State solar guide
Massachusetts has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 | NREL PVWatts (verify at your assessment) | EnergySage mid-2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Massachusetts provides full retail rate net metering for residential systems up to 25 kW, crediting exports at the full retail distribution rate of approximately 30 to 31 cents per kWh as of 2026, among the highest net metering credit rates in the country. Net Metering Credits carry forward monthly with periodic cash-out options for excess credits. Massachusetts Department of Public Utilities docket 25-200, opened January 2026, is investigating potential reductions to net metering credit rates for new applicants, and an adverse ruling could reduce export value for systems installed after a future rule change. Current full retail rate remains in effect for all existing and new customers as of mid-2026. As of 2026-06, verify current policy at dsireusa.org or with your utility.
Eversource (formerly NSTAR and Western Massachusetts Electric), National Grid (eastern Massachusetts), Unitil (northeast and central MA), and Cape Light Compact (Cape Cod and Martha's Vineyard) all administer net metering. Credits at the full retail delivery rate, not including competitive supply charges.
Program: NM1_full_retail. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Massachusetts utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Massachusetts homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Massachusetts Residential Energy Credit State income tax credit The $1,000 cap limits value for larger systems. Combined with other state incentives it still contributes meaningfully to the incentive stack. | 15% of qualified expenditures, maximum $1,000 15% of the cost of a qualifying solar energy system, capped at $1,000 per installation. Filed via Schedule EC on the Massachusetts income tax return. Most systems exceed the $6,667 threshold that hits the $1,000 cap. Carryforward allowed up to 3 years for unused credits. Permanent program with no current expiration date. | Massachusetts resident. System must be installed at the taxpayer's principal Massachusetts residence. Filed on state income tax return via Schedule EC. | Active | DSIRE (opens in new tab) |
| SMART 3.0 (Solar Massachusetts Renewable Target) Production Tariff Production incentive (10-year fixed payment) Block capacity fills periodically. Verify available blocks in your utility territory and income category with DOER or your installer before proceeding. Low-income adder requires income verification. | $0.03 per kWh base (residential); $0.07 per kWh with battery storage; $0.06 per kWh low-income base Per-kWh production payment for residential systems enrolled in the SMART 3.0 program. Base residential rate: $0.03 per kWh for 10 years on all production. Battery storage adder: $0.04 per kWh (total $0.07 per kWh). Low-income household rate: $0.06 per kWh base. Program capacity allocated in blocks by utility territory, verify current block availability before signing. Payments are in addition to net metering credits. | Massachusetts residential customers of Eversource, National Grid, Unitil, or Cape Light Compact. System must be registered with DOER through the utility's SMART program portal. Block availability required. | Active | DSIRE (opens in new tab) |
| ConnectedSolutions Battery Demand Response Battery storage incentive (annual performance payment) Annual performance payments vary based on actual demand reductions performed during events. Enrollment open to qualifying batteries; confirm your battery model and utility territory before relying on this income in payback calculations. | $225 to $275 per average kW performed per summer season Demand response program for battery storage systems. Eversource, National Grid, Unitil, and Cape Light Compact participate. Pays $225 to $275 per average kW of demand reduction performed during summer events (June to September, 3 PM to 8 PM, maximum 60 events per summer). A typical household with two Powerwall batteries earns approximately $1,000 to $1,500 per year. | Massachusetts residential customers of Eversource, National Grid, Unitil, or Cape Light Compact with a qualifying battery storage system. Battery must be enrolled in the ConnectedSolutions program. Annual enrollment required. | Active | DSIRE (opens in new tab) |
| Massachusetts Property Tax Exemption (Solar) Property tax exemption Confirm exemption is applied at your local assessor's office after installation. | Full assessed value increase excluded for 20 years 20-year exemption on added property value from a solar installation under MGL c. 59, Section 5, clause 45. Prevents solar from increasing the property's assessed value or annual property tax bill for 20 years. | Massachusetts residential property with a qualifying solar energy system. | Active | DSIRE (opens in new tab) |
| Massachusetts Sales Tax Exemption on Solar Equipment Sales tax exemption Confirm exemption is applied by your installer at the time of purchase. | Full exemption from 6.25% state sales tax Full exemption from Massachusetts 6.25% state sales tax on residential solar energy equipment and installation labor. Saves approximately $1,900 on a typical 10 kW system. | Residential solar energy equipment purchased and installed in Massachusetts. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Battery storage incentives in Massachusetts
ConnectedSolutions battery demand response: $225 to $275 per average kW performed per summer season (June-September, 3 PM-8 PM events, max 60 per summer). A typical two-battery household (Powerwall or equivalent) earns approximately $1,000 to $1,500 per year. SMART 3.0 battery storage adder: $0.04 per kWh on top of the $0.03 base rate = $0.07 per kWh total for battery-paired systems.
Savings example
This example uses real Massachusetts market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
Annual production estimated at 10,500 kWh based on 3.84 peak sun hours statewide. Full retail net metering at 30.46 cents per kWh. SMART 3.0 base rate income $315 per year for 10 years. Rate escalation at 3% annually. System price at $2.97 per watt market average. Federal residential credit: $0 (expired). Adding ConnectedSolutions battery income ($1,000 to $1,500 per year) would reduce payback to 5 to 7 years. Figures are illustrative.
Massachusetts homeowner savings example, Eversource territory (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Massachusetts solar permitting is managed at the local AHJ (Authority Having Jurisdiction) level with no statewide permit fee cap as of 2026. Boston and larger cities average 4 to 8 weeks for residential permits; suburban communities and smaller towns average 2 to 4 weeks. Utility interconnection with Eversource or National Grid adds 4 to 10 weeks after permit issuance. SolarAPP+ automated permit approval has limited adoption in Massachusetts as of 2026, most jurisdictions use standard plan review. Contract to energization typically runs 10 to 18 weeks. SMART 3.0 enrollment through the utility and DOER adds additional administrative steps after installation.
SMART 3.0 program enrollment requires coordination between the installer, utility, and DOER. Confirm SMART 3.0 block availability in your utility territory before signing, program blocks fill and new capacity is added periodically.
Commercial solar in Massachusetts
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Massachusetts business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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