Massachusetts Solar Incentives: 2026 Guide
While the upfront cost of installing a solar energy system can be substantial, Massachusetts provides a range of incentives to help lower the cost. Below is an overview of every major solar incentive available in the state and how each one can benefit Massachusetts residents.
Massachusetts Tax Credit and Rebates
Massachusetts offers several tax credits and exemptions to keep initial costs low.
Tax Credit: A tax credit directly reduces your income tax liability.
Tax Exemption: A tax exemption relieves you from paying taxes on a particular product or service.
Rebate: A rebate is a partial refund in the cost of a product or service after the purchase has been made. Many solar rebates are paid out through multiple years.
Here are the available solar incentives in Massachusetts.
Federal Tax Credit
Residential Solar
The federal solar tax credit for residential projects has been eliminated for systems placed in service after December 31st, 2025, under the newly passed federal bill.
Commercial Solar
The federal solar tax credit remains at 30% of system costs through 2032. It will decrease to 26% in 2033 and 22% in 2034.
Residential Renewable Energy Income Tax Credit
Massachusetts offers a 15% state tax credit, capped at $1,000, for qualifying solar installations on a homeowner’s primary residence.
Net-Metering
In cases where a solar system generates more electricity than a home uses, net-metering allows homeowners to send this excess energy to the grid in exchange for bill credits.
ConnectedSolutions
ConnectedSolutions pays homeowners to discharge energy from their battery systems during peak demand periods.
- Earn approximately $1,000 per battery per year for five years
- Total estimated earnings: ~$5,000 per battery
- No limit on the number of batteries enrolled
Solar Installation Property Tax Exemption
Even though solar (done the right way) increases home value, Massachusetts exempts homeowners from paying additional property taxes on their solar installation for 20 years.
Home Solar Project Sales Tax Exemption
All components of a home solar energy system are exempt from the 6.25% state sales tax.
Renewable Energy Certificate (REC) Program
Homeowners can earn quarterly payments indefinitely by selling their renewable energy credits on the open market.
REC values fluctuate based on demand from companies purchasing renewable energy.
Solar Massachusetts Renewable Target (SMART) Program
Similar to RECs, the SMART program compensates homeowners for every kilowatt-hour their solar system produces. Payments continue for 10 years, issued directly through the utility company.
Mass Solar Loan Program
Income-qualified homeowners may be eligible for low-interest financing to help cover the cost of installing a solar energy system.
Estimated Savings Overview
Average Savings After Incentives
On average, the tax credits, rebates, and incentives cover 10-15% of the total cost of the system.
Hypothetical Example
All these solar incentives may seem complicated so, we’ve put together a hypothetical example to help you better understand your potential savings.
| Hypothetical System Cost* | $40,000 |
| Residential Renewable Energy Tax Credit | -$1,000 |
| Renewable Energy Certificate | -$4,000 |
| Net Cost | $35,000 |
| Total Savings | $5,000 |
*The above example is purely hypothetical. Our solar systems custom-designed for each home, and costs will vary.
Our Conclusion
Massachusetts is one of the top states supporting solar adoption through strong state-level incentives and policies. Even with the federal solar tax credit ending after 2025, homeowners can still significantly reduce electricity costs and benefit from long-term savings.
We are here to answer any of your questions. Call us today, 508-988-8888
