Massachusetts runs one of the more layered solar incentive landscapes in the country: a state production incentive, a required net metering credit, a separate battery demand-response program, a state income tax credit, and two tax exemptions. The federal tax credit that used to be part of most quotes is gone for new installations. This page explains what exists today, who administers each program, and what to ask an installer. It is general information, not a savings estimate; your own numbers depend on your roof, usage, system size and the proposal in front of you.
SolarSiteIQ connects Massachusetts homeowners with one qualified local installer for a free, no-obligation home assessment. We are an independent matching service, not a government program, an installer, or an administrator of any program described below, and none of these programs are affiliated with or endorsed by SolarSiteIQ.
Federal: the 25D credit is gone for 2026 installs
The federal Residential Clean Energy Credit (Section 25D) covered 30 percent of a qualifying system’s cost, but per the IRS it is not available for expenditures made after December 31, 2025. Per the IRS’s Form 5695 instructions, an expenditure is treated as made when the original installation is completed, not when a contract is signed, so a 2026 installation generally will not qualify. If an installer proposes a lease or power purchase agreement (third-party-owned solar), a separate commercial credit may apply to the company that owns the system, not to you directly, and what that is worth to you varies by contract. Ask for that in writing and confirm anything tax-related with a professional.
SMART: the state’s main production incentive
SMART (Solar Massachusetts Renewable Target) is run by the state’s Department of Energy Resources. The current version, SMART 3.0, took effect in 2025 and adjusts incentive values annually rather than on the old fixed declining-block schedule. It is only available to customers of the three investor-owned utilities: Eversource, National Grid and Unitil. Municipal Light Plant customers are not eligible for SMART, though some municipal utilities offer their own separate, locally-set incentive. As of this writing, DOER lists a residential base rate of about $0.03 per kilowatt-hour, a higher rate for income-qualified customers, and an added rate if you install a battery alongside solar. How long payments last is set in the program rules (225 CMR 28.00), so ask your installer to confirm the term for your system. Because these figures are adjusted annually, ask your installer to show you DOER’s current published rate rather than relying on an older number. You do not apply to SMART directly; your installer applies on your behalf as part of the installation.
Net metering
Net metering is required of Eversource, National Grid and Unitil under rules set by the Department of Public Utilities. Residential (Class I) systems up to 25 kW generally receive a close to one-to-one retail-rate credit for electricity they export, though a small set of non-bypassable charges can make the effective credit somewhat under 100 percent. Credits roll over month to month. National Grid’s own page describes this as credits “nearly equal to retail rates.” The Department of Public Utilities currently has an open proceeding, D.P.U. 25-200, reviewing electric and gas delivery charge and bill design broadly, which includes net metering credit value among the questions it is examining; no decision changing net metering has been issued as of this writing, so the terms above remain in effect. Municipal Light Plant customers are not covered by this mandate and should confirm their own utility’s terms directly. See our Eversource page and National Grid page for utility-specific detail.
Mass Save and ConnectedSolutions
Mass Save is the utility-sponsored energy efficiency program that also offers incentives relevant to a solar-plus-battery project. Its ConnectedSolutions program is separate from both SMART’s battery adder and a battery’s own backup function: it is an opt-in, performance-based payment for letting your utility draw stored battery power during a limited number of summer peak-demand events (roughly June through September, afternoons and early evenings, up to about 60 events a season). Payment is based on your battery’s measured average performance across the season’s events, not a flat guaranteed amount, and is calculated at roughly $275 per kilowatt of that average contribution. Eligible sponsors are Cape Light Compact, Eversource and National Grid; Mass Save programs are generally not available to Municipal Light Plant customers. Enrollment happens through your battery manufacturer’s own platform, not automatically at installation.
Massachusetts tax treatment
- Sales tax exemption: solar (and related storage) equipment for a principal Massachusetts residence is exempt from the state’s 6.25 percent sales tax under state law; your installer typically applies this at the point of sale.
- Property tax exemption: the added value a qualifying solar or storage system contributes to your home is exempt from local property tax assessment for 20 years, subject to a sizing condition tied to your property’s energy needs; no homeowner application is typically required.
- State income tax credit (Schedule EC): a separate, much smaller credit than the old federal credit: 15 percent of net system cost, capped at $1,000, non-refundable, with any unused amount carried forward up to 3 years. Confirm the current-year form and figures with a tax professional, since the state reissues the schedule annually.
What to ask an installer
- Which utility do I have, and does that affect SMART or ConnectedSolutions eligibility?
- What is DOER’s current published SMART rate for my system size, and when was it last updated?
- If you propose a lease or power purchase agreement, who owns the system and who claims any tax credit?
- Will you help me apply the sales tax exemption, and what do I need to do for the property tax exemption?
- If I add a battery, will you walk me through ConnectedSolutions enrollment separately from the installation?
When this last changed
The federal credit’s repeal applies to installations after December 31, 2025. SMART 3.0 took effect in 2025 with annual rate adjustments going forward. The Department of Public Utilities opened its delivery-charge and bill-redesign review, which touches on net metering, in April 2026 and has not yet ruled. Programs and rates can change again; confirm current terms directly with the program or utility before signing a contract.
Common questions
Is there still a federal solar tax credit in Massachusetts in 2026?
No, not for expenditures made after December 31, 2025 for a homeowner-owned system. Confirm your specific situation with a tax professional.
Does SolarSiteIQ administer SMART, net metering or ConnectedSolutions?
No. SMART and net metering are state-regulated programs; ConnectedSolutions is run by Mass Save and the utilities. SolarSiteIQ is an independent service that connects homeowners with a local installer and does not run or guarantee any of these programs.
Is net metering going away?
Not based on anything decided so far. An open state review (D.P.U. 25-200) includes net metering’s credit value among the topics it is examining, but no ruling has changed the current terms as of this writing.
Do I automatically get paid for ConnectedSolutions if I buy a battery?
No. Enrollment requires a qualifying battery and sign-up through the manufacturer’s platform; it does not happen automatically at installation.
Are Municipal Light Plant customers eligible for these programs?
Generally not for SMART, the DPU net metering mandate, or Mass Save. Some municipal utilities offer their own separate programs; confirm directly with your provider.
How do I get started?
Start with a free, no-obligation assessment through SolarSiteIQ at /solar-step-1/, and bring the questions above to any installer you talk to.
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