Massachusetts Solar Incentives (2026)

Massachusetts personal income tax credit for residential solar

Massachusetts offers a state personal income tax credit for qualifying residential renewable energy systems. The state rule provides a credit equal to 15% of the net expenditure, capped at $1,000 in most cases, and it's claimed on your Massachusetts return using the state's renewable energy credit schedule.

This is one of the clearest state-level Solar Incentives for homeowners because it's tied directly to what you paid (net of certain adjustments). If you're unsure what counts as "net expenditure," rely on the official Department of Revenue guidance and forms rather than installer summaries.

Massachusetts sales tax exemption for solar energy equipment

Massachusetts also provides a sales tax exemption for qualifying solar equipment used as a primary or auxiliary energy source in a principal residence under state law and Department of Revenue guidance.

In plain terms, this incentive usually shows up as a lower upfront cost at purchase because the state sales tax doesn't apply to qualifying equipment. The details can hinge on what's considered eligible "solar equipment" versus non-qualifying building materials, so it's worth verifying how your project is being invoiced.

Massachusetts property tax exemption for solar

Massachusetts law includes a property tax exemption that can help protect you from higher local property taxes due solely to the added value of a qualifying solar (or wind) system for a specified period.

Because property taxes are administered locally, the exemption is still grounded in state law, but you may need to confirm the documentation your local assessor expects (for example, proof of system type, installation date, and location).

The Massachusetts SMART program

SMART (Solar Massachusetts Renewable Target) is Massachusetts' flagship long-term solar incentive framework. It's structured as a declining block incentive program administered through the state's investor-owned utilities under Department of Energy Resources rules.

At a high level, SMART can provide value based on the electricity your system produces, and participation and paperwork typically flow through your utility's SMART process (or its portal). Eligibility and compensation can vary based on system size, location, and project attributes, and the program has evolved over time, so you should treat DOER's current program pages as the source of truth.

If your project will use utility portals to manage allocations or view incentive payment information, utilities such as Eversource publish resources for customers participating in net metering and SMART-related credit workflows.

Net metering in Massachusetts

Net metering is a major part of the Massachusetts value stack because it can reduce your bill when your solar system exports power to the grid. Massachusetts publishes a detailed net metering guide, including how host customers designate where credits go (including use of forms such as Schedule Z for certain allocations).

A few important realities for planning:

• Mass.gov outlines who is eligible and emphasizes that net metering is tied to being a customer of regulated electric companies (such as Eversource, National Grid, or Unitil), with additional rules and caps addressed in the state's laws and regulations pages.
• Utilities also publish their own net metering explanations and frequently asked questions that clarify how credits are calculated and applied on bills.

If you are served by a municipal light plant, your net metering or buyback structure may differ, so you'll want to check your specific utility's policy before finalizing system sizing.

Local and municipal rebates (where available)

Some Massachusetts municipal utilities run their own local solar rebate programs. For example, the Wellesley Municipal Light Plant publishes a solar rebate program for qualifying customers with defined caps and percentage limits.

The takeaway is that "Massachusetts Solar Incentives" can be utility-specific. If you're not on Eversource, National Grid, or Unitil, it's especially important to confirm local utility programs early—before you lock equipment size or financing.

What are needed for solar installation in Massachusetts

Homeowners and small businesses usually need the same core set of prerequisites, and these directly affect your ability to claim Solar Incentives:

• Your roof (or mounting site) needs adequate remaining life, appropriate structure, and manageable shading; a good installer will document this during the site assessment.
• Your electrical panel must have capacity for a solar backfeed or be upgraded if needed, which can affect budget and schedule.
• Local permits and inspections are required, and if you have an HOA or historic district rules, approvals may be needed before work starts.

From an incentives and interconnection standpoint, you should expect to provide utility account details and recent electric bills, sign interconnection and net metering paperwork, and keep final paid invoices and commissioning/permission-to-operate documentation for tax filing. Massachusetts' net metering resources emphasize that credit allocation and host customer requirements can involve specific forms and steps, so organization matters.

How to compare Solar Companies without losing incentives

You don't need a "perfect" quote—you need a quote that correctly reflects programs you can actually enroll in. When evaluating Solar Companies, focus on:

• Whether the proposal clearly states your utility territory and how net metering credits are expected to apply.
• Whether the installer explains SMART eligibility at a high level using DOER's current program rules (not outdated marketing claims).
• Whether the contract and invoice are itemized in a way that supports tax filing and any state credit documentation.

Also ask what happens if timelines slip—especially if a tax credit or program window is date-sensitive.