owner") purchases and installs solar panels on your roof. You don't buy the system — you agree to either lease it (fixed monthly payment) or buy the power it produces (PPA, per-kWh rate).
Because the financing company legally owns the system, it files IRS Form 3468 and claims the 30% Investment Tax Credit under Section 48/48E. On a $30,000 system, that's $9,000 back from the IRS. The company also claims MACRS depreciation (5-year accelerated schedule with 100% first-year bonus, permanently restored under OBBBA).
The financing company doesn't pocket the ITC — it uses the $9,000+ in tax benefits to reduce your monthly payment. This is why lease/PPA payments are typically 20–40% lower than what you'd pay on a standard solar loan without the ITC.
Your lease/PPA payment is locked in below your current electric bill rate. You save money starting month one. The system owner handles all maintenance, monitoring, and warranty claims.
With NuWatt's Propel program, the third-party owner transfers full ownership to you at year 5 — after the ITC recapture period expires. You get the best of both worlds: ITC savings upfront, full ownership long-term.
Note: Propel is NOT currently available in Massachusetts. Standard leases and PPAs are available today from Sunrun, Tesla, SunPower, and other providers.
The financing companyclaims the ITC on IRS Form 3468 — not you, not the installer. In Massachusetts, the TPO company also typically claims SMART 3.0 production payments ($0.03/kWh for 20 years). The SMART adder is specifically available for lease/PPA systems. These combined revenue streams are what allow MA lease/PPA rates to be among the most competitive in the country despite higher install costs.
The investment tax credit that keeps solar leases and PPAs financially viable in 2026.
Credit Rate
30%
With prevailing wage + apprenticeship compliance (6% without)
Who Claims It
The system owner (financing company)
NOT the homeowner, NOT the installer
Residential Eligibility
Yes — via third-party ownership
TPO company owns the system, leases/PPAs it to you
Construction Timing
Begin by July 4, 2026 to lock in full timing
Later starts still qualify if placed in service by Dec 31, 2027
Minimum Hold Period
5 years
System owner must hold for 5 years or face ITC recapture
Stackable Bonuses
Domestic content (+10%), Energy community (+10%)
Can reach 50%+ total credit on qualifying projects
MACRS Depreciation
5-year schedule + 100% first-year bonus
Permanent under OBBBA — full basis expensed in year one
$0.03/kWh residential (20 years) | $0.06/kWh low-income
Eversource $275/kW | NGrid $225/kW | Unitil: N/A
Full 1:1 retail credit for systems ≤60 kW
6.25% sales tax + 20-year property tax exempt
This incentive stack makes Massachusetts one of the top states nationally for solar TPO economics. The TPO provider captures ITC + SMART payments + net metering value and passes the combined savings to you through lower monthly rates.
Aug 2022
IRA signed — Section 48E created alongside Section 25D extension
Dec 2025
Section 25D (residential ITC) expires — homeowners get $0
Jan 2026
Section 48/48E remains available for commercial + third-party owners
Jul 4, 2026
Section 48/48E full-timing lock-in — begin construction by this date; later starts qualify if placed in service by Dec 31, 2027
Side-by-side comparison for a typical 8 kW system at $3.25/W = $26,000 in Massachusetts.
Upfront Cost
$26,000
Federal ITC
$0 (25D expired)
SMART 3.0
$0.03/kWh (20 yrs)
Est. Payback
~9 years (w/ SMART)
You Own?
Yes, immediately
SMART payments help, but $26,000 upfront with $0 ITC is steep. Highest long-term savings.
Upfront Cost
$0 down
Federal ITC
$0 (25D expired)
Monthly Payment
$165–$270/mo
Interest Rate
6–8% APR
You Own?
Yes, immediately
$0 down ownership. SMART income offsets some payments. No ITC to reduce principal.
Upfront Cost
$0 down
Federal ITC
30% (owner claims)
Monthly Payment
$110–175/mo
Maintenance
Included
You Own?
No (buyout option)
$0 down, ITC + SMART both captured by owner = very competitive monthly rate vs an Eversource bill at $0.36/kWh.
Upfront Cost
$0 down
Federal ITC
30% (owner claims)
Rate
$0.12–0.18/kWh
Maintenance
Included
You Own?
No (buyout option)
At $0.15/kWh vs an Eversource rate of $0.36/kWh you save $0.21/kWh. SMART adds even more value.
NuWatt's Propel program (TPO for 5 years, then ownership transfer) is currently available in Maine and Texas only. Given MA's exceptionally strong incentive stack (SMART + NM + ConnectedSolutions), Propel could be particularly compelling here. Standard leases and PPAs are widely available today.
Massachusetts has the most comprehensive solar incentive framework in New England.
The SMART (Solar Massachusetts Renewable Target) 3.0 program pays $0.03/kWh for residential systems (≤25 kW) for 20 years. Low-income projects receive $0.06/kWh. The SMART adder is specifically available for lease/PPA systems. A typical 8 kW system produces ~9,600 kWh/year, generating ~$288/year in SMART income that the TPO provider captures and passes to you as lower monthly rates. On top of SMART, that 9,600 kWh offsets ~$3,446/year of Eversource electricity at $0.36/kWh (9,600 kWh × $0.36) via 1:1 net metering.
Massachusetts offers full 1:1 retail net metering for Class I systems (≤60 kW residential). Every kWh exported earns a full retail credit. This is among the most favorable NM policies in the country — better than RI (80% retail), NH (~85% retail), and far better than Texas (no statewide NM). Credits roll month-to-month.
MA's ConnectedSolutions demand-response program pays for battery storage dispatch during summer peaks. Eversource pays $275/kW + $50 winter, National Grid pays $225/kW + $50 winter. Note: Unitil does NOT participate. A battery paired with your solar lease generates additional income from a separate program — stacking savings on top of your solar lease benefits.
Massachusetts offers both a 6.25% sales tax exemption on solar equipment AND a 20-year property tax exemption. Combined, these reduce total system costs for the TPO provider (passed to you as lower rates) and ensure solar adds home value without adding tax burden. Both exemptions are statewide — no municipal opt-in required.
We believe in full transparency. Here is what works against TPO in Massachusetts.
SMART payments typically go to the system owner in TPO contracts — verify contract terms
Higher install costs ($3.25/W) than national average — but TPO avoids upfront payment
Standard lease means you never own the system (Propel not available in MA)
Typical 2–3% annual lease escalator — though MA utility rates have risen 4%+ annually
Unitil territory does NOT participate in ConnectedSolutions — battery DR income unavailable
High demand for solar in MA can mean longer wait times for installation
SMART 3.0 cap (600 MW PY2026) could fill up — timing matters
Your utility territory affects both your savings and ConnectedSolutions eligibility:
Unitil
~$0.45/kWh
CS: NOT participating
Highest rate, best per-kWh savings (no battery DR)
National Grid
~$0.39/kWh
CS: $225/kW + $50 winter
Mid rate + battery DR
Eversource
~$0.36/kWh
CS: $275/kW + $50 winter
Lowest rate, but top battery DR ($275/kW)
The best option depends on your credit, tax situation, and energy goals.
Compare My OptionsThese deadlines determine whether your TPO provider can claim the ITC for your MA project.
July 4, 2026
The One Big Beautiful Bill Act (OBBBA) lets Section 48/48E projects that begin construction on or before July 4, 2026 lock in the full credit timing, with placement in service allowed through roughly 2030. Projects that begin construction after that date still qualify for the 30% ITC, but generally must be placed in service by December 31, 2027.
June 30, 2026
The $1,000 residential EV charger credit (Section 30C) expired June 30, 2026 and is no longer available. If bundling solar + EV charger, budget without it.
Dec 31, 2027
Projects that begin construction after July 4, 2026 must be placed in service by December 31, 2027 to claim Section 48/48E. By contrast, 100% first-year bonus depreciation was permanently restored under OBBBA — it does not phase out.
MA solar permitting typically takes 6–10 weeks due to high demand. To lock in the most flexible Section 48/48E timing by July 4, 2026, start the process by early spring 2026 (projects beginning later still qualify if placed in service by December 31, 2027). SMART 3.0 enrollment is first-come, first-served (600 MW cap for PY2026).
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Enter your monthly electric bill to compare lease escalators vs. fixed Propel ownership payments.
Compare lease escalators vs. Propel ownership by state
Lease Total
$64,356
over 25 years
Propel Total
$31,824
fixed 25 years, own yr 5
You Save
$32,532
with Propel
Crossover Year
Year 1
Lease > Propel
Auto-sized system: Based on your $200/mo bill in Massachusetts, a ~6.5 kW system would offset your usage, producing ~7,800 kWh/year.
Lease: $141/mo starting (PPA at $0.22/kWh = 70% of utility rate) | Propel: $102/mo fixed for 25 years | System: $20,020 (6.5 kW @ $3.08/W)
Massachusetts is on the Propel waitlist — join the waitlist
Straight answers to the most common Massachusetts solar financing questions in 2026.
Not directly as a homeowner. Section 25D expired December 31, 2025 — cash or loan buyers receive $0. However, MA has a strong alternative: through a lease or PPA, the third-party system owner claims the 30% Section 48/48E ITC AND collects SMART 3.0 payments ($0.03/kWh for 20 years). Both benefits are passed to you as lower monthly rates.
Yes — Massachusetts is one of the best states in the country for solar leases and PPAs. At an Eversource rate of $0.36/kWh, a PPA at $0.12–0.18/kWh saves you roughly $0.10–0.20 per kilowatt-hour from day one. The combination of high rates, 1:1 net metering, SMART payments, and strong tax exemptions makes MA TPO economics among the strongest nationally.
SMART (Solar Massachusetts Renewable Target) 3.0 pays solar system owners $0.03/kWh for residential systems (≤25 kW) for 20 years. Low-income projects receive $0.06/kWh. The SMART adder is available for lease/PPA systems. In a TPO arrangement, the system owner typically claims SMART payments and factors them into your lower lease/PPA rate. A typical 8 kW system produces ~9,600 kWh/year, generating ~$288/year in SMART income.
Massachusetts offers full 1:1 retail net metering for Class I systems (≤60 kW residential). Every kWh exported earns a full retail credit. Credits roll month-to-month. This is among the most favorable net metering policies in the country and maximizes the value of a TPO system. Unlike RI (80% retail) or NH (~85% retail), MA gives you full value for every exported kWh.
Eversource (~$0.36/kWh) and National Grid (~$0.39/kWh) both support 1:1 net metering and SMART payments. National Grid's all-in residential rate currently runs a bit higher than Eversource's, meaning marginally larger per-kWh savings in National Grid territory. Note that Unitil (~$0.45/kWh) carries the highest all-in residential rate of the three MA utilities — so on rate alone, Unitil territory delivers the largest per-kWh savings. The catch: for ConnectedSolutions battery DR, Eversource pays $275/kW summer + $50 winter and National Grid pays $225/kW + $50, but Unitil does NOT participate in ConnectedSolutions.
Yes. ConnectedSolutions is a demand-response program that pays for battery storage dispatch during summer peak events. Eversource pays $275/kW, National Grid pays $225/kW (Unitil does NOT participate). A battery paired with your solar lease generates additional income. These are separate agreements that complement each other for maximum savings.
Not yet. NuWatt's Propel program is currently available in Maine and Texas. Given MA's strong incentive environment (SMART, ConnectedSolutions, high rates, 1:1 NM), Propel could be particularly compelling here. Standard solar leases and PPAs are widely available in MA from multiple national and local providers.
The key date is July 4, 2026 — the Section 48/48E begin-construction safe harbor (not an expiry). If the third-party system owner begins construction on or before it, the project locks in the full ITC timing pathway (placed in service through roughly 2030); projects that begin construction later still qualify for the 30% ITC but generally must be placed in service by December 31, 2027. MA solar permitting typically takes 6–10 weeks due to high demand. Start the process by early spring 2026 to ensure your project qualifies. Also note the SMART 3.0 cap (600 MW for PY2026) — enrollment is first-come, first-served.
Full cost breakdown at $3.25/W for Massachusetts in 2026.
$0.03/kWh for 20 years — how it works with leases.
Complete comparison of all MA solar financing paths.
Get launch alerts for NuWatt's upcoming ownership-transfer offer in MA.
Find out your exact lease or PPA rate for your Massachusetts home. With SMART 3.0 payments, 1:1 net metering, and ConnectedSolutions, MA offers some of the strongest TPO economics in the country. Begin construction by July 4, 2026 to lock in the most flexible Section 48/48E timing; projects starting later still qualify if placed in service by December 31, 2027.
$0
Down Payment
30%
ITC (via TPO)
Day 1
Savings Start