Massachusetts pays for rooftop solar in two separate ways, and the difference trips up a lot of homeowners. Massachusetts net metering credits the excess power your panels send to the grid at close to the full retail rate, so at the state’s roughly 30 cents per kilowatt-hour that credit is worth a lot. On top of that, the SMART program pays the system owner a fixed per-kilowatt-hour incentive for 20 years. This guide explains how both work in 2026 across Eversource, National Grid, and Unitil, what a typical system earns, and which older incentives have closed.
What actually pays you for solar in Massachusetts in 2026
- Net metering credits your exports near full retail value. Small residential systems (25 kW or less) are exempt from the net metering cap and earn bill credits at close to the retail rate, which is meaningful at a Massachusetts residential average of about 30.21 cents per kWh (EIA, as of March 2026; Mass.gov net metering guide, as of 2026).
- SMART pays a fixed 3 cents per kWh for 20 years. A residential system of 25 kW or less earns a flat base incentive of $0.03 per kWh, and an income-eligible system earns a flat $0.06 per kWh, both locked in for a 20-year term (Mass.gov SMART 3.0 program details, as of June 2026).
- The residential SMART rate does not step down. For systems 25 kW or less the rate is fixed for the full term; the declining, capacity-block rates apply only to larger systems (Mass.gov SMART 3.0 program details, as of June 2026).
- The state tax perks still apply. A 15% state income tax credit capped at $1,000 (Schedule EC), a 100% sales tax exemption, and a 20-year property tax exemption remain available in 2026 (Mass.gov Schedule EC / 830 CMR 62.6.1, as of 2026).
- The 30% federal homeowner credit is gone. Section 25D ended for systems placed in service after December 31, 2025, so a 2026 Massachusetts buyer cannot claim it (IRS, as of January 1, 2026).
Massachusetts solar credit numbers, dated
- Massachusetts residential electricity rate: about 30.21 cents per kWh, as of March 2026 (EIA).
- SMART 3.0 residential base incentive (systems 25 kW or less): a flat $0.03 per kWh for 20 years, as of June 2026 (Mass.gov).
- SMART 3.0 low-income incentive: a flat $0.06 per kWh for 20 years, as of June 2026 (Mass.gov).
- Net metering cap-exempt residential threshold: 25 kW nameplate, as of 2026 (Mass.gov).
- Massachusetts state income tax credit: 15% of net cost, capped at $1,000, as of 2026 (Mass.gov).
This is a 2026 guide. Program rates and caps are set by the state and reset over time, so the figures below carry their source and date; confirm the current value with your utility, your installer, and Mass.gov before you decide.
Does Massachusetts have net metering in 2026?
Yes. Massachusetts net metering is fully in place in 2026 for customers of all three investor-owned utilities: Eversource, National Grid, and Unitil. Net metering is a billing rule set by state law and the Department of Public Utilities, not by the utility, so the core mechanics are the same in each territory (Mass.gov net metering guide, as of 2026). When your panels make more electricity than your home is using, the surplus flows to the grid and your utility credits your account in dollars at close to the retail rate. Those credits roll forward month to month and offset the power you draw at night or in winter.
The credit is valued near the full retail rate for a normal home system. A small residential facility earns credits calculated from the utility’s basic service rate plus distribution components, which lands close to what you pay per kilowatt-hour (Mass.gov net metering guide, as of 2026). That near-retail value is the reason net metering is the single biggest driver of solar savings in Massachusetts, ahead of every incentive program, because the state’s electricity is expensive. For the plain-English mechanics of how a credit is created and applied, see how net metering credits your solar exports.
The net metering cap and the 25 kW residential exemption
A cap exists, but a normal home system is exempt from it. Massachusetts limits the total amount of net-metered capacity each utility must take, but small facilities do not count against that cap. As of 2026 the cap-exempt threshold for a small residential (Class I) facility is a single 25 kW nameplate limit (Mass.gov net metering guide, as of 2026). You will still see older guides quoting a 10 kW single-phase and 25 kW three-phase split; that phase-based split was superseded when the DPU expanded the program (DPU expands net metering, announced November 29, 2024). Because a typical Massachusetts home installs well under 25 kW, the practical answer is that your system is cap-exempt and earns the standard near-retail credit.
| Massachusetts utility | Net metering in 2026 | Cap-exempt residential size | Where to confirm your terms |
|---|---|---|---|
| Eversource | Near-retail bill credits, rolled forward | 25 kW nameplate or less | Your Eversource interconnection and net metering agreement |
| National Grid | Near-retail bill credits, rolled forward | 25 kW nameplate or less | Your National Grid net metering schedule |
| Unitil | Near-retail bill credits, rolled forward | 25 kW nameplate or less | Your Unitil net metering tariff |
All three follow the same state net metering rules; the cap-exempt threshold and near-retail crediting are set by the DPU, not by the individual utility (Mass.gov net metering guide, as of 2026).
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What is the SMART program, and how much does it pay?
SMART, the Solar Massachusetts Renewable Target, is a state incentive that pays the system owner a fixed per-kilowatt-hour amount for every kilowatt-hour the panels produce, for 20 years. It is a production-based payment that sits on top of net metering, not a rebate you get up front. In the 2026 program year, a residential system of 25 kW or less earns a flat base rate of $0.03 per kWh, and an income-eligible system earns a flat $0.06 per kWh (Mass.gov SMART 3.0 program details, as of June 2026). The program is administered by the Department of Energy Resources and is open to customers of the three investor-owned utilities. Your installer files the SMART application for you, and you choose whether the payment arrives as a check or as a credit on your utility bill.
SMART also carries adders that raise the rate for certain systems. Pairing a qualifying battery adds an energy-storage adder to the per-kilowatt-hour value, and there are adders for other project types; the adder values are set by the state and reset by program year, so ask your installer for the current number rather than budgeting around an old one (Mass.gov SMART 3.0 program details, as of June 2026; battery adder reported near $0.04 per kWh by EnergySage, as of January 2026). Because SMART pays on total production while net metering credits your exports, the two are separate value streams that stack.
| SMART 3.0 participant (2026) | Base per-kWh incentive | Term | Notes |
|---|---|---|---|
| Residential system, 25 kW or less | $0.03 per kWh, flat | 20 years, locked | The standard residential rate |
| Income-eligible residential system | $0.06 per kWh, flat | 20 years, locked | Higher flat rate for qualifying low-income customers |
| System paired with a qualifying battery | Base rate plus a storage adder | 20 years, locked | Adder value set by DOER; confirm the current figure |
Rates from Mass.gov SMART 3.0 program details (as of June 2026). The payment goes to the system owner, so on a lease or PPA the company that owns the panels keeps it.
Does the SMART rate step down over time like the old program?
No. For a residential system of 25 kW or less, the SMART rate is a flat value locked in for the full 20-year term, and it does not decline as you go. This is the single most common misunderstanding about the program. Earlier versions of SMART used a declining-block model where the rate stepped down as capacity filled, and the 2026 redesign replaced that with an annually adjusted structure for larger systems, which the DPU approved in 2026 (Mass.gov SMART 3.0 program details, as of June 2026; for a plain-English rundown of the changes, see this Massachusetts SMART 3.0 explainer, June 2026). The key point for a homeowner is that the block-and-step mechanics apply to the larger-system base compensation rates, not to you. Once your small residential system is accepted, your $0.03 or $0.06 per kWh is fixed for 20 years under the program tariff, regardless of what future program years set for new applicants.
What are net metering and SMART worth on a typical Massachusetts home?
Put together, net metering and SMART can return roughly $2,000 to $3,800 in the first year on a typical home system, most of it from the bill credit. The table below is our own estimate for three common system sizes, built from the state’s electricity rate and the SMART base rate. It assumes about 1,150 kWh of production per kilowatt of system each year, which is typical for Massachusetts; your roof will differ with pitch, shading, and orientation, so estimate yours with NREL’s free PVWatts calculator before you size a system.
| System size | Est. annual production | Net metering value at 30.21 cents per kWh | SMART payment at $0.03 per kWh (year) | SMART over 20 years |
|---|---|---|---|---|
| 6 kW | about 6,900 kWh | about $2,080 | about $207 | about $4,140 |
| 8 kW | about 9,200 kWh | about $2,780 | about $276 | about $5,520 |
| 10 kW | about 11,500 kWh | about $3,470 | about $345 | about $6,900 |
Estimate only, computed by MySolarFY. Inputs: Massachusetts residential rate of 30.21 cents per kWh (EIA, as of March 2026); SMART base residential rate of $0.03 per kWh (Mass.gov, as of June 2026); assumed production of about 1,150 kWh per kW per year for Massachusetts. The “net metering value” is the retail value of the electricity a system this size can offset, not a guarantee of your bill savings; actual savings depend on how much you use versus export, and a fixed monthly customer charge remains on your account. SMART pays on total production. A low-income system earns $0.06 per kWh, which doubles the SMART column.
Against a typical system price, that points to roughly a 7-year payback. A representative 8 kW Massachusetts install runs about $2.96 per watt, or near $23,700 before incentives (EnergySage Massachusetts data, as of January 2026). Take off the $1,000 state income tax credit and the 6.25% sales-tax exemption, and the combined net metering and SMART value of about $3,050 a year puts the estimated simple payback near 7 to 8 years for that system. Because the 30% federal residential credit (Section 25D) ended for systems placed in service after December 31, 2025, there is nothing federal to subtract from a 2026 purchase, so this payback rests entirely on the state programs. That still lines up with statewide payback estimates, but your own price depends on your roof and your installer quotes, so check what you qualify for at your address.
Note: Size your system close to your annual electricity use, not far above it. Net metering credits roll forward, but a large year-end surplus is typically trued up at a lower rate than the near-retail credit you bank month to month, so an oversized array gives back some of its value. Your installer should size to your usage and show you the math on today’s SMART rate, not an old one.
How do net metering and SMART stack together?
They are two different payments, and you generally get both. Net metering is a credit on your electric bill for the power you send back, valued near retail. SMART is a separate cash incentive paid on everything your system generates, at the fixed per-kilowatt-hour rate. Net metering lowers what you owe the utility; SMART adds a payment on top. The one place they diverge is ownership: the net metering credit follows the utility account holder, while the SMART payment goes to whoever owns the system. If you buy your system with cash or a loan, both benefits are yours. On a lease or a power purchase agreement (PPA), the third-party owner keeps the SMART payment and any tax benefits tied to owning the equipment, while your benefit is the lower or fixed power price. To weigh ownership against a no-up-front-cost path, see whether solar is worth it in 2026.
Other Massachusetts solar incentives that still apply in 2026
Beyond net metering and SMART, Massachusetts keeps a stack of state tax benefits that a homeowner who owns the system can use. These are still active in 2026; only the federal homeowner credit ended.
- A state income tax credit (Schedule EC) worth 15% of the net system cost, capped at $1,000, for your principal residence, with a three-year carryforward if your tax bill is smaller than the credit (Mass.gov Schedule EC / 830 CMR 62.6.1; MA DOR residential credits, as of 2026).
- A 100% sales tax exemption on qualifying solar equipment for your home, which removes the state’s 6.25% sales tax, claimed with Form ST-12 (Mass.gov sales and use tax, as of 2026).
- A 20-year property tax exemption on the value a qualifying solar system adds, so your assessment does not rise because of the panels for two decades (M.G.L. c.59 s.5, Clause 45; Mass.gov solar abatement guidance, as of 2026).
| Massachusetts incentive (2026) | What it is worth | Who claims it |
|---|---|---|
| Net metering | Near-retail bill credits on exported power | The utility account holder |
| SMART incentive | $0.03 per kWh flat ($0.06 low-income), 20 years | The system owner |
| State income tax credit (Schedule EC) | 15% of net cost, up to $1,000 | The system owner (a purchaser) |
| Sales tax exemption | 100% of the 6.25% state sales tax | The purchaser |
| Property tax exemption | 20 years on the added system value | The homeowner |
| Federal residential credit (Section 25D) | Ended for systems placed in service after December 31, 2025 | Not available to 2026 homeowner-buyers |
For how these fit with programs in other states, see the solar incentives that still apply in 2026 and our Massachusetts solar guide.
What happened to SRECs in Massachusetts?
Massachusetts no longer enrolls new systems in SRECs; SMART replaced them. The older Solar Renewable Energy Certificate markets, SREC I and SREC II, are closed to new projects. SREC I stopped accepting new systems in 2014, and SREC II closed in November 2018 when SMART launched (Mass.gov Solar Carve-out and Solar Carve-out II, as of 2026). A homeowner going solar in 2026 cannot sign up for an SREC; the SMART incentive above is the current successor. If you read about neighbors “selling SRECs,” they enrolled years ago and are finishing out their original terms. For a new system, the per-kilowatt-hour SMART payment is the program that applies.
Does Massachusetts still have the 30% federal solar tax credit in 2026?
No. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Massachusetts homeowner who buys solar in 2026 with cash or a loan cannot claim it (IRS; SEIA, as of 2026). Search results and older installer pages still describe a 30% homeowner credit running for years; that reflects the pre-2026 rule, and the homeowner version has already ended. What did not change is the Massachusetts side: net metering, SMART, and the state tax benefits above all continue, and at the state’s high electricity rates the local case for solar still holds. For the full timeline, see what the federal solar tax credit change means in 2026.
The only federal solar credit left in 2026 is a commercial one, and it is not the homeowner’s to claim. Section 48E can apply to a leased or PPA system, but the business that owns the equipment claims it, not the resident, and the value shows up as a lower lease or PPA price rather than a credit on your own return (IRS Clean Electricity Investment Credit, as of 2026). This is separate from the residential Section 25D credit, which ended for systems placed in service after December 31, 2025. MySolarFY does not provide tax advice; confirm your own situation with a tax professional.
How MySolarFY researches these numbers
Every rate, cap, and program figure on this page is pulled from a primary source and dated: the electricity rate from the EIA, the SMART and net metering rules from Mass.gov and the Department of Energy Resources, the tax benefits from the Massachusetts Department of Revenue, and each material claim run through a fact-check against those primary sources. Programs change, so we date every figure and re-check it. See our data sources and how we research each page and how MySolarFY works and how we choose installers.
Massachusetts is one of several states where the net metering successor question matters. For how neighboring states handle it, compare how New York’s VDER successor credits solar, Maryland net metering and SRECs, and Connecticut’s net billing tariff. For the two utilities most Massachusetts homeowners deal with, see Eversource Massachusetts net metering and rates and National Grid Massachusetts solar and net metering, or start with your city in Boston or Worcester.
Frequently asked questions
Does Massachusetts have net metering in 2026? Yes. Massachusetts net metering is in place in 2026 for customers of Eversource, National Grid, and Unitil. When your panels produce more than your home uses, the surplus goes to the grid and your utility credits your account in dollars at close to the retail rate, and those credits roll forward month to month (Mass.gov net metering guide, as of 2026). Small residential systems of 25 kW or less are exempt from the net metering cap, so a normal home system always qualifies for the standard near-retail credit. Net metering is set by state law and the Department of Public Utilities, so the core rules are the same across all three utilities.
How much does the SMART program pay in Massachusetts? In the 2026 program year, a residential system of 25 kW or less earns a flat SMART incentive of $0.03 per kWh, and an income-eligible system earns a flat $0.06 per kWh, both paid for a 20-year term (Mass.gov SMART 3.0 program details, as of June 2026). SMART pays the system owner for every kilowatt-hour the panels produce, on top of the net metering credit on your bill. Pairing a qualifying battery adds a storage adder to the rate. The exact adder values are set by the state and reset by program year, so ask your installer for the current figure for your project.
Does the SMART rate go down over time? No, not for a residential system of 25 kW or less. That rate is a flat value locked in for the full 20-year term and does not decline as you go (Mass.gov SMART 3.0 program details, as of June 2026). The declining, capacity-block rates that older guides describe apply to larger systems, not to a typical home. Once your small residential system is accepted into the program, your $0.03 or $0.06 per kWh is fixed under the tariff, no matter what future program years set for new applicants.
Are SRECs still available in Massachusetts? No. The older SREC I and SREC II markets are closed to new systems, so a homeowner going solar in 2026 cannot enroll in them (Mass.gov Solar Carve-out and Solar Carve-out II, as of 2026). SREC I closed to new projects in 2014 and SREC II closed in November 2018 when the SMART program launched. SMART is the current successor incentive, and it pays a fixed per-kilowatt-hour amount instead of tradable certificates. Systems that enrolled in an SREC market years ago continue to finish out their original terms.
Is the 30% solar tax credit going away in 2026? It already has, for homeowners. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Massachusetts homeowner who buys solar in 2026 with cash or a loan cannot claim it (IRS, as of 2026). A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the company that owns the system claims it, not you. Massachusetts net metering, SMART, and the state tax benefits were not affected, so the local case for solar still holds. MySolarFY does not provide tax advice; consult a tax professional about your own situation.
How do net metering and SMART work together? They are two separate payments and you usually get both. Net metering is a credit on your electric bill for the power you export, valued near the retail rate. SMART is a cash incentive paid to the system owner on all the electricity the system produces, at a fixed per-kilowatt-hour rate for 20 years (Mass.gov SMART 3.0 program details, as of June 2026). If you own the system, both are yours. On a lease or PPA, the third-party owner keeps the SMART payment while your benefit is a lower or fixed power price, and the net metering credit still follows your utility account.
Can I get solar in Massachusetts with no up-front cost? Some homeowners can, through a lease or power purchase agreement (PPA) where eligible, which can mean no out-of-pocket cost at installation in exchange for monthly payments. This is not free solar; it is a long-term agreement, and total payments may exceed the cost of a cash purchase. On a lease or PPA the third-party owner, not you, collects the SMART payment and any tax benefits tied to owning the equipment, while your benefit is a lower or fixed power price. If you want to own the system and keep the SMART payment and the state tax credit yourself, a cash purchase or solar loan is the path that keeps them. Check what you qualify for before deciding.
Reviewed by the MySolarFY editorial team. Figures were verified against the linked Mass.gov (DOER, DPU, DOR, DLS), EIA, IRS, and SEIA sources as of July 2026. Net metering caps, the SMART 3.0 rate and term, and the state tax benefits can change, so confirm current terms with Eversource, National Grid, Unitil, and Mass.gov before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms are long-term agreements, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the SMART payment and any federal tax benefit go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit (Section 25D) that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
