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Get a Free QuoteSee every Massachusetts solar incentive stacked together in one view. SMART 3.0, net metering, ConnectedSolutions, tax credits, and tax exemptions — combined into a single 25-year value estimate. No federal ITC included because Section 25D expired.
Federal ITC Alert: The 30% residential solar tax credit (Section 25D) expired December 31, 2025. This calculator shows $0 federal credit. Massachusetts state incentives remain fully active and are strong enough for 5-8 year payback.
Massachusetts homeowners who go solar in 2026 can stack six separate incentive programs (seven with a battery) that combine to deliver $100,000 to $200,000+ in total value over 25 years for a typical residential system. Even without the expired federal tax credit, Massachusetts remains one of the best states for solar because these incentives operate independently and stack without conflict.
SMART 3.0
$0.03-$0.06/kWh for 20 years
Net Metering
1:1 retail rate credits, 25+ years
State Tax Credit
$1,000 flat (15%, capped)
Sales Tax Exemption
6.25% of system cost saved
Property Tax Exemption
20 years, full exemption
ConnectedSolutions
$225-$275/kW/yr (with battery)
Adjust your system size, utility, battery preference, and income level to see how every Massachusetts solar incentive stacks together. All calculations use real 2026 data with $0 federal ITC.
System Cost
$31,000
$3.10/W
25-Year Value
$202,385
All incentives combined
Net Cost After Incentives
+$171,385
Net profit over 25 years
Effective $/W
FREE
After all incentives
SMART 3.0 (20 years)
$0.03/kWh x 12,000 kWh/yr
$7,200
Net Metering (25 years)
90% offset @ $0.359/kWh +5%/yr escalation
$185,048
MA State Tax Credit
15% of cost, capped at $1,000
$1,000
Sales Tax Exemption
6.25% of $31,000 system cost
$1,938
Property Tax Exemption (20 years)
$360/yr saved on $30,000 value increase
$7,200
Total 25-Year Incentive Value
$202,385
Assumptions:System cost at $3.10/W average MA. Production: 1,200 kWh/kW/yr. Net metering assumes 90% offset at 1:1 retail rate with 5% annual rate escalation. Property tax based on $3,000/kW home value increase at 1.2% average MA tax rate. ConnectedSolutions based on 10 kW battery capacity. SMART rates: $0.03/kWh standard, $0.045/kWh moderate income, $0.06/kWh low income. Federal ITC (Section 25D) is $0 — expired Dec 31, 2025. Actual results depend on roof orientation, shading, usage patterns, and installer pricing.
Massachusetts offers one of the most comprehensive solar incentive stacks in the country. Here is a detailed breakdown of each program, how it works, and what it pays.
The SMART program is Massachusetts' flagship solar incentive. Administered by the Department of Energy Resources (DOER), SMART pays residential solar owners a fixed rate per kilowatt-hour produced for a 20-year contract term. The current residential rate is $0.03/kWh for standard income households, with enhanced rates for income-eligible participants.
SMART payments are based on production, not consumption or export. Every kWh your panels generate earns you SMART income, whether you use that electricity in your home or send it to the grid. This is completely separate from net metering credits. Your installer handles the SMART application after your system receives Permission to Operate (PTO) from the utility.
SMART Rate Schedule:
10 kW system example: 12,000 kWh/yr x $0.03 = $360/yr or $7,200 over 20 years (standard). With battery adder: $840/yr or $16,800 over 20 years.
Net metering in Massachusetts allows residential solar systems to earn full 1:1 retail rate credits for every kilowatt-hour of excess electricity sent to the grid. All three investor-owned utilities (Eversource, National Grid, and Unitil) provide this benefit. Credits appear on your monthly electric bill and roll over indefinitely.
The value of net metering is directly tied to your utility rate. In 2026, Eversource charges approximately $0.36/kWh all-in, National Grid charges $0.39/kWh, and Unitil charges $0.45/kWh — the highest of the three Massachusetts utilities. As rates increase (historically 3-5% per year in MA), your net metering credits become more valuable each year. Over 25 years with rate escalation, net metering is typically the largest single component of your total incentive stack.
Current Retail Rates (2026, all-in bundled):
10 kW system example (Eversource): 10,800 kWh exported/yr (90% offset) x $0.36 = $3,877/yr in year 1, growing to ~$12,504/yr by year 25 with 5% rate escalation.
The Massachusetts Residential Renewable Energy Income Tax Credit allows homeowners to claim 15% of the net expenditure on a solar energy system, capped at $1,000. This is a direct tax credit (not a deduction), meaning it reduces your Massachusetts state income tax bill dollar-for-dollar.
Claim the credit using Form 1, Schedule EC when filing your state taxes in the year your system is installed and operational. While $1,000 may seem modest compared to the now-expired federal credit, it is free money that stacks on top of every other incentive. If your tax liability is less than $1,000, the unused portion can be carried forward for up to 3 tax years.
All solar energy equipment and installation labor in Massachusetts is exempt from the 6.25% state sales tax. This is applied automatically at the point of purchase — you do not need to file a separate claim. Your installer should not charge sales tax on your solar system.
For a typical 10 kW system costing $31,000, the sales tax exemption saves you $1,938. This is an immediate, upfront savings that reduces your out-of-pocket cost on day one. The exemption covers panels, inverters, racking, wiring, battery storage equipment, and all installation labor.
Under Massachusetts General Laws Chapter 59, Section 5, Clause 45, solar energy systems are 100% exempt from property tax assessment increases for 20 years from the date of installation. National studies (Zillow, Lawrence Berkeley National Lab) consistently show that solar panels increase home value by approximately $3,000 per installed kW — a 10 kW system adds roughly $30,000 to your home value.
Without the exemption, that $30,000 increase would add approximately $360/year to your property taxes at average Massachusetts rates (~1.2%). Over 20 years, the exemption saves you approximately $7,200. You get the higher home value without the higher tax bill — a genuine win-win.
ConnectedSolutions is Massachusetts' demand response program for residential battery storage. When grid demand peaks — typically during hot summer afternoons or cold winter evenings — your battery discharges to support the grid. In return, your utility pays you per kilowatt of enrolled capacity. Events are called approximately 30-60 times per year and last 2-3 hours each.
Eversource pays $275/kW in summer (June-September) plus a $50/kW winter bonus (December-March). National Grid pays $225/kW in summer plus $50/kW in winter. For a standard 10 kW battery, that translates to $3,250/year on Eversource or $2,750/year on National Grid. Over 25 years, ConnectedSolutions alone can generate $68,750-$81,250 in revenue. Unitil does not currently participate in the program.
ConnectedSolutions Revenue (10 kW battery):
If you install a qualifying battery alongside your solar system, SMART adds an additional $0.04/kWh on top of your base SMART rate. This adder applies to all production, not just battery-stored energy. For a 10 kW system producing 12,000 kWh/year, the battery adder alone adds $480/year or $9,600 over the 20-year SMART term.
Combined with the base $0.03/kWh rate, a battery-equipped system earns $0.07/kWh from SMART — more than double the base rate. This stacks with ConnectedSolutions revenue, making a battery one of the most powerful financial additions to a Massachusetts solar installation.
Unlike many states where incentives reduce each other, Massachusetts incentives are truly additive. Here is why they work so well together.
Each incentive uses a different mechanism. SMART pays per kWh produced. Net metering credits per kWh exported. The state tax credit is a one-time credit. Sales tax is an upfront exemption. Property tax is an ongoing exemption. ConnectedSolutions pays per kW of battery capacity dispatched. Because they operate through separate channels, they never reduce or conflict with each other.
With the federal ITC expired for residential customers, there is no interaction between federal and state incentives to worry about. Previously, SMART payments were technically taxable federal income. While SMART income remains taxable, the absence of a federal credit means your incentive math is cleaner and purely state-driven.
Net metering credits grow as electricity rates increase. Massachusetts rates have risen 3-5% annually in recent years, and projections suggest this trend continues. Your SMART rate is locked for 20 years, providing stable income. But net metering becomes more valuable each year as rates climb — a $0.36/kWh credit today (Eversource) could exceed $0.95/kWh in 20 years at 5% escalation.
Adding a battery unlocks two additional revenue streams (ConnectedSolutions and the SMART battery adder) while also improving your net metering economics through time-of-use optimization. A battery can nearly double the total 25-year value of your incentive stack, turning a $100K value into $170K-$200K+ depending on your utility.
Each layer stacks independently. Total 25-year value: $100,000-$200,000+ for a typical system.
Three realistic Massachusetts scenarios showing how incentives stack to deliver massive 25-year returns, even without any federal tax credit.
10 kW | Eversource | Battery: No
10 kW | Eversource | Battery: Yes (10 kW)
15 kW | National Grid | Battery: Yes (10 kW)
All scenarios assume cash purchase, $3.10/W system cost, 1,200 kWh/kW/yr production, 90% offset, 5% annual rate escalation, and standard income level. $0 federal ITC. Use the calculator above for your exact numbers.
Common questions about stacking Massachusetts solar incentives in 2026.
Massachusetts allows full stacking of all major solar incentives: SMART 3.0 payments ($0.03-$0.06/kWh for 20 years), 1:1 retail net metering credits, the $1,000 state tax credit, 6.25% sales tax exemption, 20-year property tax exemption, and ConnectedSolutions battery demand response revenue ($225-$275/kW/year). These all stack on top of each other with no conflict or reduction.
No. The federal residential solar Investment Tax Credit (Section 25D) expired on December 31, 2025 under the One Big Beautiful Bill Act. Homeowners who purchase solar with cash or a loan receive $0 from the federal government. The only indirect federal benefit is through a PPA or lease, where the third-party system owner claims the 30% commercial ITC (Section 48/48E) for projects beginning construction before July 4, 2026.
For a typical 10 kW system on Eversource, the combined 25-year incentive value is approximately $130,000-$170,000 depending on income level and whether you add a battery. This includes SMART income, net metering savings with rate escalation, tax exemptions, and ConnectedSolutions revenue. The system cost of approximately $31,000 is recouped within 5-8 years.
No. You can stack SMART 3.0, net metering, the state tax credit, sales tax exemption, and property tax exemption without a battery. However, adding a battery unlocks two additional income streams: ConnectedSolutions demand response ($225-$275/kW/year from Eversource or National Grid) and the SMART battery storage adder ($0.04/kWh). A 10 kW battery with Eversource can earn over $80,000 in additional revenue over 25 years.
SMART 3.0 (Solar Massachusetts Renewable Target) pays you $0.03/kWh for every kilowatt-hour your system produces, regardless of whether you use the electricity or send it to the grid. Net metering separately credits you at full retail rate for excess electricity exported to the grid. These are independent programs that stack completely. SMART pays for production; net metering credits for exports. You receive both simultaneously.
ConnectedSolutions is a demand response program run by Eversource and National Grid. When grid demand peaks (typically hot summer afternoons), your battery discharges to support the grid. Eversource pays $275/kW in summer and $50/kW in winter. National Grid pays $225/kW in summer plus $50/kW in winter. A 10 kW battery on Eversource earns approximately $3,250 per year. Events are called 30-60 times per year during peak hours. Unitil does not participate.
Massachusetts offers a state income tax credit of 15% of the net expenditure on your solar system, capped at $1,000. You claim it on your state tax return (Form 1, Schedule EC) in the tax year your system is installed and receives Permission to Operate. While $1,000 is modest compared to the expired federal credit, it stacks with all other MA incentives.
Under Massachusetts General Laws Chapter 59 Section 5, solar energy systems are 100% exempt from property tax assessment increases for 20 years. When you install solar panels, your home value increases (studies show approximately $3,000 per installed kW), but your property taxes remain the same as if the panels were not there. For a 10 kW system, this means approximately $720/year in avoided tax increases at average MA rates.
Yes. Low-income households (below 80% Area Median Income) receive $0.06/kWh from SMART 3.0 instead of $0.03/kWh, plus they may qualify for the additional $0.05/kWh LMI adder. Moderate-income households (80-120% AMI) receive enhanced rates as well. Income-eligible households may also qualify for Mass Save weatherization, free or reduced-cost energy audits, and additional utility rebates. Our calculator estimates enhanced SMART rates for both moderate and low-income levels.
Go solar now. SMART 3.0 has limited capacity and operates on a first-come, first-served basis. When SMART capacity fills up, the program closes and new enrollees receive nothing. Net metering is also subject to potential reforms by the DPU. Electricity rates are increasing 3-5% annually, so every month you wait costs you in lost savings. There is no pending legislation to reinstate the federal residential tax credit. The current incentive stack is strong enough for 5-8 year payback even without any federal benefit.
Dive deeper into each incentive or explore more tools to plan your solar investment.
Deep dive into rates, adders, enrollment, and capacity.
Read guideFull ROI calculator with payback period and financing options.
Read guideEarn $225-$3,250/year from battery demand response.
Read guideStep-by-step guide to claiming every dollar.
Read guideWhat changed and what remains in 2026.
Read guideNuWatt handles SMART enrollment, ConnectedSolutions registration, and all utility paperwork. Get a free quote that shows your complete incentive stack — no pressure, no gimmicks, no fake federal tax credit numbers.
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