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The federal residential solar tax credit died on December 31, 2025. Massachusetts homeowners receive $0 from Washington in 2026. But the state incentive stack still delivers $15,000-$20,000+ in total value — if you know how to claim every program.
This is the honest guide. No outdated ITC claims. No fake savings numbers. Just the real programs, real dollar amounts, and the exact steps to maximize every one of them.
Federal ITC
$0
Expired Dec 31, 2025
State Stack (20yr)
$97K+
Total value for 10 kW system
Net Cost After Incentives
~$27K
On a $30,000 system
Payback Period
~7.5 yrs
Cash purchase, Eversource
Quick Answer
The federal residential solar tax credit (Section 25D) expired December 31, 2025. Massachusetts homeowners receive $0 from the ITC in 2026. However, state and utility incentives still total $15,000-$20,000+ for a typical 10 kW system. The key programs: SMART 3.0 ($0.03/kWh for 20 years), 1:1 net metering ($0.28-$0.32/kWh credits), a $1,000 state tax credit, 6.25% sales tax exemption, 20-year property tax exemption, and ConnectedSolutions battery revenue ($225-$3,250/year). Follow the 9-step action plan below to claim every dollar.
Before we show you how to maximize what is still available, let us be direct about what is not.
The federal residential solar Investment Tax Credit — the one that gave homeowners 30% back on their solar purchase — is dead. It was eliminated by the One Big Beautiful Bill Act (OBBBA), signed July 4, 2025. There is no pending legislation to reinstate it.
If you buy solar with cash or a loan in 2026, you receive $0 from the federal government.
Why are some solar companies still advertising 30%?
Some solar company websites have not updated their marketing. Others are deliberately misleading homeowners to close sales. If any solar company tells you that you can claim a 30% federal tax credit on a cash or loan purchase in 2026 — walk away. They are either incompetent or dishonest.
Massachusetts homeowners still have access to 6 active incentive programs that deliver $15,000-$20,000+ in total value. The federal credit is a loss, but MA's state stack is so strong that solar still pays back in 7-9 years — the fastest in the country.
The key is knowing about every program and claiming all of them. Most homeowners miss at least one. This guide ensures you do not.
Each layer stacks on top of the others. Claim all six and a $30,000 system delivers $97,000+ in total value over 25 years.
Previously 30% of system cost (~$9,000 on a $30,000 system). Now $0 for cash/loan purchases. If you lease or PPA, the third-party owner can still claim Section 48/48E (30%+) on projects beginning construction before July 4, 2026 — and pass some savings to you as lower payments.
Here is what the full incentive stack looks like for a typical Massachusetts homeowner on Eversource, purchasing a 10 kW system with cash.
| Item | Value |
|---|---|
| System Cost (10 kW at $3.00/W) | $30,000 |
| Federal ITC (25D) | $0 |
| Sales Tax Exemption (6.25%) | -$1,875 |
| State Tax Credit | -$1,000 |
| Net Out-of-Pocket Cost | ~$27,125 |
| SMART 3.0 (20 years at $0.03/kWh) 12,000 kWh/yr | ~$7,200 |
| Net Metering Credits (25 years) $0.28/kWh Eversource, 3% annual rate increase | ~$75,000 |
| Property Tax Savings (20 years) $600/yr average at 1.35% tax rate | ~$12,000 |
| ConnectedSolutions (with 10kW battery) $3,250/yr × 20 years (Eversource) | ~$65,000 |
| Total Lifetime Value (with battery) | $159,000+ |
| Total Lifetime Value (solar only, no battery) | $97,075+ |
Estimated Payback Period
~7.5 Years
Cash purchase, 10 kW, Eversource territory, no battery. With ConnectedSolutions battery: ~5.5 years.
Follow these steps in order. Each one builds on the previous. Skip none of them.
Request quotes from at least three NABCEP-certified solar installers, including NuWatt. Compare $/W pricing, panel tiers, and warranty terms. Ask each installer to confirm SMART 3.0 enrollment assistance.
Your installer must be a registered SMART Program installer and handle the application on your behalf. Ask for written confirmation that SMART enrollment is included in their scope of work — skipping this step leaves $6,000-$8,000 on the table.
Select from entry-tier (Hyundai 440W, lowest cost), standard (Silfab 440W, FEOC-qualified), or premium (REC 460W, highest efficiency). Your choice affects $/W pricing but all tiers qualify for every Massachusetts incentive.
Review the contract for total cost, warranty terms, SMART enrollment commitment, and payment schedule. Typical MA installations are scheduled 4-8 weeks after signing.
A typical residential solar installation in Massachusetts takes 1-2 days. Your installer mounts panels, runs wiring, installs the inverter, and connects to your electrical panel.
Your town building inspector reviews the installation. After approval, your installer submits the interconnection application to your utility (Eversource, National Grid, or Unitil). Permission to Operate (PTO) typically takes 2-4 weeks.
After PTO, your installer submits the SMART 3.0 application to MassCEC. Once approved, you begin receiving $0.03/kWh (or $0.06/kWh if income-eligible) for every kWh your system produces — for 20 years.
On your Massachusetts state income tax return, complete Schedule EC to claim the $1,000 solar tax credit (15% of net cost, capped at $1,000). File in the year your system is installed.
If you installed a battery, contact your utility to enroll in ConnectedSolutions. Eversource pays $275/kW summer + $50/kW winter. National Grid pays $225/kW + $50/kW winter. A 10 kW battery can earn $2,250-$3,250/year.
Ready to start with Step 1?
Get Your Free Solar QuoteWe see these mistakes constantly. Each one can cost you $5,000-$10,000+ in lost incentives or wasted money.
Cost: Every month without solar = $200-$400+ to your utility at rates rising 3-5% annually
Fix: There is no pending legislation. The ITC is gone. Install now while SMART 3.0 capacity remains.
Cost: You leave $6,000-$8,000+ in performance payments on the table
Fix: Verify IN WRITING that your installer handles SMART enrollment. It must be in the contract.
Cost: Systems over 10 kW may receive only ~60% of retail rate for excess energy
Fix: Size your system carefully. For most homes, 8-12 kW optimizes net metering value.
Cost: You lose $1,000 that takes 15 minutes to claim
Fix: File Schedule EC with your MA Form 1 state tax return in the year of installation.
Cost: You miss $2,250-$3,250/year in demand response revenue
Fix: A battery adds ~$12K-$15K to your cost but earns $3,250/year with Eversource ConnectedSolutions — 4-5 year payback on the battery alone.
The residential 25D credit is dead. But the commercial 48/48E credit lives on — and there is a way for homeowners to benefit.
You sign a solar lease or Power Purchase Agreement (PPA)
A third-party financing company OWNS the system on your roof
That company claims the Section 48/48E commercial ITC (30%+ of system cost)
They pass some of that savings to you as lower monthly payments or a lower PPA rate
You do NOT file anything on your taxes — the benefit is baked into your monthly cost
Deadline: Section 48/48E is available for projects that begin construction before July 4, 2026. After that date, this backdoor closes too. If you are considering a lease or PPA, act before summer 2026.
No. The federal residential solar Investment Tax Credit (Section 25D) expired on December 31, 2025. Massachusetts homeowners who buy solar with cash or a loan receive $0 from the federal government in 2026. Many solar company websites still advertise a 30% federal credit — this is false and misleading.
Massachusetts homeowners can still access $15,000-$20,000+ in state and utility incentives. This includes SMART 3.0 ($6,000-$8,000 over 20 years), net metering credits ($2,500-$4,000/year), a $1,000 state tax credit, sales tax exemption (~$1,875), property tax exemption ($500-$800/year for 20 years), and ConnectedSolutions battery revenue ($225-$1,500/year).
SMART (Solar Massachusetts Renewable Target) 3.0 pays residential solar owners $0.03/kWh for every kilowatt-hour produced over 20 years. Low-income households receive $0.06/kWh. Your solar installer handles the SMART application after your system receives Permission to Operate (PTO) from the utility. You do not need to apply separately.
Systems up to 10 kW are cap-exempt and receive full 1:1 retail rate credits for excess electricity sent to the grid. Eversource credits at ~$0.28/kWh, National Grid at ~$0.32/kWh, and Unitil at ~$0.28/kWh. Credits roll over monthly. Systems over 10 kW may be subject to Market Net Metering (~60% of retail).
Claim the $1,000 MA state solar tax credit on your Massachusetts personal income tax return using Form 1, Schedule EC. File in the tax year your system is installed and operational. The credit is 15% of net cost, capped at $1,000.
ConnectedSolutions is a demand response program that pays battery owners to discharge during peak grid events. Eversource pays $275/kW in summer + $50/kW in winter. National Grid pays $225/kW + $50/kW winter. A 10 kW battery enrolled with Eversource can earn ~$3,250/year. You need an approved battery (Tesla Powerwall 3, Enphase IQ, or Franklin aPower2). Unitil does not participate.
Even without the federal ITC, the payback period for solar in Massachusetts is approximately 7-9 years for systems purchased with cash. With a battery and ConnectedSolutions revenue, payback drops to 5-7 years. After payback, you enjoy 15-18 years of essentially free electricity plus ongoing SMART and ConnectedSolutions payments.
No. There is no legislation pending to reinstate Section 25D. Waiting costs you money: every month without solar means paying $200-$400+ to your utility at rates increasing 3-5% annually. Massachusetts state incentives are available now and SMART 3.0 capacity is limited. Delaying risks losing your SMART enrollment spot.
Every active program in one place
Full guide to SMART 3.0 enrollment
Earn $225-$3,250/yr with your battery
Honest math for 2026 MA solar
1:1 credits, caps, and annual true-up
Sales tax + property tax savings
Best financing path for 2026
Real pricing by city and utility
Which utility territory is better for solar?
The federal credit is gone. But Massachusetts still has the strongest state solar incentive stack in America. Every month you wait, SMART 3.0 capacity shrinks and your utility bill keeps climbing.
Free, no-obligation quote. Includes SMART 3.0 enrollment assistance.