How solar works in Massachusetts in 2026
The federal tax credit changed
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you buy a system outright or with a loan in 2026, you cannot claim it. With a lease or power purchase agreement the solar company owns the system and may still qualify for business credits, which can affect the price you are offered. Ask any provider how this applies to your quote.
Net metering
Residential systems in Massachusetts earn net metering credits for power sent to the grid, which reduce what you pay when your panels produce less.
SMART 3.0
The Solar Massachusetts Renewable Target program, relaunched as SMART 3.0 in 2025, pays a set incentive for each kilowatt-hour your system produces over 20 years, with higher rates for income-eligible households. Rates step down as capacity fills, so check the current block.
State tax credit and exemptions
Massachusetts offers a personal income tax credit of 15% of the cost of a residential system, up to $1,000. Solar equipment is exempt from sales tax, and the added value is exempt from property tax for 20 years.
Batteries and community solar
Battery owners can earn incentives through Mass Save's ConnectedSolutions program for supplying power at peak times. Renters and homeowners with unsuitable roofs can subscribe to community solar.
Utilities: Eversource, National Grid and Unitil (municipal light plants set their own rules).
Common questions
Is there a solar tax credit in Massachusetts in 2026?
The federal credit ended for systems installed after 2025, but the Massachusetts credit of 15% of cost, up to $1,000, is still available.
What is SMART 3.0?
It's the state's solar incentive, paying a set amount for each kilowatt-hour your system produces over 20 years.
Official sources
This guide is general information, not financial or tax advice. Program rules and rates change; confirm current terms with the program administrator or a tax professional.