The federal residential tax credit is dead in 2026. State incentive programs — from NJ SuSI ($90/MWh for 15 years) to MA SMART (monthly bill credits) — are now the main way to reduce your solar cost.
Massachusetts Solar Incentives Overview
Massachusetts has one of the strongest solar incentive packages in the country with the SMART program providing monthly bill credits for 10 years, plus Mass Save rebates, and full sales and property tax exemptions.
Massachusetts average solar cost: $3.16/W • Payback: 7.6 years • 25-year savings: $154,000
Available Incentive Programs in Massachusetts
SMART Program
Variable rate per kWh for 10 years
Max: $15,000
Eligibility:
Residential systems up to 25 kW on utility territory of Eversource, National Grid, or Unitil
How to Claim:
- 1Confirm your utility is Eversource, National Grid, or Unitil
- 2Apply through your solar installer before installation
- 3Installer submits SMART application to your utility
- 4Receive monthly bill credits for 10 years after interconnection
Note: Ongoing program with capacity blocks; earlier enrollment gets higher rates
Program websiteMass Save Solar Rebate
Up to $0.04/W
Max: $10,000
Eligibility:
Homeowners in IOU territory with pre-approval from Mass Save
How to Claim:
- 1Schedule a Home Energy Assessment through Mass Save
- 2Get pre-approval before solar installation
- 3Complete installation with a Mass Save approved contractor
- 4Submit rebate application with proof of installation
Note: Must complete Home Energy Assessment first
Program websiteSales Tax Exemption
6.25% sales tax exempt
Max: $2,200
Eligibility:
All residential solar installations in Massachusetts
How to Claim:
- 1Automatic — your installer excludes sales tax from the invoice
Note: Permanent exemption
Program websiteProperty Tax Exemption
20-year property tax exemption on added home value
Eligibility:
All residential solar in Massachusetts
How to Claim:
- 1Automatic — solar does not increase your property tax assessment for 20 years
Note: Permanent policy
Program websiteReady to Get a Solar Quote?
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Federal Credit: Not Available for Homeowners
Section 25D (the Residential Clean Energy Credit) expired December 31, 2025. Homeowners in Massachusetts who purchase solar with cash or a loan receive $0 in federal tax credits in 2026. Only third-party owned systems (lease/PPA) qualify for the 30% commercial ITC under Section 48/48E.
Other State Incentives
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