Solar incentives and rebates in Massachusetts (2026): SMART 3.0, tax credit and exemptions

Solar incentives in Massachusetts, as of November 2026, are built around four state programs. SMART 3.0 pays home systems of 25 kW or less a fixed rate per kWh for 20 years. A state income tax credit covers 15% of the cost, up to $1,000. Solar equipment is exempt from sales tax and from local property tax for 20 years. Net metering credits are also worth close to the full retail rate for most home systems. The federal 30% residential credit (25D) is not allowed for expenditures made after December 31, 2025, and a solar expenditure counts as made when installation is complete.

Key takeaways

• SMART 3.0 pays home systems of 25 kW or less $0.03 per kWh in 2026, or $0.06 per kWh for low-income qualified customers, for up to 20 years. The DPU approved the utilities' SMART 3.0 tariffs on July 8, 2026.
• Only Eversource, National Grid and Unitil customers can use SMART. Municipal light plant customers cannot.
• The state personal income tax credit is 15% of net cost, capped at $1,000.
• Equipment for a solar system on your principal residence is exempt from sales tax. Qualifying systems are exempt from local property tax for 20 years.
• No federal 30% credit: 25D is not allowed for expenditures made after December 31, 2025, which for solar means installation completed after that date.

Massachusetts solar incentives at a glance

Here are the programs a Massachusetts homeowner can use today, with the details we confirmed in November 2026.

Incentive	Run by	What you get	Main conditions
SMART 3.0	Department of Energy Resources (DOER), paid by utilities	$0.03/kWh base or $0.06/kWh low-income, for up to 20 years (2026 rates)	25 kW or less; construction started on or after June 20, 2025; Eversource, National Grid or Unitil territory
Residential renewable energy credit	Department of Revenue	15% of net cost, max $1,000	Personal income tax; M.G.L. c. 62, § 6(d)
Sales tax exemption	Department of Revenue	No sales or use tax on the equipment	System serves your principal residence
Property tax exemption	Local assessors	Solar not taxed for 20 years	Produces no more than 125% of the property's annual needs, or is 25 kW or less
Net metering	Department of Public Utilities (DPU) and utilities	Bill credits for exported power, close to retail for small systems	Class I systems of 25 kW or less are exempt from the net metering caps
Federal 25D credit	IRS	None for new systems	Not allowed for expenditures made (installation completed) after Dec. 31, 2025

SMART 3.0: the main Massachusetts solar incentive

SMART stands for Solar Massachusetts Renewable Target. After a 2025 program review, DOER launched a third version. Program Year 2026 applications opened January 1, 2026, and each later program year is set to open on January 1. Applications are handled in the order received.

How much SMART 3.0 pays

According to MassCEC, residential systems of 25 kW or smaller get a flat rate for every kWh they produce:

• Base rate (2026): $0.03 per kWh
• Low-income qualified rate (2026): $0.06 per kWh
• Term: up to 20 years after installation

Your rate is locked in for the term once you qualify, but DOER can set different rates for later program years. Under the schedule described by National Grid, DOER publishes a draft annual report by October 1 and a final version by December 1. DOER posted its draft report for Program Year 2027 on October 1, 2026, so rates for projects that qualify in 2027 may differ from the 2026 figures above. Check the final report before you sign.

Who can use SMART 3.0

• On-site construction must have started on or after June 20, 2025.
• The system must not have received incentives under an earlier SMART program or the Renewable Portfolio Standard.
• You must be a customer of Eversource, National Grid or Unitil. Customers of municipal light plants are not eligible.
• Payments come from your utility as a check or as bill credits. If you lease or sign a PPA, ask the third-party owner how SMART affects your price.

Your installer normally applies for you to reserve a spot in the current program year. Before you sign, read the contractor's Customer Disclosure Form and the Direct Ownership Disclosure form.

Payment timing

SMART 3.0 payments needed a utility tariff approved by the Department of Public Utilities (DPU). According to DOER's program page, the DPU approved the revised tariff on May 19, 2026 and the Eversource, National Grid and Unitil tariffs on July 8, 2026, after which DOER began issuing final qualification statements. Ask your installer when your first SMART payment is expected. A system that is running before it qualifies can still earn net metering credits.

DOER said the older SMART 2.0 program would remain open for applications until December 31, 2026, generally for projects that began construction before December 31, 2025.

Massachusetts solar tax credit and tax exemptions

15% state income tax credit

Massachusetts offers a personal income tax credit equal to 15% of the net cost of renewable energy equipment or $1,000, whichever is less. It is in M.G.L. c. 62, § 6(d). Because 15% of $6,667 is about $1,000, any system with a net cost above roughly $6,667 reaches the cap. Ask a tax professional how it fits your return.

Sales tax exemption

Under M.G.L. c. 64H, § 6(dd), equipment for a solar, wind or heat pump system used as a primary or auxiliary energy source in a principal residence is exempt from sales and use tax. Your installer's invoice should not include sales tax on the system.

20-year property tax exemption

The Division of Local Services explains that Clause 45 of the property tax law exempts solar systems for 20 years. The owner and town can agree in writing to extend that. A home system qualifies if it does one of these:

• produces no more than 125% of the property's annual electricity needs, or
• is 25 kW or smaller, shown by DOER incentive paperwork or the utility's permission to operate.

A third route, a payment in lieu of taxes agreement with the town, mainly applies to larger projects. The DLS page does not describe a standard state form. You prove eligibility to your local assessors by showing the system's makeup, its maximum output and your home's annual electricity use. A new application is only needed if those facts change.

Net metering: how your exports become bill credits

Net metering is a large part of the value of solar in Massachusetts. Systems of 60 kW or less are Class I. Class I systems of 25 kW or less are exempt from the net metering caps. The DPU raised that threshold from 10 kW in D.P.U. 23-140-A. That means most home systems can still net meter even where a utility's cap is full.

Credits for small systems include the basic service, distribution, transmission and transition parts of your rate. A state example for an Eversource East residential customer in August 2024 came to about 27.6 cents per kWh, though rates change often. Unused credits roll forward. Read the full details in our guide to net metering in Massachusetts.

Battery storage in Massachusetts

Massachusetts pays battery owners for helping the grid, rather than offering an upfront rebate. Under Mass Save's ConnectedSolutions program, customers of Eversource, National Grid and Cape Light Compact earn $275 per kW for the battery's average output during summer events. Mass Save's own example is a battery that contributes 5 kW, which could earn up to $1,375 per year. Events can be called up to 60 times a summer, for up to three hours each, on non-holidays between June 1 and September 30, from 3:00 to 8:00 p.m.

To join, install a battery from Mass Save's approved manufacturers list (inverter under 50 kW) and enroll through the manufacturer's ConnectedSolutions program. Batteries also qualify for the 0% Mass Save HEAT Loan, up to $25,000. The Clause 45 property tax exemption also covers solar systems co-located with energy storage. See our guide to virtual power plant programs for battery owners for how event-based payments work.

How to claim Massachusetts solar incentives

1. Collect quotes and confirm each installer will file your SMART 3.0 application. Our solar quote checker can flag pricing issues.
2. Check eligibility for the low-income SMART rate if your household may qualify.
3. Get interconnection approval from your utility and file for net metering.
4. Claim the 15% credit on your state income tax return for the year of installation.
5. Notify your assessors to apply the Clause 45 property tax exemption.

Is solar worth it in Massachusetts without the federal credit?

The higher your price per kWh, the more each kWh from your panels is worth, so start by checking your actual rate. Near-retail net metering, 20 years of SMART payments and the tax exemptions all help. Even so, the loss of the federal credit means your upfront cost is higher than it was for 2025 buyers, so get several quotes and compare price per watt. See local production estimates on our Massachusetts solar panels page and your current price per kWh on our Massachusetts electricity rates page.

Next steps

Ask installers which SMART 3.0 rate you would lock in and when payments would start. Then model your system with our solar panel calculator.